Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In consulting the Annual Report 10K for General Electric for 2018 and 2019, we find the following data on the various business segments. Note, only

In consulting the Annual Report 10K for General Electric for 2018 and 2019, we find the following data on the various business segments. Note, only continuing business segments are included here, and the most current reported data is utilized where available.

Total segment revenue

Year Power Renewable energy Aviation Healthcare GE Capital
2015 28,903 6,273 24,660 17,639 10,801
2016 36,795 9,033 26,261 18,291 10,905
2017 29,426 14,321 27,013 19,017 9,070
2018 22,150 14,288 30,566 19,784 9,551
2019 18,625 15,337 32,875 19,942 8,741

Total Segment Profit/Earnings

Year Power Renewable Energy Aviation Healthcare GE Capital
2015 4,772 431 5,507 2,882 (7,983)
2016 5,091 576 6,115 3,161 (1,251)
2017 1,894 728 5,370 3,488 (6,765)
2018 (808) 292 6,466 3,698 (489)
2019 386 (666) 6,820 3,896 (530)

With this data as your fact base, please apply the concepts of risk analysis as we have developed them in the course to this portfolio of businesses within GE. Specifically, I am interested in how you would measure the risk for each business segment and the portfolio as a whole. What are the measures as you calculate them? Which business is most risky (remember we treat risk as volatility for better or worse here) and which is least risky and why?

Finally, I would like you to form an opinion on the question of how diversified this set of businesses might be. I have specifically selected time periods prior to the pandemic crisis to remove that major factor from the required analysis although you might want to comment on it.

No more than a one-page note with the attached spreadsheet analyses responding to the above is your deliverable here.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Production And Operations Analysis

Authors: Steven Nahmias, Tava Lennon Olsen

7th Edition

1478623063, 9781478623069

More Books

Students also viewed these Finance questions

Question

Why is it important to prioritize your tasks and activities?

Answered: 1 week ago

Question

Describe strategic succession planning in todays environment.

Answered: 1 week ago

Question

Explain the various elements of a diverse workforce.

Answered: 1 week ago

Question

Describe the strategic planning process.

Answered: 1 week ago