Management strategy performance

  

Professional Assignment 1 – CLO 3

Review:

Two Contemporary Companies’ Use of Crowdsourcing: Threadless and Challenge Post on Page 77 Answer:

1.      Why is Threadless so successful?

2.      What competitive advantages do they have over comparable design firms using traditional strategies for product design?

3.      What is the logic of crowdsourcing and why has it caught on in so many areas and for so many applications?

4.      What are some potential traps and limitations of crowdsourcing efforts?

5.      Identify at least two other businesses, or business functions, that you think could achieve breakthrough gains via the use of crowdsourcing.

Document your citations throughout the text of a 4 – 6 page paper; APA is the accepted format for all Westcliff University classes. Your papers must include an introduction and a clear thesis, several body paragraphs, and a conclusion. Top papers demonstrate a solid understanding of the material and critical thinking.

Discussion Question 1 – Applied Concepts (AC) – Week/Course Learning Outcomes

Using your textbook, LIRN-based research, and the Internet, apply the learning outcomes for the week/course and lecture concepts to one of the following scenarios:

As applied to your current professional career

As applied to enhancing, improving, or advancing your current professional career

As applied to a management, leadership, or any decision-making position

As applied to a current or future entrepreneurial endeavor

OR

Using your textbook, LIRN-based research, and the Internet, apply the learning outcomes for the week/course and lecture concepts to a business organization that exhibits and demonstrates these concepts. You should develop a summary of the organization’s strategy and how they use these concepts to compete.

This is a learning and application exercise designed to give you an opportunity to apply concepts learned in a pragmatic and meaningful way that will enable you to gain valuable and relevant knowledge in an effort to augment your skill set and enhance your professional careers.

NYSE Market

Date Open High Low Close Adj Close Volume HPY Return

s-

Mean

(Returns-Mean)

2

Feb-

1

6

9,578.92 9,682.93 8,944.05 9,559.53

9,559.53

93,049,560,000 Mar-16 9,626.88 10,281.69 9,613.96 10,207.37

10,207.37

92,639,420,000 0.0677690039 10,207.36 104,190,24

0.41 Apr-16 10,132.58 10,593.21 10,004.77 10,436.92

10,436.92

81,124,990,000 0.0224886334 10,436.91 108,929,129.47 May-16 10,45

0.13 10,503.41 10,119.65 10,441.00

10,441.00

75,101,210,000 0.0003909274 10,440.99 109,014,312.95 Jun-16 10,385.93 10,648.05 9,918.72 10,489.76

10,489.76

86,852,700,000 0.0046700283 10,489.75 110,034,891.11 Jul-16 10,495.08 10,815.43 10,308.22 10,785.51

10,785.51

69,530,250,000 0.0281941633 10,785.50 116,327,047.31 Aug-16 10,768.75 10,89

2.15 10,619.39 10,764.75

10,764.75

75,610,310,000 -0.001924783 10,764.74 115,879,669.30 Sep-16 10,762.45 10,903.86 10,48

7.80 10,721.74

10,721.74

77,270,240,000 -0.0039954264 10,721.73 114,955,541.07 Oct-16 10,721.85

10,721.85

10,425.91 10,481.89

10,481.89

73,196,630,000 -0.0223704903 10,481.88 109,869,841.88 Nov-16 10,508.01 10,890.04 10,281.48 10,838.46

10,838.46

88,299,760,000 0.0340177511 10,838.45 117,472,039.88 Dec-16 10,860.42 11,688.45 10,812.75 11,056.90

11,056.90

75,251,240,000 0.0201541945 11,056.89 122,254,868.29 Jan-17 11,138.85 11,344.74 11,0

9

4.29 11,222.96

11,222.96

70,483,180,000 0.0150186367 11,222.95 125,954,649.65 Feb-17 11,244.82 11,590.35 11,1

71.57 11,512.39

11,512.39

69,162,420,000 0.0257890688 11,512.38 132,534,930.11 Mar-17 11,593.21 11,6

87.07 11,324.50 11,492.85

11,492.85

81,547,770,000 -0.0016973052 11,492.84 132,085,407.15 Apr-17 11,495.33 11,65

3.17 11,324.53 11,536.08

11,536.08

65,265,670,000 0.00376151 11,536.07 133,080,957.89 May-17 11,550.41 11,666.90 11,374.64 11,59

