Date

Name
Class/Section

11/20/14
Minji Byun
Finance 202/Monday from 1:30-3:00

SUMMARY OUTPUT
Regression Statistics
Multiple R
0.0292912
R Square
0.000857974
Adjusted R Square
-0.015521403
Standard Error
0.06%
Observations
63

df
Regression
Residual
Total

ANOVA
SS
MS
F
Significance F
1 0.0002154 0.0002154 0.0523814
0.819735706
61 0.2507887 0.0041113
62 0.2510041

Standard
Coefficients
Error
t Stat
P-value
0.03% 0.0081054 3.2696805 0.0017724
-0.08% 0.3699589 -0.22887 0.8197357

Intercept
X Variable

Lower
Lower 95% Upper 95% 95.0%
0.01029427 0.0427096 0.0102943
-0.824450884 0.6551061 -0.824451

RESIDUAL OUTPUT
Observation
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23

Predicted
0.025403103
0.02665738
0.027184216
0.025107292
0.027266708
0.025653361
0.026925748
0.030385486
0.025671753
0.027573925
0.023595306
0.027491392
0.025220538
0.026071857
0.024808647
0.026085072
0.025998376
0.026645651
0.025691382
0.027011535
0.025474097
0.028178701
0.025151468

Residuals
-0.02304
-0.013747
0.0410898
-0.000157
0.0832675
0.0543997
0.0480879
-0.006797
-0.099369
-0.016242
-0.051502
0.1163815
0.0475032
0.0740913
-0.043664
0.0365826
0.0101345
0.0103105
-0.009234
-0.002935
-0.037092
-0.045383
-0.090626

CAPM is RF+b*(rf-rm)+

alpha+standard error

24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63

0.028246104
0.02652869
0.025043198
0.025340026
0.027555565
0.030711829
0.028077891
0.025343126
0.026997731
0.024595833
0.026852205
0.027718441
0.024758054
0.024184578
0.026489488
0.024843088
0.026335174
0.029872582
0.024601162
0.027963446
0.029714123
0.026305755
0.027647151
0.02423811
0.025255452
0.02866088
0.025646301
0.026965946
0.030437528
0.027244897
0.031206893
0.026274175
0.022485762
0.030507581
0.025436775
0.026421266
0.027908654
0.028872919
0.026844332
0.023782596

-0.146104
-0.009982
-0.086366
-0.006161
0.2362286
-0.027528
0.0106237
-0.075443
-0.065013
0.0156485
-0.101618
-0.014556
-0.041658
0.0643745
-0.028855
0.0374145
0.2061606
-0.020475
0.0275158
0.0294508
0.0437949
-0.040832
0.0539626
-0.031265
0.0652411
0.0426186
-0.007549
-0.007744
-0.022722
0.0259274
-0.07666
-0.043939
0.0180253
0.0058844
-0.032765
0.0297118
-0.027909
-0.028873
-0.026844
-0.023783

Intercept

Residuals

0.3

-8.00%

0.2
0.1
-6.00%

-4.00%

-2.00%

0
0.00%
-0.1

2.00%

4.00%

2.00%

4.00%

6.00%

-0.2

X-Variable
Upper
95.0%
0.0427096
0.6551061

50.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%
0.00%

-50.00%

Series1

Predicted

6.00%

CAPM
RF
RM
Beta
Alpha
Standard Error

0.203%
0.1176%
-1.07%
-0.08%
0.03%
0.06%

Whole
Foods
Market
(WFM)

Date

9/1/09
10/1/09
11/2/09
12/1/09
1/4/10
2/1/10
3/1/10
4/1/10
5/3/10
6/1/10
7/1/10
8/2/10
9/1/10
10/1/10
11/1/10
12/1/10
1/3/11
2/1/11
3/1/11
4/1/11
5/2/11
6/1/11
7/1/11
8/1/11
9/1/11
10/3/11
11/1/11
12/1/11
1/3/12
2/1/12
3/1/12
4/2/12
5/1/12
6/1/12
7/2/12
8/1/12
9/4/12
10/1/12
11/1/12
12/3/12
1/2/13
2/1/13
3/1/13
4/1/13
5/1/13

14.44
15.19
12.15
13
12.89
16.81
17.12
18.48
19.15
17.06
17.99
16.48
17.58
18.83
22.37
23.96
24.54
27.79
31.28
29.83
29.07
30.21
31.76
31.45
31.14
34.39
32.48
33.18
35.37
38.58
39.75
39.76
42.41
45.69
43.99
46.37
46.75
45.5
44.81
44.72
47.32
42.09
42.65
43.53
51.12

25.00%
5.19%
-20.01%
7.00%
-0.85%
30.41%
1.84%
7.94%
3.63%
-10.91%
5.45%
-8.39%
6.67%
7.11%
18.80%
7.11%
2.42%
13.24%
12.56%
-4.64%
-2.55%
3.92%
5.13%
-0.98%
-0.99%
10.44%
-5.55%
2.16%
6.60%
9.08%
3.03%
0.03%
6.66%
7.73%
-3.72%
5.41%
0.82%
-2.67%
-1.52%
-0.20%
5.81%
-11.05%
1.33%
2.06%
17.44%

Netflix
(NFLX)

46.17
53.45
58.63
55.09
62.25
66.05
73.74
98.9
111.15
108.65
102.55
125.52
162.16
173.57
205.9
175.7
214.08
206.67
237.78
232.67
270.8
262.69
265.99
235.01
113.27
82.08
64.53
69.29
120.2
110.73
115.04
80.14
63.44
68.49
56.85
59.72
54.44
79.24
81.71
92.59
165.24
188.08
189.28
216.07
226.25

22.00%

15.77%
9.69%
-6.04%
13.00%
6.10%
11.64%
34.12%
12.39%
-2.25%
-5.61%
22.40%
29.19%
7.04%
18.63%
-14.67%
21.84%
-3.46%
15.05%
-2.15%
16.39%
-2.99%
1.26%
-11.65%
-51.80%
-27.54%
-21.38%
7.38%
73.47%
-7.88%
3.89%
-30.34%
-20.84%
7.96%
-17.00%
5.05%
-8.84%
45.55%
3.12%
13.32%
78.46%
13.82%
0.64%
14.15%
4.71%

