FDI vs FII Both FDI and FII are related to investment in a foreign country. FDI or Foreign Direct Investment is an investment that a parent company makes in a foreign country. On the contrary, FII or Foreign Institutional Investor is an investment made by an investor in the markets of a foreign nation. In FII, the companies only need to get registered in the stock exchange to make investments. But FDI is quite different from it as they invest in a foreign nation. The Foreign Institutional Investor
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WEEK 2 NPV, PBP, IRR, EAC( equivalent annual cash flow) NPV: If NPV>0, accept the project [which are expected to add value to the firm], otherwise don’t bother. Reminders Rule 1: Only cash flow is relevant Cash flow ≠ accounting income •In an income statement, profit is shown as it is earned rather than when the company and its customers get around to paying their bills. •Cash outflows are sorted into two categories: 1) current expenses, deducted when calculating income; and 2)
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[pic] |Background | BASIC Bank Limited (Bangladesh Small Industries and Commerce Bank Limited) registered under the Companies Act 1913 on the 2nd of August, 1988, started its operations from the 21st of January ,1989. It is governed by the Banking Companies Act 1991. The Bank was established as the policy makers of the country felt the urgency for a bank in the private sector for financing small scale Industries (SSIs). At the outset, the Bank started as a joint venture enterprise
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compete | B. | Strategy is implemented through projects | C. | Only top management must understand strategy | D. | Project selection should be clearly aligned with strategy | E. | Project management plays a key role in supporting strategy | | 2. | A project selection process that is strongly linked to strategy results in A. | The most profit. | B. | Better utilization of the organization's resources. | C. | More projects. | D. | A larger and more diverse organization
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Part 1- Framing the Project Portfolio Management Problem 1. What are the objectives? The objective is to research and develop pharmaceuticals products based on the selections that minimize cost and maximize value and sales. There will be a discussion of which projects will be allocated additional resources and at what cost. 2. What are the constraints? Competition is usually between brand-name drugs. Constraints for the study include risky drug discovery and development which could cause harm
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Davida Franklin SCMS 3711 M50 M.Cervetti XYZ Critical Thinking Project Part 1- Framing the Project Portfolio Management Problem 1. What are the objectives? The objective is to research and develop pharmaceuticals products based on the selections that minimize cost and maximize value and sales. There will be a discussion of which projects will be allocated additional resources and at what cost. 2. What are the constraints? Competition is usually between brand-name drugs. Constraints for the
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diverse portfolio of stocks or bonds. Mutual funds are highly cost efficient and very easy to invest in. By pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. Also, one doesn't have to figure out which stocks or bonds to buy. But the biggest advantage of mutual funds is diversification. Diversification means spreading out money across many different types of investments. When one investment is down
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Project in FPS 4 Why is important to continuously manage and control your portfolio? It is important to manage and control my portfolio is one of the most difficult things about maintaining a portfolio is that, even if you don't touch it, it's always evolving. A change in the value of one type of investment tends to affect the dollar-value proportion of other asset classes. If you own more than one security, you have an investment portfolio. You build the portfolio by buying additional stocks
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Part 1 – Framing the Project Portfolio Management Problem • What are the objectives? To research and develop pharmaceutical products based on the selection that maximizes value • What are the constraints? Drug discovery and development is an extremely risky, time consuming and expensive process. Lower priced generic drugs and their competitors impose constraints along with risky drug discovery and development and uncertain return on investments. • What are the risks involved? A large fraction
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Profitability Index=NPVInitial Investment Duration: Macaulay Duration (in how many years will the initial investment be repaid) DMAC= t=1Tt*Ct(1+r)tP0 Modified Duration (relative Change in Price) DMOD= 1(1+r)*t=1Tt*Ct(1+r)tP0 Change in price: DEUR=dP0dr=-1(1+r)*t=1Tt*C(1+r)t Duration of the Portfolio DPortfolioMAC= DBond1MAC*P0Bond1P0Portfolio+DBond2MAC*P0Bond2P0Portfolio * The higher Duration the more sensitive is the Bond to changes of interest rate Markowitz Portfolio theory: Expected Return:
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