8.03 11,598.03 72,244,930,000 0.0053701253 11,5

98.02 134,514,119.54 Jun-17 11,616.21 11,837.60 11,603.41 11,761.70

11,761.70

77,145,350,000 0.0141118723 11,761.69 138,337,402.17 Jul-17 11,801.44 11,989.53 11,684.75 11,967.67

11,967.67

63,169,400,000 0.0175119008 11,967.66 143,224,930.74 Aug-17 12,006.74 12,019.85 11,670.88 11,875.69

11,875.69

70,616,030,000 -0.0076856642 11,8

75.68 141,031,832.04 Sep-17 11,8

97.97 12,209.45 11,783.87 12,209.16

12,209.16

66,337,980,000 0.0280800285 12,209.15 149,063,395.20 Oct-17

12,209.16

12,443.80 12,200.13 12,341.01

12,341.01

70,871,570,000 0.0107992367 12,341.00 152,300,323.41 Nov-17 12,383.87 12,673.70 12,178.89 12,627.80

12,627.80

73,173,260,000 0.0232387823 12,627.79 159,461,124.66 Dec-17 12,636.73 12,886.11 12,463.83 12,80

8.84 12,808.84 65,251,190,000 0.0143366257 12,808.83 164,066,171.99 Jan-18 12,86

0.93 13,637.02 12,842.27 13,367.96

13,367.96

76,850,120,000 0.0436511131 13,367.95 178,702,138.36 Feb-18 13,338.99 13,414.78 12,048.66 12,652.55

12,652.55

79,579,410,000 -0.0535167788 12,652.54 160,086,812.92 Mar-18 12,644.43 12,96

3.42 12,166.54 12,452.06

12,452.06

76,369,800,000 -0.0158458365 12,45

2.05 155,053,587.11 Apr-18 12,43

2.89 12,774.37 12,107.72 12,515.36

12,515.36

69,648,590,000 0.0050835592 12,51

5.35 156,634,043.30 May-18 12,490.24 12,853.33 12,255.85 12,527.14

12,527.14

75,617,280,000 0.0009411871 12,527.13 156,929,026.13 Jun-18 12,596.68 12,88

8.98 12,377.04 12,504.25

12,504.25

77,439,710,000 -0.0018272047 12,504.24 156,356,066.80 Jul-18 12,430.70 12,989.46 12,400.54 12,963.28

12,963.28

64,542,170,000 0.0367099405 12,963.27 168,046,426.79 Aug-18 12,949.85 13,148.42 12,648.32 13,016.89

13,016.89

69,238,220,000 0.0041354791 13,016.88 169,439,206.60 Sep-18 12,976.05 13,261.77 12,873.38 13,082.52

13,082.52

62,492,080,000 0.0050419021 13,082.51 171,152,106.71 Oct-18 13,146.30 13,17

5.61 11,820.33 12,208.06

12,208.06

91,327,930,000 -0.0668418617 12,208.05 149,036,521.97 Nov-18

12,208.06

12,682.06 12,016.08 12,457.55

12,457.55

80,080,110,000 0.0204365185 12,457.54 155,190,34

6.63 Dec-18 12,609.70 12,624.75 10,72

4.19 11,374.39

11,374.39

78,342,100,000 -0.0869480896 11,374.38 129,376,556.79 Jan-19 11,238.77 12,315.14 11,169.46 12,299.03

12,299.03

80,399,630,000 0.0812914498 12,299.02 151,265,947.70 Feb-19 12,312.26 12,769.64 12,186.66 12,644.81

12,644.81

70,183,430,000 0.0281143545 12,644.80 159,891,005.54 Mar-19 12,698.23 12,854.82 12,336.49 12,696.88

12,696.88

78,596,280,000 0.0041179199 12,696.87 161,210,554.40 Apr-19 12,7

75.84 13,067.03 12,773.53 13,060.65

13,060.65

69,604,840,000 0.0286503859 13,060.64 170,580,378.42 May-19 13,066.08 13,069.09 12,238.40 12,264.49

12,264.49

76,860,120,000 -0.0609586914 12,264.48 150,417,523.30 Jun-19 12,288.51 13,095.57 12,273.09 13,049.71