Intel
Corporati
on (INTC)

16.39
16.01
16.2
17.22
16.37
17.46
18.96
19.43
18.35
16.66
17.65
15.25
16.57
17.31
18.41
18.3
18.67
18.84
17.7
20.31
19.9
19.59
19.74
17.97
19.05
21.91
22.44
21.84
23.8
24.41
25.53
25.79
23.63
24.37
23.5
22.91
20.91
19.96
18.24
19.22
19.61
19.67
20.58
22.56
23.09

18.00%

-2.32%
1.19%
6.30%
-4.94%
6.66%
8.59%
2.48%
-5.56%
-9.21%
5.94%
-13.60%
8.66%
4.47%
6.35%
-0.60%
2.02%
0.91%
-6.05%
14.75%
-2.02%
-1.56%
0.77%
-8.97%
6.01%
15.01%
2.42%
-2.67%
8.97%
2.56%
4.59%
1.02%
-8.38%
3.13%
-3.57%
-2.51%
-8.73%
-4.54%
-8.62%
5.37%
2.03%
0.31%
4.63%
9.62%
2.35%

Delta Air
Lines
(DAL)

8.84
7.05
8.08
11.23
12.07
12.75
14.4
11.92
13.4
11.6
11.72
10.32
11.49
13.71
13.5
12.43
11.52
11.09
9.67
10.24
9.95
9.05
7.79
7.43
7.4
8.41
8.01
7.98
10.41
9.68
9.79
10.82
11.94
10.81
9.52
8.54
9.04
9.5
9.87
11.71
13.71
14.08
16.29
16.91
17.77

6/3/13
7/1/13
8/1/13
9/3/13
10/1/13
11/1/13
12/2/13
1/2/14
2/3/14
3/3/14
4/1/14
5/1/14
6/2/14
7/1/14
8/1/14

Artithmetic Average
Return
Median Return
Standard Deviation
Maximum
Minimum
Range
Sharpe Ratio
Probability of losing
money (ON AVERAGE)

50.74
54.89
52.09
57.87
62.45
55.99
57.21
51.81
53.59
50.28
49.39
38
38.39
38.11
39.02

-0.74%
8.18%
-5.10%
11.10%
7.91%
-10.34%
2.18%
-9.44%
3.44%
-6.18%
-1.77%
-23.06%
1.03%
-0.73%
2.39%

211.09
244.48
283.91
309.21
322.48
365.8
368.17
409.33
445.63
352.03
322.04
417.83
440.6
422.72
477.64

-6.70%
15.82%
16.13%
8.91%
4.29%
13.43%
0.65%
11.18%
8.87%
-21.00%
-8.52%
29.74%
5.45%
-4.06%
12.99%

23.04
22.2
21.11
22.01
23.5
23.11
25.16
23.79
24.23
25.26
26.12
26.96
30.5
33.45
34.69

-0.22%
-3.65%
-4.91%
4.26%
6.77%
-1.66%
8.87%
-5.45%
1.85%
4.25%
3.40%
3.22%
13.13%
9.67%
3.71%

2.07%
2.18%
8.64%
30.41%
-23.06%
53.47%
0.23

6.08%
6.10%
21.06%
78.46%
-51.80%
130.27%
28.88%

1.47%
2.03%
6.20%
15.01%
-13.60%
28.61%
23.66%

41.09%

38.64%

40.65%

Minji Byun

18.46
20.95
19.53
23.35
26.11
28.74
27.25
30.36
33
34.44
36.6
39.73
38.54
37.29
39.5

15.00%

-20.25%
14.61%
38.99%
7.48%
5.63%
12.94%
-17.22%
12.42%
-13.43%
1.03%
-11.95%
11.34%
19.32%
-1.53%
-7.93%
-7.32%
-3.73%
-12.80%
5.89%
-2.83%
-9.05%
-13.92%
-4.62%
-0.40%
13.65%
-4.76%
-0.37%
30.45%
-7.01%
1.14%
10.52%
10.35%
-9.46%
-11.93%
-10.29%
5.85%
5.09%
3.89%
18.64%
17.08%
2.70%
15.70%
3.81%
5.09%

Stryker
Corporati
on (SYK)

42.16
42.69
46.87
46.98
48.42
49.52
53.5
53.71
49.59
46.95
43.68
40.51
47.08
46.56
47.12
50.69
54.33
59.71
57.56
55.86
59.07
55.74
51.6
46.38
44.92
45.67
46.54
47.58
53.06
51.35
53.31
52.44
49.44
53.16
50.2
51.38
53.9
50.94
52.45
53.34
60.96
62.16
63.75
64.08
64.87

12.00%

1.26%
9.79%
0.23%
3.07%
2.27%
8.04%
0.39%
-7.67%
-5.32%
-6.96%
-7.26%
16.22%
-1.10%
1.20%
7.58%
7.18%
9.90%
-3.60%
-2.95%
5.75%
-5.64%
-7.43%
-10.12%
-3.15%
1.67%
1.90%
2.23%
11.52%
-3.22%
3.82%
-1.63%
-5.72%
7.52%
-5.57%
2.35%
4.90%
-5.49%
2.96%
1.70%
14.29%
1.97%
2.56%
0.52%
1.23%

Discover
Financial
Services
(DFS)

15.32
13.34
14.59
13.9
12.93
12.9
14.1
14.63
12.73
13.23
14.47
13.75
15.81
16.75
17.34
17.6
19.56
20.66
22.91
23.65
22.7
25.47
24.44
24.01
21.89
22.54
22.79
23.06
26.11
28.83
32.03
32.67
31.91
33.32
34.75
37.43
38.4
39.72
40.31
37.49
37.33
37.47
43.6
42.53
46.3

