Midterm Study Guide – FISV6056 Professor Tim Howes Fall 2012 1. Definition of investment: A current commitment of $ for a period of time in order to derive future payments that will compensate for: The time the funds are committed The expected rate of inflation Uncertainty of future flow of funds 2. Geometric vs. arithmetic – understand and be able to calculate difference between the two. HPR (Holding Period Return) = HPY (Holding Period Yield) = HPR – 1 GM = * = the product
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them Conditions needed: hot markets and investment grade rating What kind of debt to choose? • The sponsors should use 144A (private bonds) to fund the deal because of the important advantages and the significant disadvantages which can arise by using the other debt kinds. – Rule 144A has big advantage of time – Markets seem to be going in the right direction (Hot markets) – What else is needed?... (on the next slide: Investment grade) Investment Grade Rating • Agencies look at 3 main
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Here is the term paper on investment analysis & portfolio management from 31st may to 1st august. Now you will see that we have collected stock information and calculate relative things to evaluate our performance. We think that if anybody want to invest in the DSE ‚ this term paper can help them to make decision whether or not they will invest or not and what strategy should they follow. Finally‚ we are also very much satisfied to have the scope of doing this investment which gave us the practical
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In an attempt to integrate real-world investment management experience into the classroom‚ our class was assigned to make and manage a portfolio of different chosen securities. With teams of no larger than two individuals‚ we were given $1‚000‚000 in fantasy money to invest‚ track and write about our results. At the project initiation time‚ we thought it was smart to first purchase some securities that we were already familiar with and have in our personal portfolio’s. This allowed us to purchase
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Long-Term Investment Decisions (Course title) (Date) Introduction Long term capital decisions involve choosing how to finance long term projects. For a movie rental company‚ such decisions would include opening new shops in new markets or buying new machinery that would improve the firm’s technology. Before making such decisions‚ a firm has to do an analysis of the returns that the new project would bring against the cost outlay of the project. There are several ways of doing such an analysis
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much of a factor anymore** Why should we invest in real estate? Adds diversification to the portfolio (part of investment universe) Low correlation with other assets Very high return per unit of risk Hedge against inflation Good income producer Why should we invest in Treasury Inflation Protected Securities? Maintains purchasing power in deflation times’ Extremely low-risk investment since backed by U.S. government Par value rises with inflation and interest rate remains fixed Describe the
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called the premium. Integrated product management teams need new technical tools to determine the effects of alternative design‚ investment‚ and pricing strategies on the risk- adjusted return on the equity invested in each financial product (Holmer & Zenios et al‚ 1995). Insurance companies provide its customers with the assurance in return of their investment. This assurance is generally divided into two main categories i.e. life insurance and general insurance. (Carino et al‚ 1994).
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Chapter 1 The Investment Environment INVESTMENTS (ASIA GLOBAL EDITION) | BODIE‚ KANE‚ MARCUS‚ McGraw-Hill/Irwin JAIN Copyright © 2011 by The McGraw-Hill Companies‚ Inc. All rights reserved. Real Assets Versus Financial Assets 1-2 • Real Assets – Determine the productive capacity and net income of the economy – Examples: Land‚ buildings‚ machines‚ knowledge used to produce goods and services • Financial Assets – Claims on real assets INVESTMENTS (ASIA GLOBAL EDITION) | BODIE‚ KANE‚ MARCUS‚
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Description This case provides us an insight into the Golden Years Investment Club and the conflict of group members when a newcomer challenges the views and ideas of the group’s experienced founder. Lenn Width‚ the founder of the investment club‚ has recently invited David Korn‚ a young architect‚ to join the twenty-six-member group. Width and Korn have very opposing viewpoints when it comes to how to invest. Width has a very strict investment policy: “a stock must have been publicly traded for at least
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This essay is an attempt to explain the role of investment in poverty reduction. In order to achieve this‚ an exposition of the theoretical assumptions on the linkages between investment and poverty reduction will be undertaken. In addition‚ relevant definitions and practical examples will be cited. A conclusion will then be drawn from the discourse. As is well known‚ poverty is multi-dimensional. There are several different indicators of well-being (e.g. education‚ health‚ nutrition‚ security)
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