Q. 1) Some of the diversification options from a corporate perspective include merger, acquisition, spinning off/selling a product line, licensing, joint venture or a new equity investment. Let us focus on the diversification options also discuss these options as it applies to your Glo-Bus company also discuss the paths which you would consider in the fifth yr of business. Do not get involved in legal detail, but examine the options as it pertains to your company. Develop a recommendation for your company also comment on the strategy of your competitors.
2)1. Choose ten stocks in S&P 500 index.
2. Collect five yrs of monthly data on these stocks (YAHOO FINANCE, for example)
3. Compute the means, standard deviations also correlations of monthly returns using Excel.
4. Compute the mean also standard deviation of also evenly weighted portfolio of these ten stocks.
5. Compute the alphas, betas of these stocks.
6. Compare the performance of the evenly weighted portfolio with each of the individual stock by comparing the alphas also the Sharpe Ratios.