8.00%

Port

-12.92%
9.37%
-4.73%
-6.98%
-0.23%
9.30%
3.76%
-12.99%
3.93%
9.37%
-4.98%
14.98%
5.95%
3.52%
1.50%
11.14%
5.62%
10.89%
3.23%
-4.02%
12.20%
-4.04%
-1.76%
-8.83%
2.97%
1.11%
1.18%
13.23%
10.42%
11.10%
2.00%
-2.33%
4.42%
4.29%
7.71%
2.59%
3.44%
1.49%
-7.00%
-0.43%
0.38%
16.36%
-2.45%
8.86%

0.43%
1.46%
7.05%
2.69%
11.24%
8.22%
7.70%
2.53%
-7.22%
1.27%
-2.68%
14.49%
7.37%
10.14%
-1.72%
6.43%
3.79%
3.88%
1.81%
2.55%
-1.02%
-1.61%
-6.47%
-11.71%
1.74%
-6.05%
1.99%
26.44%
0.39%
3.96%
-4.94%
-3.75%
4.09%
-7.43%
1.37%
-1.64%
8.92%
-0.19%
6.29%
23.32%
1.00%
5.28%
5.80%
7.44%

S&P
1,409.71
1,430.73
1,430.50
1,422.18
1,448.39
1,438.06
1,455.54
1,451.19
1,387.17
1,402.84
1,386.95
1,436.11
1,420.86
1,443.76
1,452.85
1,484.35
1,494.07
1,505.62
1,505.85
1,522.75
1,515.73
1,536.34
1,507.67
1,532.91
1,502.56
1,503.35
1,530.44
1,552.50
1,534.10
1,458.95
1,433.06
1,453.64
1,445.94
1,479.37
1,473.99
1,453.55
1,484.25
1,525.75
1,526.75
1,557.59
1,561.80
1,500.63
1,535.28
1,509.65
1,453.70

RFR

1.49%
-0.02%
-0.58%
1.84%
-0.71%
1.22%
-0.30%
-4.41%
1.13%
-1.13%
3.54%
-1.06%
1.61%
0.63%
2.17%
0.65%
0.77%
0.02%
1.12%
-0.46%
1.36%
-1.87%
1.67%
-1.98%
0.05%
1.80%
1.44%
-1.19%
-4.90%
-1.77%
1.44%
-0.53%
2.31%
-0.36%
-1.39%
2.11%
2.80%
0.07%
2.02%
0.27%
-3.92%
2.31%
-1.67%
-3.71%

0.19%
0.19%
0.17%
0.22%
0.20%
0.19%
0.21%
0.20%
0.18%
0.15%
0.13%
0.11%
0.11%
0.10%
0.12%
0.17%
0.16%
0.18%
0.19%
0.17%
0.14%
0.15%
0.11%
0.08%
0.08%
0.08%
0.08%
0.07%
0.06%
0.07%
0.09%
0.07%
0.06%
0.06%
0.05%
0.05%
0.05%
0.06%
0.05%
0.06%
0.07%
0.06%
0.06%
0.06%
0.09%

3.88%
13.49%
-6.78%
19.56%
11.82%
10.07%
-5.18%
11.41%
8.70%
4.36%
6.27%
8.55%
-3.00%
-3.24%
5.93%

63.46
69.13
65.63
66.57
72.74
73.3
74.3
76.74
79.35
80.87
77.18
83.87
84
79.47
83

-2.17%
8.93%
-5.06%
1.43%
9.27%
0.77%
1.36%
3.28%
3.40%
1.92%
-4.56%
8.67%
0.16%
-5.39%
4.44%

46.53
48.35
46.33
49.56
50.87
52.46
55.07
52.81
56.69
57.5
55.23
58.67
61.5
60.59
62.14

0.50%
3.91%
-4.18%
6.97%
2.64%
3.13%
4.98%
-4.10%
7.35%
1.43%
-3.95%
6.23%
4.82%
-1.48%
2.56%

-1.34%
8.28%
-0.57%
9.17%
7.24%
1.92%
2.07%
0.90%
5.44%
-4.40%
-1.63%
4.18%
3.77%
-0.59%
5.75%
0.00%
0.00%
0.00%
0.00%

1,458.74
1,440.70
1,481.14
1,504.66
1,467.95
1,484.46
1,478.49
1,411.63
1,401.02
1,325.19
1,330.61
1,395.42
1,331.29
1,349.99
1,353.11
1,330.63
1,293.37
1,288.14
1,329.51

0.35%
-1.24%
2.81%
1.59%
-2.44%
1.12%
-0.40%
-4.52%
-0.75%
-5.41%
0.41%
4.87%
-4.60%
1.40%
0.23%
-1.66%
-2.80%
-0.40%
3.21%
-0.07%

3.20%
3.89%
11.56%
38.99%
-20.25%
59.23%
27.67%

1.32%
1.43%
5.78%
16.22%
-10.12%
26.33%
22.75%

2.60%
2.97%
6.40%
16.36%
-12.99%
29.35%
40.63%

2.96%
3.25%
10.85%
36.67%
-24.90%
61.57%
26.38%

1,315.22
1,370.40
1,332.83
1,390.33
1,397.84
1,413.90
1,388.28

-1.07%
4.20%
-2.74%
4.31%
0.54%
1.15%
-1.81%

39.10%

41.00%

34.22%

39.61%

1,425.35

2.67%

0.12%
0.12%
0.13%
0.12%
0.11%
0.11%
0.15%
0.13%
0.13%
0.14%
0.14%
0.13%
0.14%
0.15%
0.14%

0.1176%

2.87%
1.68%
9.13%
41.00%
-10.12%
51.12%
31.43%
37.66%

Port-RFR S&P-RFR
0.24%
1.29%
6.83%
2.49%
11.05%
8.01%
7.50%
2.36%
-7.37%
1.13%
-2.79%
14.39%
7.27%
10.02%
-1.89%
6.27%
3.61%
3.70%
1.65%
2.41%
-1.16%
-1.72%
-6.55%
-11.79%
1.65%
-6.13%
1.92%
26.38%
0.32%
3.87%
-5.01%
-3.80%
4.02%
-7.48%
1.32%
-1.69%
8.86%
-0.24%
6.23%
23.25%
0.94%
5.21%
5.74%
7.35%

