Friday, January 24, 2020

Economic Intervention :: essays research papers

Economic Intervention Every day our government makes economic decisions that affect our country and ourselves. Some of these decisions are good and benefit our lives greatly; however, many of our government's decisions, such as where our tax money should go, are not in our best interests. The Canadian government, although it is tightening up it's measures now, has been very lax with our hard earned tax money. Things like government officials receiving unreasonable benefits, government loans being given out like water, or government subsidizing of various companies and services that don't need it. These are all indications that Canada needs less government intervention. One large example of government over-involvement is in the case of our correctional facilities and prisons. Should a person who has broken the law be given better lodgings and better care than someone who is a law abiding citizen? We see examples such as prisons being outfitted for the care of inmate's children. This is an area in which government money is being improperly spent. Money that is being used in these areas should be being put to better use in areas such as health and welfare. People who are free and law abiding should be receiving this money to better their lives not someone who has had no previous respect for the laws of our country. Most inmates have free access to physical training facilities that would cost us three hundred to four hundred dollars per year. All inmates are guaranteed a meal, three time a day, when a large portion of the free population can barely afford one meal a day. The prison facilities get thousands of tax-payer dollars to upgrade and maintain suitable environments. Yet many Canadian citizens who are unemployed, who cannot get work, are living on the street or in unsuitable shelters. Why should someone in jail get better benefits than someone trying to make it legally in our society? However, it seems that our government has a certain affinity to people who break its set laws. This vast inappropriate spending of taxpayer's dollars should be stopped. In the near future we should see either proper controls being set on the

