the financial manager for Barnett Corporation‚ wishes to evaluate three prospective investments: X‚ Y‚ and Z. Currently‚ the firm earns 12% on its investments‚ which have a risk index of 6%. The expected return and expected risk of the investments are as follows: Investment Expected Return Expected Risk Index X 14% 7% Y 12% 8% Z 10% 9% a. If Sharon were risk-indifferent‚ which investments would she select? Explain why. b. If she were risk-averse‚
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INVESTMENT & PORTFOLIO MANAGEMENT FIN3IPM TUTORIAL ANSWERS TUTORIAL 1: INTRODUCTION CHAPTER 1: QUESTION 1 a The process of investment concerns the purchase of assets which will provide a future return to allow for future consumption or further investment. Individuals have to make choices between current and future consumption and because their pattern of income does not always match their pattern of consumption‚ they are required to make investments. Throughout an individual’s life
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Microeconomics: Week 1 Review Questions 1) Suppose that the wages of young high school graduates fell. In what sense has the true “cost” of a college education been changed by this development. Other things equal‚ if wages of young high school graduates decline‚ the potential alternative use of time spent studying in higher education…namely‚ working with only a high school education…has relatively less value. Therefore‚ the opportunity cost of student study time measured in foregone wages is
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management involves studying the intricacies of the brand‚ identifying the target audience‚ devising the event concept‚ planning the logistics and coordinating the technical aspects before actually launching the event. Post-event analysis and ensuring a return on investment have become significant drivers for the event industry.[1] The recent growth of festivals and events as an industry around the world means that the management can no longer be ad hoc. Events and festivals‚ such as the Asian Games‚ have
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rates of return? A. risk premium B. geometric return C. arithmetic D. standard deviation E. variance 2. Which one of the following best defines the variance of an investment’s annual returns over a number of years? A. The average squared difference between the arithmetic and the geometric average annual returns. B. The squared summation of the differences between the actual returns and the average geometric return. C. The average difference between the annual returns and the average return for the
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Introduction A multinational company of Kraft Foods is an American firm doing the business for food and beverage. It produces belong to a global markets and has many brands that over 170 countries (Kraft Foods‚ 2011). And its brands are divided into five main sectors: snacks‚ beverages‚ cheese‚ grocery‚ and convenient meals. The major competitors of Kraft are Nestlé S.A.; Unilever; ConAgra Foods‚ Inc.; Groupe Danone; H.J. Heinz Company; Sara Lee Corporation; etc. One of the world’s fourth biggest
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A. Introduction Nowadays‚ using computers in companies and other establishments in transacting with their clients is a big factor. Some of the companies or stores are still using the manual process in running business. By using the manual way‚ it consumes more time and energy and susceptible to errors in finishing work. So‚ companies now are making system to be computerized because in this way it can minimize time and efforts consumed by using manual system. One way to save time and effort
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When I decided to return to school‚ I applied with an excitement and eagerness I had not experienced before. I had a new yearning to learn as much as I could. Still to this day‚ I have that yearning. I enjoy every minute of my classes‚ working diligently in my time off to succeed in each course. I meet with my professors if I feel as though I do not have the full grasp of the content‚ or occasionally just to say hi and stay visible. Evidence of change in my academic behavior is in my transcripts
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account that maintain by retail financial institutions that pay interest but cannot be used directly as money but can used by writing a cheque. The saving account lets the customer set aside a portion of their liquid assets while earning a monetary return. The saving account is attracting the customer and consider as a star because it have certain profit and low interest. QUESTION MARKS. Also known as problem children. The question mark is new in a rapidly
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on the road to an academic qualification (path 6 compared with path 5). The additional income minus the costs of training produces (allowing for interest) the return on the training investment. From a macroeconomic viewpoint‚ investments in education and training are‚ to a certain degree‚ investments in the infrastructure‚ and the return on such investments becomes apparent only in the long term. The concept of benefits also includes other aspects which need to be kept apart. It is helpful in
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