1.30%
-0.18%
-0.81%
1.65%
-0.90%
1.00%
-0.50%
-4.59%
0.98%
-1.27%
3.43%
-1.17%
1.51%
0.51%
2.00%
0.49%
0.59%
-0.17%
0.96%
-0.60%
1.21%
-1.98%
1.59%
-2.06%
-0.03%
1.72%
1.37%
-1.24%
-4.97%
-1.86%
1.37%
-0.59%
2.25%
-0.41%
-1.44%
2.06%
2.74%
0.01%
1.96%
0.20%
-3.98%
2.24%
-1.73%
-3.79%

3 Month

2.98%
3.73%
7.00%
7.38%
9.06%
6.15%
1.01%
-1.14%
-2.88%
4.36%
6.40%
10.67%
5.26%
4.95%
2.83%
4.70%
3.16%
2.75%
1.11%
-0.02%
-3.03%
-6.59%
-5.48%
-5.34%
-0.78%
7.46%
9.61%
10.26%
-0.20%
-1.58%
-1.53%
-2.36%
-0.66%
-2.57%
2.88%
2.36%
5.01%
9.81%
10.20%
9.87%
4.03%
6.17%

6 Month

5.18%
6.39%
6.57%
4.19%
3.96%
1.64%
2.68%
2.63%
3.89%
4.81%
5.67%
6.75%
4.98%
4.06%
2.79%
2.91%
1.57%
-0.14%
-2.74%
-2.75%
-4.19%
-3.68%
0.99%
2.13%
4.74%
3.63%
4.01%
4.36%
-1.28%
-1.12%
-2.05%
0.26%
0.85%
1.22%
6.34%
6.28%
7.44%
6.92%
8.19%

Port Moving
Avg

2.91%
4.57%
6.13%
7.38%
6.48%
4.50%
2.50%
0.32%
1.68%
2.65%
6.12%
5.52%
7.34%
5.20%
4.50%
2.84%
3.69%
2.20%
1.12%
-0.95%
-3.65%
-3.81%
-4.82%
-4.10%
2.48%
4.90%
5.34%
5.57%
4.42%
-0.05%
-1.61%
-2.13%
-1.47%
1.06%
0.21%
2.95%
7.34%
7.87%
7.14%
8.34%
8.57%

S&P Moving
Avg

16) Create a 3 months and 6 months moving a

A moving average indicates the stock price ove
period between 3 months or 6 months. In addi
moving average indicates the 3 months averag
since both numbers are important determining
period.

3.59%
6.35%
5.64%
5.72%
8.09%
8.18%
6.53%
7.27%
7.15%
4.33%
3.79%
3.37%
1.06%
1.74%
2.03%
3.18%
4.79%
5.37%
5.20%
5.74%
11.90%
11.52%
11.27%
12.20%
12.44%
6.58%
6.78%
6.93%
5.10%
5.00%
4.65%
4.13%
8.11%
8.67%
7.97%
8.05%
7.92%

-1.45%
8.16%
-0.70%
9.05%
7.13%
1.81%
1.92%
0.77%
5.32%
-4.55%
-1.77%
4.05%
3.64%
-0.73%
5.61%
0.00%
0.00%
0.00%
0.00%

0.23%
-1.35%
2.67%
1.47%
-2.55%
1.01%
-0.55%
-4.65%
-0.88%
-5.56%
0.27%
4.74%
-4.73%
1.26%
0.10%
-1.66%
-2.80%
-0.40%
3.21%
-0.07%

2.96%
3.25%
10.85%
36.67%
-24.90%
61.57%
26.38%

-1.07%
4.20%
-2.74%
4.31%
0.54%
1.15%
-1.81%

3.97%
4.79%
2.12%
5.62%
5.28%
6.11%
3.74%
1.63%
2.80%
0.65%
-0.19%
-0.62%
2.11%
2.46%
2.98%

6.92%
4.41%
4.15%
4.80%
5.04%
4.12%
4.68%
3.45%
4.46%
2.19%
0.72%
1.09%
1.38%
1.13%
1.18%

3.64%
5.09%
3.92%
4.59%
4.55%
5.21%
3.97%
4.26%
3.51%
1.19%
0.48%
0.90%
1.47%
0.27%
2.30%
2.62%
1.79%
1.03%
1.15%

4.08%
3.04%
3.54%
3.93%
4.08%
3.72%
3.54%
3.28%
2.71%
3.48%
3.29%
3.50%
3.33%
3.24%
2.57%
2.67%
2.37%
2.18%
2.21%

S&P Moving Avg

0.14
0.12
0.1
0.08
0.06

39.61%

2.67%

0.04
0.02
0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31
S&P Moving Avg

Port Moving Avg

0.1
0.08
0.06
0.04
0.02
0
-0.02
-0.04

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31

-0.06
Port Moving Avg

AXIS TITLE

PorBolio
12.0000%
10.0000%
8.0000%
6.0000%
4.0000%
2.0000%
0.0000%
-2.0000% 1 3 5 7 9 11 13 15 17 19 21 23 25
-4.0000%
-6.0000%
-8.0000%
3 Month

a 3 months and 6 months moving average and chart. What does it indicate?

verage indicates the stock price over a certain Sme either from our instance a
ween 3 months or 6 months. In addiSon, using the 3 month and the 6 month
rage indicates the 3 months average to the 6 month average of the stock
numbers are important determining the trends that they appear at that Sme