13,049.71

70,881,390,000 0.0640238373 13,049.70 170,294,720.03 Jul-19

13,049.71

13,255.13 12,979.37 13,066.60

13,066.60

70,349,470,000 0.0012942547 13,066.59 170,735,81

5.03 Aug-19 13,053.66 13,154.38 12,325.93 12,736.88

12,736.88

79,599,440,000 -0.025233782 12,736.87 162,227,904.15 Sep-19 12,720.19 13,177.88 12,600.71 13,004.74

13,004.74

73,992,330,000 0.0210302958 13,00

4.73 169,123,059.24 Oct-19 13,002.33 13,248.65 12,482.02 13,171.81

13,171.81

77,564,550,000 0.012846803 13,171.80 173,496,355.34 Nov-19 13,231.18 13,611.49

13,231.18

13,545.21

13,545.21

72,179,920,000 0.0283484505 13,545.20 183,472,494.87 Dec-19 13,554.29 13,978.61 13,280.04 13,913.03

13,913.03

72,054,000,000 0.02715501 13,913.02 193,572,187.44 Jan-20

13,913.03

14,183.26 13,573.04 13,614.10

13,614.10

77,104,420,000 -0.0214856619 13,614.09 185,343,489.04 MEAN 0.0080477314 Mkt Variance 147,706,74

6.83 VARIANCE 0.000984957

Walmart

Date Open High Low Close Adj Close Volume Return

9,559.53

Mar-16

2.15 10,207.37

Apr-16

10,436.92

Free Rate

May-16

10,441.00

2.89

Jun-16

10,489.76

)

Jul-16

10,785.51

Aug-16

10,764.75

Sep-16 71.57 73.19

10,721.74

Oct-16

10,481.89

Nov-16

0.41 10,838.46

Dec-16

11,056.90

Jan-17

11,222.96

)

Feb-17

4.19 11,512.39

3.17

Mar-17

11,492.85

)

0.13

Apr-17 72.08

71.38

11,536.08

2.08

May-17

3.42 11,598.03

Jun-17

75.68

11,761.70

)

Jul-17 75.84

73.13

11,967.67

3.29

Aug-17

11,875.69

)

Sep-17

12,209.16

Oct-17

77.50

12,341.01

8.15

Nov-17 87.07

12,627.80

Dec-17

12,808.84

0.50

Jan-18 99.30

13,367.96

6.83

Feb-18

12,652.55

Mar-18

12,452.06

Apr-18

12,515.36

(1.53)

