Market Index: S & P 500Two Companies: Amazon and WalmartTask:Discuss the implications of Single Index Model for asset pricing. Recommend strategies for investors.

Management
Market Index Analysis
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As per the report of Business Insider (2019) investors has to consider different factors while selecting a stock or share. Walmart and Amazon can be called as the most valued companies in the world and the performance of the both companies are helping the economy to grow. Both companies are giving more importance to customer service and time to time they making changes to the operational and functional strategies. Amazon and Walmart have become household names in the United States, and for good reason: both of these firms have altered the way we purchase. Amazon provides a comfortable shopping experience and an ever-expanding range of items, whereas Walmart has a large network of retail locations and is known for its low prices. These enterprises, as investments, show the dualistic character of the retail industry – brick-and-mortar vs. e-commerce; rapid vs. sustained growth; domestic vs. international; real vs. market expectations. Now we can analyze the implications of Single Index Model for asset pricing in connection with Walmart and Amazon
Highly prominent publicly traded stocks are influenced by a slew of short-term impressions that do not represent underlying realities. Behavioral equities are frequently mispriced, and we believe that Walmart and Amazon are prime examples. When looking at Walmart's fundamentals, it's tough to explain its low P/E multiple. At its heart, Walmart has a supply chain architecture that retail competitors aspire to, given its breadth and depth of market penetration (Hebul 2020). The market, on the other hand, has unfairly punished Walmart for its stagnant top-line growth and recent investment in higher salaries. When...