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Internet Exercise 14.14 or 14.15 on Page 519

This is due by Sunday at 11:59 p.m.

14.14 Go to

https://hbr.org/2003/02/why-bad-projects-are-so-hard-to-kill

and read the perspective on the difficulty in killing bad projects. What are some of the critical stories or pieces of advice offered by the blog writer and those commenting on his suggestions? How do corporate politics play a role in the continuation of poorly conceived projects? Which of these arguments makes the most sense to you? Why?

14.15 Go to https://www.cs.unc.edu/~welch/class/comp145/media/docs/Boehm_Term_NE_Fail and read the article “Project Termination Doesn’t Equal Project Failure” by Barry Boehm. Summarize his main arguments. What does he cite as the top 10 reasons for project failure?

Week 6 – Discussion

(PFA for the week 6 material)

In this week’s discussion, prepare a synopsis of the material discussed in the chapter readings. In your post, share any questions you may have regarding the managerial finance concepts presented in the textbook. This synopsis should be 450+ words

Risk and Return

CHAPTER 6

© 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

Topics in Chapter
Basic return and risk concepts
Stand-alone risk
Portfolio (market) risk
Risk and return: CAPM/SML
Market equilibrium and market efficiency

Determinants of Intrinsic Value: The Cost of Equity

What are investment returns?
Investment returns measure the financial results of an investment.
Returns may be historical or prospective (anticipated).
Returns can be expressed in:
Dollar terms.
Percentage terms.

An investment costs $1,000 and is sold after
1 year for $1,060.
Dollar return:
$ Received$ Invested
$1,060 $1,000$60.
Percentage return:
$ Return/$ Invested
$60/$1,0000.066%.

What is investment risk?
Investment risk is exposure to the chance of earning less than expected.
The greater the chance of a return far below the expected return, the greater the risk.

Scenarios and Returns for the 10-Year Zero Coupon T-bond Over the Next Year
Scenario Probability Return
Worst Case 0.10 −14%
Poor Case 0.20 −4%
Most Likely 0.40 6%
Good Case 0.20 16%
Best Case 0.10 26%
1.00

Discrete Probability Distribution for Scenarios

Example of a Continuous Probability Distribution

Calculate the expected rate of return (r ̂ ) on the bond for the next year.

= 0.10(-14%) + 0.20(-4%) + 0.40(6%)
+ 0.20(16%) + 0.10(26%)
= 6%

Use Excel to Calculate the Expected Value of a Discrete Distribution
= SUMPRODUCT(Probabilities,Returns)
SUMPRODUCT:
Multiplies each value in the first array (the range of cells with probabilities) by its corresponding value in the second array (the range of cells with returns).
Sums the products.
This is identical to the formula on the previous slide.
See Ch06 Mini Case.xlsx

Consider these probability distributions for two investments. Which riskier? Why?

Stand-Alone Risk: Standard Deviation
Stand-alone risk is the risk of each asset held by itself.
Standard deviation measures the dispersion of possible outcomes.
For a single asset:
Stand-alone risk = Standard deviation

Variance (σ2) and Standard Deviation (σ) for Discrete Probabilities

Standard Deviation of the Bond’s Return During the Next Year
σ2 = 0.10 (-0.14 – 0.06)2
+ 0.20 (-0.04 – 0.06)2
+ 0.40 (0.06 – 0.06)2
+ 0.20 (0.16 – 0.06)2
+ 0.10 (0.26 – 0.06)2
σ2 = 0.0120
σ =
σ = 0.1095 = 10.95%

Use Excel to Calculate the Variance and Standard Deviation of a Discrete Distribution
= SUMPRODUCT(Probabilities,Returns− ,Returns−)
SUMPRODUCT:
Multiplies each value in the first array (the range of cells with probabilities) by its corresponding value in the second array (the range of cells with returns less the expected return) and by the third array (which is identical to the second array).
Sums the products; the result is variance.
Take the square root of the variance to get the standard deviation. See Ch06 Mini Case.xlsx

Understanding the Standard Deviation
If the returns are normally distributed:
Outcome will be more than 1 σ away from about 31.74% ≈ 32% of the time:
16% of the time below −σ
16% of the time above +σ.
If = 6% and σ =10.95% ≈ 11%:
16% of the time return <−5% = 6% − 11% 16% of the time return > 17% = 6% + 11

Useful in Comparing Investments
Investments with bigger standard deviations have more risk.
High risk doesn’t mean you should reject the investment, but:
You should know the risk before investing
You should expect a higher return as compensation for bearing the risk.

