...1. Introduction This is the final project of the Course Named: Investment & Portfolio Analysis. The purpose of this project is to examine thoroughly if the CAPM holds true in the emerging capital market of Pakistan. Tests are conducted for a period of five years (2005-2009), which is characterized by intense return volatility (covering historically high returns over the examined period). 2.1. Karachi Stock Exchange * Incorporated on March 10, 1949 * Premier Stock exchange of the country * Started with 5 companies that had a paid up capital of Rs. 37 million. * Trading was done through an open-out-cry system * The first index was the KSE 50 Index * Exchange owned by 200 members * 652 companies listed * 4 indices * Modern Risk Management System a. Var Based Margin b. Pre Trade Margin Verification * KSE is FIX Compliant * Electronic Trading through KATS * Market capitalization*: US $ 26.04 billion * Publicly Listed Company with strategic investor * Products to include: a. Options b. ETFs c. Tradable Sector Indices d. Debt Market Trading * Broad based investor participation * Cross border listings of companies * Opening up of branches in other cities and in the region 2.2.1. Definition A stock exchange, share market or bourse is a corporation or mutual organization which provides facilities for stock brokers and trader s, to trade company stocks and other...
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...|RDBMS/DBMS |Oracle 9i | |IDE’s |Eclipse, NetBeans | |Languages |C++, SQL, PL\SQL, Visual Basic and JAVA | |Operating System |Windows XP, Windows 95/98, & UNIX | |PLM/PPM Packages |Windchill/Planisware 5 | PROJECTS UNDERTAKEN |Project Name |Support and Enhancement of the Product Planisware 5(PPM) | |Period |01-July-10 to | |Location...
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...Blichfeldt & Eskerod (2008): Project portfolio management – There´s more to it than what management enacts. International Journal of Project Management, Vol 26, Issue 4, May 2008, pp. 357-365 2. Pellegrinelli S. (2011): What’s in a name: Project or programme? International Journal of Project Management, Vol 29, pp. 232–240 3. Pellegrinelli S. & Garagna L. (2009): Towards a conceptualisation of PMOs as agents and subjects of change and renewal. International journal of project management. Volym 27 nr 7, pp. 649–656. 4. Hobbs B., Aubry M., & Thuillier D., (2008): The project management office as an organisational innovation. International journal project management Vol. 26. pp. 547555 5. Aubry M., Müller R., Hobbs B., Blomquist T. (2010): Project management offices in transition. International Journal of Project Management Vol 28, pp. 766–778 6. Müller R., Glückler J., Aubry M., (2013): A Relational Typology of Project Management Offices. Project Management Journal, Vol. 44, No. 1, 59–76 7. Bredin, K & Söderlund J (2011): The HR Quadriad: A framework for the analysis of HRM in project-based organizations. International Journal of Human Resource Management, Vol.22, No.10:2202-2221 8. Zika-Viktorsson A., Sundström P., & Engwall M., (2006): Project overload: An exploratory study of work and management in multi-project settings. International Journal of Project Management, Vol 24. Pp. 385-394 9. Meskendahl Sascha, The influence of business strategy on project portfolio management and its success...
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...Portfolio Project Reflection As I undertook to study this course, I was apprehensive and worried about Part 4 concerning the project portfolio. At first I had the perception that common diagnostic coding auditing processes are complicated to understand and to use in the medical profession.Until I begin handling part 4 of this project; it is when I realized that medical coding system is a process of assigning numeral values to medical procedures and diagnoses. It is when that I developed an interest in interrogating the medical coding system deeper though it sounded straight forward. This project has enlightened me that in all healthcare settings medical coding system is crucial as it used to develop data for both inpatient and outpatient services. I am also made to be accurate in diagnostic coding and auditing processes, as the success of all medical procedures and diagnoses is dependent on the data from these systems. My awareness of medical coding system, therefore, has been increased throughout this course. For instance, I now know that all medical assessments, quality review and physician reimbursements are all based on medical coding system. I also know that coders, like any other professionals, can get caught in a rut.Such a circumstance may lead to the formulation of bad coding habits with errors that are detrimental to the accuracy needed in this profession. I will apply the knowledge I have gained throughout this medical course to identify areas...