May-18

12,527.14

Jun-18

12,504.25

2.09

Jul-18 85.65 89.66

12,963.28

2.56

Aug-18

6.63 13,016.89

5.61

Sep-18

91.55

13,082.52

Oct-18 94.29

12,208.06

5.35

Nov-18

12,457.55

Dec-18 98.02

11,374.39

Jan-19

91.64

12,299.03

Feb-19

12,644.81

Mar-19

12,696.88

Apr-19 97.97

5.31 13,060.65

4.29

May-19

99.96

12,264.49

Jun-19

13,049.71

8.03

Jul-19

13,066.60

Aug-19

12,736.88

Sep-19

4.42 13,004.74

3.40

Oct-19

13,171.81

Nov-19

1.83 13,545.21

0.81

Dec-19

13,913.03

Jan-20

114.49

13,614.10

Mean

	Market Return		MKT-MKT MEAN		CO-CO MEAN		Product
			Feb-16	65.91	68.20	62.35	66.34	60.17	263,102,700		(2,501.47)		COVARIANCE	480.99
66.65	69.19	64.88	68.49	62.12	203,107,900		(1,853.63)	1.13	(2,086.32)		company beta	0.0000032564
68.02	70.08	66.36	66.87	61.10	141,253,600		(1.62)		(1,624.08)	(2.64)	4,294.82			Risk				4%
66.62		71.38	62.72	70.78	64.67	232,976,200		3.91		(1,620.00)	(4,674.55)		Risk Premium				8%
7	0.50		73.19	70.15	73.02	67.21	185,919,600		2.24		(1,571.24)	1.22	(1,90		9.89				Expected Return	4.0000260		5%
	73.13	74.35	72.42	7		2.97	67.16	137,723,500		(0.05)		(1,275.49)	(1.07)	1,370.47		company variance	147,706,746.83
72.81	75.19	70.89	71.44	65.75	212,460,000			(1.53)		(1,296.25)	(2.55)	3,311.23				Standard Deviation		12,153.47
70.30	72.12	66.83	176,983,900		0.68		(1,339.26)	(0.34)	461.33
7		1.83	72.57	67.07	70.02	64.89	170,716,200		(2.10)		(1,579.11)	(3.12)	4,933.89
69.98	7	2.09	68.12	70.43	65.27	210,370,600		(1,222.54)	(0.61)	751.21
70.25	72.48	68.83	69.12	64.05	162,527,500		(1.31)		(1,004.10)	(2.33)	2,34	4.03
69.24	69.63	65.28	66.74	62.29	181,828,000		(2.38)		(838.04)	(	3.40	2,853.08
66.46	72.80	66.04	70.93	66.20	207,967,400		(548.61)	(1,736.64)
70.97	7	2.56	69.33		7	2.08	67.27	191,103,100		1.15	(56	8.15	(71.32)
75.77	75.18	70.68	127,527,200		3.10		(524.92)	(1,089.49)
75.09	79.44	7	4.96	78.60	73.90	182,345,800		(462.97)	2.40	(1,109.06)
78.64	80.47	7	3.29	71.63	247,520,700		(2.92)	(2	99.30	(3.94)	1,180.57
80.34	79.99	75.71	143,448,100		4.31		(93.33)	(306.64)
80.25	81.99		77.50	78.07	73.89	203,652,700		(1.92)	(18		5.31	(2.94)	545.64
78.31	81.12	77.73	78.14	7		4.42	161,153,600		0.07		148.16	(0.95)	(141.42)
77.90	89.11	87.31	83.15	198,775,100		9.17		280.01	2,280.84
100.13	87.00	97.23	92.60	222,703,100		9.92		566.80	8.90	5,042.00
97.61	99.91	96.14	98.75	94.05	166,774,100		1.52		747.84	370.58
109.98	98.52	106.60	102.06	169,694,600		7.85		1,306.96	8,920.70
105.96	106.56	90.00	90.01	86.18	307,532,700		(16.59)	5	9		1.55	(17.61)	(10,419.85)
90.17	90.50	85.28	88.97	85.18	256,003,000		(1.04)		391.06	(2.06)	(807.33)
88.00		89.66	84.84	88.46	85.20	163,581,800		(0.51)		454.36	(697.20)
87.67	88.10	8	1.78	82.54	79.50	248,483,300		(5.92)		466.14	(6.94)	(3,237.10)
83.04	87.49	82.37		85.65	83.01	185,619,400		3.11		443.25	924.41
83.40	89.23	86.48	117,596,900		3.58		902.28	2,305.81
88.86	100.21	87.62	95.86	92.91	205,659,500		955.89	5,358.27
95.80	97.66	93.69	93.91	127,212,500		(1.95)		1,021.52	(2.97)	(3,038.48)
102.60	92.89	100.28	97.76	216,421,000		6.37		147.06	786.12
	99.96	106.21	93.31	97.65	95.19	191,936,600		(2.63)		396.55			(3.65)	(1,449.18)
99.59	85.78	93.15	9	0.81	186,311,800		(4.50)		(686.61)	(5.52)	3,793.15
	91.64	99.35	95.83	93.93	160,739,700		2.68		238.03	1.66	394.07
95.92	104.18	93.11	98.99	97.02	166,799,500		3.16		583.81	2.14	1,246.74
99.47	100.49	95.00	9	7.53	95.59	141,147,100		(1.46)		635.88	(2.48)	(1,579.82)
104.15	96.79	102.84	101.34	110,606,900		999.65	4,284.03
102.77	103.96	98.85	101.44	155,764,900		(1.40)		203.49	(2.42)	(493.36)
101.63	112.22	101.40	110.49	109.46	121,524,400		9.05	98	8.71	7,934.93
111.30	115.49	109.63	110.38	109.35	91,288,100		(0.11)		1,005.60	(1.13)	(1,140.82)
110.32	115.38	104.84	114.26	113.19	157,310,800		3.88		675.88	2.86	1,930.00
113.68	119.86	113.49	118.68	118.15	105,362,500		943.74	3,204.50
118.85	120.71	114.58	117.26	116.74	96,406,900		(1.42)		1,110.81	(2.44)	(2,715.34)
117.92	125.38	117.08	119.09	118.56	116,620,200		1,484.21	1,195.57
119.15	122.12	117.42	118.84	118.31	98,422,700		(0.25)		1,852.03	(1.27)	(2,360.35)
118.86	119.89	112.68		114.49	127,907,500		(4.35)		1,553.10	(5.37)	(8,347.09)
	1.02		12,061.00		SUM	22,606.74

