Lutfur and Jashimuddin‚ “Dynamic Relationship between Stock Prices and Exchange Rates: Evidence from Three South Asian Countries”‚ International Business Research‚ Vol. 2 no.2‚ April 2009. Mishra‚ Alok Kumar‚ Swain and Niranjan Malhotra‚ D K‚ “Volatility Spillover between Stock and Foreign Exchange Markets: Indian Evidence”‚ International Journal of Business ‚ July 1 2007 [2] [3] [4] [5] 275
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Abstract The international accounting standards board (IASB) has replaced the international accounting standards committee (IASC) in 2001 and at the same time many standards of IFRS come from the International Accounting Standards which issued by IASC. After the new standards announce‚ the uptrend of globalisation has pushed more and more countries on their ways of adopting the international accounting standards. The drive for IASB is a British initiative and London is the headquarters for the IASB
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historical data is readily available from the company’s financial statements and the securities exchanges for example the Nairobi Stock Exchange (NSE) in Kenya. Historical market data can be used to compute average returns and a measure of risk or volatility. The distribution of past returns can be useful in estimating the possible future returns for investors. Required Rate of Return Estimate The required rate of return has two basic components: the risk free interest rate and a risk premium. The
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Tomas Abstract Distillation is a commonly used method for separating mixtures based on differences in the conditions required to change the phase of components of the mixture. The product obtained by distillation is called the distillate. Volatility is the property of changing readily from a solid or liquid to a vapor. There are two types of distillation‚ simple and fractional. Distillation happens when a substance is heated and the more volatile compound starts to vaporize first. Those liquids
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focus of this essay is mainly on events like modernization‚ economic volatility‚ different ideologies‚ religion and the fall of empires‚ given that several authors share the belief that these circumstances triggered - or at least had a huge role in - the violence in this era. As
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Johnson Family Farm Case Carine Frank Johnson‚ who owns the Johnson Family Farm‚ was considering whether or not to hedge his corn crop prior to the planting season for the upcoming year. He had three choices: first‚ not hedging at all; second‚ hedging using traded future contracts; third‚ hedging using Cargill’s Pacer product. If Frank chose to not hedge‚ the total cost of this choice is the elevator operator’s profit and the transportation costs (which totally Frank set the basis as 0.15). And
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A Review of “Allocative Efficiency of Markets with Zero-Intelligence Traders: Market as a PartialSubstitute for Individual Rationality” Dhananjay K. Gode and Shyam Sunder Through this paper the authors Dhananjay Gode and Shyam Sunder try to understand the effect of various elements such as institutional structure‚ market environment‚ and agent behaviour which effect the performance of an economy on the allocative efficiency of a double auction. Through their experiment they prove that a double
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“Investment theory is unsatisfactory because too little attention is paid to business expectations and unless you do this it is hard to explain what happened to investment rates in many Western economies since 2008.” Discuss. In this essay I will describe the key aspects behind the basic neoclassical model of investment and explain how it can be considered a satisfactory model‚ sufficient in explaining the changes in the investment rates since 2008 of Western economies. I will then develop the
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However‚ according to Shiller (1984)‚ stock prices moved in a direction opposite from the dividend price ratio. Another outcome of his research reflects that stock price volatility is too high to be caused by news about future real dividends. The research does not support the dividend discount model of predicting firm value as volatility in stock price cannot fully be explained by growth in future dividends. In their study‚ Kaplan and Ruback valued the cash flows using a discount rate
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ABSTRACT OF THE MASTER’S THESIS Financial theory offers several rationales for financial risk management. Hedging enables firms to maintain their access to internal funds as well as reduces the costs of financial distress. The theoretical framework offers‚ however‚ few tools for currency risk identification and for choosing a proper hedging instrument. This Thesis seeks to help firms manage risks better by defining the currency risk exposures of a multinational corporation‚ by describing their
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