Using Historical Data to Estimate Risk
Analysts often use discrete outcomes to analyze risk for projects; see Chapter 11.
But for investments, most analysts normally use historical data rather than discrete forecasts to estimate an investment’s risk unless it is a very special situation.
Most analysts use:
48 to 60 months of monthly data, or
52 weeks of weekly data, or
Shorter period using daily data.
Use annual returns here for sake of simplicity.

Formulas for a Sample of T Historical Returns

Tedious to calculate by hand, easy in Excel. See next slide.

Excel Functions a Sample of T Historical Returns
Suppose “SampleData” is the cell range with the T historical returns.
=AVERAGE(SampleData)
=STDEV(SampleData)

Historical Data for Stock Returns
Year Market Blandy Gourmange
1 30% 26% 47%
2 7 15 −54
3 18 −14 15
4 −22 −15 7
5 −14 2 −28
6 10 −18 40
7 26 42 17
8 −10 30 −23
9 −3 −32 −4
10 38 28 75

Average and Standard Deviations for
Stand-Alone Investments
Use formulas shown previously (tedious) or use Excel (easy)
What is Blandy’s stand-alone risk?
Note: analysts often use past risk as a predictor of future risk, but past returns are not a good prediction of future returns.
Market Blandy Gourmange
Average return 8.0% 6.4% 9.2%
Standard deviation 20.1% 25.2% 38.6%

How risky is Blandy stock?
Assumptions:
Returns are normally distributed.
σ is 25.2%
Expected return is about 6.4%.
16% of the time (approximately), return will be:
< −18.8% (6.4%−25.2% = −18.8) > 32.6% (6.4%+25.2% = 32.6)
Stocks are very risky!

Portfolio Returns
The percentage of a portfolio’s value that is invested in Stock i is denoted by the “weight” wi. Notice that the sum of all the weights must equal 1.
With n stocks in the portfolio, its return each year will be:

Example: 2-Stock Portfolio
Form a portfolio by selling 25% of the Blandy stock and investing it in the higher-risk Gourmange stock.
The portfolio return each year will be:

Historical Data for Stocks and Portfolio Returns
Year Blandy Gourmange Portfolio of Blandy
and Gourmange
1 26% 47% 31.3%
2 15 −54 −2.3
3 −14 15 −6.8
4 −15 7 −9.5
5 2 −28 −5.5
6 −18 40 −3.5
7 42 17 35.8
8 30 −23 16.8
9 −32 −4 −25.0
10 28 75 39.8

Portfolio Historical Average and
Standard Deviation
The portfolio’s average return is the weighted average of the stocks’ average returns.
The portfolio’s standard deviation is less than either stock’s σ!
What explains this?
Blandy Gourmange Portfolio
Average return 6.4% 9.2% 7.1%
Standard deviation 25.2% 38.6% 22.2%

How closely do the returns follow one another?
Notice that the returns don’t move in perfect lock-step: Sometimes one is up and the other is down.

Correlation Coefficient (ρi,j)
Loosely speaking, the correlation (r) coefficient measures the tendency of two variables to move together.
Estimating ri,j with historical data is tedious:

Excel Functions to Estimate
the Correlation Coefficient (ρi,j)
“Stocki” and “Stockj” are the cell ranges with historical returns for Stocks i and j.
Est. ρi,j = Rij =Correl(Stocki,Stockj)
Correlation between Blandy (B) and Gourmange (G):
Est. ρB,G = 0.11

