incorporation of FOXs asset has strengthen the outlook of Disney company In

# Incorporation of foxs asset has strengthen the

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incorporation of FOX’s asset has strengthen the outlook of Disney company. In detail, the rival of Disney, Comcast Corp. (CMCSA) has withdrew from pursuing the acquisition of new media service which is set to launch in 2019. Hence, Disney broke out as the winner and growth in earnings was anticipated (Kramer, 2018). Coca Cola Coca Cola has the lowest return of 0.28% in comparison with Apple and Disney. In view of Coca Cola historical stock prices, there is 9% decline over the 28 weeks. To clarify, Coca Cola has been venturing massively in bottler refranchising, as a result, revenue has diminished over the single period. Moreover, Coca Cola also faced market environment difficulties especially in the North America region which contributed to business diversification and modification. Therefore, Coca Cola was not acknowledged as favourable investment over the period since Coca Cola was undertaking restructuring exertions (Duggan, 20018). PART 2A In the scenario which all three stocks, Apple Inc, Disney, and Coca-Cola are equally weighted in the portfolio, each stock has a 33.33% weight. Using the formula below, the weekly returns of the portfolio can be calculated. ??𝑟???𝑙𝑖? 𝑅???𝑟? (𝑅 ? ) = (? ? × 𝑅 ? ) + (? ? × 𝑅 ? ) + (? ? × 𝑅 ? ) In the formula above, W represents the weightage of each stock, which is 33.33% in this report, and R represents the weekly returns of each stock, whereby A, D, and C, represents Apple Inc, Disney, and Coca-Cola respectively. The average weekly returns of the portfolio throughout the 28 weeks is 0.6809% . Individual weekly returns can be seen in Appendix 2.1. There are multiple methods to calculate the variance of a portfolio, two of which can be seen below. Method 1: Variance Formula ??𝑟???𝑙𝑖? ?𝑎𝑟𝑖𝑎?𝑐?(𝜎 ? 2 ) = (? ? 2 𝜎 ? 2 ) + (? ? 2 𝜎 ? 2 ) + (? ? 2 𝜎 ? 2 ) + 2? ? ? ? (𝐶??𝑟 ? 𝑟 ? ) + 2 ? ? ? ? (𝐶?? 𝑟 ? 𝑟 ? ) + 2 ? ? ? ? (𝐶?? 𝑟 ? 𝑟 ? ) Method 2: Matrix Algebra Method ??𝑟???𝑙𝑖? 𝑅???𝑟? (𝑅 ? ) = [? ? ? ? ? ? ] [ 𝑅 ? 𝑅 ? 𝑅 ? ]