IBM

Date Open High Low Close Adj Close Volume

Market Return MKT-MKT MEAN CO-CO MEAN Product

Feb-16

9,559.53 (2,501.47) COVARIANCE

Mar-16

10,207.37 (1,853.63)

company beta

Apr-16

10,436.92 (1,624.08)

Risk Free Rate 4%

May-16

7.80 10,441.00 (1,620.00) 7.53

Risk Premium 8%

Jun-16

10,489.76 (1,571.24)

Expected Return

Jul-16 151.78

8.84 10,785.51 (1,275.49)

company variance 147,706,746.83

Aug-16

10,764.75 (1,296.25)

Standard Deviation 12,153.47

Sep-16

10,721.74 (1,339.26)

Oct-16

10,481.89 (1,579.11)

Nov-16

8.53 10,838.46 (1,222.54)

Dec-16

11,056.90 (1,004.10) 3.50

Jan-17

8.53 11,222.96 (838.04) 8.26

Feb-17

11,512.39 (548.61) 5.03

Mar-17

11,492.85

Apr-17

11,536.08 (524.92)

May-17

11,598.03 (462.97)

Jun-17

11,761.70

0.93

Jul-17

11,967.67 (93.33)

Aug-17

11,875.69

Sep-17

2.05 12,209.16 148.16 1.78

Oct-17

8.98 12,341.01 280.01 8.71

Nov-17

12,627.80 566.80

Dec-17

157.85

12,808.84 747.84 4.03

Jan-18

13,367.96 1,306.96

Feb-18

12,652.55

Mar-18

12,452.06 391.06

Apr-18

12,515.36 454.36

May-18

(3.65) 12,527.14 466.14

Jun-18

12,504.25 443.25

Jul-18

12,963.28 902.28 4.96

Aug-18

1.55 13,016.89 955.89

Sep-18

4.73 13,082.52 1,021.52

Oct-18

12,208.06 147.06

Nov-18

8.84 12,457.55 396.55 8.57

Dec-18

11,374.39 (686.61)

