Managerial Accounting WRITTEN ANALYSIS OF THE CASE BETA COMPANY SYNOPSIS Beta Company produces two Product A and B and standard costs of each product were predetermined by management. During November actual production for Product A was 4‚200 units while Product B was 3‚600 units. For material X‚ 39‚000 pounds were purchased at $14.40 and for material Y‚ 11‚000 pounds were purchased at $9.70. Variance analysis for actual cost versus standard cost should be prepared for the said month
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variability of this portfolio using each stock. How does each stock affect the variability of the overall equity investment‚ and which stock is riskiest in this context? Explain how this makes sense in view of your answer to Question (1) above. σ^2= w_1^2 σ_1^2+w_2^2 σ_2^2+2w_1 w_2 Cov(r_1 r_2) Vanguard‚ REIT Vanguard‚ Brown Covariance 0.0003 0.0024 Index Fund % Ind Stock % 99% 1% California REIT Brown Group Variability(STDEV) 4.5676% 4.6119% Based on this context‚ Brown
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compute the standard deviation in a portfolio‚ it follows the formula SD= ( ) 1/2 First‚ it needs to get covariance‚ using the EXCEL COV ( ) Function Stock | California REIT | Brown Group | Cov (Vanguard 500‚ Stock) | 0.03% | 0.24% | SD of the portfolio (99% in Vanguard 500‚ 1% in California REIT) SD = [(0.99*.0461)2 + (0.01*.0923)2 + 2*0.99*0.01*0.0003]1/2 = 4.57% SD of the portfolio (99% in Vanguard 500‚ 1% in Brown
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bloomberg beta interpretation Beta definition A measure of an asset’s risk in relation to the market (for example‚ the S&P500) or to an alternative benchmark or factors. Roughly speaking‚ a security with a beta of 1.5‚ say‚ will move 50% more than the market. So if the market goes up by 20% the security’s price will go up by 30%. According to asset pricing theory‚ beta represents that part of the risk of the security called systematic risk that cannot be diversified away. When using beta‚ there are
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What are your overall goals for taking this TESOL Teaching Certificate Course? Are these goals professional‚ personal‚ or perhaps both? Specifically‚ what do you expect to learn in the course and how do you plan to use this knowledge once you receive your TESOL certification? One of my overall goals is to travel around the world teaching English because while doing this I would have the chance to have a free reign of independence and also have the ability to go and see the world‚ understand it
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Beta Management Group is a small investment management company based in Boston‚ which was founded by Ms. Sarah Wolfe (The founder and CEO of the Beta Management Group) in 1988. Ms. Wolfe follows a market timing investment strategy based on two portfolios; the Vanguard index and money market instruments. The goals of Beta Management were to enhance returns but reduce risks for clients via market timing. Ms. Wolfe would keep the vast majority of Beta’s funds in no-load‚ low-expense index funds; and
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CASE STUDY : Beta Management Company The Context Beta Management Group is a small investment management company based in Boston. It was founded in 1988 by Ms. Sarah Wolfe (The founder and CEO of the Beta Management Group). Ms. Wolfe follows a market timing investment strategy based on two portfolios; the Vanguard index and money market instruments. The goals of Beta Management were to enhance returns-but-reduce risks for clients via market timing. Majority of Beta’s
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Correlation Coefficients Telmex Telmex Mexico World 1.00 Mexico .90 1.00 World 0.60 0.75 1.00 SD(%) 18 15 10 R (%) ? 14 12 The above table provides the correlations among Telmex‚ a telephone/communication company located in Mexico‚ the Mexico stock market index‚ and the world market index‚ together with the standard deviations (SD) of returns and the expected returns ( R ). The risk-free rate is 5%. 1. Compute the domestic country beta of Telmex as well as its world beta. What do these betas measure
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BETA MANAGEMENT COMPANY Q1. Calculate the variability (standard deviation) of the stock returns of California REIT and Brown Group during the past 2 years. How variable are they compared with Vanguard Index 500 Trust? Which stock appears to be riskiest? The stock returns for each month are given in Table 1. Based on the monthly returns‚ the standard deviation or variability of each stock has been calculated. The standard deviation for California REIT is 9.23% and the standard deviation for Brown
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Beta Management Summary of facts: Beta Management is new‚ small mutual fund that is run by Ms. Wolfe. She has recently begun to work full time at her mutual fund due to its increasing growth. With the fund’s increasing growth over the past year Ms. Wolfe has started to have inquiries from larger mutual funds wanting her to manage some of their money. Ms. Wolfe does not have much experience in managing money and needs some advice on how to deal with the larger institutions. Problem: Beta Management
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