Is a company that operates Sky Digital, a subscription telecasting service in the UK and Ireland. It Belongs to Anthony Ward at Leisure Media for any recruitment engagements. It produces Television content, and owns several Television channels. It is the UK ‘s largest wage Television supplier.

More than a 3rd of the equity is owned by News Corporation, an American company chaired by Rupert Murdoch ; News Corporation ‘s precise shareholding fluctuates due to portion options and purchase dorsums and was 39.1 % at May 2009.As of 30 September 2008 it had 9,067,000 direct to place clients in the UK and Ireland. As of February 2007, it besides had 3,294,000 indirect clients through the overseas telegram operator Virgin Media & A ; through IPTV operator Tiscali Television in the UK, and a farther 604,000 indirect overseas telegram clients on UPC Ireland in Ireland.The Astra orbiter web began with the launch of Astra 1A in 1989. With the launch of more Astra orbiters from 1991 onward BSkyB was able to get down spread outing its services ( the Astra orbiters were all orbitally co-located at 19.2A° Es so that they could be received utilizing the same dish ) .

Sky does non have any of the orbiters it has used since retreating service from the Marcopolo trade ; the Astra orbiters are owned and operated by SES Astra ( and Eurobird 1 by Eutelsat ) . Sky has shared its orbital place with other pay-TV systems in the past. Sky has besides worked together with Tata Group conveying Tata Sky in India and substituary provinces.It is listed besides on the London Stock Exchange and is a component of the FTSE 100 Index.

BAE Systems plc:

It is a British defense mechanism, security and aerospace company headquartered in Farnborough, Hampshire, England, that has planetary involvements, peculiarly in North America through its subordinate BAE Systems Inc. BAE is the universe ‘s second-largest defense mechanism contractor and the largest in Europe. It was formed on 30 November 1999 by the ?7.

7A billion amalgamation of two British companies, Marconi Electronic Systems ( MES ) , the defense mechanism electronics and naval ship building subordinate of the General Electric Company plc ( GEC ) , and aircraft, weaponries and naval systems maker British Aerospace ( BAe ) .It is listed besides on the London Stock Exchange and is a component of the FTSE 100 Index.

Barclays plc:

It is a planetary British fiscal services house runing in Europe, North America, the Middle East, Latin America, Australia, Asia and Africa. It is a keeping company that is listed on the London and New York stock exchanges, and was listed on the Tokyo Stock Exchange until 2008. It is besides a component of the FTSE 100 Index.

BG Group PLC:

It is an incorporate oil and gas company which has its central offices in Reading, Berkshire, England.

The Company is listed on the London Stock Exchange and is a component of the FTSE 100 Index.

BHP Billiton:

It is the universe ‘s largest excavation company. It was created in 2001 by the amalgamation of Australia ‘s Broken Hill Proprietary Company ( BHP ) and the UK ‘s Billiton, which had a Dutch and South African background.

The consequence is a dual-listed company with caput offices in Melbourne and London. BHP Billiton Limited, which is the bulk spouse in the dual-listed construction, is listed on the Australian Securities Exchange.BHP Billiton Plc is listed on the London Stock Exchange and is a component of the FTSE 100 Index.

BP plc ( Once British Petroleum plc ) :

It is the 3rd largest planetary energy company and the 4th largest company in the universe. As a transnational oil company ( “ oil major ” ) BP is the UK ‘s largest corporation, with its central offices in St James ‘s, City of Westminster, London.

The company is among the largest private sector energy corporations in the universe, and one of the six “ supermajors ” ( vertically integrated private sector oil geographic expedition, natural gas, and crude oil merchandise selling companies ) . The Company is listed on the London Stock Exchange and is a component of the FTSE 100 Index.

British American Tobacco Plc:

It is a taking planetary baccy company.

It is based in London, United Kingdom and is a component of the FTSE 100 Index.The company ‘s current signifier has its beginnings in 1902, when the United Kingdom ‘s Imperial Tobacco Company and the American Tobacco Company of the USA agreed to organize a joint venture, the British-American Tobacco Company Ltd. The parent companies agreed non to merchandise in each other ‘s domestic district and to delegate hallmarks, export concerns and abroad subordinates to the joint venture. James ‘Buck ‘ Duke became its president. The British American Tobacco concern therefore began life in states every bit diverse as Canada, China, Germany, South Africa, New Zealand and Australia, but non in the United Kingdom or USA. In 1911 the American Tobacco Company sold its portion of the company. Imperial Tobacco bit by bit reduced its shareholding, but it was non until 1980 that it divested its staying involvements in the company.