Thursday, January 16, 2020

Mf0010

Master in Business Administration – Semester3 MF0010– Security Analysis and Portfolio Management – 4Credits (Book ID: B1208) Assignment Set- 1 (60 Marks) Q. 1 Frame the investment process for a person of your age group. Ans:- It is rare to find investors investing their entire savings in a single security. Instead, they tend to invest in a group of securities. Such a group of securities is called a portfolio. Most financial experts stress that in order to minimize risk; an investor should hold a well-balanced investment portfolio.The investment process describes how an investor must go about making. Decisions with regard to what securities to invest in while constructing a portfolio, how extensive the investment should be, and when the investment should be made. This is a procedure involving the following five steps: †¢ Set investment policy †¢ Perform security analysis †¢ Construct a portfolio †¢ Revise the portfolio †¢ Evaluate the perf ormance of portfolio 1. Setting Investment Policy : This initial step determines the investor’s objectives and the amount of his investable wealth.Since there is a positive relationship between risk and return, the investment objectives should be stated in terms of both risk and return. This step concludes with the asset allocation decision: identification of the potential categories of financial assets for consideration in the portfolio that the investor is going to construct. Asset allocation involves dividing an investment portfolio among different asset categories, such as stocks, bonds and cash. The asset allocation that works best for an investor at any given point in his life depends largely on his time horizon and his ability to tolerate risk.Time Horizon – The time horizon is the expected number of months, years, or decades that an investor will be investing his money to achieve a particular financial goal. An investor with a longer time horizon may feel more comfortable with a riskier or more volatile investment because he can ride out the slow economic cycles and the inevitable ups and downs of the markets. By contrast, an investor who is saving for his teen-aged daughter’s college education would be less likely to take a large risk because he has a shorter time horizon.Risk Tolerance – Risk tolerance is an investor’s ability and willingness to lose some or all of his original investment in exchange for greater potential returns. An aggressive investor, or one with a high-risk tolerance, is more likely to risk losing money in order to get better results. A conservative investor, or one with a low-risk tolerance, tends to favour investments that will preserve his or her original investment. The conservative investors keep a â€Å"bird in the hand,† while aggressive investors seek â€Å"two in the bush. † While setting the investment policy, the investor also selects the portfolio management style (acti ve vs. assive management). Active Management is the process of managing investment portfolios by attempting to time the market and/or select „undervalued? stocks to buy and „overvalued? stocks to sell, based upon research, investigation and analysis. Passive Management is the process of managing investment portfolios by trying to match the performance of an index (such as a stock market index) or asset class of securities as closely as possible, by holding all or a representative sample of the securities in the index or asset class.This portfolio management style does not use market timing or stock selection strategies. 2. Performing Security Analysis : This step is the security selection decision: Within each asset type, identified in the asset allocation decision, how does an investor select which securities to purchase. Security analysis involves examining a number of individual securities within the broad categories of financial assets identified in the previous step . One purpose of this exercise is to identify those securities that currently appear to be mispriced.Security analysis is done either using Fundamental or Technical analysis (both have been discussed in subsequent units). Fundamental analysis is a method used to evaluate the worth of a security by studying the financial data of the issuer. It scrutinizes the issuer's income and expenses, assets and liabilities, management, and position in its industry. In other words, it focuses on the „basics? of the business. Technical analysis is a method used to evaluate the worth of a security by studying market statistics. Unlike fundamental analysis, technical analysis disregards an issuer's financial statements.Instead, it relies upon market trends to ascertain investor sentiment to predict how a security will perform. 3. Portfolio Construction : This step identifies those specific assets in which to invest, as well as determining the proportion of the investor’s wealth to put i nto each one. Here selectivity, timing and diversification issues are addressed. Selectivity refers to security analysis and focuses on price movements of individual securities. Timing involves forecasting of price movement of stocks relative to price movements of fixed income securities (such as bonds).Diversification aims at constructing a portfolio in such a way that the investor’s risk is minimized. The following table summarizes how the portfolio is constructed for an active and a passive investor. [pic] 4. Portfolio Revision : This step is the repetition of the three previous steps, as objectives might change and previously held portfolio might not be the optimal one. 5. Portfolio performance evaluation : This step involves determining periodically how the portfolio has performed over some time period (returns earned vs. risks incurred). Q. From the website of BSE India, explain how the BSE Sensex is calculated. Ans:- SENSEX is calculated using the â€Å"Free-float Mar ket Capitalization† methodology, wherein, the level of index at any point of time reflects the free-float market value of 30 component stocks relative to a base period. The market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company. This market capitalization is further multiplied by the free-float factor to determine the free-float market capitalization.The base period of SENSEX is 1978-79 and the base value is 100 index points. This is often indicated by the notation 1978-79=100. The calculation of SENSEX involves dividing the free-float market capitalization of 30 companies in the Index by a number called the Index Divisor. The Divisor is the only link to the original base period value of the SENSEX. It keeps the Index comparable over time and is the adjustment point for all Index adjustments arising out of corporate actions, replacement of scrips etc.During market hours, prices of the index scrips, a t which latest trades are executed, are used by the trading system to calculate SENSEX on a continuous basis. Dollex-30 BSE also calculates a dollar-linked version of SENSEX and historical values of this index are available since its inception. (For more details click ‘Dollex series of BSE indices') SENSEX – Scrip Selection Criteria 1. Equities of companies listed on Bombay Stock Exchange Ltd. (excluding companies classified in Z group, listed mutual funds, scrips suspended on the last day of the month prior to review date, scrips objected by theSurveillance department of the Exchange and those that are traded under permitted category) shall be considered eligible 2. Listing History: The scrip should have a listing history of at least three months at BSE. An exception may be granted to one month, if the average free-float market capitalization of a newly listed company ranks in the top 10 of all companies listed at BSE. In the event that a company is listed on account o f a merger / demerger / amalgamation, a minimum listing history is not required. 3.The scrip should have been traded on each and every trading day in the last three months at BSE. Exceptions can be made for extreme reasons like scrip suspension etc. 4. Companies that have reported revenue in the latest four quarters from its core activity are considered eligible. 5. From the list of constituents selected through Steps 1-4, the top 75 companies based on free-float market capitalisation (avg. 3 months) are selected as well as any additional companies that are in the top 75 based on full market capitalization (avg. months). 6. The filtered list of constituents selected through Step 5 (which can be greater than 75 companies) is then ranked on absolute turnover (avg. 3 months). 7. Any company in the filtered, sorted list created in Step 6 that has Cumulative Turnover of >98%, are excluded, so long as the remaining list has more than 30 scrips 8. The filtered list calculated in Step 7 is then sorted by free float market capitalization. Any company having a weight within this filtered constituent list of

