Essays on Return

Team 2

EXECUTIVE SUMMARY
Our company is Prestige Worldwide Investing. Our task is to determine which property is the best investment for the three different risk investors which is the risk averse, risk neutral, and risk seeking. Richard Nixon is a risk-seeking investor. Like most VC (venture capitalist), Richard pursues the project, which is high risky and high payback. Bill Clinton is risk-neutral investor, and he is only concerned about high return regardless of the risk. Ronald Reagan is a risk-averse investor looking for safe investments. For example, risk-averse investors will prefer the one with low relative risk when faced with Continue reading...

Capital Asset Pricing Model

The primary role of capital market is allocation of ownership of the economy’s capital stock . Capital market theory extends portfolio theory and develops a model for pricing all risky assets. Capital asset pricing model (CAPM) allows determining the required rate of return for any risky asset. CAPM offers powerful and intuitive pleasing predictions about how to measure risk and the relation between expected return and risk. It is widely used in application such as estimating the cost of capital for firms and evaluating the performance of managed portfolio . CAPM has been the basis for calculating the required rate Continue reading...

AN EXPLORATORY ANALYSIS OF SENATE BILL 863

Requirements for the Masters in
Public Policy and Administration
Degree
The thesis of
is approved by
__________________________________

Chairperson

ABSTRACT
California’s (CA) legislature has passed a series of Workers Compensation (WC) reforms during the past 15 years; the most recent, Senate Bill (SB) 863 passed on August 21, 2012. SB 863 was introduced and presented to the California public as a reform bill that would ensure better coverage and easier medical access for workers injured on the job. SB 899 passed during the early 2000s was shown to be better for California’s workers, than SB863. The most vulnerable workers, Continue reading...

Task

Compare the corporate form of organization with the sole proprietorship and the partnership.

Describe the principles dealing with ways of creating value and economic efficiency

The major principles include comparative advantage and absolute advantage. Comparative advantage is the ability of a country to produce a particular commodity in a more efficient way than other countries. Countries that have modern machinery are likely to produce machine intensive products than other countries. Continue reading...

QUESTION 1;

Part A: Net Present Value calculation
Working capital will be regarded as the initial investment outlay which is £ 1 million. Discount rate used in calculating the net present value of the project is 7%. The internal rate of return will be hypothetically obtained with the aim of obtaining the break-even situation of the project.
All costs and expenses are treated as cash outflows which will reduce the cash inflow in the project i.e. the project’s sales revenue. The cash outflows from the entire project will be deducted from the project’s inflows so as to determine the returns Continue reading...

Capital asset pricing model serves for decision making purposes relating to a portfolio of assets. The technique factors in the expected market rate of return, the risk free rate and the beta of the related asset. The CAPM model works on a number of assumptions. Two important assumptions of the CAPM model are that investors are rational and risk adverse and that the information flows perfectly to all investors. CAPM formula is the sum of the risk free rate and the product of risk premium and the beta. Beta is found by dividing the market covariance and risk free Continue reading...

Industry Report: Banking

Introduction
When it comes to an industry, then there are number of things which have been taken into account for the same. The essence of effectiveness and productivity always been associated with an industry and the stance of effectiveness depends upon certain factors. There are number of industries working in the world and all of the industries have their own significance and importance lies in a broad nutshell. There are certain aspects which have to be taken into consideration by an organization or by an industry in order to become competitive and eminent in a certain industry.
Financial Productivity Continue reading...

Performance measurement is the attempt in business to be able to quantify what management has been doing during a certain period. The principle behind it is that of giving management authority to make certain decisions in their areas of responsibility and later on make then making them accountable for their decisions. In the end, what a superior wants is a performance report from a manager concerning his division. The report would contain what he has been doing and whether targets set have been attained or not. There are three main financial performance measurement techniques; return on investment, residual income Continue reading...

