Study Questions for The State of South Carolina

Study Questions for The State of South Carolina -...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Study Questions for The State of South Carolina (HBS 9-201-061) Case The purpose of a case is to make your hands dirty. While the analysis itself is quite straightforward, it allows you to familiarize yourself with different information sources. Here are a few pointers: 1. Define and compute the Mean and Standard Deviation for the returns corresponding for each of asset classes in Exhibit 1. Data for returns on 30 days T-bills and LT corporate bonds (on a monthly basis) can be downloaded HERE . The rest of the data should be downloaded from DataStream 1 or any other source. Discuss risk-return relationship for those asset classes. 2. Examine and discuss risk and return of the 30 Dow stocks. Download the list of current Dow stocks from Dow Jones web site. Download return series from DataStream or any other source. 3. Form portfolios of various stocks in the Dow 30. a. Compute mean return and standard deviation of 2-stock portfolio consisting of General Electric and Exxon. Compare the portfolio with
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: individual stocks. Repeat the exercise for GE and GM. b. Repeat analysis for 5, 10, and 30 stocks. Discuss the relationship between number of stocks and standard deviation of the portfolio. 4. Advise Richard Eckstrom - South Carolina State’s Treasurer about the most appropriate equity assets to invest in (use the information from Exhibit 2 and 3 in the case). You may then organize and draft your results in a memo format. If you feel that you have to make any assumptions, please do it by stating them clearly in your report. I expect the report to be no longer than 5 pages + Excel spreadsheets (if necessary). I would appreciate 12pt font. Note : Ibbotson data (total returns for T-bills and corp. bonds) are HERE . (Updated: All MAJOR US ASSET CLASSES 1926-2005 ) 1 AUBG currently doesn’t have access to DataStream database. Please, use any other alternative sources of information you find appropriate....
View Full Document

This note was uploaded on 09/25/2011 for the course FINA 4320 taught by Professor John during the Spring '11 term at Houston Baptist.

Ask a homework question - tutors are online