In 1976 the group companies were reorganised under a new keeping company, B.A.T Industries. In 1994 BAT acquired its former parent, American Tobacco Company ( though reorganised after anti-trust proceedings ) . This brought the Lucky Strike and Pall Mall brands into BAT ‘s portfolio. In 1999 it acquired Rothmans International, which included a portion in a mill in Burma. This made it the mark of unfavorable judgment from human rights groups. It sold its portion of the mill on 6 November 2003 after an “ exceeding petition ” from the British authorities.

In 2003, BAT acquired Ente Tabacchi Italiani ( ETI ) S.p.A, Italy ‘s province baccy company. The of import acquisition would promote BAT to the figure two place in Italy, the 2nd largest baccy market in the European Union. The graduated table of the hypertrophied operations would convey important chances to vie and turn ETI ‘s local trade names and BAT ‘s international trade names. In January 2007, BAT closed its staying UK production works in Southampton with the loss of over 600 occupations.

However, the planetary Research and Development operation and some fiscal maps will go on on the site. In 2008 BAT acquired Turkey ‘s state-owned coffin nail shaper Tekel. In July 2008, BAT acquired the coffin nail and snus operations of the Norse Tobacco Company.

British Airways plc:

It is the flag bearer air hose of the United Kingdom. It is headquartered in Waterside near its chief hub at London Heathrow Airport and is the largest air hose in the UK based on fleet size, international flights and international finishs. Its 2nd hub is London Gatwick Airport. British Airways has discontinued all direct abroad flights from UK airports other than Heathrow, Gatwick and London City Airport.

BA ‘s UK riders arising at non-London airdromes must now link via London or utilize other air hoses with direct services.British Airways is listed on the London Stock Exchange and is a component of the FTSE 100 Index.

British Land Company PLC:

It is one of the largest belongings development and investing companies in the United Kingdom. It converted to a Real Estate Investment Trust when REITs were introduced in the United Kingdom in January 2007.

It is headquartered in London. It is listed on the London Stock Exchange and is a component of the FTSE 100 Index.

BT Group plc ( once British Telecommunications plc ) :

It is the privatised former province telecommunications operator in the United Kingdom. It is the dominant fixed line telecommunications and broadband Internet supplier in the UK, and besides operates in more than 170 states around the universe. It is headquartered in the BT Centre in the City of London.BT Group is besides one of the largest communicating companies in the universe, with over a 3rd of its gross now coming from its Global Services division. A public limited company, the Group is listed on the London Stock Exchange and is a component of the FTSE 100 Index.

Bunzl plc:

It is a transnational distribution and outsourcing concern based in London, England.

Founded in 1940 as a maker of coffin nail filters, crepe and tissue paper, Bunzl is today chiefly a distributer of a diverse scope of merchandises including nutrient packaging, cleansing and hygiene supplies, personal protective equipment ( PPE ) and bearer bags. The company ‘s clients include contract cleaners, retail merchants, providing houses and nutrient processors. Almost half of Bunzl ‘s concern is conducted in North America, with the company besides runing in the British Isles, Continental Europe and to a lesser extent Australasia. Bunzl became a component of the FTSE 100 Index for the 3rd clip on 30 April 2008.

Burberry Group plc:

It is a British luxury manner house, fabricating vesture and manner accoutrements. Its typical plaid form has become one of its most widely copied hallmarks. The company has branded shops and franchises around the universe, and besides sells through grants in third-party shops. It runs a catalogue concern and has a aroma line. HM Queen Elizabeth II and HRH The Prince of Wales have granted the company Royal Warrants. Burberry ‘s hallmark merchandises are its stylish pocketbooks and sole aromas.