Portfolio Summary

Executive Summary:
The portfolio which consists of twenty (20) stocks from varied industries has been benchmarked against S& P500 index on weekly basis from 8-4-2014 to 29-5-2014. During the period of our analysis, while the S&P 500 index has earned return in the range of -1.43% to 0.43%, the portfolio performance on the other hand has been bumpy. For Instance, in the beginning week of our investment, the portfolio earned a return of 12.37%, by the end of last week; the portfolio earned a return of -10.99%.

Management Discussion and Analysis:

The portfolio consists of twenty stocks and has been benchmarked against the Continue reading...

<Student’s name>
<University>

Abstract

An important aspect of investment management in the form of investment is to identify and improve the economic efficiency of investments.
In practice, there are two approaches to the definition and evaluation of real investment - cost and income. If we start from the quantitative estimates, up to recently, the economy was dominated by the cost approach, which was reflected in the manner of determining the economic effectiveness of capital investments and the principles of effective options for selection of investment projects based on the methodology of comparative effectiveness, which was based on Continue reading...

Thesis Statement

In order to attain or maintain competitive advantage, retail organizations must take particular care in establishing return policies.
Introduction
In the United States, retail stores have to mention clearly their return policies in order to deal effectively with customers all over the world. Return policies can be defined as the conditions on which a retail store can take its product back and replace or return the product and refund the actual amount to customer. As most of the customers do not utilize the retail store return policies moderately and indulge in fraudulent activties with the company (Grannis, 2011). These Continue reading...

Importance of capital budgeting process

The capital budgeting process facilitates the financial management duty of allocation of finances and decision making on investment choices. With limited amounts of capital, financial managers are required to advise on the most appropriate business investment opportunity to pursue. The capital budgeting process suffices for the identification of the best alternative for investment. Through the capital budgeting process, financial managers are able to compute the expected cash flows in various investment options. Through the discounting methods, they are able to accurately estimate the expected cash flows and settle on the most profitable Continue reading...

- Introduction
Return on investments (ROI) is one of the most crucial calculations that organizations’ management need to make as a way of ensuring that their businesses have a long-term viability. Thus, it is becoming crucial for businesses not only to identify their operations profitability but also to measure the efficiency of their investments in providing a return. However, the metric’s application varies with different business types, and that forms the objective of this study in establishing the various ROI standards that are applied by companies with a focus on the service oriented businesses. (Vinci, 2010) In that Continue reading...

Introduction

Investors prefer safer to riskier stocks since it provides a perceived security and there alternative to a risky investment or stock is the incentive in form of higher returns. In depth, the market prices are to be set such that investors expect riskier stocks to deliver higher returns although the higher returns are not to be viewed as dependable since if the risky stocks are to be counted on to deliver higher returns than the safer investments or stocks then they are to be considered not risky like demonstrated (LAOPODIS 2012). This expected high returns are valuated so as Continue reading...

According to Fabozzi & Koln (2006), the Capital Asset Pricing Model (CAPM) is the works of Sharpe (1964) and Litner (1965) that marks the beginning of assets pricing theory. Dempsey (2013) asserts that CAPM still dominates the practical world in measuring systematic risk. CAPM offers a rate of return to compensate investors for taking risks. This model helps to calculate investment risk and the return on investment. CAPM reaches new heights as a model of measuring returns on securities. CAPM estimates the cost of capital for projects as well as evaluate the performance of portfolios in the financial market. Jagannathan & Continue reading...

Introduction

The decisions that the management makes regarding capital investment and financial management determines the success of any corporation. In essence, the management should make the investment, financing, and dividend decisions carefully to facilitate the maximization of the shareholders’ wealth. Ideally, sound investment decisions ensure that the firm utilizes the existing investment opportunities well. Additionally, sound financing decisions make sure that the firm has necessary sources of fund to use in its investments. What is more, sound dividend decisions ensure that the company retains enough earnings to distribute to the shareholders or use in future investments. The decisions about the Continue reading...