&P Moving Avg

31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63
S&P Moving Avg

ort Moving Avg

31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63

Port Moving Avg

PorBolio

25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59

6 Month

Weight
Date

25.00%

22.00%

18.00%

15.00%

12.00%

8.00%
Discover
Whole Foods MNetflix
arket (WFM)
(NFLX)
Intel Corporation
Delta A(INTC)
ir Lines
Stryker
(DAL)Corporation
Financial (SYK)
5.19%
-20.01%
7.00%
-0.85%
30.41%
1.84%
7.94%
3.63%
-10.91%
5.45%
-8.39%
6.67%
7.11%
18.80%
7.11%
2.42%
13.24%
12.56%
-4.64%
-2.55%
3.92%
5.13%
-0.98%
-0.99%
10.44%
-5.55%
2.16%
6.60%
9.08%
3.03%
0.03%
6.66%
7.73%
-3.72%
5.41%
0.82%
-2.67%
-1.52%
-0.20%
5.81%
-11.05%
1.33%
2.06%
17.44%
-0.74%

15.77%
9.69%
-6.04%
13.00%
6.10%
11.64%
34.12%
12.39%
-2.25%
-5.61%
22.40%
29.19%
7.04%
18.63%
-14.67%
21.84%
-3.46%
15.05%
-2.15%
16.39%
-2.99%
1.26%
-11.65%
-51.80%
-27.54%
-21.38%
7.38%
73.47%
-7.88%
3.89%
-30.34%
-20.84%
7.96%
-17.00%
5.05%
-8.84%
45.55%
3.12%
13.32%
78.46%
13.82%
0.64%
14.15%
4.71%
-6.70%

-2.32%
1.19%
6.30%
-4.94%
6.66%
8.59%
2.48%
-5.56%
-9.21%
5.94%
-13.60%
8.66%
4.47%
6.35%
-0.60%
2.02%
0.91%
-6.05%
14.75%
-2.02%
-1.56%
0.77%
-8.97%
6.01%
15.01%
2.42%
-2.67%
8.97%
2.56%
4.59%
1.02%
-8.38%
3.13%
-3.57%
-2.51%
-8.73%
-4.54%
-8.62%
5.37%
2.03%
0.31%
4.63%
9.62%
2.35%
-0.22%

-20.25%
14.61%
38.99%
7.48%
5.63%
12.94%
-17.22%
12.42%
-13.43%
1.03%
-11.95%
11.34%
19.32%
-1.53%
-7.93%
-7.32%
-3.73%
-12.80%
5.89%
-2.83%
-9.05%
-13.92%
-4.62%
-0.40%
13.65%
-4.76%
-0.37%
30.45%
-7.01%
1.14%
10.52%
10.35%
-9.46%
-11.93%
-10.29%
5.85%
5.09%
3.89%
18.64%
17.08%
2.70%
15.70%
3.81%
5.09%
3.88%

1.26%
9.79%
0.23%
3.07%
2.27%
8.04%
0.39%
-7.67%
-5.32%
-6.96%
-7.26%
16.22%
-1.10%
1.20%
7.58%
7.18%
9.90%
-3.60%
-2.95%
5.75%
-5.64%
-7.43%
-10.12%
-3.15%
1.67%
1.90%
2.23%
11.52%
-3.22%
3.82%
-1.63%
-5.72%
7.52%
-5.57%
2.35%
4.90%
-5.49%
2.96%
1.70%
14.29%
1.97%
2.56%
0.52%
1.23%
-2.17%

-12.92%
9.37%
-4.73%
-6.98%
-0.23%
9.30%
3.76%
-12.99%
3.93%
9.37%
-4.98%
14.98%
5.95%
3.52%
1.50%
11.14%
5.62%
10.89%
3.23%
-4.02%
12.20%
-4.04%
-1.76%
-8.83%
2.97%
1.11%
1.18%
13.23%
10.42%
11.10%
2.00%
-2.33%
4.42%
4.29%
7.71%
2.59%
3.44%
1.49%
-7.00%
-0.43%
0.38%
16.36%
-2.45%
8.86%
0.50%

Mean
Standard Deviation

8.18%
-5.10%
11.10%
7.91%
-10.34%
2.18%
-9.44%
3.44%
-6.18%
-1.77%
-23.06%
1.03%
-0.73%
2.39%
0.00%
0.00%
0.00%
0.00%
2.07%
2.18%
8.64%
30.41%
-23.06%
53.47%
22.53%
41.09%

15.82%
16.13%
8.91%
4.29%
13.43%
0.65%
11.18%
8.87%
-21.00%
-8.52%
29.74%
5.45%
-4.06%
12.99%
0.00%
0.00%
0.00%
0.00%
6.08%
6.10%
21.06%
78.46%
-51.80%
130.27%
28.88%
38.64%

-3.65%
-4.91%
4.26%
6.77%
-1.66%
8.87%
-5.45%
1.85%
4.25%
3.40%
3.22%
13.13%
9.67%
3.71%
0.00%
0.00%
0.00%
0.00%
1.47%
2.03%
6.20%
15.01%
-13.60%
28.61%
23.66%
40.65%

13.49%
-6.78%
19.56%
11.82%
10.07%
-5.18%
11.41%
8.70%
4.36%
6.27%
8.55%
-3.00%
-3.24%
5.93%
0.00%
0.00%
0.00%
0.00%
3.20%
3.89%
11.56%
38.99%
-20.25%
59.23%
27.67%
39.10%

8.93%
-5.06%
1.43%
9.27%
0.77%
1.36%
3.28%
3.40%
1.92%
-4.56%
8.67%
0.16%
-5.39%
4.44%
0.00%
0.00%
0.00%
0.00%
1.32%
1.43%
5.78%
16.22%
-10.12%
26.33%
22.75%
41.00%

3.91%
-4.18%
6.97%
2.64%
3.13%
4.98%
-4.10%
7.35%
1.43%
-3.95%
6.23%
4.82%
-1.48%
2.56%
0.00%
0.00%
0.00%
0.00%
2.60%
2.97%
6.40%
16.36%
-12.99%
29.35%
40.63%
34.22%

3.65%
12.09%

8.68%
27.04%

2.68%
8.73%

4.96%
14.39%

2.57%
8.34%

3.84%
9.18%

Column 1
Column 2
Column 3
Column 4
Column 5
Column 6

Column 1
1
0.5090397
0.6530133
0.5239498
0.5814743
0.5808451

Column 2
0.50904
1
0.4064135
0.5537524
0.6029039
0.4784671

Column 3
0.653013
0.406413
1
0.6301019
0.7079141
0.6747968

Column 4 Column 5 Column 6

0.52395 0.581474 0.580845
0.553752 0.602904 0.478467
0.0630102 0.707914 0.674797
1 0.645059 0.501302
0.6450595
1 0.706553
0.5013022 0.7065528
1

b) Is your por+olio diversied?