2-Stock Portfolios
r = −1
2 stocks can be combined to form a riskless portfolio: σp = 0.
r = +1
Risk is not “reduced”
σp is just the weighted average of the 2 stocks’ standard deviations.
−1 < r < −1 Risk is reduced but not eliminated. © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Adding Stocks to a Portfolio What would happen to the risk of an average 1-stock portfolio as more randomly selected stocks were added? sp would decrease because the added stocks would not be perfectly correlated. © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Risk vs. Number of Stocks in Portfolio © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Stand-alone risk = Market risk + Diversifiable risk Market risk is that part of a security’s stand-alone risk that cannot be eliminated by diversification. Firm-specific, or diversifiable, risk is that part of a security’s stand-alone risk that can be eliminated by diversification. © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Conclusions As more stocks are added, each new stock has a smaller risk-reducing impact on the portfolio. sp falls very slowly after about 40 stocks are included. The lower limit for sp is about 20% = sM . By forming well-diversified portfolios, investors can eliminate about half the risk of owning a single stock. © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Can an investor holding one stock earn a return commensurate with its risk? No. Rational investors will minimize risk by holding portfolios. Investors bear only market risk, so prices and returns reflect the amount of market risk an individual stock brings to a portfolio, not the stand-alone risk of individual stock. © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Market Risk Due to an Individual Stock How do you measure the amount of market risk that an individual stock brings to a well-diversified portfolio? William Sharpe developed the Capital Asset Pricing Model (CAPM) to answer this question. And the answer is….. See next slide. © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Market Risk as Defined by the CAPM Define: wi is the percent of the portfolio invested in Stock i. σM is the standard deviation of the market index. ri,M is the correlation between Stock i and the market. The contribution of Stock i to the standard deviation of a well-diversified portfolio (σp) is: © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Market Risk and Beta (1 of 2) The beta of Stock i (bi) is defined: The contribution of Stock i to the standard deviation of a well-diversified portfolio (σp) is: Given the standard deviation of the market and the percent of the portfolio invested in Stock i, beta measures the impact of Stock i on σp. © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Market Risk and Beta (2 of 2) So Stock i contributes more risk (has a higher beta) if its correlation with the market, , is larger and/or its stand-alone risk, , is larger © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Required Return and Risk: General Concept Investors require a return for time (for tying their funds up in the investment). rRF, the risk-free rate Investors require a return for risk, which is the extra return above the risk-free rate that investors require to induce them to invest in Stock i. RPi, the risk premium of Stock i. © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Required Return and Risk: The CAPM RPM is the market risk premium. It is the extra return above the risk-free rate that that investors require to invest in the overall stock market: RPM = rM − rRF. The CAPM defines the risk premium for Stock i as: RPi = bi (RPM) © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. The Security Market Line: Relating Risk and Required Return (1 of 2) The Security Market Line (SML) puts the pieces together, showing how to determine the return required for bearing a stock’s risk: SML: ri = rRF + (RPM)bi © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. The Security Market Line: Relating Risk and Required Return Risk depends on beta: The part of σp due to Stock i = wi σM bi Required return depends on beta: ri = rRF + (RPM) bi © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Correlation Between Blandy and the Market Using the formula for correlation or the Excel function =CORREL, Blandy’s correlation with the market (ρB,M) is: ρB,M = 0.481 © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Beta for Blandy Use the previously calculated standard deviations for Blandy and the market to estimate Blandy’s beta: b = ρB,M (σB/σM) b = 0.481(.252/.201) = 0.60 The average beta is equal to 1.0, so Blandy’s stock contributes less risk to a well-diversified portfolio than does the average stock. © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Required Return for Blandy Inputs: rRF = 4% (given) RPM = 5%(given) b = 0.60 (estimated) ri = rRF + bi (RPM) ri = 4% + 0.60(5%) = 7% © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Comparing Risk and Return for Different Stocks The beta of an average stock