4W3 1 ad 1 0 2 BA 5 BA 1 6 b 4 2 Br 5 BB 0 4 c BC 1 0 E rc 12 APM 2 1 0 5 7 C 12 7 5 10 Weights 10 in rf 20 in A 30 in B 40 in portfolio beta Bp 0 10 0 2 1 6 3 0 4 0 4 1 0 0 84 CAPM 2 0 84 5 6 2 a expected veroun 6 actual return 0 10 2 Portfolio 8 2 6 2 2 0 0 2 10 0 3 4 0 Y 12 0 2 2 1 2 4 8 8 2 2a d Bon ATT C 0 0224 B 0 6162 Att has a BC 1 meaning it s less sensitive to the market 2b C B change over 3 periods how Why how 1993 2000 bela 1 515 C 0 6146 apple very sensitive to market Derax 1 3 negative e shows CarM Expected return being lower man expected under performing 2000 2007 Deta 1 4546 L 3 3101 still very sensitive to market I high expected return CAPM outperforming bera 1 45 a a very strong positive 6 2007 present pera 1 180 C 1 6904 Why 1993 2000 Still sensitivity declined Slightly beta 1 18 soless sensitive more stable WI He market C still positive showing outperforming still but not as much recoving from lower performance in past leadership inconsistent I shave jobs not returning will 1997 Apple still not it peak popular so not as high returns yet 2000 2007 Major products finally coming out like the Ipod Slowly moving towards Iphone development 2007 Shifted from a strugglingrech fire to very popular in demand w new innovations shows how thy exceeded expected rerums so 2007 present they are the tech leaders in the world with consistent growt revenue They have power as a brand I have gained stability logal to customers investors a Innovation 2 BNTX CAPM their CAPM doesn t describe them well b c they get returns from their scientific accomplishments rather ian traditional market stock decisions They have a very high positive negative B suggesting BNTX performing better than CAPM predicts that BNTX moves opposite to market we their B however this is not very typical or are untraditional reliable Their success market effects I cannot be backed as such the 20 SPXL has very right points all very close to it s line of best lit linear line we a high B 3 02 so it moves 3 times the market Shows consistency Stability unlike the ATT graph where it s much more spaced out chaoric 3 Amazon us S 0500 market 2 0 00063 B 1 26 1 tends to move by 1 26 Bora I means it s more volitile I sensitive to the market If the market moves by 1 Amazon alpa O Shows tha Amazon slightly underperforms w their expected return based on compared to the market nwy 20 10 30 20 18 i zu so 1C long put 30 long Call 15 is zo so no so 4 j 35 from 55 from 30 65 45 45 25 a longCall strike 30 1b Short put Strive 10 c long I Calls Strike 20 10 Short put 20 long Call 30 is 10 60 E 20 ic 20 It long stock long put 10 30 Yu 10 is ze di du so 20 18 10 20 in so so us so to to so to so 10 20 30 long call 30 g Short Stock Short put 10 long Call 30 2 call option shike of 40 krf rate of 5 per period 2a St 55 40 15 50 3 Stu 15 Sto 0 Se 35 10 19855 35 9 38 2 b o fr p C 1 P a p 1 r 0 1 0 05 10 778 0 6126 1 72 0 778 v 15 d 0 9 3 Bu o u 55 45 I I 1 0 05 1 22 d 35 0 7 0 6126 15 1 0 6126 8 1 9 189 8 75 I Or so call value price of 45 8 70 2 should exercise american option now when Stock 45 G 4 however guaterMana can exercise now by buying 40 sell 48 for profit of 45 40 5 from 26 we know the value of holding the call option 8 73 which is don t sell too early the payost now 5 but the options value is higher 8 73 so you re better our waiting instead 4 post dividend 20 45 Pro dividend 30 Post dividend Ci 25 40 0 9 Cu 45 40 C by 0 587 5 1 0 587 0 20 post dividend E C iog 2 938 3 2 80 D 1 05 0 714 1 286 0 714 0 587 from 35 to 28 45 up I down respectively Gu 1 286 0 0 value of call stock 38 is about 2 80
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