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...Strategic Portfolio and Project Management Summary The project portfolio is analyzed to determine and evaluate the investments or projects that can contribute to the growth of the company. Strategic portfolio management "takes the insights gained from portfolio analysis and integrates them into the decision making process of a corporation" (Portfolio Decisions, 2013). In order to effectively manage the project portfolio of a company, strategic portfolio managers needs to create plans and make decisions that can achieve the goals of the company using the least possible amount of risk. The portfolio manager is responsible in determining if the investments are interesting, viable, and can be executed. Project management involves project initiation, planning, execution, monitoring and control, and closure. "Successful project management can then be defined as having achieved the project objectives: within time, within cost, at the desired performance/technology level, while utilizing the assigned resources effectively and efficiently, and accepted by the customer" (Krezner, 2009, p. 3). Strategic portfolio management and project management are closely related. Project management is under strategic portfolio management. Thus the project manager needs to work closely with the strategic portfolio manager in order to achieve success on the projects and investments of a company. Portfolio management is most involved in the planning stage of project management because this is the process...
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...Finance, Investors, Firms and Markets • Investments in assets are important because assets generate the cash flows that are needed to meet operating expenses and provide a return to owners of the business. • Financing decisions involved generating funds internally or form external sources to the business. Such as by issuing debt or equity securities. • Financing charges amount to non-operating cash flows • The required rate of return caters for the costs to both shareholders and debt holders for funds committed to the project. Therefore, using the required rate of return involves the financing charges being incorporated into the discount rate NOT the Net Cash Flows. • Fishers Separation Theorem states: Two time points: present and future No uncertainty, outcome of all decisions is known now No imperfections in the capital market All decision makers are rational Companies managers use resources according to shareholders o The theorem assumes that there is certainty and a frictionless capital market in which the interest rates for borrowers equals interest rate for lenders. o Shows a company can make a dividend/investment decision that is in the best interest of all shareholders. o Using ROR it is possible to show that the viability of project will depend on the ROR in respect to interest rate introduced through the capital market o If the interest rate is lower than both projects, then the combination of both projects is best accepted and if no combination...
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...Re: Proposing a Project Portfolio Evaluation and Selection Process Executive Summary Taking into account the poor performance of our current projects due to a weak portfolio management process in place, the Operations SBU has come to the determination that if we are to move forward in accommodating new projects along with our existing ones, the current system must be reviewed and redesigned for better decision-making. This proposal defines a framework for project portfolio evaluation and a project selection for adoption and it elaborates on the two phases that involve project screening, selection, prioritizing and balancing. More emphasis is given to the project selection criteria and score model as this is the main area where the gap of knowledge has been identified. Rationale Our recent organizational determination to sustain by controlling costs and expanding our frontiers shall require much effort from all our SBUs and most importantly, it is crucial that we are able to incubate a proper process that shall boost good decision-making and mitigate conflicts when we come to screening multimillion dollar projects and implementing them as part of our operations. The said process shall be about evaluating our project portfolio and devising a methodology of selecting specific projects with the highest probability of helping our company achieve its strategic goals and fulfill our mission. From the Operations SBU perspective, the implementation of new projects without proper categorization...
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...Financial Risk 1. Compare the stand-alone risk / return of each of the five investment alternatives listed in Exhibit 13.1. 2. MSI is considering two investment strategies: - 50 percent in Project A and 50 percent in Project B (Portfolio A / B) or - 50 percent in Project A and 50 percent in the S&P 500 Fund (Portfolio A / S&P). Compare the risk of the two portfolios. Why does the risk differ? 3. a. Compare the corporate risk of Projects A and B. (Hint: Use the expected returns in Exhibit 13.1 to create a graph with corporate characteristic lines for Projects A and B. Regression lines can be created using the =INTERCEPT and =SLOPE functions in Excel. The XY (Scatter) chart in Excel is recommended.) b. What would happen to the overall risk of MSI if it invests in Project A? Project B? 4. a. Compare the market risk of a 1-year T-Bill, Project A, Project B, and equity in MSI. (Hint: Use the historical returns in Exhibit 13.2 to create a graph with market characteristic lines for a 1-year T-Bill, Project A, Project B, and equity in MSI.) b. What would happen to the overall risk of a well-diversified portfolio with an investment in a 1-Year T-Bill? Project A? Project B? Equity in MSI? c. What does the distance between the market characteristics line and the expected return of an investment indicate? 5. a. If you were an individual investor with a well-diversified portfolio, which investment(s) in Exhibit 13.1 would you buy? Why? (In reality, MSI is a not-for-profit...