is 1.0; Gourmange’s beta is 1.3. How do their required returns compare with Blandy’s? rAvg_company = 4%+ 1.0 (5%) = 9% rG = 4%+ 1.3 (5%) = 10.5% rB = 4%+ 0.6 (5%) = 7% Blandy’s stock contributes less risk to a well-diversified portfolio than do Gourmange or the average stock, so Blandy’s investors require a lower rate of return. © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Using a Regression to Estimate Beta Run a regression with returns on the stock plotted on the Y-axis and returns on the market portfolio plotted on the X-axis. The slope of the regression line is equal to the stock’s beta coefficient. © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Excel: Plot Trendline Right on Chart © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Estimated Beta from Regression The trendline is plotted on the previous slide, including the regression equation. y = 0.6027x + 0.0158 b = Slope = 0.6027 (same as before) Easier way—use the Excel SLOPE function. b =SLOPE(y_values,x_values) © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Web Sites for Beta http://finance.yahoo.com Enter the ticker symbol for a “Stock Quote”, such as IBM or Dell, then click GO. When the quote comes up, select Key Statistics from panel on left. www.valueline.com Enter a ticker symbol at the top of the page (registration is free). Most stocks have betas in the range of 0.5 to 1.5. © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Impact on SML of Increase in Risk-Free Rate © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Impact on SML of Increase in Risk Aversion © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Calculate the weights for a portfolio with $1.4 million in Blandy and $0.6 million in Gourmange. Find the weights: wB = $1.4/($1.4+$0.6) = 70% wG = $0.6/($1.4+$0.6) = 30% The portfolio beta is the weighted average of the stocks’ betas: © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Calculate the portfolio beta. bp = 0.7(bBlandy) + 0.3(bGour.) = 0.7(0.60) + 0.3(1.30) = 0.81. © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. What is the Required Return on the Portfolio? (1) Use SML: rp = rRF + bp (RPM) = 4.0% + 0.81%(5%) = 8.05%. (2)Use fact that rp = rp= 0.7(7.0%) + 0.3(10.5%) = 8.05%. © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Portfolio Performance Evaluation Relative to SML (1 of 2) Portfolio Manager Portfolio Manager JJ CC Portfolio beta 0.7 1.4 Risk-free rate 4% 4% Market risk premium 5% 5% Portfolio required return 7.5% 11.0% Portfolio actual return 8.5% 9.5% Over/under performance +1.0% -1.5% © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Portfolio Performance Evaluation Relative to SML (2 of 2) © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Intrinsic Values and Market Prices © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. What is required for the market to be in equilibrium? The market price of a security must equal the security’s intrinsic value (intrinsic value reflects the size, timing, and risk of the future cash flows). Market price = Intrinsic value The expected return a security must equal its required return (which reflects the security’s risk). = r © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. How is equilibrium established? If the market price is below the intrinsic value (or if the expected return is above the required return), then the security is a “bargain.” Buy orders will exceed sell orders, bidding up the market price (which also drives down the expected return, given no change in the asset’s cash flows). “Profitable” trading (i.e., earning a return greater than justified by risk) will continue until the market price is equal to the intrinsic value. The opposite occurs if the market price is above the intrinsic value. © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Efficient Market Hypothesis (EMH): It’s all about the info. The EMH asserts that when new information arrives, prices move to the new equilibrium price very, very quickly because: There are many really smart analysts looking for mispriced securities. New information is available to most professional traders almost instantly. When mispricing occurs (due to new info or inefficient markets), analysts have billions of dollars to use in taking advantage of the mispricing– which then quickly eliminates the mispricing. © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Implications of Efficient Market Hypothesis (EMH) Stocks are normally in equilibrium. One cannot “beat the market” by consistently earning a return higher than is justified by a stock’s risk. © 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Testing the EMH Choose a trading strategy and implement it over a large sample. Pick an asset pricing model, like the CAPM, and measure the required return of the strategy’s investments. Measure the actual return. Actual > required? Reject EMH.
Notice that this is a “joint” test of the EMH and the particular asset model– if the test rejects the EMH, it could be that the asset pricing model is wrong.

