...Answer no 8: ORACLE (ORCL) Over a period of last 2 years the S&P 500 index has gone down by 40% as compared to its level on 26-June-2009. Oracle on the other has increased by approximately 10%. Since beta measures the volatility of a stock as compared to the market our estimated beta for Oracle will be 1.5. If both stock and market move in the same direction with same volatility the beat is 1. In this case we have added the difference (0.40 + 0.10) to 1 and have estimated the number (Beta) at 1.50. Ki = RF + bi (KM - RF ) Where KF (Risk free rate ) = 4.6% (KM – K F) Equity risk premium = 6.4% Bi (Beta) = 1.5 Ki (Required rate of Return) = 4.6% + (1.5 x 6.4) = 4.6% + 9.6% = 14.2% Answer no 9 (a) : McDonalds (MCD): On the basis as described above the beta for MCD is 1.55. So the required rate of return will be as follows: Ki = RF + bi (KM - RF ) Where KF (Risk free rate ) = 4.6% (KM – K F) Equity risk premium = 6.4% Bi (Beta) = 1.55 Ki (Required rate of Return) = 4.6% + (1.55 x 6.4) = 4.6% + 9.92% = 14.52% Answer no 9 (b) : Bank of America: (BAC): On the basis as described above the beta for BAC is 0.50. So the required rate of return will be as follows: ...
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...Team B Portfolio Mireya Gomez, Marina Kriofske, Raven Schatz FIN/402 September 7, 2015 Professor Richard Smith Procter & Gamble Procter & Gamble has been in business for 178 years. Dividends have consecutively increased in the past 59 years. The common stock five year average return for Procter & Gamble is 73.66. The average rate of return for the past five years is 4.17 percent. Procter & Gamble's industry is personal products. The company streamlined its businesses into five industry-based groups. The groups are global baby, feminine and family care; global beauty; global health; global grooming; and global fabric and home care. The five year average return in personal products is 12.86 percent (Procter & Gamble, 2015). Procter & Gamble is in the same industry as Scott's Liquid Gold Inc., Kimberly-Clark Corp and Unilever PLC. Scott's Liquid Gold Inc. five year rate of return is 44.15 percent. Kimberly-Clark Corp five year rate of return is 13.57 percent. Unilever PLC five year average rate of return is 11.04 percent (Morningstar, 2015). |Industry Name |5-Day |YTD |1-Month |3-Month |1-Year |3-Year |5-Year | | | | | | | | | | | | | | | | | ...
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...Fin 402 Patrick Oliver Week 4 Assignment July 14, 2014 University of Phoenix To: Rainier Ekstrom From: Patrick Oliver Subject: Portfolio Selection and Investment Strategy According to risk and yield, as well as detailed assessment, I have chosen 4 lots. I noticed the proper mineralization of the risk yields, also accounting for diversification of the portfolio. This reduces the danger which may come with certain risk factors. In order to get particular organization information, it was essential to get proper information on the profile. Some of these shares incorporated are Western Connect Air, Infoway Computers, Transcondit Inc., Deskop Inc., and One Voice Telecom. In order to have the best yield possible for Casta Bonita Ceramics, the best strategy must be used. With lack of investing in high stock yields, it is important to make correct and simple decisions when it comes to correct and proper investment potential outcomes. A diverse portfolio is important to consider when making proper implication investment strategies. Although high risk is to be considered, Infoway, Tasconduit, and One Voice offer high yields as well. These types of shares are in the Information Technology and Telecommunications Industry. I have Chosen Infoway above the other two for various reasons. The company seems to be progressing better and more progressive and seems to have a better record than the other two organizations. Considering the beta and risk of each high...
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...Week 5: Investment Enhancement Paper Robert L. Cole FIN/402 Investment Fundamentals and Portfolio Management November 11, 2013 Richard E. Smith Composition of investment portfolios is a complicated process involving rigorous methods ensuring successful financial transactions aimed at financial stability and profitability. Selection of appropriate asset classes are only half the task, revision is the other crucial element needed to complete the process of excellent portfolio performance. Portfolio diversification assists investors’ exposure to risk in both domestic and international markets, and is a notably significant component regarding the composition of a portfolio. An investor must comprehend all investment vehicles because alternatives might become necessary after mediocre portfolio performance evaluations. In addition, derivative securities can further enhance portfolio performance; therefore, careful consideration of these assets must be taken seriously with regards to the composition and revision of an investment portfolio. Diversification of any portfolio, whether it is domestic or international, is extremely important because having assets with different characteristics allows investors the potential of a differentiated level of risk. Risk reduction through international diversification pertains to international market correlations increased after unexpected shocks. The implication of diversification benefits...
