Portfolio

When information was released to the public in 1939, tobacco companies found ways to discredit, and silence the public concern. In fact, previous to this tobacco manufacturers claimed an increase in health and medicinal properties for tobacco products. With the formation of the Council for Tobacco Research, in 1954, a direct link was sought between smoking and health related problems. Upon the finding of such evidence major cigarette manufacturers unite.

authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised

New Tobacco Atlas Estimates U.S. $35 Billion Tobacco Industry Profits and Almost 6 Million Annual Deaths. (2012) Retrieved August 2, 2015, from

Liggett held approximately 1.9% of the total U.S. cigarette market in 1996, which represents a market share decline of 0.3% from 1995. The company was the first major domestic cigarette manufacturer to offer value-priced cigarettes as an alternative to full-priced brands. According to the Maxwell Consumer Report, Liggett's share of the discount market segment was 4.9% in 1996, compared with 5.5% in 1995 and 5.4% in 1994. The company's primary markets are candy and tobacco distributors, the military, and large grocery, drug and convenience store chains. One of Liggett's customers accounted for 13.7% of net sales in 1996.

Reynolds America, parent company group the largest R.J. Reynolds Tobacco Company didn’t agree with the rules and regulation that the FDA was enforcing on tobacco companies. They

The industry being analyzed is the tobacco industry. The tobacco industry manufacturer cigarettes, snuff, chewing tobacco, etc.

Opportunities: RAI has had many opportunities to spin off other companies which have helped it to be a powerful force in the tobacco industry. They have capitalized on the use of being more social ably conscious by adding smokeless tobacco and nicotine replacement therapy products. RAI is working on transforming tobacco by focusing on these areas: commercial integrity, tobacco harm reduction and youth tobacco prevention. (Reynolds American, Inc, 2012)

§  If P or Q represents the entire investment, Q is better because of its higher Sharpe measure and better M2. §  If P and Q are competing for a role as one of a number of subportfolios, Q also dominates because its Treynor measure is higher. §  If we seek an active portfolio to mix with an index portfolio, P is better due to its higher information ratio.

It can be compared with the benchmark performance or other portfolio with the same benchmark.

Tobacco agriculture is expanding across the globe. Much of this expansion is in the developing world where, in general, prices and incomes are lower when compared to other parts of the globe. The opportunity to find cheaper sources of agriculture products and other raw ingredients could help tobacco product firms reduce, or at least maintain, existing expenditures. While this is an interesting opportunity, the relatively low weight for this factor is reflective of the top tier’s strong existing profit margins.

number of cigarette consumers is the third-largest in the world. In 2008 the consumption of

Another multinational tobacco major is the British American Tobacco company which is the world 's second largest tobacco company. It sells its tobacco products in several top markets across the globe. Many world-famous cigarette brands are manufactured by BAT. One of its top selling cigarette brands is PALL MALL. Some other leading cigarette brands manufactured by the company are Dunhill, Kent, Lucky Strike and Vogue.

Portfolio management is making decisions in relation to investment mix and policy, asset allocation for individuals and institutions and balancing risk against performance. This includes the strengths, weaknesses, opportunities and threats in the choice of domestic vs. international, growth vs. safety, and many other trade-offs encountered in the attempt to maximize return given the client’s risk tolerance. (Haughey, 2014)

tobacco products, and in this way initiate regular smoking, and lifelong consumers of tobacco. It was cited that RJ Reynolds

either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying