Investing College Essays Samples For Students

Introduction

This paper evaluates the estimated returns of two investment projects; locating a production facility in Bangalore and Mumbai. The basis of evaluation is average rate of return on investment, payback period,profitability index, net present value, and internal rate of return. Further, this paper discusses other factors that need to be considered.

Average Rate of Return on Investment

This method evaluates a project using accounting profits. It is computed by dividing the average income by the average investment and then converting the result in to percentage. Normally, a project with a higher average rate of return would be preferred. Locating a production facility in Mumbai would result in a 20 % average ...

Introduction

Our countries are globally connected and the change in one country affects the other. The stock and the bond market form an integral part of the country' wealth and development. Though there are benefits in investing in international market but there are also high risk in these transactions. To have better idea whether to invest in international market or not we will discuss about the advantages and disadvantages of investing in the international market.

Advantages of Investing in International Market

When a country invests in the international market it increases  the holding of foreign stocks other than domestic ones. The portfolio becomes more diverse and ...

Fiscal planning is the means of ensuring that one is making the best use of his or her money and help individual to prepare for their future. The planning may involve a range of activities, with strategies ranging from the short-term to the long-term (Garman & Forgue, 2011, p.21). A person may want to create a budget to enable him or start saving towards a future purchase, or they may be more concerned about guaranteeing their future financial security through retirement planning. Financial planning prevents a person from overspending by crafting and sticking to a sensible budget. It can also help people to avoid accumulating ...

Abstract

Foreign investment is becoming more and more common. Millions of investors directly or indirectly invest in foreign markets these days. However, the process of investing in an asset in a foreign market is more complex than that of investing in the domestic market. That is why a stepwise screening process is important to select the potential markets and sites. The standard steps recommended by most of the investment manager investing in foreign markets include the identification of basic appeal, assessment of the business environment, measurement of the potential of the market and selection of site based on financial analysis.

Introduction

Flows of ...

In economics, inflation can be explained as a persistent increase in the general price level of goods and services over a period of time. Inflation results in a reduction in the purchasing power per unit of money which means money losses it’s real value over period of time. The inflation rate is measured by inflation index . Inflation index shows the change in percents of general price index also called consumer price index over the period of time. (Mankiw, 2002).

There are described three types of inflation:

1. Demand-pull inflation which is caused by increases in aggregate demand due to increased private and government spending;
2. Cost-push inflation ...

It may be a mere co-incidence or accidental turn of events that the theme, concept, content, genre and approach of two generically different kinds of books can have so much of close association. In order to appreciate this feature, an analytical study of the following two books was made.

1: Technical Book:

- Description: A supplement for undergraduate and Graduate Investments Courses.
- Publisher: Prentice Hall, 5th Edition (January 8, 2013)
- Language: English
- Paperback: 160 Pages
2. Non-fiction Book
- Publisher: W.W. Norton & Company
- Contents: 213 pages
- Language: English
3. Article ...

Organizations adapt of foreign direct investment (FDI) for the purpose of opening an effective international economic system for development. Greenfield foreign investment has seen a lot of changes in many developing countries as various organizations make use of these country’s potential to develop foreign markets. According to Calderon, Loayza, and Serven, there was a dramatic change witnessed in 1990 as different companies continued to invest more in developing countries than the developed ones (2004). This was more significant in Latin America after FDI became the main source of finances for the developing countries. Many leaders prefer using Greenfield foreign direct ...

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 ...

Velculescu (2008) reported that Norwegian Oil Fund (Norwegian Government Pension Fund - NGPF) has agreed to purchase a stake on Regent Street buildings in 2010. Despite the investment was considered beneficial NGPF managers expressed a desire to know if there were other opportunities which could be more liquid. This paper aims at consideration of other possible opportunities for investing NGPF monetary funds in UK property.
In accordance with Velculescu (2008), NGPF prioritized office and retail investment. Target need for these investments is 35% and 30% while actual allocation equals 15% and 10% accordingly. Also, allocation band of NGPF presupposes additional ...

