StudentShare solutions
Got a tricky question? Receive an answer from students like you! Try us!

Essay example - Questions on Investment

Questions on Investment Essay example
Finance & Accounting
Pages 8 (2008 words)
Download 0
Ans 1a Every investor in the market wants maximum return on its investment with minimum risk as every return on assets associated with a risk in the stock market. This portfolio can be said to be sustainable and effective in the long run. The income on the securities will either increase or decrease depending with the risk associated with it…

Extract of sample

With the combination of these securities in the portfolio investors can minimize their risk without sacrificing their expected return. Ans 1b In table 1, we can see correlation coefficients of five different funds, if we want to invest in any of the two funds in the portfolio with minimum risk. For example Aviva Property and HSBC Asian Growth with correlation coefficient 0.10 can minimize the risk without sacrificing any of their expected return. In such a combination of these funds the risk will be diversified effectively without decreasing the level of expected return whatsoever. Ans 1c We have a portfolio of two funds, Aviva property and HSBC Asian Growth. We have also combined other funds and analyzed their risk exposure and found that their portfolio has minimum levels of risk. This investor is investing 50% of the cash in both the funds minimizing its risk without change in the expected return. Aviva property has risk of 2.3% with negative return while HSBC shows 6.5% risk with a good level of return. If investors will invests separately in these funds, the risk will be more but in other combinations the risk will also be greater. ...
Download paper
Not exactly what you need?

Related papers

Investment and marketing: answering the questions
Many large clients seek the services of an investment bank precisely for this reason, as the collective knowledge base of the financial sales experts in the group should allow the client to gain a preferential entry and exit point for market trades. However, financial sales staff can also abuse this inside knowledge, as for example, Goldman Sachs did in creating the Abacus tranche of mortgage…
11 pages (2761 words)
Determine the Optimal Investment Performance Appraisal Systems
Performance of the fund is one of the key metrics, when assessing the management competences. The study of these is called Determine the optimal investment performance appraisal systems. The fundamental requirement to properly organize one’s financial matter is the knowledge of share marketing in depth. Lack of awareness in this regard can create a chaos and hence, involving a professional…
33 pages (8283 words)
The relation between intrest rates and investment and investment in Islamic products
.13 4. EXPECTED OUTCOMES…………………………………………………………14 5. CONCLUSION………………………………………………………………………15 Bibliography CHAPTER 1: INTRODUCTION 1.1 Background Islamic products are acquiring revenues from large number of sources, including mainly the financial assets, investing assets as well as investing in…
11 pages (2761 words)
People aspects of capital investment decision making
Though these techniques have successfully gained popularity as deciding tool, however, influence from the human element on decision making still maintains its dominance (paper). Managers of the firm themselves receive impact from their traits leading to influenced preferences in making decision. Among many reasons that advocate the acceptance of human element weight in investment decision, it is…
12 pages (3012 words)
Investment in single company shares and gilts
From the point of view of economics, the act of investment is related to saving or deferring consumption today for the purpose of a better or higher return tomorrow. Interest is the price paid to the investor for waiting or deferring consumption. As consumers, we may invest for a number of reasons. We may invest in a house because we want the comfort of a shelter and a place to hold our…
12 pages (3012 words)
Foreign Investment in Farmland
The interrelated problems of over-industrialization, decades of poor land use policies, a rising population, scarcity of resources like water, and the skyrocketing prices of food have made governments in the developed parts of the world realise that they cannot feed their peoples with oil and asphalt, and therefore should seek out alternatives. Experts agree that something big is taking place and…
5 pages (1255 words)
Referee Report for investment class
I have stated in the comments below are some other issue I would like the author to address. Basing on my analysis, I cannot recommend this paper until it undergoes major revisions by the author to address its shortcomings. I believe with major revisions the paper can make enough a contribution to warrant its publication in the Journal of Banking and Finance. I thank you for the opportunity to…
5 pages (1255 words)