Financial Terms Jessica Williams FIN/370 August 12, 2013 Christine Helbling Financial Terms Finance- The study of how people and businesses evaluate investments and raise capital to fund them. Its role is to manage revenues and monetary transactions within the banking and investment fields. Efficient market- A market where pertinent information is available to all participants at the same time, and where prices respond to immediately available information. Using the
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well organized, active market, will have the same reward to risk ratio e. all assets will have the same risk premium 2. Unsystematic risk is also known as ___________. a. total risk b. systematic risk c. diversifiable or firm specific risk d. non-diversifiable risk e. specific risk 3. Which of the following is true regarding the beta coefficient? a. It is a measure of unsystematic risk b. A beta greater than one represents lower systematic risk than the market c. Generally speaking
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to Senior Market Specialist for the Eastern Region. He was working in the company for a short period of time, though, despite being account executive for about 6 years in his previous work, the way he was promoted wasn’t clear and didn’t respect the office politics. Looking through the TG path to Senior Market Specialist (SMS) we observe that when an account executive is interested in joining the marketing team, the office politics says that usually first the person moves to a market specialist
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it is hard to conceive of a modern economy without well-developed financial markets and security types. How would the productive capacity of the U.S. economy be affected if there were no markets in which one could trade financial assets? Financial assets are the claims on real assets. By involving in the financial market, companies find it more accessible to the external financial resources. With the help of financial market, companies can raise money simply by issuing stocks or securities.
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STOCK MARKETS: A CASE STUDY OF THE NIGERIAN STOCK MARKET RESEARCH BRIEF The history of stock trading and trading associations can be traced as far back as the 11th century when Jewish and Muslim merchants set up trade associations. After centuries of evolution, stock markets have become the symbol of commerce in the modern world. It operates in various countries and trades a range of securities. The world stock market capitalisation is estimated to be about $ 36.6 Trillion. The stock market has
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actual outcome will be closer to the expected return. Measuring Standalone Risk: Standard Deviation 1. Expected Rate of return 2. Deviationi= ri-r 3. Variance=σ2=i=1n( ri-r)2Pi 4. Standard Deviation=σ=Variance 5. Or use Excel of Financial calculator Using Historical Data to Measure Risk: Realized Rates of Return: rAvg=t=1nrtn Standard Deviation of the Sample Returns: σ=S=t=1n(rt-rAvg)n-1 In Excel use =Average and =STDEV functions Measuring Standalone Risk: Coefficient of Variation
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Q1: What role do market makers play in the trading system? How do they profit from this role? How do the market makers compete with one another? A1: a. What role do market makers play in the trading system? The market makers play an important role in the trading system as catalysts, particularly for enhancing stock liquidity and, therefore, for promoting long-term growth in the market. In detail, they played two roles as below: 1) They act as brokers handling the limit order book, where limit
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factors specific to an industry like labor unions, product category, research and development, pricing, or marketing On the other hand, systematic risk occurs when fluctuations of the stocks returns are changed because of market wide news (Jonathan Berk, 2010, p. 353). These market factors may include situations such as war, inflation, international incidents, or political events. It may be eliminated through diversification and the combination of a security’s non-diversifiable risk and diversifiable
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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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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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