(Student’s Full Name)

Global Supply and Demand for Gold
According to the World Gold Council, gold demand “reached 1, 290 tonnes” in the first quarter of 2016 (“Gold Demand Trends Q1 2016” par. 1). This grew to an increase of 21 per cent from past years, making it one of the largest quarters ever recorded. The council explains further that this increase was fuelled by “huge inflows into exchange traded funds (ETFs)” (“Gold Demand Trends Q1 2016” par. 1). This, in turn, was driven by “concerns” surrounding the changing financial and economic environment of the world (“Gold Demand ...

Chapter I. Firm foundations and castles in the air

The chapter focuses on the two investment theories, the castle in the air and the firm foundation. According to the firm foundation theory, investing involves knowing the real value of the investment and make decisions based on the real value. One of the examples to explain the concept is investing in Coca-Cola Corporation wherein investing in the company’s stocks requires determining the actual value of the company. In terms of the castle in the air theory, the concept implies that investments should be a response to what others are doing, and the returns for such investment can be ...

Q1 Answer

The risk in financial investment refers to the events that may affect the attainment of a financial goal. On the other hand, Paul (2012) defines the rate of return as the gains from the investment that an investor receives after a given duration of time. Both risk and rate of return can be said to be directly related. This is to mean that when the risk of investment is very high, then the rate of return is very high. However, this does not mean that always when an investor takes high risks will gain high returns, He or she ...

Betting for the future is important in securing a better life. Prudent investment in stocks can be a significant source of benefits (Chan, Chia-Ying, et al. 162). The value foe cash is determined on how careful one invests his or her cash today. According to Lyons and Savage (21), investing in stock implies that one owns part of the company and benefits that are in terms of dividends. Despite earning of the dividends at the designated periods, one contains to be part of the company as long as there is ownership of shares. There are seven major steps that should govern a ...

Risk profile

As the world keeps changing, the needs of people also change. This means that the way investments are done in the new world should also change so as to meet the global portfolio. The risk analysis determines the global portfolio that most of the investors are putting along during their investment (Tung, 2014 p.102). Asset allocation such as mix of bonds, money market account, and real estates are some of the example of how investments are done in the new world. Before making any investment, it will be crucial if one conducts the personal risk analysis and then compare ...

Following the American Psychological Association’s Guidelines

INTRODUCTION
Monetary policy implemented by the central banks aims at influencing directly the financial markets to create a stable monetary environment in the economies. The economies fluctuate over time with peaks and troughs. The globalization has created a large world economy which includes the connected country economies, and any crisis emerging in a country spreads to the other countries’ economies quickly. The crisis creates vulnerable economies, and the economy managements of the countries have to intervene to recover from the crisis. The global crises have severe results for economies and individuals, and they also can create disequilibrium in the monetary values ...

Real Estate Investment

Investment in real estate is a crucial means of investing government funds. There are various suitable equity vehicles which can enable a government to invest in real estate. Investment in real estate may affect the structure of the global financial markets because it will lead to a stiff competition in the market (Baum, 2009, pp 18). Investment of government pension fund of Norway in real estate is supported by some of the Norwegian investment features which are considered as best practices in the international markets. The aim of the government pension fund in Norway is to save and promote an intergenerational movement ...

Abstract

Decision-making can involve a single decision or multistage decisions. When the decision-maker has to make at least two decisions separated in time, such as a situation where a company must first decide if it makes sense to hire an expert to make an actual decision about an investment. As the decision-maker goes on making decisions, the uncertainty diminishes. The probabilities are determined in a reverse manner when compared to regular decision-tree used for decision-making. The resulting process is Baye’s rule or theorem. The company wants to find out if hiring an expert so that he or she can ...

[First Name Last Name]

The selected MNE that has invested in Mexico is Samsung. Samsung is a multinational organization based out of Samsung Town, Seoul - South Korea. Samsung first capitalized in United States in 1980s, when the firm was devotedly investing in research and development capacities as this was pivotal to push the business to the forefront of global business industry. As of 2012, the company invested over $ US31 billion at its semiconductor profiting facility in Austin – Texas. One of the advantage that Samsung was seeking in investing in the United States was to get access to latest ...

