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  • June 2023 (Revised April 2025)
  • Case
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Optimalen Capital

By: Malcolm Baker, Elisabeth Kempf and Jonathan Wallen
  • Format:Print
  • | Language:English
  • | Pages:6
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Abstract

A new client portfolio manager at a quantitative investment management firm must explain why her firm, Optimalen Capital, has rebalanced a client portfolio with a set of trades that seem unintuitive. In particular, Optimalen has added to its position of Walmart (ticker = WMT) and reduced its position in Tesla (TSLA) despite the latter having a much higher forecast return. She also must compute breakeven returns for two other stocks, Exxon Mobil (XOM) and Duke Energy (DUK).

Keywords

Investments; CAPM; Capital Asset Pricing Model; Investment Portfolio; Asset Pricing

Citation

Baker, Malcolm, Elisabeth Kempf, and Jonathan Wallen. "Optimalen Capital." Harvard Business School Case 223-099, June 2023. (Revised April 2025.)
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About The Authors

Malcolm P. Baker

Finance
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Elisabeth Kempf

Finance
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Jonathan L. Wallen

Finance
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Related Work

    • June 2023
    • Faculty Research

    Optimalen Capital Spreadsheet Supplement

    By: Malcolm Baker, Elisabeth Kempf and Jonathan Wallen
    • May 2024 (Revised May 2024)
    • Faculty Research

    Optimalen Capital

    By: Malcolm Baker, Elisabeth Kempf and Jonathan Wallen
    • June 2023 (Revised April 2025)
    • Faculty Research

    Optimalen Capital

    By: Malcolm Baker, Elisabeth Kempf and Jonathan Wallen
Related Work
  • Optimalen Capital Spreadsheet Supplement By: Malcolm Baker, Elisabeth Kempf and Jonathan Wallen
  • Optimalen Capital By: Malcolm Baker, Elisabeth Kempf and Jonathan Wallen
  • Optimalen Capital By: Malcolm Baker, Elisabeth Kempf and Jonathan Wallen
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