Jan-19

12,299.03 238.03

Feb-19

12,644.81 583.81

Mar-19

2.97 12,696.88 635.88

Apr-19

13,060.65 999.65

May-19

12,264.49 203.49

Jun-19

13,049.71

Jul-19

139.13

13,066.60 1,005.60

Aug-19

12,736.88 675.88

Sep-19

9.89 13,004.74 943.74

Oct-19

13,171.81 1,110.81

Nov-19

13,545.21 1,484.21 0.45

Dec-19 134.45

13,913.03 1,852.03

Jan-20

142.24

13,614.10 1,553.10

Mean 0.27 12,061.00 SUM

Company Return
124.40	134.92	116.90	131.03	108.74	106,715,800	36.94
132.24	153.10	132.03	151.45	126.97	105,746,700		20.42	20.15	(37,350.23)	0.0000002501
150.51	153.52	142.61	145.94	122.35	94,482,500		(5.51)	(5.78)	9,387.52
146.56	153.81	142.90	153.74	128.89	75,249,000	(12,198.25)
153.00	155.48	142.50		151.78	129.71	76,973,700		(1.96)	(2.23)	3,504.21	4.0000020		0%
163.60	149.92	160.62	137.26	69,425,000		8.57	(10,930.67)
160.65	164.95		157.85	158.88	135.77	69,706,500		(1.74)	(2.01)	2,605.72
158.32	165.00	153.21	158.85	136.92	69,937,000		(0.03)	(0.30)	402.06
158.06	15				8.53	147.79	153.69	132.47	78,327,200		(5.16)	(5.43)	8,574.91
15	3.50	164.66	151.00	162.22	139.83	76,338,800		8.26	(10,097.91)
161.95	169.95	158.30	165.99	144.37	69,470,400		3.77	(3,514.14)
167.00	179.25	165.34	174.52	151.79	88,764,500	(6,922.02)
175.00	182.79	172.89	179.82	156.40	59,820,600		5.30	(2,759.39)
180.48	182.55	172.09	174.14	152.66	79,477,000		(5.68)	(568.15)	(5.95)	3,380.61
173.82	176.33	159.60	160.29	140.52	100,052,300		(13.85)	(14.12)	7,411.97
160.05	160.42	149.79	152.63	133.80	103,329,100		(7.66)	(7.93)	3,671.44
152.80	157.20	150.80	153.83	136.17	83,977,000		1.20	(299.30)	(278.28)
153.58	156.03	143.64	144.67	128.06	93,293,500		(9.16)	(9.43)	880.11
145.00	145.67		139.13	143.03	126.61	80,246,500		(1.64)	(185.31)	(1.91)	353.98
142.98	147.42	141.64	145.08	129.78	78,296,700	263.70
145.35	162.51	145.21	154.06	137.82	125,345,600	2,438.83
154.10	154.90	146.21	149.12	133.40	135,079,900		(4.94)	(5.21)	(2,953.15)
154.40	151.49	153.42	138.62	88,788,100		4.30	3,013.64
154.50	171.13	153.54	163.70	147.90	145,086,400		10.28	10.01	13,082.40
163.19	164.13	144.40	155.83	140.79	102,364,900		(7.87)	591.55	(8.14)	(4,815.35)
155.53	162.11	148.54	153.43	139.99	94,316,900		(2.40)	(2.67)	(1,044.22)
153.34	162.00	144.11	144.96	132.26	122,745,300		(8.47)	(8.74)	(3,971.21)
144.65	146.20	139.90	141.31	128.93	88,812,900	(3.92)	(1,827.37)
142.43	147.52	137.45	139.70	128.88	89,801,400		(1.61)	(1.88)	(833.41)
138.28	150.54	138.20	144.93	133.70	94,954,000		5.23	4,475.12
144.76	147.93	142.00	146.48	135.13	79,195,100	1.28	1,223.34
145.98	153.35	144.81	151.21	141.00	95,867,900	4.46	4,555.78
151.71	154.36	114.09	115.43	107.64	198,093,000		(35.78)	(36.05)	(5,301.56)
115.50	125.06	114.54	124.27	115.88	141,718,900	3,398.35
125.67	126.59	105.94	113.67	107.35	115,604,100		(10.60)	(10.87)	7,463.59
112.01	135.41	111.69	134.42	126.94	120,387,100		20.75	20.48	4,874.83
134.97	140.49	132.12	138.13	13	0.45	68,461,200		3.71	3.44	2,008.19
139.31	142.12	133.58	141.10	134.80	74,687,300	2.70	1,716.74
141.51	145.39	136.26	14		0.27	134.01	80,197,500		(0.83)	(1.10)	(1,099.83)
140.55	141.81	126.85	126.99	121.32	75,536,400		(13.28)	(13.55)	(2,757.35)
127.10	140.15	127.06	137.90	133.31	61,341,600		10.91	988.71	10.64	10,519.67
139.60	151.94	148.24	143.31	80,164,100		10.34	10.07	10,126.19
148.90	152.95	128.83	135.53	131.02	96,062,300		(12.71)	(12.98)	(8,773.08)
134.85	146.57	133.33	145.42		142.24	61,812,000	9.62	9,078.59
145.59	147.35	130.90	133.73	130.80	91,419,500		(11.69)	(11.96)	(13,285.53)
134.50	139.14	132.75		134.45	131.51	64,772,300		0.72	667.58
136.42	130.69	134.04	132.65	71,853,900		(0.41)	(0.68)	(1,259.78)
135.00	145.79	133.20	143.73	113,249,700		9.69	9.42	14,629.88
1,736.21