Introduction

The decision on whether to invest money or deposit it in a savings account is influenced by many factors. However, the most significant factor would be the economic gain from depositing money in a savings account compared to investing. Various indicators can be used to determine the economic gain to be made in terms of purchasing power. One vivid indicator is the real interest rate. Real interest rate as an economic indicator describes the rate at which an individual’s purchasing power grows from investing activities. The real interest rate is derived from adjusting the nominal interest rates in ...

Summary of Burton Malkiel’s “A Random Walk Down Wall Street”

Burton Malkiel authors the book “A Random Walk Down Wall Street”, highlighting several investing strategies, truisms, myths, and axioms. According to the book, Malkiel seems to have his central premise that index funds are better investment options to an individual than other strategies used for selecting stocks. This piece provides a summary of four chapters divided into two parts: part 1 having chapters 1 and 2, and part 2 having chapters 4 and 14.

Chapter 1: Firm Foundations and Castles in the Air

In the first chapter, Burton starts by defining random walk as an instance in which future occurrences cannot be predicted based on the past occurrences ( ...

Opportunities and Risks of Investing in India

Background Information on Indian Business Environment
In India, the political setup is governed by stable democratic environment. Eighty percent of its population belongs to the Hindu community. The economy has been posting a growth at a stable rate of seven percent. On an average, starting a new business consumes approximately twenty five to thirty days. Average tariff rate in India is seven percent. The government, when it comes to procurement, give enormous preferences and favours to local firms. Foreign participation is limited and the financial sector of India is dominated by state-owned institutions.
Investment climate in India is trader ...

Investment Goal:

The overall objective of this portfolio is to earn a sustainable return by assuming average level risk over the period of 10 years. The eventual objective of this portfolio is to fund my post –retirement life, however, I am keeping the time horizon here up to 10 years for now as with me still being in a young age, I opt to assume average risk. However, in order to avoid payment of taxes on my cash inflows, I will solely be investing in mutual funds suitable for IRA investment

Investment Style:

Considering my average risk tolerance and investment period of 10 ...

Society (k) is a social enterprise that trades to support a community’s environmental, economic, and social welfare. This kind of organization declares the following items: and the environmental mission to benefit the public; has to declare a substantial level of income reserved to the work of charity; the company has to reinvest most of the profit to fulfill the organization objective. Social enterprises have private ownership to enable independent authority and can wind up operations after attainment of objective. The duties of a social enterprise go beyond the observance of corporate social responsibility since it is an integral mission objective. This organization ...

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 to attract ...

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Abstract

Under the investment is understood as embedding, often long-term, in certain sectors of the economy in order to obtain in the future profits. Investment on the project investment can be divided into three types: real investments that involve the direct purchase of capital repair of capital assets or investments in a variety of intangible assets, speculative investments, financial investments, which include originated loans, leasing and investments in securities.

Securities investment risk (stocks and bonds)

Investing in securities is perhaps the most common views of the investment activity. In the securities invest their capital, both private and institutional investors. Most ...

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Money Management

Definition
Money management is the process of budgeting, saving, investing, spending or otherwise in overseeing the cash usage of an individual or group. The predominant use of the phrase in financial markets is that of an investment professional making investment decisions for large pools of funds, such as mutual funds or pension plans. It is also referred to as "investment management" and/or "portfolio management". While the term is usually used in reference to professional money managers, everyone practices some form of investment management with their personal finances. There are a wide range of money management services, from the operation ...

Calculations

Portfolio Return = (2%*23.6%) + (65.5%*1.7%) + (10%*23.3%) + (10.3%*2.5%) + (8%*33.1%) + (4.2%*-1.0%) = 6.77558000%
Portfolio Risk () = 14.2%
Based on the calculations, investing in a portfolio comprising of stocks from Disney, Citigroup, General Electric, Morgan Stanley, Home Depot and Ford would attract a return of 6.78% and risk of 14.2%. Evidently, the individual stocks comprise of highly risky assets (Morgan Stanley, and Citigroup) and the other assets are have relatively low risk. Evidently, investors would gain from such a portfolio although the risk is very high. The combination of assets in to a portfolio helps to diversify the risks ...