Weak-form EMH
Current prices already reflect all the information “contained” in past prices, so you cannot earn excess returns with strategies based on past prices.
Example strategy: Invest in stocks that have declined below their previous 52-week low.
This is a type of “technical” analysis.

Weak-form EMH: Empirical Evidence
Most empirical evidence supports weak-form EMH because very few trading strategies consistently earn in excess of the CAPM prediction.
Two exceptions with small excess returns:
Short-term momentum
Long-term reversals

Semistrong-form EMH
Current prices already reflect all publicly available information, so you cannot earn excess returns with strategies based on information from financial statements or other public sources.
Example strategy: Invest in stocks with past 3-year annual earnings growth greater than 10% and a ratio of R&D to sales greater than 10%.
This is a type of “fundamental” analysis.

Semistrong-form EMH: Empirical Evidence
Most empirical evidence supports the semistrong-form EMH.
In fact, the vast majority of portfolio managers do not consistently have returns in excess of CAPM predictions.
Two exceptions that earn excess returns:
Small companies
Companies with high book-to-market ratios

Strong-form EMH
All information, even inside information, is embedded in stock prices so you cannot earn excess returns ever.
Not true—excess returns can be gained by trading on the basis of insider information.
Illegal! Go to jail now!

Market Bubbles and Market Efficiency
Market bubbles:
Prices climb rapidly to heights that would have been considered extremely unlikely before the run-up.
Trading volume is unusually high.
Many new investors (or speculators?) eagerly enter the market.
Prices suddenly fall precipitously.
What does this imply about the EMH?

Bubbles are hard to puncture.
If there is a bubble, why don’t traders take positions that make big profits when the bubble bursts?
It is hard to recognize a bubble until after it bursts—then it seems obvious!
Trading strategies expose traders to possible big negative cash flows if the bubble is slow to burst.

Market Efficiency: The Bottom Line
For most stocks, for most of the time, it is generally safe to assume that the market is reasonably efficient.
Many investors have given up trying to beat the market, which helps explain the popularity of index funds.
However, bubbles do occur infrequently.

The CAPM: The Bottom Line
Empirical tests of CAPM have statistical problems that make empirical verification or rejection virtually impossible.
Most corporations use the CAPM to determine their stock’s required return.
Most researchers use multi-factor models to identify the portion of a stock’s return that remains unexplained after accounting for the model’s factors.

Has the CAPM been completely confirmed
or refuted?
No. The statistical tests have problems that make empirical verification or rejection virtually impossible.
Investors’ required returns are based on future risk, but betas are calculated with historical data.
Investors may be concerned about both stand-alone and market risk.

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From brainstorming your paper's outline to perfecting its grammar, we perform every step carefully to make your paper worthy of A grade.

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Hire your preferred writer anytime. Simply specify if you want your preferred expert to write your paper and we’ll make that happen.

Grammar Check Report

Get an elaborate and authentic grammar check report with your work to have the grammar goodness sealed in your document.

One Page Summary

You can purchase this feature if you want our writers to sum up your paper in the form of a concise and well-articulated summary.

Plagiarism Report

You don’t have to worry about plagiarism anymore. Get a plagiarism report to certify the uniqueness of your work.

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Most Qualified Writer $10FREE
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Our Services

Join us for the best experience while seeking writing assistance in your college life. A good grade is all you need to boost up your academic excellence and we are all about it.

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Academic Writing

We create perfect papers according to the guidelines.

Professional Editing

We seamlessly edit out errors from your papers.

Thorough Proofreading

We thoroughly read your final draft to identify errors.

Thorough Proofreading

We thoroughly read your final draft to identify errors.

Delegate Your Challenging Writing Tasks to Experienced Professionals

Work with ultimate peace of mind because we ensure that your academic work is our responsibility and your grades are a top concern for us!

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Here is what we have achieved so far. These numbers are evidence that we go the extra mile to make your college journey successful.

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We Analyze Your Problem and Offer Customized Writing

We understand your guidelines first before delivering any writing service. You can discuss your writing needs and we will have them evaluated by our dedicated team.

Clear elicitation of your requirements.
Customized writing as per your needs.

We Mirror Your Guidelines to Deliver Quality Services

We write your papers in a standardized way. We complete your work in such a way that it turns out to be a perfect description of your guidelines.

Proactive analysis of your writing.
Active communication to understand requirements.

We Handle Your Writing Tasks to Ensure Excellent Grades

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What Will You Get?

Premium Quality

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Areas of Expertise

Essay

Thesis

Presentation

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Term Paper

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Case Study

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Speech

Q & A

Critical Thinking

Areas of Expertise

Essay

Thesis

Presentation

Dissertation

Term Paper

Research Paper

Book Review

Assignment

Report

Case Study

Letter

Article

Coursework

Speech

Q & A

Critical Thinking

Trusted Partner of 9650+ Students for Writing

Preferred Writer

Grammar Check Report

One Page Summary

Plagiarism Report

Free Features $66FREE

Our Services

Academic Writing

Professional Editing

Thorough Proofreading

Thorough Proofreading

Delegate Your Challenging Writing Tasks to Experienced Professionals

Check Out Our Sample Work

It May Not Be Much, but It’s Honest Work!

0+

Happy Clients

0+

Words Written This Week

0+

Ongoing Orders

0%

Customer Satisfaction Rate

Process as Fine as Brewed Coffee

Share Your Requirements

Place Order & Deposit Funds

Release Payment to Your Writer

See How We Helped 9000+ Students Achieve Success

We Analyze Your Problem and Offer Customized Writing

We Mirror Your Guidelines to Deliver Quality Services

We Handle Your Writing Tasks to Ensure Excellent Grades