Financial Analysis Of The EV, Ew And EQR

The LV, EW and EQR lie more in the same range, though not without variation: By definition, the EQR model has the lowest ratio in every iteration, a constant of one. EW contribution ratios range from 3 to more than 9, while LV contribution ratios range from about 2.5 to 6.5.

Rather than look at the extremes, we also look at the ratios of the highest-risk contribution to the mean-risk contribution for each portfolio in Figure 6. We see a similar story, where now once again we see large ratios for MC and MV, and smaller ratios for EW, LV and EQR. On average, the EW ratio tends to be a bit more than 2, and the LV ratio tends to be just shy of 1.5. Again, by definition, the EQR ratio is 1. Conclusion

The efficient portfolio is difficult to achieve in practice.

Data about the company stored in the archives of the bank;

3. Materials that can be obtained from the business partners ' companies.

The information obtained directly from the company includes the documents:

• Accounting (financial) statements for a period of several years. The statements include the balance sheet and profit and loss account, in addition, cash flow statement, capital and the annex to the financial balance.

The balance is made for the year (quarter) and identifies the structure of the capital, liabilities and assets of the company. Analysis of the financial balance discloses data on the cost of unfinished construction, equity, residual value of fixed assets and accounts payable. On the basis of the financial balance it can be concluded about the investment attractiveness and investment company.

Data on the income statement includes quarterly (one-year) time range and discloses the costs and revenues of the company, net income and deductions from it in the reserves, the payment of dividends and so on. From these data it is possible to obtain information about the value and dynamics of the value of output, its cost and the financial condition of the company and for the previous reporting