GAAP and Consolidation

The Generally Accepted Accounting Principles (GAAP) that are used in the United States issue very specific instructions on how companies should consolidate their financial reports when a merger or acquisition is accomplished. These instructions came as a result of the Enron scandal during the early 2000s, as the energy company shifted deadweight losses to subsidiary companies owned by executive staff to make its balance sheet look as profitable as possible. The losses were therefore hidden from public view, and contributed towards the impending financial collapse of the company. Because Enron led by example, the Financial Accounting Stability Board (FASB) ...

Price: 438.31 GBP Date: 4 May 2016

Company profile:
Aviva Plc provides insurance, savings, and investment products to over 31 million customers around the world (Aviva, 2016). Aviva is a composite insurance that combines life insurance, general insurance, and asset management (Aviva, 2016). Aviva operates worldwide with its headquarters in London United Kingdom (Yahoo! Finance, 2016).

One-year Price chart:

Figure 1: One-Year Aviva Price Chart

Source: Bloomberg

Price performance:
Valuation (by DDM and by comparables):

Analysts’ recommendation:

Introduction 3
Price performance and news analysis 3
News 4
Valuation 5
Multi-stage DDM 5
SML analysis 6
Discussion of pros and cons of the methods used for the above valuation 7
Conclusion 10

Appendix 13

Exhbit1: ...

The Qatar Stock Market

Before discussing Qatar’s stock market, let us gain some relevant information about the country itself. Qatar is located in the continent of Asia and covers over 11,000 square kilometers of land which makes the country the 168th largest nation when looking at land area. Qatar became an independent state in 1971 gaining its independence from the United Kingdom with a population of 1,951,591 people in 2012. The currency is the Qatari Rial (World Atlas, 2015).
When viewing the stock market, there is information that every investor should know about Qatar before investing in the market ...

INTRAPRENEURSHIP PLAN

EXECUTIVE SUMMARY
HDI Securities Inc. is a participant in the Philippine Stock market and had been incorporated since May 26, 1992. The company formation was dated back to the patriarch of the Chai clan (Singapore based clan chia family) who come together to own a seat in the Philippine stock market. The aim and objective of the company is to function as a brokerage firm to cater for the investments of its fund providers.
Currently the company is facing the challenges provided by the economy in which it was rank as the 37th position spot in the overall performance ...

[Pivotal Concepts of CAPM]

Introduction

No matter the attractiveness of an investment, an investor must always be ready for risks arising. In which case, it is always impossible to do away with entire risk. The only an investor can manage the impact of this risks is by coming up with an investment that yields a rate of return that can cover the risks. This would help in covering the investors whenever they take on risk. As the result, the need for a capital asset pricing model (CAPM) sets in as an important tool for the investors. The CAPM helps in ...

Introduction to Finance

Introduction to Finance

Part 1

The income statement of the Home Depot is simple. Unlike the income statement of other companies, it is relatively simple with fewer terms mentioned. The income statement begins with the net sales of the company followed by the cost of goods sold (The Home Depot, Inc., 2014). These two are the fundamental things in the income statement. Net sales represent total sales less any sales return while the cost of goods sold represents the cost incurred for the materials that is sold. The next important term in the income statement is gross profit, which is the ...

Warren Buffet is an American business investor and a philanthropist. He has been consistently included on the wealthiest businessman thus making him an influential person. Despite being a billionaire, Buffet still lives a practical lifestyle which is enough for him and his family. He even made an announcement that he will be donating most of his wealth to a foundation.
Buffet’s philosophy examines corporate leadership of the organization aside from its numerical value. For this successful investor, value investing has referred to the appropriate fair price for the stock of a company with a high intrinsic value (Lupo). Unlike his mentor, Ben Graham ...

