AQR vi.d.9 assignment Example | Topics and Well Written Essays - 250 words - 1

AQR vi.d.9 - appellation ExampleIn this analysis, the number of times a company pays a dividend was considered. Also, price to earnings ratio was considered. Consequently, the two approaches resulted to the selection criterion whereby the firms with a high price to earnings ratio and paid dividends quartette times a year were preferred. Finally, technical analysis was conducted. Under this analysis, the main consideration was the price legal action on the stock chart. As such, the firms with a relatively stable trend were preferred. The combination of the three forms on analysis was used to arrive at the selected stocks and the amount of stocks that were invested in each.The beta care for of the portfolio is -25.15180862 against a benchmark of -32.701. The figure is computed by summing the change in value of the portfolio and dividing the figure by the summation of changes in value of the benchmark.Therefore, the portfolio Beta beat the market value Beta since -25.1518062% is gr eater than -32.701%. However, in the two cases, Beta is detrimental implying that the general trend is opposite to that of the market.The game serves as an eye opener on the importance of figure individual beta value. The reason is that having an individually computed Beta value eliminates the limitation that may be nominate with the S & P 500 benchmark due to its generalization. As a result, single can gull precise Beta value for a portfolio which specifically focuses on the stocks themselves. The approach improves the accuracy in ones ability to predict the