Introduction

The trade-off between risk and return is an always been a concerned for the analysts and researchers and the concepts related to the same are extremely effective and essential. Financial Management is one of the largest fields which have different dominating options embedded in it. Financial Management is a combination of two things that are managing and finance. It means that the management of the financial function is more than essential and effective for the sake of the organization (Elton, Gruber, Brown & Goetzmann, n.d.).
The concept of risk and return has number of aspects as well in which different Continue reading...

Introduction

Investments have two aspects; returns and risks that determine their desirability to an investor. In that respect, analyzing the two is crucial, and several models have been advanced for the purpose of identifying most suitable portfolios. In addition, investor's preferences and risk profile determine their investments choices. Thus, a portfolio construction is based on the involved assets return and risk as well as the client’s risk profile. To demonstrate the process of portfolio construction in view of the clients’ profile, this report uses a case of a client with identified investments goals. The report uses a questionnaire to Continue reading...

Target Company

Target Corporation is a retailing corporation in America. It is based in Minneapolis, Minnesota. It was founded in 1902 and is ranked second after Wal-Mart as the biggest retailer in the United States. The company has stretched out its operations to Canada through a subsidiary, and it now operates in close to 100 locations in Canada. The corporation boasts of a large customer base of nearly over 110 million. The company operates stores in Canada, and United States that deal with general merchandise. These include pharmacy, baby care, beauty, cleaning products, personal care among others. Jewelry and clothing accessories Continue reading...

Tools for Evaluating the Projects

Biz Systems Consultants Ltd is a firm that is set up by experienced persons. Now they are in consideration for the projects that have investment of 17, 00,000$ and three projects are mutually exclusive. In this report we will find out the ways and tools that can help the firm in accessing the feasibility of the project. There are different methods of accessing the feasibility of projects as well as many sources of finance but we will discuss here the three major sources of finance that are best suitable for the company (Bearse, 1993).
For the company Biz Continue reading...

Introduction

In every investment decision, it is necessary to scrutinize the benefits and cost before venturing into it. An investor should evaluate the benefits he or she would get if they invested their capital in the project rather than depositing the cash in the bank to accumulate annual interest. A project manager is solely responsible to decide on behalf of his clients on the best project to invest from a pool of several and closely related benefits on behalf of his client. The key factors that the manager would consider are rate of return on investment, period it would take Continue reading...

Profitability ratios

Gross profit margin =Gross profit/Net sales
The formulae used in the calculations are listed in the appendix. ("Growth, Profitability, and Financial Ratios for Myer Holdings Ltd (MYR) from Morningstar.com," n.d.)

Commentary

- Profitability

Generally, profitability ratios give someone an idea on how the company is utilizing resources to make the profit.

Myer has a lower gross profit margin compared to David Jones. The gross profit, net profit margins for Myer decline over the two-year period, 2012 and 2013. During the same time, David Jones improves marginally on the margins. This is an indication of changing fortunes in the industry, where one company gains as the other declines.
The two companies have a similar tax environment as tax expense Continue reading...

Introduction

Pfizer Inc. is one of the largest pharmaceutical companies in the world. It has its headquarter in New York City and its research headquarter in Connecticut. It develops and produces medicines and vaccines for a wide range of medical disciplines i.e.Immunology, oncology, cardiology, diabetology/endocrinology, and neurology.
The Coca-Cola Company is the largest manufacturer, retailer and marketer of soft-drink in the world. It is an American company which produces a carbonated soft drink. It has a presence in over 200 countries around the globe and approximately 1.6 billion serving of Coke and Sprite are consumed per day.
Wal-Mart Stores is Continue reading...

Project managers have a critical task that involves guaranteeing that each project is completed in the time frame and budget given. “A manager is responsible for the application and performance of knowledge.” (BrainyQuotes, 2013) In projects, project managers are held accountable for the performance, good or bad. Performance management is a tool that is effectively used in order to maximize the success of the projects. Performance management consists of multiple mechanisms and tools that are combines to track and report the set targets in a project. Companies that are successful invest the money, time, and resources into projects making Continue reading...

