Financial Analysis: IHG Stock Portfolio Management and Performance

This report provides a comprehensive analysis of the Intercontinental Hotel Group (IHG) stock, listed on the London Stock Exchange. The analysis uses monthly data over a five-year period to address key financial questions. It calculates the expected monthly return, standard deviation of returns, and the correlation with the FTSE 100 index. The report also constructs portfolios with varying weights of the stock to assess risk and compute the coefficient of variation. Furthermore, it determines the stock's beta, uses the Capital Asset Pricing Model (CAPM) to compute expected returns, and calculates the Price to Earnings (P/E) ratio for the years 2016 and 2017. The report also comments on the appropriateness of the company's capital structure and provides insights into the company's future performance.