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...To create a portfolio, investors must invest in different assets, possibly in different countries. As learned from a team project, a well diversified investment must have different types of securities and possibly have investments located in different countries. It can help to reduce the risk as compared to the asset investment, also known as taking stand alone risk, in their domestic country. The risk minimizes because there is a difference that exists in the economic growth. Because of this diversification, a fall in one country gets rewarded with the rise in the other country. There are two main effects of international portfolio diversification on the investment portfolio on is the risk and the return. The international portfolio diversification is the best and effective way to achieve higher risk-adjusted returns than domestic investment alone here the investor gets the best return at the lowest level of risk he or she can afford. This is done through investment in various markets of different countries. The international portfolio diversification facilitates the risk sharing among different global investors and du to this a country even gets diversified of its own risk. So one can say that not only the investors but also due to the international portfolio diversification strategy even the country gets diversified investors and due to this the risk level within the country gets minimized. Here the idiosyncratic shocks of the country may be diversified away due to different...
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...Japan's whaling fleet was headed home from the southern ocean after ending its annual Antarctic hunt with only a third of its expected catch, news reports from Japan said Friday. The hunt ended three days ago with a catch of 266 minke whales and one fin whale, officials from Japan's Fisheries Agency said, according to one report from Australia's ABC news online. The Sea Shephed Society, which sent a fleet of vessels to the southern ocean to block the hunt, proclaimed victory on its website. "Operation Divine Wind is over! The Japanese whalers are going home!" the Sea Shepherd headline read. "There are hundreds of whales swimming free in the Southern Ocean Whale Sanctuary that would now be dead if we had not been down there for the last three months. That makes us very happy indeed," Sea Shepherd's Paul Watson is quoted as saying on the organization's website. News of the Japanese whaling fleet's withdrawal comes four days after the Institute of Cetacean Research, which oversees the Japanese whaling program, reported a confrontation between the Japanese ships and Sea Shepherd's ship Bob Barker. The Bob Barker fired more than 40 flares and aimed a "high-powered" laser beam at the Japanese ships for more than 50 minutes, the institute said in a news release. Watson said that with the high-seas showdown, "the whaling season was effectively over for the season." Japan hunts whales every year despite a worldwide moratorium on whaling, utilizing a loophole in the law that allows...
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...captivity. Some of the differences between the two environments are the whales behavior, how they eat, and their dorsal fins. Killer whales are amazing creatures that can live up to 29 years. What exactly determines how long they live? The main factor is usually if they are kept in captivity or in the wild. In the wild, killer whales’ swim up to 100 miles a day. They socialize with other members of their pod and usually have close ties with their families. Most whales are very playful and rely mainly on their hearing. In the wild, whales spend close to 90% of their time under the water. Whales eat various types of fish throughout the day. This animal is around hundreds of different species of marine life throughout a single day. Whales dorsal fins, in the wild, usually stick straight up....
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...Risk and Return Tradeoff Memo Analyzing the risk and return tradeoffs associated with Casa Bonita’s portfolio Diversity is an important part of any portfolio; diversity in the industries chosen for investment and in the level of risk undertaken are the two most important factors when considering how to construct a corporate investment portfolio.(3) Casa Bonita is a growing company and it is important that we invest our capital wisely if we are planning to use the gains to fund expansion and corporate growth. As corporate officers we have a duty to our employees, our customers, and the corporate community to be measured and knowledgeable about every investment decision we make. Investment decisions should almost be methodical, however due to the nature of the stock market it is hard to be methodical as there is a certain level of predictability that must be present for us to become methodical in our investment decision making. Decisions made during the simulation As the Treasury Analyst for Casa Bonita during the simulation it was my job to build the corporate investment portfolio in a manner that would produce the largest amount of returns while taking the minimum amount of risk. Initially the market conditions were great with multiple stocks expected to perform above average, however it was still important to include stocks that would perform well even in an economic downturn in our portfolio. The inclusion of “recession proof” securities provides stability, or a foundation...