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...No part of this course may be reproduced in any form by any means without prior permission in writing from: 0 BUSINESS FINANCE OUbs002223 January 2014 OUbs002223 Business Finance Table of Contents Unit 1 Agency Issue between shareholders and managers Unit 2 Investment appraisal methods Unit 3 Risks and Return Unit 4 Asset Pricing Models, CAPM & APT Unit 5 Capital Market Efficiency and Stock Market Anomalies Unit 6 Cost of Capital, Shareholder’s wealth, Gearing & Leasing Unit 7 The dividend decision Unit 8 Corporate Restructuring 1 Aim of the Module To provide learners with knowledge of the principles and practice of the financing decisions of enterprises. Learners will learn about the decisions which firms make about financing their investments in productive capital. Teaching and learning strategy The teaching and learning strategy is designed to develop in students an ability to understand the mechanisms of financial markets and the issues pertaining to investment decision in those markets. Students should be able to understand and apply the time value concepts with regards to investment decision. They should also be able to evaluate the risks and returns of financial instruments. Assessment Strategy Unit(s) of Assessment Assignment WrittenExamination Weighting Towards Module Mark (%) 30 70 GUIDELINES FOR SELFSTUDY This manual aims at fulfilling...
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...Study 1 NPV: Of all the investment appraisal methods, NPV is often argued to be the most superior. This is because it takes into account the time value of money. The method assumes that a dollar today is worth more than a dollar this time next year. It works under the assumption that if one is owed a dollar and the borrower offers a choice of either giving the dollar now or in a year’s time, the more rational option for the lender is to take the dollar now. Provided the lender does not keep the dollar under his mattress at home, it will be worth more than a dollar in a year’s time. It stresses that future cash flows should be expressed in terms of what they are worth now when cash is expended on the project. The present values of these future cash flows can then be compared with what we are spending now on the project. When present values of cash outflows and inflows are compared, if the result gives a positive NPV, then the project should be recommended. In a mutually exclusive situation, that is, when you can only undertake one project and not two projects at the same time, if two projects were to give positive NPVs, then the project with the higher NPV is the one to recommend. In case of Goodweek tires, Inc. we would only consider the relevant costs and not the sunk costs. The sunk costs would represent costs that would have been incurred regardless of what decision would be taken. These are the initial market study costs etc. The NPV of the project is negative $ 88 million...
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...The Impact of Project Portfolio Management on Information Technology Projects Sergio Ricardo Calderini London Business School Regent’s Park, London NW1 4SA, United Kingdom e-mail: scalderini.mba2004@london.edu Bert De Reyck London Business School Regent’s Park, London NW1 4SA, United Kingdom Tel. +44 20 7706 6884; Fax. +44 20 7724 7875; e-mail: bdereyck@london.edu Yael Grushka-Cockayne London Business School Regent’s Park, London NW1 4SA, United Kingdom Tel. +44 20 7262 5050; Fax. +44 20 7724 7875; e-mail: ygrushka.phd2003@london.edu Martin Lockett Ashridge Berkhamsted, Hertfordshire, HP4 1NS, United Kingdom Tel. +44 1442 841025; e-mail: martin@mlockett.com Marcio Moura London Business School Regent’s Park, London NW1 4SA, United Kingdom e-mail: mmoura.mba2004@london.edu Andrew Sloper CVC The Customer Value Company 48 St Mary's Road, Long Ditton, Surrey KT6 5EY, United Kingdom Tel. +44 7768 861920; e-mail: andrew.sloper@customervalue.co.uk February 2005 Ashridge Business School UK - http://www.ashridge.org.uk The Impact of Project Portfolio Management on Information Technology Projects Abstract The ever-increasing penetration of projects as a way to organise work in many organisations necessitates effective management of multiple projects. This has resulted in a greater interest in the processes of project portfolio management (PPM), with more and more software tools being developed to assist and automate the process....
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...Inc. Financial Risk (1, 2, 3, 4, & 6) 1. Is the return on the one-year T-bill risk free? No, the return on the one-year T-bill is not risk free. Financial risk is related to the probability of earning a return less than expected and the larger the chance of earning a return far below that expected, the greater the amount of financial risk. Risk free assumes 100% probability that the investment will earn the total percent of return that is expected. 2. Calculate the expected rate of return on each of the five investment alternatives listed in Exhibit 13.1. Based solely on expected returns, which of the potential investments appear best? Based on the expected returns, the potential investment that appears the best is 15% with S & P 500 Fund. (Probability of Return 1 x Return 1) + (Probability of Return 2 x Rate 2) = Expected Rate of Return 1-Year T-Bill (0.10 x .07) + (0.20 x .07) + (0.40 x .07) + (0.20 x .07) + (0.10 x .07) = .07 = 7% Project A (0.10 x [-.08]) + (0.20 x .02) + (0.40 x .14) + (0.20 x .25) + (0.10 x .33) = .135 = 13.5% Project B (0.10 x .18) + (0.20 x .23) + (0.40 x .07) + (0.20 x [-.03]) + (0.10 x .02) = .088 = 8.8% S & P 500 Fund (0.10 x [-.15]) + (0.20 x 0) + (0.40 x .15) + (0.20 x .30) + (0.10 x .45) = .15 = 15% Equity in SSI (0.10 x 0) + (0.20 x .05) + (0.40 x .10) + (0.20 x .15) + (0.10 x .20) = .10 = 10% 3. Now calculate the standard deviations and coefficients of variation of returns for the...