Business Plan: Only-Grocery China Venture

Introduction
Business operations emanate from the inculcation of diverse approaches in the functional aspects towards successful outcomes. Most fundamentally, the internationalization prospect has led to the emergence of the need for plausible entry modes that are bound to ensure profitability in the foreign market. Thus, Only-grocery is a firm that has been within the operational mandate of provision of a differentiated product and service delivery to its clients. As such, the firm focuses on providing fresh agricultural products within the online mandate to the prospective clients. As a novel idea within the diverse markets, the company aims towards market venture into ...

Abstract

The ability to bring more revenues in the future is a major factor determining the choice of the type of project to invest in. The popular profitability metrics include NPV, PI, Payer Mix, and ROI. The above metrics were used to make a choice of investing into building a rehabilitation center, other than building a neonatal center. The benefits of investing into a project of constructing a rehabilitation center have more future financial benefits than investing into a neonatal center. This is because Medicare and Medicaid cover most patients in neonatal centers; therefore, there are a little financial benefits as compared to financial gains in rehabilitation centers ...

Introduction

In these modern times, businesses are poised to go global and international as competition becomes fiercer in the market. Regardless of the industry one is engaged in, the likelihood of having the rival company already planning and actually opening their own satellite offices in another location is present. If a company does not even consider it as an option, then the company already loses its opportunity for growth, expansion, and marketability. Usually, companies recognize that the domestic or local market is too small considering that the audience and users for products and services is limited. This very fact is what ...

The cash flow statement provides information beyond what is shown in the income statement. Since the income statement is made on the accrual basis of accounting rather than cash basis, it will always differ from the cash flow statement. The cash flow statement provides the following information:
- Information about the company’s cash cash receipts and cash payments during an accounting period
- Information about the company’s operating, investing and financing cash flow activities
- A transparent view of company’s performance as it provides an understanding of the impact’s of accrual accounting ...

Wal-Mart Stores, Inc.

Wal-Mart Stores Inc., commonly referred to as Walmart, is a multinational corporation that is listed in New York Stock Exchange (NYSE). Walmart Stores Inc. is in the retails industry. . Wal-Mart Stores Inc. was ranked the largest retail store in the world by Fortune 500.The fiscal year of Wal-Mart Inc. begins on 1st February and ends on 31st January the following year. This paper analyses the most recent financial statements of Wal-Mart Stores Inc. In the case, the latest financial statements that could be obtained was for the year ended 31st January 2012 while the comparative figures are for the financial ...

A Real Estate Investment Trust (REIT) can be defined as company that allows investors to invest in the company through the usual securities and stock exchange in order to own several real estate properties . In general, the company gives its shareholders a chance to own several real estate properties without essentially having to out and develop or purchase the property. These companies have tax designation according to the United States Securities and Exchange Commission. According to the same commission, REIT pay about 90% of all its revenues to investors will the reminder being channeled to taxes and company administrative costs . ...

A statement of cash flows, also known as the cash flow statement gives an explanation as to how a company manages its funds. It was formerly known as fund flow statement. It is part of the financial statements and complements such statements as the income statement and balance sheet. It accounts for cash and cash equivalents that enter and leave an organization. The main objective of a cash flow statement is to offer information regarding a company’s cash transactions during a given financial year. It also provides information concerning an entity’s operating activities, investing activities as well as financing activities.
...

Explain the steps to follow to invest in the stock market.

Arguably, stock market can be intimidating and at the same time interesting, but one should not let emotions overwhelm the entire investment strategy. Many steps need to be followed in order to develop a portfolio of stock that will lead to an average net return on investment. In order to invest, it is important to get educated on investments in stock market. Information can be received through websites or other experienced individuals.
Another step is to set own financial goals, which act as a financial improvements. For example, some of the short-term goals are to pay bills. On the other ...

Stock Ownership and Capitalism

Introduction
In the podcast entitled, Who Makes Cents?: A History of Capitalism, released in June 2014, Julia Ott discusses the issues associated with stock ownership. She does so in the wake of mass workers turnout at a Macdonald shareholders meeting (Ott, 2014). They take advantage of the meeting to voice out their grievances. This is due to the fact that shareholders and stock owners have become more influential in corporations across America.

Main Issues Addressed

The majority of American households today are stock owners, which has come a long way. Stock owners were seen as parasites to the economy in the 19th ...

