Question

(7) explain Risk Analysis and the Risk in investing in Walmart

Answer 1

Walmart is a retailer and entering into the e commerce as well. While analyzing the risk of Walmart using various ratios like sharpe ratio and standard devation we can say that it is not a risky stock. Its sharpe ratio is .0659 though it has negative beta in last one month which tells that it is contarion stock.

One should be careful while investing in Walmart becasue it has direct competion with Amazon in both US and world fastest growing economy India where is just aquired Flipkart an Indian e-commerce arm. Thus this investment can be very risky due to many player in the market and it has less experiene about Indian market which may backfire.