Introduction

While selecting any specific portfolio it is extremely crucial that we assess the risk and return of the securities properly, to avoid facing any unfavorable scenarios in the future. For this, we need to have a thorough understanding and estimates of the risks and returns associated with a given portfolio. The expected return can be defined as the average weighted outcome of any given project and in this case, any given portfolio. In the case of a portfolio it includes all of the average weights of the expected returns associated with the individual stocks. To be more accurate, the Continue reading...

- Introduction
The report is the second part of the SIM and Statistical arbitrage assignment. This report describes the process which has been done in the first part. It includes the collecting of the necessary information and data, a determination of the stocks, analysis of this data and the obtained results.
- Stocks Analyzed

The average return of News Corporation is higher than the average return of Commonwealth Bank of Australia. The standard deviation of the first one is lower than the standard deviation of the second company. Therefore, the stock of the News Corporation is more efficient and stable Continue reading...

Introduction

Rolls Royse is a global leader in the provision of power systems and services at sea, on land and also in the air. Over the years, the company has established a very strong position in defense aerospace, energy and nuclear production and also civil airspace. The company is headquartered at Buckingham Gate in England but has operations in the regional offices in the US, Europe, Middle east, Asia and recently, Australia.
In evaluating the performance of Rolls Royse, we shall gather both qualitative and quantitative information regarding the company and carry out a number of operations to gauge the Continue reading...

Portfolio Management

Risk of the firm
Referring to the regression results, we found out that the beta of the firm is 0.70. This indicates that the return of the company’s stock are less sensitive from the market that carries a bet multiple of 1. In other words, if the market return changes by 1%, the stock return being less related to that of market return will only change by 0.70%.
In addition, the regression results also provide us with R-Square multiple of 0.32. Important to note, R-Square multiple is the ratio of market risk to the total risk of the Continue reading...

Introduction

Coca Cola Company
Coca-Cola Company is one of the biggest manufacturing firm which produces soft drinks in the world. It has its operation in more than 200 countries, and it sells around 1.6 billion servings of Coke, Fanta and Sprite in each day. It is an American company and produces carbonated soft drinks sold almost all over the world under the trademark of Coca-Cola.

AT&T Inc.

AT&T is an American multinational company established to deliver telephone service in the United States. At present, it stands as the largest service provider of mobile as well as fixed telephone line. It is the Continue reading...

Answer a)

i) Comparing the expected return and standard deviation of various assets in the portfolio, we have analyzed the following characteristics:
a) Australia Shares on account of total risk of almost 22% is capable of providing return of 16%
b) Australian Bonds with risk accounting to 7% provides return of 11.5% to the investor.
c) Cash being the most liquid asset and least risky asset with risk factor of only 4.4%, provides return of 9.25%.
d) As for international shares, despite the high risk factor of 22.62% and relatively low return of 14.88% as compared to asutralians shares, the offshore Continue reading...

Britvic Company Financial Analysis:

Introduction:
With operations in prominent countries of Europe like the Great Britain, Ireland and France, Britvic is renowned as one of the leading soft drink companies in the whole of Europe (Marketwatch.com, 2014).
The Company has been able and successful in setting up a definite portfolio across the markets where it operates. The brands of the Company that have captured its own market include Robinsons, Tango, J2O, drench, MiWadi, Ballygowan, Teisseire and Fruité. The Company also produces and sells famous drinks of PepsiCo Company such as Pepsi, 7UP and Mountain Dew Energy, in Britain and Ireland, as per theelite Continue reading...

Answer)

The Malaysian Economy which is known to be a robust economy with supportive government reforms, talented workforce and newly developed infrastructure. The country has turned out to be an attractive investment destination for the not only domestic but international investors. So the Sya Suka Berada di Sini- ‘’ I Like it Here’’ phrase is quite suited for referring to Malaysian Stock Exchange.

- Money Market Investment
- Stock Market investment

Money Market Investment:

This region of investment opportunity is a risk less investment where the investors, invest their funds in highly liquid financial instruments of commercial banks primarily in Saving Bank Accounts, Fixed Continue reading...