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...about the Whaling Debate on whether countries should be allowed to continue to hunt whales or should we leave them protected and my beliefs on the subject. This debate has also focused on issues of sustainability and conservation as well as ownership and national sovereignty. Some of the issues included in these debates is the question of cetacean intelligence this refers to the Cetacea order of mammals, which includes whales, porpoises, and dolphins; and the level of suffering which the animals undergo when caught and killed (The Whale Debate: Whale Wars, 2014). Another hot topic in the debate right now is the right to kill a certain amount of whales for scientific research, Japan kills 1000 minke whales a year and about 100 endangered fin and humpback whales. Whales are mammals the same as we are and they are intelligent and have feelings such as pain and a sense of loss. Before I get into my opinion I will list the pros and cons of this particular activity. There are a few of each so I will start with the reasons for whaling, many indigenous people, such as the Inuit’s of Alaska, rely on whales for food and other materials to survive in such harsh environments and they are...
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...MEMORANDUM TO: Senior Accounting FROM: Staff Accountant DATE: June 29, 2015 SUBJECT: Shared-Based Payment Reporting and Special Purpose Entities (SPE) CC: Team members ______________________________________________________________________________ As an Accounting Firm it is very important that we follow the most recently changed or amended regulations and standards set by the Financial Accounting Standards Board (FASB). As of 2009 the Financial Accounting Standards Board (FASB) has made amendments to Shared-Based Payment Reporting and Special Purpose Entities. The amendments made were to Statements No. 123 and 95 which covers the Share-Based Payments and Statements No. 123 and 95; the FASB. Also revised, Statements No. 166 and 167 which pertains to Special Purpose Entities (SPE). Share-Based Payment Reporting In the process of an audit, it is important to review the accounting process in terms of how share-based payment is reported to Sensure the entity processes are in line with Generally Accepted Accounting Policies (GAAP). Share-based payment is a complex area to both report on and audit as almost every transaction is unique and referencing IFRS No.2 for the purpose of the audit is not always clearly defined. Defined, share-based payment is an arrangement in which an entity purchases goods or services in exchange for issuance of the entity’s equity instruments or cash payments based on the fair value of those equity instruments. IFRS No.2 has two defined...
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...But in reality the whales that are captured for this company are very capable of living with their pods in the ocean, once they enter the tanks is when mental and physical problems start to occur. Less than 1% of wild orcas have a collapsed dorsal fin, and all the males and about 50% of females in captivity have collapsed dorsal fins. Orcas in captivity do not have enough space to swim around which can cause their fins to fall and they are fed an unhealthy diet of dead thawed fish. The chlorine amount in the pool also hurts their skin and the trainers have seen mucus come from the orcas’ eyes. Trainers have also reportedly had problems with the chlorine levels in the pool. According to a trainer, he was directed to not open his eyes for at least 7 days or he would risk going permanently blind. Being transferred from the ocean to the chlorine filled pool, the orcas have a hard time adjusting to a drastic change like this because their skin and eyes are so sensitive. People can also say it is a good learning experience to see these beautiful creatures up close. In reality...
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...spaces, and families being torn apart. However, zoos and aquariums say education is provided along with helping endangered animals. One reason animal captivity should be banned is animals suffer both mentally and physically. The different environment causes issues for example, orcas and dolphins use echolocation; but, the tank causes the reverberations to bounce off and hit the cetacean which results in frustration and mental issues (“Aquariums and Marine Parks”). Cetaceans who are in a tank are restricted, not being able to perform their normal tasks will get frustrated. Physical issues can occur for example, orcas will experience a collapsed dorsal fin which is very rare for a wild orca. Collapsed dorsal fins occur from the gravity pulling on the fin where the water is too shallow because there is not proper support for the fin (“Aquariums and Marine Parks”). A reason they suffer psychologically is they are not allowed to have social bonds. Naturally, the cetaceans will live in pods. Since they are naturally social creatures, if one animal in the tank dies the other has to be transferred because if they are isolated from other animals they will suffer mentally. Behavioral patterns known as “zoochosis” will occur which have signs like bar-biting, circling, repetitive head swaying, aggression, and self-mutilation. If behavioral patterns are being repeated the animals’ needs are not being met (“Wild Animals in Entertainment”). In conclusion, both physical and mental issues are...
