Calculate the operational performance metrics you selected, and analyze the results of your calculations in terms of the company’s needs andthe intended purpose of the financial model.

nnPart InnChapter 7 tackles the basic mechanics of portfolio calculations. Articulate how to calculate returns using historical price data.n

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• Discuss why you would perform this type of analysis in your final project. (CVS company)

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• Why would you need to calculate the covariance of the returns?

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• What is a normal distribution and why is it important? (Source: pp. 318–320)

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nPart II (CVS)nnPrompt: In Milestone Four, you will construct a draft of your interpretation of results. Specifically, the following critical elements must be addressed:nnIV. InterpretationofResultsn

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1. Calculate the operational performance metrics you selected, and analyze the results of your calculations in terms of the company’s needs andthe intended purpose of the financial model.

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2. Discuss how you would most appropriately convey this analysis to the following decision makers, being sure to articulate the distinctionsnecessary to effectively present to the specific audience:n
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   1. Your supervisor (Ensure that you defend your rationale.)

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   2. Your horizontal managers and/or colleagues (Ensure that you defend your rationale.)

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   3. The financial institution considering granting you a line of credit (Ensure that you defend your rationale.)

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