IDENTIFICATION OF THREE ESSENTIAL ELEMENTS IN RESEARCH PROPOSAL

A research proposal basically has nine elements that make the research proposal attractive and effective. Out of the nine elements, three elements are the most essential in a research proposal. The three elements are as follows;

Statement of the Problem

The first element is providing the reader with clear and concise statement of the research or the goals of the project. In simpler words, this section includes the specific question(s) that must be answered along with the significance of the research proposal (Sekaran, 2006). In addition, it has also been indicated in several researches that this particular section provides an explanation of Continue reading...

The Australian consumer Act of 2010 provides for the protection of consumers in the entire of Australia. Parts of its provision are policies to govern the return of purchased goods to their sellers. Under Australian return policies, sellers have three options in case of a genuine and warranted return of goods. They can replace the returned product, refund for the product or provide repair to the returned product (Australian Competition & Consumer Commission, 2012).
The Australian return policy provides the conditions to govern the returning of goods on both the seller and the buyer. Sellers are required under Australian law Continue reading...

- Introduction
The report describes the process of the analysis of two stocks which has been done using the Single Index Model. It includes collecting and sorting the data, analysis this data using the SIM and regression analysis and the explanation and the evaluation of the results. The findings are useful for decision making in the financial planning.
- Stocks Analyzed
The table above contains the information about two analyzed stocks: the company name, stock code, relevant sector, the average return and the standard deviation of the return. Last two points have been computed using the monthly price data spanning Continue reading...

The “Equity premium,” written by Eugene F. Fama and R. French (2002) describes how to estimate equality premium using both dividend and the growth rate of earning to predict the rates of expected capital gain. The equality premium is important in making decisions on portfolio allocation and in estimation of capital gain. The expected market return is estimated using the returns on portfolio of stocks. To estimate the stock return, the dividend and earnings are used along with other evidence to determine if the expected return is higher than the realized average. In this case, the average stock return Continue reading...

Introduction

Investment and return are the two flip sides of the same coin. There are certain pre-requisites that are essential for the investment purpose, and it would be used on the basis of analysis. There is tradeoff finds among the risk and return approach of an investment, and the most effective investor is the one who has the ability to manage the investment in a well organized and perfect manner (Davies and Servigny, p.34). Making of portfolio and diversification is one of the most important aspects from the viewpoint of investment purpose, and investors are delivering their best to maintain Continue reading...

Introducing the Scenario

Investment analysis is always been a challenge for the analysts, as it has a large trade-off related to return and risk. The management of investment is a topic which is high in demand from number of years, as it has the most important significance associated with it, which is yield. In the field of financial management, a yield is referred as an output or return which ultimately emerged as one of the essentials for the analyst or a researcher (Chandra, Comora & Cole, 2003).
There are two different kinds of investors are there, Active Investor and passive investor. An Active Continue reading...

a) Company name: _____ Motors, in the car and motor industry

Advantages of going public:

i. Good method to further the growth of the company
ii. Generate capital needed for expansion
iii. This capital can be used to further Research & Development, fund capital expenditure or pay off existing debt
iv. Increase public awareness of the company and generate publicity
v. Increase market share of company

b) Necessary managerial roles in firm:Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Chief Marketing Officer, Head of Sales and the Chief Procurement Officer and Chief Risk Officer.

c) Shadow firm: BMW
i. Downloaded annual report
ii. Continue reading...

Building a balanced securities portfolio is a difficult task taking into account tendencies of contemporary stock exchange. This paper is devoted to this issue and represents two strategies of building stocks and bonds portfolios implementing fundamental and technical analyses. Also, main concepts of allocation of securities were described and analysis of created portfolios with the help of appropriate benchmarks was represented.

Investment Analysis and Strategy

Part 1. Fundamental and Technical Analyses of Securities

A) Fundamental Analysis of Stocks

Fundamental analysis aimed at buying stocks which prices are below the potential value. There are several methods used by analysts that help determine the right Continue reading...