Evaluate financial risk, cost of capital, and risk-reward tradeoffs

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Evaluate financial risk, cost of capital, and risk-reward tradeoffs-
Scenario:
You graduated from college three months ago and have landed a job with TBMV & Associates Financial. Part of your training is to attend a business seminar. It just so happens that you attend one where Brian Olsavsky, CFO of Amazon, is the guest speaker. One of Brian’s main messages revolves around all his success and how Amazon will continue to grow.
You are a firm believer that history repeats itself. It is your belief that the next big risk taker will come along soon, and Amazon will be a thing of the past. In friendly conversation at your table, you state your thoughts and conclude Brian must not share your same belief.

Unbeknownst to you, his secretary is seated at your table. Giggling, she asks what you mean. You tell her that William Pollard stated that “learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow.” Then you proceed to tell her that Brian does not take enough risks. His secretary goes back to Brian with what you have said. Brian would like to know what you meant and your thoughts, so he hires your firm to do a risk evaluation. When you arrive back to your office, you are given Amazon’s data file and instructed to evaluate the financial risk of Amazon.

Instructions:
Using Microsoft Word, create a financial proposal that addresses the following:
Explain Amazon’s financial risk- Detailed explanation included of company financial risk ( BETA), cost of capital and risk reward from historical data.
Interpret Amazon’s financial information using Capital Asset Pricing Model (CAPM)-Thorough interpretation of company financial information using the Capital Asset Pricing Model. What is CAPM? Define Beta. What does Beta Measure? What does CAPM provide?

Devise strategies for Amazon to achieve investment high returns and low risk using Modern Portfolio Theory (MPT). Skillfully devises strategies for company to achieve investment high returns and low risk. What is MPT? what are the benefits of MPT? look for negative correlation. what is the importance of efficient frontier in the MPT? speak to risk mitigation and diversification. Decrease risk using foreign stock.

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