Chapter 8, Problem 8.7CE8

Explanation of Solution

Undervalued public tech stocks:

Undervalued stock means a stock selling price is significantly below what is assumed to be its essential value. Here, the list of five undervalued public tech stocks is given below:

• International Business Machine (IBM) Corp
• Xerox Corp
• Corning Incorporated
• Acacia Communication Inc.
• Sunrun Inc.

Design of investment portfolio:

When compare to all the undervalued public tech stocks, IBM Corp., Xerox Corp., Corning Inc. are consider as the profitable stocks.

Risk and return on IBM Corp. Stock:

The risk management services help customers model the social impact of important operation and possible economic risk events.

• These risk events will contain complex tail modeling system, operational risk data analytic platforms, IT risk control management platforms and risk control self-assessment solutions...