Mandy 9943018 Laurana 9853047 Cristine A Formula for Economic Calamity一帖經濟蕭條的解藥? The market crash of 2008 that plunged the world into the economic recession from which it is still reeling had many causes. One of them was mathematics. Financial investment firms had developed such complex ways of investing their clients’ money that they came to rely on arcane formulas to judge the risks they were taking on. Yet as we learned so painfully three years ago‚ those formulas‚ or models‚ are only pale reflections
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year 2010‚ foreign institutional investors (FIIs) shareholding rose to the highest level since Indian markets opened up to foreign investment in 1993. In addition‚ strong corporate earnings had made India the top investment destination in 2010. As India is the second fastest growing major economy in the world after China‚ it is likely to attract higher investments in the future. Although the growth potential outlook for India remains positive‚ it is susceptible to correction due to is top priced
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1 Elasticity of Demand The demand of any product depends on the pricing strategy being followed by the company as well as other factors like nature of product i.e. necessity or luxury‚ availability of substitutes‚ switching cost etc. If the product is a necessity usually it has an inelastic demand. Inelastic demand refers to the situation where one unit increase or decrease in the product’s price cause less than one dollar change in the units demanded of that product (Kreps‚ D. M. 1990). If product
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10%. Each stock carries its own weight. B. What would have to be true for Microsoft’s equity cost of capital to be equal to 10%? In order for Microsoft’s equity cost of capital to be 10% its beta will have to be 1. 4. Suppose all possible investment opportunities in the world are limited to the five stocks listed in the table below. What does the market portfolio consist of (what are the portfolio weights)? Stock Price/Share ($) Number of Shares Outstanding (millions) A
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The Future of Investment Banking The era of investment-banking (IB) post-economic crisis of 2008 will see increasingly modest returns and a much meeker future. Returns on equity (ROE)‚ a standard measure of profitability‚ once routinely ranged from 20-25%‚ have now halved to 13% and will continue to plummet to 6-9% by 2017 with the incorporation of new regulations. These regulations will fundamentally change the face of IB. Higher capital standards will force banks to shrink their balance sheets—making
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to 13413.1. Thus an increase of 115.8%. Whereas during the same period Expenses have increased by 123%. Thus a reduction in margin. 2. ROCE a. It is defined as a ratio that indicates the efficiency and profitability of a company’s capital investments. In other words how efficiently are long term funds of a company being used. b. In 1994 it was 11%. In 1993 12.1%. In 1985 12.98%. A higher dip between 1985 & 1994. This is primarily because the proportion of Capital Employed has increased
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Chapter 4 FOREIGN DIRECT INVESTMENT FDI is the outcome of Mutual interest of MNC’s and host countries. The FDI refers to the investment of MNC’’ in host countries in the form of creating productive facilities and having ownership and control. On the other hand if MNC or a foreign organization or a foreign individual buys bonds issued by host country it is not FDI‚ as it has no attached management or controlling interest. Such investments are called Portfolio Investments. In developing countries
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and valuation assertions associated with investments in the form of observable market prices‚ details of values in the underlying investments or audited financial statements of the alternative investments. The type of evidence that we would like to review to determine whether BLMIS had purchased investment securities would include investment contracts and invoices. The type of evidence that we would like to review to determine whether BLMIS had sold investment securities would include invoices‚ and
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Why Property Outshines the Rest Property’s phenomenal leveraging power When I tell people that property is not just as good as other investments‚ not just a little better‚ and not even just a lot better‚ but tens or even hundreds of times better than other investments‚ most people do not believe it.” Realty Reality Check So let me show you why property is so much better. Imagine you have a lump sum of money to invest. The amount doesn’t matter‚ as the same principles apply whether you have
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Securities Analysis 1 We‚ all 3rd year Financial Management of UST‚ member of JFINEX‚ were invited to go to Philippine Stock Exchange (PSE) Trading hall located in Ortigas for the seminar entitled “Investment Introspection: Exscinding the Inquisitiveness Behind the Trends” last November 24‚ 2012. The said event talked about the capital markets and analysis of trends in the economy. It provided the students learning and comprehensive understanding about technical and fundamental analysis‚ plus
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