Yes, my porUolio is diversied. A well diversided porUolio has a mixture of
dierent stocks from dierent industries, my porUolio includes the food, digital,
computer, transportaYon, healthcare, and credit industries. In other words,
diversicaYon is important because this will show how well your assets are
spread across dierent asset classes. So looking at the comparison between
NeUlix who has a standard deviaYon of 27.04% compare to Stryker who has
8.34%.

Column 1
Column 2
Column 3
Column 4
Column 5
Column 6

Column 1 Column 2 Column 3 Column 4 Column 5 Column 6

1
0.50904 0.653013
0.52395 0.581474 0.580845
1 0.406413 0.553752 0.602904 0.478467
1 0.0630102 0.707914 0.674797
1 0.645059 0.501302
1 0.706553
1

TIP: The cells with nofill background will calculate automatically when you type

Stock 1
Expected return
Standard deviation

3.65%
12.09%

Stock 2

Stock 3

8.68%
27.04%

Stcok 4

2.68%
8.73%

4.96%
14.39%

Correlations
Stock 1
Stock
Stock
Stock
Stcok
Stock
Stock

1
2
3
4
5
6

Stock 2

1.00
0.51
0.65
0.52
0.58
0.58

Stock 3

0.51
1.00
0.41
0.55
0.60
0.48

Stcok 4

0.65
0.41
1.00
0.63
0.71
0.67

0.52
0.55
0.06
1.00
0.65
0.50

Covariances
Stock
Stock
Stock
Stcok
Stock
Stock

1
2
3
4
5
6

Stock 1
Stock 2
Stock 3
Stcok 4
0.0146
0.0166
0.0069
0.0091
0.0166
0.0731
0.0096
0.0215
0.0069
0.0096
0.0076
0.0008
0.0091
0.0215
0.0008
0.0207
0.0059
0.0136
0.0052
0.0085
0.0064
0.0119
0.0054
0.0066

Overall Minimum Variance Portfolio

Portfolio weights
Weighted
Covariance table

CHANGE NAMES
Stock 2
0
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000

Stock 3
Stcok 4
0 0.7050595 0.2383369

0.000000
0.000000
0.000000
0.000000
0.000000
0.000000

0.000000
0.000000
0.003789
0.000133
0.000000
0.000216

0.000000
0.000000
0.000133
0.001176
0.000000
0.000089

Risk/Return Tradeoff

Portfolio weights

Stock 1
Stock 2
Stock 3
Stcok 4
0.0000
0.0000
0.0000
0.0000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000

0.000000
0.000000
0.000000
0.000000
0.000000
0.000000

0.000000
0.000000
0.000000
0.000000
0.000000
0.000000

0.000000
0.000000
0.000000
0.000000
0.000000
0.000000

The area in grey shows the results using various target rates (coped and paste
Short sales allowed
Portfolio weights

No short sales allowed

Portfolio weights
0.0000
0.0378
0.0000
0.0000

1.0000
0.6035
0.2042
0.0000

0.0000
0.0912
0.3874
0.0000

0.0000
0.2675
0.4084
1.0000

ulate automatically when you type over the sample data with your own

Stock 5

Stock 6

2.57%
8.34%
Stock 5

3.84%
9.18%

Fill in area with the calculated information from the correlation

tabs

Stock 6

0.58
0.60
0.71
0.65
1.00
0.71

0.58
0.48
0.67
0.50
0.71
1.00

Copy and paste special

value the correlation
table from the
correlation tabe here

Stock 5
Stock 6
0.0059
0.0064
0.0136
0.0119
0.0052
0.0054
0.0085
0.0066
0.0070
0.0054
0.0054
0.0084

Stock 5

Sum of
Portfolio
Standard Expected
Stock 6
weights variance
Deviation Return
0 0.056604
1
0.005868
0.0766
0.0329

0.000000
0.000000
0.000000
0.000000
0.000000
0.000000

0.000000
0.000000
0.000216
0.000089
0.000000
0.000027

Sum of
Portfolio
Standard Target
Expected
Stock 5
Stock 6
weights variance
Deviation Return
Return
1.0000
0.0000
1.0000
0.006956
0.0834
0.002
0.03
0.000000
0.000000
0.000000
0.000000
0.006956
0.000000

0.000000
0.000000
0.000000
0.000000
0.000000
0.000000

rious target rates (coped and paste pesical valued)

Sum of
weights

Portfolio
variance

Sum of
weights

Portfolio
Standard Target
Expected
variance
Deviation Return
Return
0.012100
0.1100
0.05
0.05
0.005667
0.0753
0.10
0.10
0.014294
0.1196
0.15
0.15
0.062500
0.2500
0.20
0.20

1
1
1
1

Standard Target
Deviation Return

Expected
Return

Audi A4 2015

a)

http://www.cars.com/vehicledetail/detail/619230962/overview/
New Car Value
Lease for 4 years
Rate

$47,715
$994
3.50%

b)

I found the discount rate on: http://www.bankrate.com/rates/interest-rates/federal-discount-rate.aspx

c)

http://www.kbb.com/audi/a4/2011-audi-a4/20t-premium-sedan-4d/?condition=excellent&vehicleid=352637
2011 Audi A4

$16,334

This spreadsheet analyzes the lease/purchase decision. In the case of a purchase, it is assumed
sales tax is paid on the negotiated price at the time of purchase, and property taxes are paid annually.
In the case of a lease, it is assumed sales tax is paid on the difference between the list price and the
payoff at the time of purchase, sales tax is paid on the payoff when the lease expires, and property taxes
are paid by the lessor. This spreadsheet assumes the item is purchased at the payoff price at the time
the lease expires. The lease has additional value to the lessee because of the option not to purchase.
The features of your lease may be different than assumed here.

