Abstract
The Department of Defense (DoD) relies on a privatized defense industry for tools of war. Following the Cold War, the majority of this Defense Industry consolidated into 5 large corporations: Boeing, United Technologies Corporation, Honeywell, Raytheon, and Lockheed Martin. In this study, an equally weighted portfolio of the 5 aforementioned companies stocks is constructed, and then analyzed during Operation Iraqi Freedom (OIF) and Operation Enduring Freedom (OEF). The equally weighted portfolio is then compared to the market to see whether or not a defense-industry portfolio can outperform the market during wartime. Both the portfolio and the market index are assessed by average monthly return and the Sharpes Slope. These metrics are compared between the portfolio and the market through a Difference in Means Statistical Test.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
