StudentShare solutions
Triangle menu

Investment Enhancement - Essay Example

Nobody downloaded yet

Extract of sample
Investment Enhancement

This will help business people have adequate international portfolio diversification. Moreover, shareholders yearning to diversify a precarious investment, for example, stocks in a developing market, via international diversification, would be more profitable in areas which are negatively correlated, as well (Markowitz, 1952). Nations with stock prices moving in a different direction are perceived to be negatively correlated, while states with stock prices moving in a similar direction are perceived to be positively correlated. The principle of diversification stipulates that a portfolio comprising largely positively correlated benefits embrace the portfolio al an advanced risk than a negatively correlated stock prices portfolio. Lack of precise fortitude of stock market price progress keeps all portfolios at an advanced risk level than anticipated because of the existence of a diversifiable risk (Markowitz, 1952). This paper will look into the impact of international portfolio diversification on an investment portfolio, investigate alternative investment vehicles, and explain how the use of derivative securities can further enhance a portfolio’s performance. ...
Nonetheless, if a client would take about 30% of his money and allot it in international stock markets, the entire investment will not be dependent on how an economy or stock market is performing (Markowitz, 1952). In turn, this creates a much larger mode of diversification. Studies conducted in developing countries highlight viability of establishing investment federations to meet the participants’ political needs. Results from this study indicate the supremacy of international diversification in an investment federation over individual country investment. Another study assesses the probable advantages of a Mauritian business person when diversifying his venture into a number of African equity markets. In addition, the research looks at the gains that may result for non-African investor venturing in African markets. The result is that there is a low correlation in African stock markets. This can lessen the risk and increase earnings for both universal and Mauritian investors when they invest in chosen African nations. The advantages of international portfolio diversification incorporate many nations, even politically instable nations. Investor should invest in all countries regardless of political stability. This is because investing in politically frail countries may produce profits that more than the anticipated risks (Markowitz, 1952). Thus, it can be concluded that international portfolio diversification gives profits and reduces risks. Question B There are a number of alternative investment vehicles. They may include hedge funds, private equity firms, venture capital firm, among others. Hedge Funds Hedge funds are investment vehicles that put together investors’ funds in a broad variety of investments. ...Show more
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Investment Enhancement Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/75019-investment-enhancement
(Investment Enhancement Essay Example | Topics and Well Written Essays - 1000 Words)
https://studentshare.net/finance-accounting/75019-investment-enhancement.
“Investment Enhancement Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.net/finance-accounting/75019-investment-enhancement.
  • Cited: 0 times

Summary

   Investment Enhancement Name: Instructor: Institution: Investment Enhancement Introduction The thought of investing in a number of countries is promising and rewarding. It is likely to lessen the risk connected to stock marketing investing for a probable level of projected return by diversifying in all areas of the world…
Investment Enhancement
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Investment Enhancement"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Investment Enhancement Paper
The main reason for investing in different securities and building a portfolio is that the investors are trying to maximize their return on investment and at the same time minimize their risk. The more diversified portfolio investors are able to create; the lower would be the risk of their portfolio and higher would be the expected return.
4 pages (1000 words) Essay
Institutional investment
In the United States, the trend is the same: over 60 percent of stocks are controlled by this type of investor (Burton and Brown, pp.223). The OECD also reported that in its member economies, institutional investors are growing on average of 9 percent per year since the 1990s (OECD, 2000, pp.195).
7 pages (1750 words) Essay
Enhancement drug
A common cognitive enhancement drug is Ritalin that improves Attention Deficit Hyperactivity Disorder (ADHD). However, only people do not use them with cognitive deficiency as healthy people seeking to stimulate their brains and increase attention use them too. In addition, there is much research effort put into trying to develop memory boosters in a bid to improve the memory and performance of healthy people to prevent the memory loss that occurs during middle and old age.
5 pages (1250 words) Essay
Human genetic enhancement
The science surrounding genetic enhancement dates back a few decades ago, but it is till recently that more advances have been made, with numerous restrictions barring any further progress. The objectives of human genetic enhancement differ, with the initially intended goal described as a corrective and precautionary measure to protect unborn children from genetically inherited diseases.
5 pages (1250 words) Essay
Human genetic enhancement
Human beings have attempted enhancement in different ways, especially on children: Music, exercise, diet, cosmetic surgery but for many people there is something deeply troubling about bioenhancement technologies because the changes magnify human biological functions beyond the norm (Mitchell, 2010).
5 pages (1250 words) Essay
Cross Border Investment
However, using cross border investment as a diversification tool does not only come with substantial opportunities and enhanced returns for the investors. There happen to be several issues associated with adding foreign financial and non financial assets to a portfolio.
12 pages (3000 words) Essay
System enhancement
In many cases, the topic tool is worth the time spent researching, and the engineer usually is able to find a tip on how to solve the case, and, in some
8 pages (2000 words) Essay
Program Enhancement
David Altschuler of the Johns Hopkins University, and Dr. Troy Armstrong of the California State University, Sacramento and is funded by the Office of Juvenile Justice and Delinquency Prevention (OJJDP) (The Center for Delinquency and Crime
2 pages (500 words) Essay
Foreign direct investment
rategies that enable entities to diversify its assets and risk across diverse countries by engaging in contractual agreements with multiple potential partners. Companies may find it advantageous by producing in foreign countries compared to exporting to those countries based on
2 pages (500 words) Essay
Ethics / Cognitive Enhancement Drugs: Buchanan/Sandel/Liao
The study and research on human enhancement cover various fields. Those areas include; cognitive science, nano-technology, information technology, and biotechnology just to mention but a few. The
8 pages (2000 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic Investment Enhancement for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us