Simulated Trading-An Analysis of Pairs Trading

In this report, we explain and analyze a trading strategy, popularly known as Pairs trading. We begin by explaining what a pair trading strategy entails. Since there are various ways of implementing the strategy, we describe the methodology selected by us in section 3. Thereafter, we look at the returns from the strategy and benchmark it to the S&P 500 index in Section 4. In section 5, we examine the risks involved in pairs trading. Section 6 looks at some of the limitations we faced while trading and Section 7 points out some mistakes we made. Finally, we discuss some risk control measures in Section 8 and conclude in Section 9 with comments on whether we would implement the strategy in real life and if so, with what changes.

Boca Resorts Inc.-A Valuation Report

This paper presents the valuation of Boca Resorts Inc. a luxury recreational lodging business based in the United States. The McKinsey model was implemented in order to conduct this valuation. The final equity value obtained in this valuation is lower than the market value of the firm and this discrepancy reflects several alternative explanations. The value of the firm was found to be quite sensitive to several factors and thus different scenarios which reflect changes in these assumptions have been tested. The paper concludes with possible explanations for the firm’s market value.