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...GROUP: 3 INVESTMENT SIMULATION PROJECT NORTH SOUTH UNIVERSITY INVESTMENT SIMULATION PROJECT PREPARED FOR Saif Rahman (SfR) Lecturer COURSE: FIN 435 SECTION: 03 GROUP: 03 PREPARED BY NAME | ID | Md. Sarwar Hossain | 0930068030 | Fatima Tuz Zahra | 0930785530 | Ahmed Aman Yousoof | 0930274530 | Yakin Reza | 0930042030 | Naima Rahman | 0930283030 | Date of Submission: August 08, 2012 TABLE OF CONTENTS | | | Executive Summary | 03 | Introduction | 04 | Objective | 04 | Asset Allocation | 05 | Macroeconomic & Industrial Scene | 07 | Diversification | 07 | Trading Strategies & Economic Rationale for Selecting Stocks | 07 | Portfolio Performance | 10 | Holding Period Return | 13 | Portfolio Risk & Return | 14 | Security Market Line | 15 | Lessons Learned from Trading | 16 | Conclusion | 17 | References | 18 | Appendix | 19 | Executive Summary The investment simulation project is a fictitious investment in the Dhaka Stock Exchange that started from June 4, 2012 and ended on August 01, 2012 over a period of two months and separated in three phases. The initial investment in the portfolio was around BDT 1,000,000. The objective of the project was to maximize the after tax wealth through a well diversified portfolio. Given the consistent market fall at the Dhaka Stock Exchange since our investment period...
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...Portfolio Management and Strategic Management Rebecca Watson CPMGT/301 May 25, 2015 Daryl Hale Portfolio Management and Strategic Management Portfolio management is a method that practices fundamental management techniques to prioritize an organization’s projects against each other. This method is performed in the same way an investor would evaluate a stock portfolio for long-term value, risk, and balance. This process is ideal; enabling an organization to consider and bring about a portfolio of projects to appropriate resources and optimize investments against vital objectives (Robbins Gioia, 2013). Project Portfolio Management (PPM) is used to assist an organization to gain and evaluate details about all its current and upcoming projects. Each project can then be prioritized against others based on criteria such as resources, budget, strategic value and any other impactful elements concerning the organization (Greer, 2009). The advantages to practicing PPM is that is can give the organization a big picture perspective of where its resources are being allocated and how the project deliverables will impact the company goals. According to Robbins Gioia, the traditional approach of project management focuses on cost, prioritizes project time lines, manages and contains problems within the project scope, “and attempt to answer the question: Are we doing things right?” (Robbins Gioia, P. 1). Even with the best project manager (PM) yielding optimal results, that PM has...
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...Running head: Portfolio Project- Capital Budgeting Page 1 Capital Budgeting April Sutton July 12, 2013 FINANCIAL MANAGEMENT 3004 Instructor Nickey Turner Walden University Running head: Portfolio Project-Capital Budgeting Page 2 INTRODUCTION Capital Budgeting is defined as the process of planning and managing a firm’s long-term investments (Ross, Westerfield & Jordan. 2013). The question of what long term investment should be made is the first step of answering this question. The issues that arise with the asking of this question will be detailed in this paper. Capital Budgeting techniques include the Payback Rule, IRR, NPV, and the Profitability Index. PAYBACK RULE The payback method indicates that an investment is acceptable if its calculated payback is less than some prescribed number of years. The payback method does not consider the present value of cash flows. Under this method, an investment project is accepted or rejected on the basis of payback period. Payback period means the period of time that a project requires to recover the money invested in it (www.accountingformanagement.org).The payback period of a project is expressed in years and is computed using the following formula: Formula of payback period: According to this method, the project that promises a quick recovery of initial investment is considered desirable. If the payback period of a project computed by the above formula is shorter than or equal to the management’s...
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