Assumptions
List price
Negotiated price
Lease period (months)
Payoff
Interest rate (APR)
Effective annual rate
Sales tax rate
Property tax (annual)

$
$
$

47,715
44,000
48
40,000
8.50%
8.68%
9.25%
700

As a consumer of this car, I would purchase the car for the

negoTated price than lease the car for four years.

Lease payment

negoTated price than lease the car for four years.

994

Results
Purchase
Present value of payments
Present value of sales tax
Present value of property tax
Total

$
$
$
$

Lease

44,000
4,070
549
48,619

$
$

69,118
2,637

71,755

The following table provides a check on the lease calculations above.

Month

Sales
Tax

Payment
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994

713.64

Total
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

1,708
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994

PV
Factor
100.0%
99.3%
98.5%
97.8%
97.1%
96.3%
95.6%
94.9%
94.2%
93.5%
92.8%
92.1%
91.4%
90.7%
90.1%
89.4%
88.7%
88.1%
87.4%
86.8%
86.1%
85.5%
84.8%
84.2%
83.6%
83.0%
82.3%
81.7%
81.1%
80.5%

30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
40,000

3,700

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
994
43,700

79.9%
79.3%
78.7%
78.1%
77.6%
77.0%
75.9%
75.2%
74.5%
73.9%
73.2%
72.6%
71.9%
71.3%
70.6%
69.9%
69.3%
68.6%
68.0%

t-rates/federal-discount-rate.aspx

?condition=excellent&vehicleid=352637&intent=trade-in-sell&mileage=50000&pricetype=trade-in

is assumed
re paid annually.
st price and the
and property taxes
price at the time
not to purchase.

ould purchase the car for the

e car for four years.

e car for four years.

Nper

Rate
Down Payment

Payment
Present Value

PV
1707.64
986.60
979.26
971.97
964.73
957.55
950.42
943.35
936.32
929.35
922.44
915.57
908.75
901.99
895.27
888.61
881.99
875.43
868.91
862.44
856.02
849.65
843.33
837.05
830.82
824.63
818.49
812.40
806.35
800.35

48
3.5%
$6,000
($1,198.37)

$36,111.30

Cumul
PV
1707.64
2694.24
3673.49
4645.46
5610.19
6567.74
7518.16
8461.51
9397.83
10327.18
11249.62
12165.19
13073.94
13975.93
14871.20
15759.81
16641.80
17517.23
18386.14
19248.59
20104.61
20954.26
21797.58
22634.63
23465.45
24290.08
25108.57
25920.97
26727.33
27527.68

(Do car purchase)

794.39
788.48
782.61
776.78
771.00
765.26
754.01
747.49
740.96
734.43
727.90
721.37
714.84
708.31
701.79
695.26
688.73
682.20
29705.06

28322.07
29110.55
29893.15
30669.94
31440.94
32206.20
32960.21
33707.70
34448.66
35183.08
35910.98
36632.36
37347.20
38055.51
38757.30
39452.55
40141.28
40823.48
70528.55

Savings for Retirement

Current Age
What age will I retire

20
65

Retirement Expenses (Monthly)

Insurance
Golf
Food
Travel
Transportation
Utilities
Mobile
Misc.
Total

$ 1,000.00
$ 750.00
$ 800.00
$ 2,000.00
$ 500.00
$ 2,000.00
$ 200.00
$ 1,000.00
$ 8,250.00

How much money do I have to save up? (Present

Value)

($274,999.97)

How much should I save up each month? (Monthly

Payments)

($241.15)
-2.78579E-11

Expected inflation
Expected Return (CAPM)

3%
0.203%

8250
40
3%
0
$26,911.81

PV monthly
expense
n
Inflation
Payment
Fv of
retirement

or Retirement

Retirement Expenses (Yearly)

Insurance
Golf
Food
Travel
Transportation
Utilities
Mobile
Misc.
Total

$ 12,000.00
$ 9,000.00
$ 9,600.00
$ 24,000.00
$ 6,000.00
$ 24,000.00
$ 2,400.00
$ 12,000.00
$ 99,000.00

Exhibit TN1

Whole Foods Market' Ratio Analysis and

In Billions

1
At Closing

EBIT
EBIT(1-t)
Plus: Depreciation
Minus: CAPX
Minus: NWC
Free Cash Flow

2011
556,000
361,400
293000
-162000
-135000
357,400

Discount Factor

PV(FCF)

2
2012
752,000
327000
-194000
-142000
(9,000)

0.9323

0.8692

333,215.92

-7,823.21

Stable
g = 0%

g = 2%

Sum PV(FCF)

1,359,726

1,359,726

TV
PV(TV)

10,542,916
7,427,056

14,844,388
10,457,268

Total Enterprise Value

8,786,782

11,816,994

Market value of Debt

0
Value of Equity
8,786,782

0
11,816,994

Net Present Value

11816994

Terminal Values

Rate
Growth

8,786,782

0.0726
0.0600

Growing

S&P500 52-Week Change3:

Market Cap (intraday)5:

14.48%
17.38B

Rd
Cost of Equity
CAPM
RF
Beta
RM
WACC
wd
we
tax
WACC
# shares
Price
Market Value of Equity
other current liabiliies
LD

2.35%
66439
0.203% CAPM YEARLY
2.07%
0.97
14.48%
Wd*Rd*(1-T)+We*Re
99.92%
0.08%
35%
1.53%
7.66
$47.23
$ 360.40
$436,000
$26,000

2.436%

Exhibit TN1

o Analysis and Forecast of Free Cash Flows

3
2013
854,000
370000
-198000
-164000
8,000

4
2014 Projection
977,659
635,478
469276
-254581
-203247
646,927

5
2015Projection
1,119,224
727,496
537228
-279891
-219651
765,182

0.8104

0.7556

0.7045

6,483.41

488,810.18

539,039.42

Growing
g = 4%

g = 6%

1,359,726

1,359,726

24,427,335
17,208,066

64,486,026
45,427,788

18,567,792

46,787,513

0
18,567,792

0
46,787,513

18,567,792

46,787,513

From the looks of this market, I would buy mo

the growth that is .0600 abd the rate .0726 wh

Sensitivity Analysis
46,787,513
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%