Portfolio

Date Walmart IBM

Walmart IBM Return Risk

Feb-16 Expected Return

Walmart 0%

0076

Mar-16 2.15 20.42 Expected Return 0.040000020 IBM

Apr-16 (1.62) (5.51) Standard Deviation

Walmart

May-16 3.91 7.80 Standard Deviation 12153.4664530678 IBM

Jun-16 2.24 (1.96) 4%

Jul-16 (0.05) 8.84 5%

Aug-16 (1.53) (1.74) 6%

Sep-16 0.68 (0.03) 7%

Oct-16 (2.10) (5.16) 8%

Nov-16 0.41 8.53 9%

Dec-16 (1.31) 3.77

Jan-17 (2.38) 8.53

Feb-17 4.19 5.30

Mar-17 1.15 (5.68)

Apr-17 3.10 (13.85)

May-17 3.42 (7.66)

Jun-17 (2.92) 1.20

Jul-17 4.31 (9.16)

Aug-17 (1.92) (1.64)

Sep-17 0.07 2.05

Oct-17 9.17 8.98

Nov-17 9.92 (4.94)

Dec-17 1.52 4.30

Jan-18 7.85 10.28

Feb-18 (16.59) (7.87)

Mar-18 (1.04) (2.40)

Apr-18 (0.51) (8.47)

May-18 (5.92) (3.65)

Jun-18 3.11 (1.61)

Jul-18 3.58 5.23

Aug-18 6.63 1.55

Sep-18 (1.95) 4.73

Oct-18 6.37 (35.78)

Nov-18 (2.63) 8.84

Dec-18 (4.50) (10.60)

Jan-19 2.68 20.75

Feb-19 3.16 3.71

Mar-19 (1.46) 2.97

Apr-19 5.31 (0.83)

May-19 (1.40) (13.28)

Jun-19 9.05 10.91

Jul-19 (0.11) 10.34

Aug-19 3.88 (12.71)

Sep-19 4.42 9.89

Oct-19 (1.42) (11.69)

Nov-19 1.83 0.72

Dec-19 (0.25) (0.41)

