successive periods can help an investor arrange his or her assets to best effect, and position to move onward to the next level. Contrast systematic and unsystematic return. Systematic risk is risk that influences a large number of assets called market risk. Where as unsystematic risk is a risk that influences a single company of a small group of companies, also called unique risk. Unsystematic risk is eliminated by diversification, so a portfolio with man assets has almost no unsystematic risk
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1.0 Introduction The report topic ‘Role of a Credit Rating Agency in the capital market development of Bangladesh’ is a significant one in the present capital market context of Bangladesh. The report focuses on increasing the understanding on the workings of the present capital market, the concept of credit rating and the effect it can have on the capital market. 1.1 Origin This report has been authorized to the students as an integral component of the Business Communication (C- 501)
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pROJECT ON FINANCIAL MANAGEMENT | ESTIMATION OF BETA AND ITS INTERPRETATION IN AN INVESTMENT DECISION | Submitted to: | Prof. S P Mohapatra | | | Submitted By: Aditya Prakash (11DM061) Amitava Mitra (11DM062) Paritosh Beuria (11DM063) Subhajyoti Bhattacharya (11DM064) INSTITUTE OF MANAGEMENT & INFORMATION SCIENCE, BHUBANESWAR. | CONTENTS Page No. * OBJECTIVES 3 * COMPANY PROFILES
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TERMINOLOGY 1. Option: In finance, an option is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the corresponding obligation to fulfill the transaction. • American Option: American option is the option that can be exercised anytime during its life. The majority of exchange-traded
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artemenkov@rambler.ru Modern Portfolio theory (MPT) and Financial Economics: a theory of lesser turf?♣ “In this age, which believes that there is a short cut to everything, the greatest lesson to be learned is that the most difficult way is, in the long run the easiest.” Henry Miller “[These are colossal] disproportions that have accumulated over the last few years. This primarily concerns disproportions between the scale of financial operations and the fundamental value of assets, as well as
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First and most importantly, in the case of Bangladesh, it is of rationalised governance. The corporate model of the exchange under demutualised structure will enable management to take actions that are in the best interests of customers and the exchange itself. With the separation of ownership and trading privileges, an exchange will achieve greater independence from its members with respect to its regulatory functions. There will be the requisite degree of transparency. Demutualised exchanges will
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capital structure strategy employed by Leighton Holdings Ltd during the Global Financial Crisis (GFC) and also an assessment of optimal capital structure Leighton should use to fund future investments. Examination of the changes of the capital structure of the company over pre-GFC and post-GFC period (2004-2010) reveals a range of considerations were deliberated in the financing decision; these include not only the capital market conditions but also the size and urgency of funding required as well as
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FINANCIAL MARKETS FIN 4040A 1. A financial market is the market for capital, a significant factor of production. The obligations created are in form of financial assets or financial instruments severally called securities. These assets are intangible and offer promises and claims by issuers and holders. A classification of the financial markets will greatly improve our mental constructs. CLASSIFICATION OF FINANCIAL MARKETS | | Type of classification
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set up for the long term, WACC and its associated methods might be an acceptable approximation. However, the situation is different in a considerable number of instances: The weighted average cost of capital (WACC) is a common topic in the financial management examination. This rate, also called the discount rate, is used in evaluating whether a project is feasible or not in the net present value (NPV) analysis, or in assessing the value of an asset. Previous examinations have revealed that
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What is market-making? What is market-making? Who is a market-maker? Market-making is aimed at infusing liquidity in securities that are not frequently traded on stock exchanges. A market-maker is responsible for enhancing the demandsupply situation in securities such as stocks and futures & options (F&O ). To understand this concept better, it would be helpful to have an idea about the existing screenbased electronic trading system. In this system , orders placed by buyers and sellers are matched
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