Introduction

The direct method for forming a cash flow statement shows the main categories of total cash receipts and aggregate payments. The simplest way to present the components of received cash and cash payments is by arranging operating cash in such a way the operating cash reconciliations take a separate list. Also, the method has additional items under the operating cash flow section including. For instance, the IAS 7 displays the received dividends under the operating activities. The tables below show the direct cash flows for Aden Group Inc. and Consolidated Subsidiaries.
The significant items in the direct cash flow ...

Imperial Oil, founded in 1880 is a giant petroleum producing company, with its headquarters located in Calgary, Canada. It is the second largest integrated petroleum company in Canada and has registered a phenomenal growth since its inception. Its operations consist of exploring and producing oil, manufacturing and distributing petroleum products for energy sources, producing chemicals for industrial and domestic use through innovative and sustainable technology. ( Annual report, 2016) reports a cash generation of $22 bn from operations only during 2010-2015. Its performance can be evaluated from the growing dividends paid to its shareholders in last 21 consecutive years. Imperial ...

High-risk investments mean volatility associated with the returns on investments and stock prices change. Any investment transaction has a risk element. Moreover, the major proportion of the investment theory states that the potential profitability is inversely proportional to the risk level . At this, it is not important whether it goes about the passive investment, active stock transactions or new business projects. Risk allows earning much and provokes losing much because associated with potential losses even in the case of success. It is extremely important to understand quantitative and qualitative characteristics of risks, which affect the amount of the invested ...

Currency Hedge

Over the few decades, the financial markets have seen explosion in the derivative markets. Even though notable investors such as Warren Buffet has called derivatives as the weapon of Mass Destruction’’, still, derivatives accounts for a market worth trillions of dollars as companies around the world use these instruments to hedge their risk exposures. Below we have discussed three traditional derivative instruments and how they are used by the companies to hedge their foreign exchange exposure:

Currency Forwards:

Currency Forwards are the derivative contracts as part of which, one party agrees to buy a predetermined amount of one currency for a ...

Total cash flow for a company during a year can be from three sources, namely operating cash flow, investing cash flow and financing cash flow. Operating cash flow is related to cash flow from normal business operations, investing cash flow is related to income and expenditure related to investments and financing cash flow is from issue/ retirement of capital.
Negative net income may or may not result in negative operating cash flow. But even if the net income is negative and the operating cash flow is negative, the overall cash flow can be positive.
This could be due to ...

Personal Financial Advice

According to Arends, management of personal finances is not as complicated as people think. To him, personal financial management is simpler. Arends pointed out that people who wish to manage their personal finances ought to first discard pontificating, jargon, and technical stuff. Arends further suggested how people should effectively manage their personal finances. To Arends, financial and economic forecasts are meant to create jobs for forecasters, and they should be ignored. On financial investments and strategies, the idea is to keep simple because the reason why they appear complex is to create jobs for salesmen and managers. There is ...

Every organization is established with a certain purpose. Every organization has its own purpose and the objectives of the firm differ from one another. Regardless of this difference in the objective and purpose of the existence of the business organization, they all have a common in them. All of the organizations involve themselves in some money related transaction. They purchase some goods, sell some other things, pay salary, performs some investments and does several other financial related tasks. The business must analyze its financial position at a certain period so that it can make certain decisions. To simplify this ...

Question 1

Financial markets are the channels dealing with funding of money in case of a deficit on the borrowers in the enterprise by direct financing such as selling them as securities. Central bank regulations and government intervention help in the control of monetary policy and interest rates in the economic markets. Having full control over monetary policies will ensure that inflation rates are reduced. As discussed in class, a reduction in monetary policy sinceJanuary 2016 had a great impact on the euro zone currency as investors in the foreign market increased their purchases due to the currency protection not to ...

Political risks apart from takeover of business can be related to taxation and currencies, licensing and wage and labor laws. These are the broad forms of political risks which can affect both the revenues as well as profitability of a company operating in foreign environment (Phung).
Taxation policies can change drastically in a foreign country due to the economic and political environment of the country. This can affect the profit levels and the attractiveness of the products in local currency terms. Currency devaluation can also result in lower profits, loss of business and lower valuation of assets in the ...