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...Name: University: Course: Tutor: Date: International Whaling Commission Introduction Just recently on May 31st 2010, Australia opened a court case against Japan in the International Court of Justice (ICJ) with regards to a dispute relating to Japan’s JARPA II program on ‘Scientific Whaling’. The case was dubbed the ‘JARPA II Case’ and was primarily based on a dispute between Australia and Japan over interpretation of the 1946 International Convention of Whaling (ICRW). JARPA refers to Japan’s Research Program under Special Permit in the Antarctic to carry out research in the marines. The first was introduced in 1987 in the Southern Ocean Whaling Season of 1987-1988. JARPA II was to commence some 18years later from and it started in 2005. During that period of 1987 through 2005, Japan had apparently ignored the Moratorium sanctioned by IWC against Whaling and it is consequently some six thousand eight hundred minke whales were taken under JARPA. That led to a longtime dispute between whaling states and anti-whaling states over limited whaling v no whaling at all. Among the cases is the one between Australia and Japan of 2010. This article will look into the case between Japan and Australia in a bid to answering the following questions; one, how is the International Whaling Commission policy determined and influenced, secondly, what is the role of scientific advice in policy making, thirdly, what are the arguments for both Japan and Australia in the International Court...
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...Introduction Since the indefinite commercial whaling moratorium was introduced in 1986, the whaling nations have killed around 15,000 whales between them. At the time of writing, the Japanese whaling fleet has just returned from Antarctic waters where a further 300 or so minke whales have been killed for so called ‘research’, in open defiance of world public opinion and the IWC which has never validated the Japanese programme. The meat from those dead whales will end up on sale in Japanese restaurants and on supermarket shelves. Japan is not only defying the global moratorium on commercial whaling, it is killing whales in a sanctuary agreed by the IWC in 1994. Japan has ‘recruited’ many countries to the IWC to support the resumption of commercial whaling using foreign aid packages. If the ban is lost it will be a disaster for whale conservation efforts. This report presents the many reasons why the ban on commercial whaling must be maintained and properly enforced. We cannot wipe away the tragic history of commercial whaling, but we can, and must, prevent its repetition. The Natural History of Whales Whales belong to the order of mammals known as Cetacea. There are about 80 species of cetaceans, including all the dolphins and porpoises, as well as the ten so-called ‘great’ whale species, which have borne the brunt of commercial whaling. Cetaceans are believed to have evolved from land mammals, which adapted to an aquatic existence about 50 million years ago. They are superbly...
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...There are many endanger marine species. one species that is endangered is the blue whale. The blue whale evolved around 45 million years ago, thats 40 million years before humans (marinebio.org-Blue Whales). Blue Whales are members of the Order Cetacea family. Blue whales can live in. According to wwf.panda.org The blue whale is found mostly in cold and temperate waters, and it prefers deeper ocean waters to coastal waters. Like many other baleen whales, it feeds in cool waters at high latitudes, and generally migrates to warmer temperate and tropical waters to breed and give birth. The blue whale is considered an endangered because of its population size, they have a population of 10,000-25,000. They weigh about 200 tons and can grow to be 80-100 feet long. Blue whales are Lightly mottled blue-grey, with light grey or yellow-white undersides (Alagiyawanna 1). Blue whales also can live in all of the oceans. According to SCIcyclopedia, A female blue whale, which is larger than the male, gives birth to a calf that averages 25 feet in length and weighs about 2 tons. The calf drinks about 106 gallons of milk every day (Katona 1). A blue whale can eat up to 8,000 lbs. of krill during its consumption period. It is estimated to take 2,200 lbs. of food to fill a blue whale's stomach. Blue whales can swim normally at five miles per hour but can reach speeds over 20 miles per hour when agitated. Blue whales are one of the earth’s loudest animals they emit a series of pulses, groans and...
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