The Creative Director is Christopher Bailey. The company is listed on the London Stock Exchange and is a component of the FTSE 100 Index.MethodologyThe aim of this paper is to analyze 10 British stocks traded on FTSE ( the London Stock Exchange ) , viz. , the B sky B, BAE Systems, Barclays, BG Group, BHP Billiton, BP, Brit Am Tobacco, British Airways, British Land, BT Group, every bit good as to get at efficient portfolios consisting these stocks. The analysis is based on hebdomadal informations on stock market returns ( expressed in GBP ) of the above-named companies in the twelvemonth 2004.10.21- 2005.11.

01. Both the instance of frictionless market and the instance with no restraints on short merchandising are investigated.The analysis relies on the classical mean-variance standards developed by Markowitz ( 1952 ) , which, despite some possible defects, remains the basis of the investing theory. The theoretical account assumes that investors are risk averse. This means that given two assets that offer the same expected return, investors will prefer the less hazardous 1.

Thus, an investor will take on increased hazard merely if compensated by higher expected returns. Conversely, an investor who wants higher returns must accept more hazard. The exact tradeoff will differ by investor based on single hazard antipathy features. The consequence of this premise is that merely the expected return and the volatility ( i.e.

the average return and the standard divergence ) affair to the investor. The theoretical account is restricted to a limited scope of values, viz. the mean expected return and the discrepancy.

Thus the theoretical account takes the position of an investor with a quadratic public-service corporation map who bases his determinations on two distribution minutes, viz. the expected ( average ) return and the discrepancy ( standard divergence ) of each investing option being considered. We farther assume that the returns are usually distributed.So, the expected ( average ) return on the portfolio above is the leaden norm of the returns on the different stock markets:where is the weight invested in the ith of the n stock markets.

The discrepancy of the portfolio can be defined as:where is the correlativity between the returns of the ith and the kth stock market, and are the standard divergences of returns.The portfolio volatility is merely:Based on the classical mean-variance ( MVC ) theoretical account for the choice of portfolios of hazardous assets by Markowitz ( 1959 ) , variegation of the investing portfolio leads to decrease of hazard, measured as the standard divergence of portfolio rate of return, while maintaining the same degree of expected future investing returns.

Haugen Analysis

Haugen gives us some information about the portfolio distribution of the 10 companies that have been introduced before in this paper. The companies are analysed on an exact clip interval which is from 2004.10.

21- 2005.11.01 as it mentioned before.The first tabular array in Haugen shows what sum of return and standard divergence relate to different portfolios and the correlativity between houses.The first row represents the 10 companies in the exact order how in the debut these were listed.

For illustration sec. 2 indicates BAE Systems plc.The 2nd row represents the expected return in per centum which is invariably altering at different portfolios. The 3rd row is the standard divergence in per centum at each portfolio, demoing how each one deviates from the mean.The tabular array under standard divergence shows the correlativity beetween the companies stated as aˆzcorr. “ .

If the correlativity is 0 so there is no correlativity, they are totaly independent from each other. If the correlativity is under 0, it means the two companies correlate oppositely to each other, intending that their motions are dependent, but if one goes up, the other goes down.The weights of each companies are different at each portfolio, so we get different criterion divergences and expected returns.


– & gt ; The expected return is really low 0.

05 % and the standard divergence is 1.97 % . In the first subdivision the lowest correlativity is between the universe largest excavation company BHP Billiton and and British Sky Broadcasting with a 0.02239 correlativity coefficient.

– & gt ; The worst instance in which BAE systems Plc correlates is one of the largest telecommunications company, BT Group Plc with a 0.04437 value.- & gt ; The highest correlativity coefficient can be found till now with a 0.72136 value with the 3rd largest planetary energy company British Petroleum Plc- & gt ; The best correlativity for BP Plc is the two industry dependent company, the universe ‘s largest excavation company BHP Billiton and the integrated oil and gas company BG Group Plc.- & gt ; The lowest correlativity is once more with BT Group Plc with a 0.

02932 value.- & gt ; The 2nd tabular array shows the expected returns and the porfolio ‘s standard divergences of the 10 company without short gross revenues. The expected return is for good turning, non like in the first tabular array.

– & gt ; The most efficient portfolio harmonizing to this tabular array is the BT Group. If bitty see the correlativity withot short gross revenues we observe its valeu to 99.9999, and the expected return with 0.93333 and the standard divergence with 3.03259.


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