Jan-20 (4.35) 9.69

1.02 0.27

50%

51% 49%

8595.51713

52% 48%

8600.67084

53% 47%

8609.25349

54% 46%

8621.25484

55% 45%

8636.66065

56% 44%

8655.45273

57% 43%

8677.60909

58% 42%

8703.10403

59% 41%

8731.90831

60% 40%

8763.98930

61% 39%

8799.31115

62% 38%

8837.83502

63% 37%

8879.51922

64% 36%

8924.31947

65% 35%

8972.18909

66% 34%

9023.07924

67% 33%

9076.93910

68% 32%

9133.71615

69% 31%

9193.35633

70% 30%

9255.80430

71% 29%

9321.00362

72% 28%

9388.89698

73% 27%

9459.42637

74% 26%

9532.53328

75% 25%

9608.15887

76% 24%

9686.24414

77% 23%

9766.73011

78% 22%

9849.55793

79% 21%

9934.66901

80% 20%

10022.00518

81% 19%

10111.50880

82% 18%

10203.12282

83% 17%

10296.79090

84% 16%

10392.45752

85% 15%

10490.06799

86% 14%

10589.56856

87% 13%

10690.90645

88% 12%

10794.02992

89% 11%

10898.88828

90% 10%

11005.43195

91% 9%

11113.61245

92% 8%

11223.38245

93% 7%

11334.69578

94% 6%

11447.50741

95% 5%

11561.77347

4%

11677.45129

3%

11794.49932

98% 2%

11912.87717

1%

12032.54558

100% 0%

12153.46645

Corr(Walmart,IBM)	0.0974297686
0.040000261		100%		0.040000020		12153.46645
	1%	9		9%	0.0400000224126		12032.54558
	12153.4664530678		2%		98%	0.0400000248177		11912.87717
	3%	9		7%	0.0400000272227		11794.49932
9		6%	0.0400000296278		11677.45129
	95%	0.0400000320328		11561.77347
	94%	0.0400000344379		11447.50741
	93%	0.0400000368430		11334.69578
	92%	0.0400000392480		11223.38245
	91%	0.0400000416531		11113.61245
	10%		90%	0.0400000440581		11005.43195
	11%		89%	0.0400000464632		10898.88828
	12%		88%	0.0400000488682		10794.02992
	13%		87%	0.0400000512733		10690.90645
	14%		86%	0.0400000536784		10589.56856
	15%		85%	0.0400000560834		10490.06799
	16%		84%	0.0400000584885		10392.45752
	17%		83%	0.0400000608935		10296.79090
	18%		82%	0.0400000632986		10203.12282
	19%		81%	0.0400000657036		10111.50880
	20%		80%	0.0400000681087		10022.00518
	21%		79%	0.0400000705137		9934.66901
	22%		78%	0.0400000729188		9849.55793
	23%		77%	0.0400000753239		9766.73011
	24%		76%	0.0400000777289		9686.24414
	25%		75%	0.0400000801340		9608.15887
	26%		74%	0.0400000825390		9532.53328
	27%		73%	0.0400000849441		9459.42637
	28%		72%	0.0400000873491		9388.89698
	29%		71%	0.0400000897542		9321.00362
	30%		70%	0.0400000921593		9255.80430
	31%		69%	0.0400000945643		9193.35633
	32%		68%	0.0400000969694		9133.71615
	33%		67%	0.0400000993744		9076.93910
	34%		66%	0.0400001017795		9023.07924
	35%		65%	0.0400001041845		8972.18909
	36%		64%	0.0400001065896		8924.31947
	37%		63%	0.0400001089946		8879.51922
	38%		62%	0.0400001113997		8837.83502
	39%		61%	0.0400001138048		8799.31115
	40%		60%	0.0400001162098		8763.98930
	41%		59%	0.0400001186149		8731.90831
	42%		58%	0.0400001210199		8703.10403
	43%		57%	0.0400001234250		8677.60909
	44%		56%	0.0400001258300		8655.45273
	45%		55%	0.0400001282351		8636.66065
	46%		54%	0.0400001306402		8621.25484
	47%		53%	0.0400001330452		8609.25349
Mean		48%		52%	0.0400001354503		8600.67084
	49%		51%	0.0400001378553		8595.51713
	50%	0.0400001402604	8593.79855
0.0400001426654
0.0400001450705
0.0400001474755
0.0400001498806
0.0400001522857
0.0400001546907
0.0400001570958
0.0400001595008
0.0400001619059
0.0400001643109
0.0400001667160
0.0400001691211
0.0400001715261
0.0400001739312
0.0400001763362
0.0400001787413
0.0400001811463
0.0400001835514
0.0400001859564
0.0400001883615
0.0400001907666
0.0400001931716
0.0400001955767
0.0400001979817
0.0400002003868
0.0400002027918
0.0400002051969
0.0400002076020
0.0400002100070
0.0400002124121
0.0400002148171
0.0400002172222
0.0400002196272
0.0400002220323
0.0400002244373
0.0400002268424
0.0400002292475
0.0400002316525
0.0400002340576
0.0400002364626
0.0400002388677
0.0400002412727
0.0400002436778
0.0400002460828
0.0400002484879
96%	0.0400002508930
97%	0.0400002532980
0.0400002557031
99%	0.0400002581081
0.0400002605132

1

Running Head:

ASSIGNMENT

2
ASSIGNMENT

BUS 710 Finance for Managers

Professional

Assignment

1 – CLO 1

Antony V A

Professor: Dr. Kevin Grant

Westcliff University

February 9, 2020

Assignment

Investors use the closing price of stocks as a benchmark for determining and tracking the performance of a company over time (Lawrence, Ryans, Sun, & Laptev, 2016). The firms chosen for analysis are IBM and Walmart and the time period considered in our assignment is 4 years. The data used for the analysis is from Yahoo Finance (YHOO). The results from IBM after analysis:

COVARIANCE

36.94

company beta

2.50095E-07

Risk-Free Rate

4%

Risk Premium

8%

Expected Return

4.00000200%

company variance

147,706,746.83

Standard Deviation

12,153.47

On the other hand, the data from Walmart after analysis of the past 4 years was as follows:

COVARIANCE

480.99

company beta

3.25641E-06

Risk-Free Rate

4%

Risk Premium

8%

Expected Return

4.00002605%

company variance

147,706,746.83

Standard Deviation

12,153.47

The calculations and formulas are as shown in the attached excel workbook.

References

Lawrence, A., Ryans, J., Sun, E., & Laptev, N. (2016). Yahoo Finance search and earnings announcements. Available at SSRN 2804353.

C:\Users\ENVY

x360\Desktop\

Yahoo x