World War 1 Assignment Example | Topics and Well Written Essays - 750 words

World War 1 - Assignment Example The alliances enhanced the countries’ defenses since they would rely on the support of their allies in case another country out of the alliance aggrieved a member state. Furthermore, the zoning of the world into the east and the west besides the military alliances instigated the war by enhancing conflicts among the countries. With such a political structure, any simple conflict among countries would result in a global war and so was the case with the First World War. The zoning intensified speculation among countries. The west strived to spy on the east and vice versa. Additionally, different countries invested in enhancing their military might a feature that would turn the First World War into a stage for displaying military might among the countries, which had formed strong alliances with their friends. Coming from the backdrop of political and military allies, the largest western economies practiced imperialism. Such was a political arrangement in which the countries strive d to extend their territories.

Investments Math Problem Example | Topics and Well Written Essays - 1000 words

Investments - Math Problem Example (iii) Estimating factor premia. If any on do it nicely he/she can identify a better stock for investment to make lot of money. But these identification and estimation is itself a tough task. Part C: Answer: If we talk about portfolio risk options trading looks a lot more versatile than futures trading and the main reason behind it is a profit in all direction can be created by using option strategies. But if we look at the future trading it is single directional that is the direction of money id directly proportional to the direction of the stock price. So we can say that futures' trading is one of the important risk management tool and at the same time a speculative technique whereas options' trading involves a strategic investment on its own. Hence we can say that both trading instruments can place themselves in every well diversified portfolio for the investor. Question 5: Part A: (a) Answer: As we know that, According to CAPM, Where, R(i)=Expected rate of return R(f)= Risk free rate of return R(m)= Market rate of return =beta So, Hence the expected rate of return=12% (b) Answer: The expected rate of return with =0 is equals to the risk free rate of return. (c) Answer: According to CAPM, Now as the share will be sold of after 1 year, Value of share price after one year=$41 Expected dividend=$3 Hence, Hence the share is underpriced. Part B: As we can see from the graph here the x-axis represents the portfolio return and the y-axis represents the risk factor. Portfolio can't be expected above this efficient frontier line. At the lower level we can see that a low risk represents lower return, medium risk medium return and high risk high return. Question 6: Part A (a) Answer: As we know that: So, (b) Answer: The revised... If we talk about portfolio risk options trading looks a lot more versatile than futures trading and the main reason behind it is a profit in all direction can be created by using option strategies. But if we look at the future trading it is single directional that is the direction of money id directly proportional to the direction of the stock price. So we can say that futures' trading is one of the important risk management tool and at the same time a speculative technique whereas options' trading involves a strategic investment on its own. Hence we can say that both trading instruments can place themselves in every well diversified portfolio for the investor. As we can see from the graph here the x-axis represents the portfolio return and the y-axis represents the risk factor. Portfolio can't be expected above this efficient frontier line. At the lower level we can see that a low risk represents lower return, medium risk medium return and high risk high return. Supportive argument: The manager performance only reflects in the return of the portfolio. i.e. when manager perform well the portfolio will also perform well.