Assignment 1

Dedicated Fixed-income portfolios
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1. What are the fixed income investments we should consider? Why?

A. Cash

Among all assets cash is the most liquid, that is, there would be no required intermediary to convert the cash, as it is considered legal tender. Moreover, cash is easily accessible and disposable. However, cash has its downside. Too much cash or that is saving too much is costly. There exists an opportunity cost. With current low level interest rates, cash that is kept at the bank will depreciate in value due to inflation. Inflation rates are higher than interest rates, thus the purchasing power ...

About the paper

The paper is commissioned to provide a detailed analysis of Nike Inc’s stock for the client of our company. While the eventual objective is to provide a rational and non-bias recommendation on the stock to the client, however, adhering to the professional standard of performing the analysis with due diligence, selecting the stock as per client’s suitability and supporting our recommendation with appropriate research work, we aim to be comprehensive in our analysis approach while appraising the company’s stock. Therefore, before initiating the financial analysis of the company using financial ratios and stock price analysis, we ...

Effects of fiscal policies in U.S military and economy

Governments of economies may take up various policies or regulations to govern the flow of the economy. The policies can be directed to specific government departments, or they can be directly executed on the public after relevant communication has been made. The strategies or policies that a government can take are either fiscal or monetary. Fiscal policies control the government expenses and revenues in the economy while the monetary policies are means by which Central Banks of economies monitor the flow of money, which is money supply in the economy. In this paper, we analyze the fiscal policy implementation ...

Q1 Answer

Palliser Company had to options of expanding its business to either Mexico or to China. The issue presented the company with a dilemma. However, the company considered various factors in making its decision that saw it prefer Mexico to China. First, the company saw Mexico as a strategic location for establishing a manufacturing plant rather than in China. The argument behind the decision was that the nation was closer to Texas border hence the company will enjoy reduced costs due to lower delivery and distribution costs.
Besides, Palliser saw a better opportunity in Mexico than in China as far ...

Business Memo in Applying Critical Thinking Model

Business Memo in Applying Critical Thinking Model
In the memo by Anil Ravaswami, Leadership Development Programs, October 10, 2014, to Ms. Cynthia Castle, there are a number of issues that need to be analyzed critically. A good analysis of the memo involve asking right questions. To effectively analyze this memo, a multi-step method developed by Browne and Keeley (Browne and Keeley, 2007) will be used.

Issues and Conclusion

In this memo, the main issue is the decision of whether Cliffside Holding Company of Massapequa (CHCM) should establish and fund a new leadership development program for their junior insurance executives or not. The ...

Businesses take many different forms, and understanding the different faces of businesses and their ownership can help us understand the businesses that make up our community. In Southern California, we pride ourselves on being open to entrepreneurial businesses and new ideas, and founding communities that are welcoming to new businesses with different approaches to the traditional business model. In this article, two local businesses will be examined; they are Dirty Dogs, which proclaims itself to be the “earth-friendly pet product store and spa,” and Jimbo’s, which is a local health food grocery store (“Dirty Dogs: Earth ...

As you requested, I have prepared a brief advisory of economic conditions in the U.S. and my advice on how to improve the overall economic picture of the U.S. From a broad perspective your country has come out of a recession, which is technically defined as two consecutive quarters of negative GDP growth. While this is itself a good thing, the recovery from the recession has been the slowest recovery in post WW2 history. As a result, unemployment continues to be high, with the lowest workforce participation rates in modern history. The number of Americans seeking assistance from the government continues to grow, putting ...

After completing the “Play a Virtual Market” simulation, my knowledge regarding how the stock market works was greatly enhanced. My basic strategy was to invest in oil, banks and energy stocks. I also picked a few stocks whose name I recognized. Fundamentally, my strategy was to buy low and sell high. I was estimating that the price of these stocks will go up because of the increase in oil prices, which then increases the energy prices.
I realize that Investing in the stock market is a risky investment. However, that riskiness can be decreased by investing in options. An option gives ...