STP Exercise
An Example of Benefit Segmentatio
n
2
Target Market Selection
Criteria for segment attractiveness are defined, they are
weighted and evaluated
Analyze whether a company
has competitive advantages in
the individual segments
The weighted scores
FINC3017 Investments and Portfolio Management
Tutorial 4 Solutions
Single Index Model
1.
Estimate the Single-Index Model for Cabcharge, David Jones, Macquarie Group and
Tabcorp using excess returns for the full sample from 31 January 2001 to 31 July 2012.
Chapter 8
Index Models
2. Assume that stock market returns do follow a single-index structure. An investment
fund analyzes 250 stocks in order to construct a mean-variance efficient portfolio
constrained by 250 investments. They will need to calculate _ e
c=cbind(c(2,1,4),c(1,3,1),c(4,1,5)
c
eigen(c)
d=cbind(c(1,-1/2,-1/2),c(-1/2,1,-1/2),c(-1/2,-1/2,1)
d
eigen(d)
install.packages("matrixcalc")
library(matrixcalc)
# 1 #
Q = cbind(c(0.9,0.1),c(0.15,0.85)
matrix.power(Q,100) #100
egQ=eigen(Q) #Q eigen value
Price
Current Situations
Taco Bell Price Positioning
Comparison among competitive competitors
-McDonald
-Popeyes
-KFC
-Subway
Ranking
1st the cheapest
5 th = the most expensive
A la Carte
: 1st
Set Menu
: 3rd
Etc.(Special / Additional Menu)
: 4th
Beverage