# Blackrock Essays

1285 Words Nov 23rd, 2013 6 Pages
Statistics Project and Paper | BlackRock Inc. (BLK) | Rishabh Prabhu
MSF Global CohortFINA 6202: Analysis of Financial Institutions and MarketsSubmission Date: 11/22/2013 |

Statistics Paper: BlackRock Inc. (BLK)
In the following paper, I have analyzed the stock returns for BlackRock Inc. (BLK), for the period from May, 1999 to September, 2013. Throughout the paper, RBLK-RFR stands for the excess monthly return for BlackRock stock, RM-RFR stands for the market excess return, SMB stands for the return on Small Minus Big stocks and HML stands for the return on High Minus Low stocks. 1) The mean, standard deviation, skewness, kurtosis and excess kurtosis for the excess return variables are: Excess Variables | Mean | Standard
RM-RFR is positively correlated to SMB and HML; while SMB and HML are negatively correlated. 3) From the regression performed (Tables 1A, 1B and 1C in Appendix), we can see that α for the CAPM Model is 1.8448 while the β is 0.8623.Thus, the CAPM model takes the form: (RBLK-RFR) = 1.8448 + 0.8623(RM-RFR).α is the intercept of the Characteristic line and β is the slope of the line. The positive α of 1.8448 means that the return on BlackRock has outperformed the market return by 1.8448%. On the other hand, a β of 0.8623 signifies that BlackRock is a slightly defensive investment, with volatility of returns being slightly less than the market return volatility. A 1% increase in the excess market return would cause a 0.8623% increase in the excess monthly return for BlackRock.
The R Square for the regression is 0.1754, which means that 17.54% of the risk associated with holding the BlackRock stock is systematic. 82.46% of the total risk is company specific and can be diversified away. On the other hand, the Adjusted R Square for the CAPM Model regression is seen to be 0.1705. This means that β can explain the CAPM model with an accuracy of 17.05%. 4) The regression results for the Fama-French Three Factor Model have been tabulated in Tables 2A, 2B and 2C of the Appendix.From the table, we can see that α for the model is 1.7264, β1 is 0.8029, β2 is 0.1749 and β3 is 0.1711. Thus, our Three Factor Model takes the form: (RBLK-RFR) = 1.7264 +

## Related Documents

• ###### Essay The Dairy Industry

result from a possible Brexit. Many businesses rely on the single market in order to stay competitive throughout the European Union. BlackRock, the world’s largest asset manager with over 4.5 trillion dollars worth of money under its management contend that a Brexit would seriously impede on its ability move assets within the EU. According to the chief of BlackRock, “Rules require funds to be based within the EU in order to sell to customers in the union” (Hawkes 1). If the United Kingdom were to…

Words: 1390 - Pages: 6
• ###### Essay An Interview With Michael Armour

programs make it easy to prepare for future living. In a survey that BlackRock took with 1,011 Americans showed that around 87% of people in the survey claimed they participating in some type of retirement savings. (BlackRock) BlackRock also asked people in the survey who were actively saving for retirement if it was really that hard and people said “you can save for retirement and meet daily expenses at the same time.” (BlackRock) Many people are taking advantages of these plans but it 's still not…

Words: 1314 - Pages:
• ###### Essay A Report On The European Union

result from a possible Brexit. Many businesses rely on the single market in order to stay competitive throughout the European Union. BlackRock, the world’s largest asset manager with over 4.5 trillion dollars worth of money under its management contend that a Brexit would seriously impede on its ability move assets within the EU. According to the chief of BlackRock, “Rules require funds to be based within the EU in order to sell to customers in the union” (Hawkes 1). If the United Kingdom were to…

Words: 1968 - Pages: 8
• ###### How Forgiving Student Loans Will Help The United States Of America 's Economy

only growing but also recovering from being down (Applebaum). With college prices rising dramatically over the past years student loans are becoming more and more common, so common that they are now advertised in TV ads and emails (Schneider). BlackRock, which is a global investment company that helps anyone from countries governments to single individuals, estimates that there could be around seven million people in the USA that would be eligible for this FHA-approved mortgages but have too much…

Words: 1228 - Pages: 5
• ###### Essay Fi564 Pnc Bank Analysis

Kentucky, Indiana, Illinois, Maryland, Michigan, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Virginia, West Virginia, & Wisconsin. PNC owns about 35% of publicly traded fund manager BlackRock, which specializes in fixed-income products. BlackRock merged with Merrill Lynch Investment Managers in October 2006, and is now co-owned between PNC, Bank of America, and Barclays.PNC is currently the seventh largest bank by deposits in the United States, as well as the sixth…

Words: 2625 - Pages: 11
• ###### Essay Over Power

to: Research and Markets, Guinness Center, Taylors Lane, Dublin 8, Ireland. Please transfer funds to: Account number Sort code Swift code IBAN number Bank Address 833 130 83 98-53-30 ULSBIE2D IE78ULSB98533083313083 Ulster Bank, 27-35 Main Street, Blackrock, Co. Dublin, Ireland. Pay by wire transfer: If you have a Marketing Code please enter it below: Marketing Code: Please note that by ordering from Research and Markets you are agreeing to our Terms and Conditions at http://www.researchandmarkets…

Words: 677 - Pages: 3
• ###### Should Retail Investors Invest in Index Tracker Funds Rather Than Actively Managed Funds?

constructed). Except for index funds that track narrow market segments. While on the other hand, actively managed funds do not possess as much securities because they usually try to specifically select those securities that yield the highest returns. [Blackrock, index trading investments]. 3. Naturally, an index tracker fund involves tracking/following the market. That is basically what is involved. So style consistency is maintained in that aspect. I will use the example used earlier in this essay;…

Words: 2499 - Pages: 10
• ###### risk free Investments in the European and US Market Essay example

risk-free interest rate. The BlackRock Investment Institute (2011) notes that it is very important to assess sovereign risk properly in this situation. Currently the debts of many countries increase sharply because of an intensification of globalisation, changing financial system and other factors similar to these. Furthermore, not only developing countries are exposed to these circumstances, but also stable and developed countries. Moreover, according to the BlackRock Investment Institute (2011)…

Words: 2042 - Pages: 9
• ###### Essay The, Volume 48, By Francois Marie Arouet

Africa. You may be thinking, “Well, Vanguard is only the third largest holder in those media conglomerates, which is no guarantee that they’re calling any shots.” Well, the number-one holder of both Viacom and Time Warner is a company called Blackrock. Blackrock is the second largest holder in Corrections Corporation of America, second only to Vanguard, and the sixth largest holder in the GEO Group". Now I will not jump to any conclusions about the prison industrial complex, I will leave that for the…

Words: 2229 - Pages: 9
• ###### Chemicals Essay

Dublin 8, Ireland. Pay by wire transfer: Please transfer funds to: Account number 833 130 83 Sort code 98-53-30 Swift code ULSBIE2D IBAN number IE78ULSB98533083313083 Bank Address Ulster Bank, 27-35 Main Street, Blackrock, Co. Dublin, Ireland. If you have a Marketing Code please enter it below: Marketing Code: Please note that by ordering from Research and Markets you are agreeing to our Terms and Conditions at http://www.researchandmarkets.com/info/terms…

Words: 1232 - Pages: 5