Financial Management in Toyota Assignment

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Analysis of Portfolio and InvestmentNikita KarkiWestcliff UniversityBUS 550 Financial ManagementDr. Kambiz Moghaddam/ Madhu PokharelDecember 21, 20201
AbstractInCLA2, itincludes a realistic understanding about what portfolio management entailsand how can aninvestor evaluates return and risk and makeinvestments appropriately ininventories. I selected Netflix, Walmart, Apple, Toyota Motors and Coca cola because wearerequired to expand our stock, because they existed in various industries. We measured theiryields, variance, deviationand focused on investing factors as I selected Toyota for the mostinvestment because it had the lowest default and Netflix the lowest, given the highest default.The Portfolio evaluation was also carried out on the basis of return,standard deviation andvariance calculated by assuming 10 percent loss and 99 percent guarantee with promisingoutcomes, with market capitalization graphs that reflect the options also calculated fordifferentweights.Keywords:portfolio, standard deviation, mean, rate, return2
Analysis of Portfolio and InvestmentThe portfolio can be described as the distribution and identification of all capital assets,such as market stocks, bonds and personal investment to determine benefit in accordance withother securities and also the macro environment. Portfolio management includes 3 essential partsfor balance of transition and preserving profitability: determining, prioritizing and managingstocks[ CITATION Mar07 \l 1033 ].Portfolio management's main purpose is to reducerisk andgenerate the returns that every investor desires and canbe accomplished by making aninvestment in related bonds and secure investment. Since the key strategy to remain secure,many investors make investments in different sectors whether any of the sector tends tobreakdown.Netflix (NFLX), Apple (AAP), Coca-Cola (COKE), Walmart (WMT) and ToyotaMotors (TM) are 5sectorsthat I have selected for my assignment, because Netflix has an onlineentertainment platform, Apple is technical industry, Coca-Cola is a beverageindustry, Walmartis a retail industry and Toyota is an automotive industry. I am searching for 5different stocks.The entry requirements for the respective inventories are below;Netflix (NFLX) is an online entertainment and streaming applicationand website thatoperates on the basis of the subscriptions; originally it was only intended for streaming certainmovies, but because of its variation, the generation was simple to use and to charge for usage, thegeneration binged on Netflix.More than 95 percent of the total population knows coke and its product line, Coca- cola(COKE) is among the products most valued in the market for their business because of theirspecific value for the company as it has been on the market for decades. In one of the interviewshe spent in coke, as beingthe top owners of the portfolio, Warren Buffet said that since he had3
become a coke beverage and collector, he became personally attached to the business[ CITATION Gar10 \l 1033 ].The brand loyalty yetgained great value from him as coca colahas took over the industry over many years. So, stability and development is all I need in myportfolio, to boost productivity and make sustainable benefit. I have selected Coca-Cola as theleading brand in the industry in the past few decades.Toyota Motors (TM), is known as theworld's best auto manufacturer companywithheadquarters in Japan, has been in stock and has been very successful in past few decades forperformance. This is because someone in the production team will interrupt the productionprocess if they do not think the car is better enough, and it has maintained a car industry that isacceptable to the public. I selected Toyota in my portfolio for diversifying, and I wanted anautomotive sector that would have strong returns and reducing the severity, which could allowmy portfolio will become less volatile and competitive. Based at the historical values, the tablebelow shows Toyota's exponential change in the market. In addition to all requirements forselecting the stocks of Netflix, Apple,Coca Cola,Walmart and Toyota motors are discussed inthe context for diversifying the portfolios, personal opinions and positive earnings.Apple Inc. is the company thatdesigns, producesand distributes smartphones, laptops,wearable tech and accessories. The companyalso provides multipleservices. Apple,AirPods,Home Pod, Beats iPod touch, andApple licensed, third-party devices are offered by theCompany as iPhone, a phone section; Mac, an individual device line; iPad; many wearable tech,computer and accessories. The company offersservices for AppleCare, Cloud Store, andoperates different App Stores to enable customers to access and install apps and entertainmentplatforms likegames, books,podcasts and music. The Apple Inc. also distributes its products via4
online and retail shops and sells directly, andthird-party cellular networkcarriers, suppliers,retailers and vendors[ CITATION Roo03 \l 1033 ].Walmart is an irresistible shopping force which has yet to reach any opposing force. It isalso the world's first retailer and the world's biggest sales business with a workforce of 2.2million. Walmart offers foodstuffs and services, running 5,400 US outlets, with about 4,800Walmart stores.Walmart does have an international division of approximately 6,000 sites; isone ofthe number1 retailer in Canada and Mexico, operates through regional branches,functioning inAfrica, Latin America, Asia andEurope. Every week, around 265 million peoplevisit Walmartstores and websites.The table below shows the adjusted monthly closing prices and the return rate of theNetflix, Coca-Cola, Walmart, Apple and Toyota engines including the estimated return on theportfolio are computed on the basis of the portfolio information given below.Table 1NetflixApple Inc.WalmartCokeToyota MotorCo. Ltd.NYSEDateAdjCloseReturnAdjCloseReturnAdjCloseReturnAdj CloseReturnAdj CloseReturnAdj CloseMarketReturn onIndex1/1/001.30.8037.3436.891979056.727970%6574.0097660%2/1/001.62-11%0.8810.48%33.25-10.96%36.687531-0.55%52.867542-7%6266.419922-5%3/1/001.7716%1.0518.48%38.5315.90%38.6775095.42%67.61842328%6848.6098639%5
4/1/001.89-2%0.96-8.65%37.81-1.87%37.261917-3.66%65.115356-4%6811.169922-1%5/1/0024%0.65-32.29%39.354.06%35.618011-4.41%59.536362-9%6805.250%6/1/002.120%0.8124.70%39.350.00%33.410534-6.20%60.7172852%6798.1699220%7/1/002.3-4%0.78-2.98%37.77-4.02%32.309086-3.30%55.138313-9%6773.8500980%8/1/002.4-14%0.9419.93%32.56-13.80%29.417778-8.95%56.8486823%7132.2998055%9/1/002.451%0.40-57.74%32.901.05%30.9882745.34%51.147511-10%7010.810059-2%10/1/002.5-6%0.30-24.03%31.05-5.61%26.600962-14.16%52.3240552%7042.3198240%11/1/002.5615%0.25-15.65%35.7215.01%25.215502-5.21%46.525513-11%6659.120117-5%12/1/002.62%0.23-9.85%36.361.80%28.19268211.81%41.105686-12%6945.5698244%1/1/012.627%0.3345.38%38.927.05%30.3792327.76%44.4751138%7017.1499021%2/1/012.66-12%0.28-15.61%34.32-11.81%29.030096-4.44%45.4480862%6629.089844-6%3/1/012.671%0.3420.93%34.600.82%30.286764.33%46.1990052%6298.350098-5%4/1/012.73%0.3915.50%35.512.61%29.741903-1.80%44.326443-4%6712.520027%5/1/012.890%0.31-21.73%35.510.02%30.1912921.51%46.643895%6784.8500981%6/1/012.9-6%0.3616.54%33.49-5.70%29.655142-1.78%46.120171-1%6574.319824-3%7/1/012.9815%0.29-19.18%38.4214.71%27.891653-5.95%43.403378-6%6523.359863-1%8/1/013-14%0.29-1.28%33.02-14.04%30.4087739.02%39.999191-8%6215.660156-5%6
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