Manual Chapter 1 The investment decision Learning objectives After the completion of this chapter‚ the reader should be able to: ● understand the nature of an investment ● describe the key steps in the investment process ● recognise the major investment asset classes ● understand the role and function of financial markets ● understand the concept of return‚ and be able to distinguish between realised returns and expected returns ● understand the relationship between expected return and risk ● understand
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|WEEK |LEARNING OBJECTIVES |LEARNING OUTCOMES |ACTIVITIES |REMARKS | |1 |FORM 4 ORIENTATION | | |4/1 – 6/1 |
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not maximise your marks if you cut and paste material without any analysis. 2. Estimation of the value of the company’s shares using: * Dividend valuation model (DDM): You are expected to use the CAPM to estimate the discount rate needed in the DDM. * Also‚ you are expected to estimate the beta needed. You cannot pick a beta value estimated elsewhere (e.g.‚ Bloomberg) and use it in your report. Attach details of your work as an appendix. * Adjust your raw beta using
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money in a right way. The idea behind unit trust is the better investment through collective investing.
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The three major parts of security analysis are economic analysis‚ industry analysis‚ and fundamental analysis. Security analysis is important because it enables the investor to establish the expected return and risk for a stock and to evaluate its desirability in a logical‚ rational manner. 2. Intrinsic value‚ the end product of security analysis‚ is the measure of the underlying worth of a stock and provides a standard for helping investors to judge whether a particular stock is undervalued‚ fairly
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Ginny’s Restaurant: An Introduction to Capital Investment Valuation Key issues- Virginia invested in Ginny’s restaurant and she will receive $2 mn as well as $3 mn after one year from today without any other assets‚ for period of one year with interest rate is 6%. 1. Virginia’s current wealth (Present value of assets) is $4.83 mn. If she spends $2mn today and $3 mn after one year‚ then after one year from today she will get $5.12 mn. 2. If Virginia has an initial endowment of $4 mn
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revenues of $13.2 billion and net income of $739 million. In 1988‚ the Deskjet printer was introduced and had become one of HP’s most successful products‚ with sales of 600‚000 units/$400 million in 1990. Summary This case study deals with Hewlett-Packard (HP)‚ a famous manufacturer of computers and peripherals. In the early 1990s‚ HP faced a so-called “Inventory/Service-Crisis” concerning one of their high volume products‚ the DeskJet printer. Despite growing inventory levels at the distribution centers
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1. Introduction From the paragraph‚ we know that Universal Auto is a large multinational corporation headquartered in the United States‚ which is a big market in the world and it is not easy to survive without a well development company. So that‚ the company must has their survival plan to make the company stay in the big market‚ but they need to make some changes to solve their losses problem‚ for example their passenger cars business has had weak operating results for the past several years. Even
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What type of goals do I need for investment settings? If you have decided to invest‚ it is important that your investment goals are realistic .By having these goals‚ you will be on your way to controlling your financial future. You may have not one‚ but several or many goals. Your investment strategy will be based on your goals and the amount of risk you want to take. Time is an important part of investing. If your money is invested for longer‚ you will be able to reach your goals because of
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CAFS HALF YEARLY NOTES * Parenting & Caring Becoming Parents and Carers: Parenting: The process of raising and nurturing children in a family Caring: The process of looking after the needs and wellbeing of another person due to their age‚ illness and/or disability Biological parents: The parent who has provided the genetic material‚ either sperm or ovum‚ to create a foetus. Pregnancy Planned Pregnancy: * Planned pregnancies involve a strategic choice on when to parent *
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