0.04
#DIV/0!
-542,505
-263,574
-170,597
-124,108
-96,215

0.05
551,896
#DIV/0!
-521,929
-253,473
-163,988
-119,245

0.06
273,092
531,560
#DIV/0!
-502,313
-243,845
-157,689

0.0726
165,437
232,362
405,515
1,910,616
-652,124
-269,186

0.08
133,867
173,841
253,791
493,639
#DIV/0!
-465,753

10.0%

-77,619

-92,399

-114,611

-165,764

-225,905

Tax

0.35

2011
EBIT growth
Depreciation
CAPX
NWC

Projection
2012

2013

2014

2015

35%
53%

14%
43%

14.48%
43%

14.48%
48%

14.48%
48%

-29%

-26%

-23%

-26.0%

-25.0%

-24.3%

-18.9%

-19.2%

-21%

-20%

My Recommendations:
oks of this market, I would buy more shares from this company because of
that is .0600 abd the rate .0726 which means that the company is growing
slowly from the decline from 2011-2012.

0.09
106,088
129,205
167,732
244,788
475,954
#DIV/0!

(448,711)

Whole Foods Market, Inc. (WFM)

-NasdaqGS Watchlist
48.23
0.54(1.13%) 4:00PM EST
After Hours : 48.25
0.02 (0.04%) 7:46PM EST

Income Statement
View: Annual Data | Quarterly Data
Period Ending
29-Sep-13
30-Sep-12
Total Revenue
12,917,000 11,699,000
Cost of Revenue
8,288,000 7,543,000
Gross Profit

4,629,000

Operating Expenses
Research
-
Developm
ent
Selling
General
3,682,000
and
Administra
tive
Non
64,000
Recurring
Others
-

25-Sep-11
10,108,000
6,571,000

4,156,000

3,537,000

3,355,000

2,940,000

57,000

49,000

Total
Operating
Expenses

Operating Income or
Loss

883,000

744,000

548,000

Income from Continuing Operations

Total
Other
Income/Ex
penses Net

11,000

8,000

8,000

Earnings
Before
Interest
And Taxes

894,000

752,000

556,000

Interest
Expense
Income
Before Tax
Income
Tax
Expense
Minority
Interest
Net
Income
From
Continuing
Ops

4,000

894,000

752,000

552,000

343,000

286,000

209,000

551,000

466,000

343,000

Non-recurring Events
Discontinu
ed
Operations

Extraordin
ary Items

551,000

466,000

343,000

551,000

466,000

343,000

Effect Of
Accountin
g Changes
Other
Items

Net Income
Preferred Stock And
Other Adjustments
Net Income
Applicable To
Common Shares

Get Balance
Sheet for:

Balance Sheet

All numbers in
thousands

View: Annual Data | Quarterly Data

Period Ending

29-Sep-13

30-Sep-12

25-Sep-11

Assets
Current Assets
Cash And
Cash
Equivalent
s
Short
Term
Investmen
ts
Net
Receivable
s
Inventory
Other
Current
Assets
Total Current Assets
Long Term
Investments
Property Plant and
Equipment
Goodwill
Intangible Assets
Accumulated
Amortization
Other Assets
Deferred Long Term
Asset Charges
Total Assets
Liabilities
Current Liabilities
Accounts
Payable
Short/Curr
ent Long
Term Debt
Other
Current
Liabilities

401,000

192,000

303,960

733,000

1,131,000

442,320

339,000

329,000

296,486

414,000

374,000

336,799

93,000

77,000

73,579

1,980,000

2,103,000

1,453,144

302,000

221,000

52,815

2,428,000

2,193,000

1,997,212

679,000
65,000

663,000
62,000

662,938
67,234

12,000

9,000

8,584

72,000

43,000

50,148

5,538,000

5,294,000

4,292,075

651,000

580,000

536,327

1,000

1,000

466

436,000

396,000

342,568

Total Current
Liabilities
Long Term Debt
Other Liabilities
Deferred Long Term
Liability Charges
Minority Interest
Negative Goodwill

1,088,000

977,000

879,361

26,000
46,000

23,000
51,000

17,439
50,194

500,000

441,000

353,776

-
-

-
-

-
-

1,660,000

1,492,000

1,300,770

-
2,765,000
1,265,000
-153,000
-

-
2,592,000
1,233,000
-28,000
-

-
2,120,972
870,497
-
-

1,000

5,000

-164

Total Stockholder
Equity

3,878,000

3,802,000

2,991,305

Net Tangible Assets

3,134,000

3,077,000

2,261,133

Total Liabilities
Stockholders' Equity
Misc Stocks Options
Warrants
Redeemable Preferred
Stock
Preferred Stock
Common Stock
Retained Earnings
Treasury Stock
Capital Surplus
Other Stockholder
Equity

Cash Flow

Get Cash Flow

for:

View: Annual Data | Quarterly Data

All numbers in
thousands

Period Ending

Net Income

29-Sep-13
551,000

30-Sep-12
466,000

Operating Activities, Cash Flows Provided By or Used In

Depreciation
370,000
327,000
Adjustments To Net
31,000
62,000
Income
Changes In Accounts
Receivables

9,000

-30,000

25-Sep-11
343,000

293,000
90,000
-35,000

Minji Byun's Hawaii Trip

Expenses
Airfare Roundtrip
Transporation
Hotel
Food
Snacks
Clothing
Travel Insurance
Total

Investment
CAPM
Periods
N
Future Value

$1,200
$600
$800
$400
$200
$300
$500
$4,000

2000
0.203%
12
341.7982695
4000

You will need to save $341.80 a month for a whole year to sav
up to $4000 for the trip.

nth for a whole year to save