Tuesday, January 7, 2020

World War II The Great War - 1334 Words

World War II The devastation of the Great War (as World War I was known at the time) had greatly destabilized Europe, and in many respects World War II grew out of issues left unresolved by that. In particular, political and economic instability in Germany and lingering resentment over the harsh terms imposed by the Versailles Treaty, fueled the rise to power of Adolf Hitler and his National Socialist (Nazi) Party. The years between the first and second world wars were a time of instability during the worldwide Great Depression that began around 1930. It was also a time when some nations, including Germany, Italy and Japan developed intense nationalist feelings that led to a desire to expand: Germany in Northern and Eastern Europe, Italy in Africa and Greece, and Japan in Asia and the South Pacific. Germany had the added motivation of overturning (and ultimately avenging) the harsh terms forced on it at the conclusion of the First World War. In late August 1939 Hitler and Soviet lead er, Joseph Stalin, signed the German-Soviet Nonaggression Pact, which incited a frenzy of worry in London and Paris. Hitler had long planned an invasion of Poland, a nation to which Great Britain and France had guaranteed military support if it was attacked by Germany. The pact with Stalin meant that Hitler would not face a war on two fronts once he invaded Poland, and would have Soviet assistance in conquering and dividing the nation itself. On September 1, 1939, Hitler invaded Poland fromShow MoreRelatedWorld War II : The Great War1083 Words   |  5 PagesWorld War II The devastation left by the Great War (aka World War 1) had greatly destabilized Europe, and in many aspects World War II grew out of issues left unresolved by the conflicts of WW1. In particular, political and economic instability in Germany left by the harsh punishments and terms imposed by the Versailles Treaty, fueled the rise to power of Adolf Hitler and the Nazi party. In the years between the first and second world wars there was a time of great instability with aRead MoreWorld War II : The Great War884 Words   |  4 PagesWorld War 1 also known as The Great War started for a number of explanations; discrimination and imperialism, militarism nationalism, and alliance. According to the World of information imperialism is the policy which is expanding the country’s power and acquiring new land or countries by force. Militarism is when a country wants to preserve the strongest and most defensive military strength. Germany, Austria-Hungary, and Ottoman Empire where central powers of WW1 but the allied powers where FranceRead MoreWorld War II : The World s Second Great War960 Words   |  4 PagesWorld War II-- also known as The Holocaust / The Genocide -- was the world s second Great War . World War II was much more larger in scale and more longer in duration. World War I had only lasted for four years, while World War II had lasted for six years. I find it quite interesting that contrary to popular belief; the United States did not enter World War II until 2 years after the genesis of the conflict. It was only in 1941, when the Japanese had bombed Pearl Harbor that the United StatesRead MoreWorld War II And The Great Depression1658 Words   |  7 Pages The highly numbered risks of war have rigorous effects on societies around the world. World War II had positive and negative effects during and after the war. After the war, the formation of the United Nations helped negotiate and maintain peace, and during the war more jobs helped get the United States out of its biggest economic crisis, the Great Depression. Although, some economists argue that by creating more jobs during World War II, put America into even more debt than the country was alreadyRead MoreWorld War II : The Great Depression1543 Words   |  7 PagesDanielle Gentry Gary Damon American History II 10:00 MWF 25 April 2016 World War II Two decades after the first World War happen another world war occurred known as World War II. There were many causes that led up to this war. The Treaty of Versailles ended World War I, but Germany had to accept the responsibility of the war. Therefore, Germany economy went downhill and people were starving because of war debt. The Great Depression had a big effect on a lot of countries; therefore, countries startedRead MoreThe Great Depression And World War II Essay1391 Words   |  6 Pagescatastrophes occurred: the Great Depression and World War II. American political leaders established a cause-effect relationship between economic collapse and total war, based on these two events, which defined their policy approach in the post-war period. In the 1930s, American leadership, and most importantly, President Franklin Delano Roosevelt, came to view economic decline, political radicalization, and instability as forming a vicious cycle that led to utter chaos and war. Although FDR d id not knowRead MoreThe Great Depression And World War II1507 Words   |  7 PagesFaced with the Great Depression and World War II, Franklin D. Roosevelt, nicknamed â€Å"FDR,† guided America through its greatest domestic crisis, with the exception of the Civil War, and its greatest foreign crisis. His presidency—which spanned twelve years—was unparalleled, not only in length but in scope. FDR took office with the country mired in a horrible and debilitating economic depression that not only sapped its material wealth and spiritual strength, but cast a pall over its future. RooseveltRead MoreThe Great Depression And World War II1280 Words   |  6 PagesSisters of Growth Throughout the beginning of time people have used art to express themselves. With each major, and minor, there is an artist that captures the world as it is around him. There are also artists that create fiction to give the world and escape from reality. The medium of art that will be discussed in this essay will be film. Since the invention of Thomas Jefferson kinecto graph and the Lumiere brothers cinemtograph, films have continued to be the most popular entertainment methodsRead MoreThe Great Depression And World War II955 Words   |  4 PagesIn America, the period between the Great Depression and World War II was rife with uncertainty. The struggles of the Great Depression were over, but their lasting effects shed doubt on America’s future. Persephone, was an attempt by Thomas Hart Benton in 1939 to cement regionalism as the official American art style during this era. However, despite his attempt to promote hope in America’s future, while still acknowledging the despair of the Great Depression, Persephone was regarded as obscene. RegionalismRead MoreWorld War II : The Great People s War1529 Words   |  7 PagesWorld War II (The Great People’s War) was of deep importance to the formation of today’s international relations system, however the following periods after this war between the greatest powers in the world are also of great significance. The analysis of those periods and their impact on world history will be the first approach of this assessment. It is important to clarify that these periods cannot be annualized as isolated events that happened in History, but related events that in a way or another