...Asset Classes Paper Morgan Stanley Emerging Markets Fund is a non-diversified, closed-end management investment company. The Fund's primary investment objective is to seek long-term capital appreciation. At least 65% of the Fund's total assets will be invested in emerging country equity securities: common and preferred stock, bonds, notes and debentures convertible into common or preferred stock, stock purchase warrants and rights, equity interests in trusts and partnerships as well as American, Global or other types of Depositary Receipts. The Fund may leverage up to 10% of its total assets. The Dow 30 company selected for this assignment is Caterpillar. As per the last annual report of the company, the major investment decisions of the company in the recent fiscal year include: The company heavily invested in expansion or growth plans for emerging markets such as India and China. In June 2008, as part of its strategic plan to increase its manufacturing footprint in the rapidly growing Asia-Pacific region, Caterpillar announced a four-year, $200 million investment to increase manufacturing capacity in India. In terms of investments, the company's investment portfolio comprises of government debt, corporate bonds and equity securities. Cat Insurance maintains a well-diversified equity portfolio consisting of three specific mandates: large cap value stocks, small and mid cap growth stocks and international...
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...CHAPTER 2: ASSET CLASSES AND FINANCIAL INSTRUMENTS PROBLEM SETS 1. Preferred stock is like long-term debt in that it typically promises a fixed payment each year. In this way, it is a perpetuity. Preferred stock is also like long-term debt in that it does not give the holder voting rights in the firm. Preferred stock is like equity in that the firm is under no contractual obligation to make the preferred stock dividend payments. Failure to make payments does not set off corporate bankruptcy. With respect to the priority of claims to the assets of the firm in the event of corporate bankruptcy, preferred stock has a higher priority than common equity but a lower priority than bonds. 2. Money market securities are called “cash equivalents” because of their great liquidity. The prices of money market securities are very stable, and they can be converted to cash (i.e., sold) on very short notice and with very low transaction costs. 3. (a) A repurchase agreement is an agreement whereby the seller of a security agrees to “repurchase” it from the buyer on an agreed upon date at an agreed upon price. Repos are typically used by securities dealers as a means for obtaining funds to purchase securities. 4. The spread will widen. Deterioration of the economy increases credit risk, that is, the likelihood of default. Investors will demand a greater premium on debt securities subject to default risk. 5. Corp. Bonds Preferred Stock Common Stock ...
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...Strategic Asset Allocation: Determining the Optimal Portfolio with Ten Asset Classes Niels Bekkers Mars The Netherlands Ronald Q. Doeswijk* Robeco The Netherlands Trevin W. Lam Rabobank The Netherlands October 2009 Abstract This study explores which asset classes add value to a traditional portfolio of stocks, bonds and cash. Next, we determine the optimal weights of all asset classes in the optimal portfolio. This study adds to the literature by distinguishing ten different investment categories simultaneously in a mean-variance analysis as well as a market portfolio approach. We also demonstrate how to combine these two methods. Our results suggest that real estate, commodities and high yield add most value to the traditional asset mix. A study with such a broad coverage of asset classes has not been conducted before, not in the context of determining capital market expectations and performing a mean-variance analysis, neither in assessing the global market portfolio. JEL classification: G11, G12 Key words: strategic asset allocation, capital market expectations, mean-variance analysis, optimal portfolio, global market portfolio. This study has benefited from the support and practical comments provided by Jeroen Beimer, Léon Cornelissen, Lex Hoogduin, Menno Meekel, Léon Muller, Laurens Swinkels and Pim van Vliet. Special thanks go to Jeroen Blokland and Rolf Hermans for many extensive and valuable discussions. We thank Peter Hobbs for providing the detailed segmentation...
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...society. Unfortunately social class has become the backbone of American society and everyone is considered to belong to either the upper, middle, or lower class. First, we'll start at the top of the hierarchy. Individuals who are considered to be members of the upper class are the owners of the means of production and most of the country's private wealth. Many are important government officials, large business owners, or top executives that have a great deal of income and/or wealth. It is important to know the difference between income and wealth, as they are two distinct concepts. They are also a big part of determining social status. Income is salary and/or other money that is regularly received, where wealth is the total value of all assets, minus outstanding debts. In other words, income is what you make, and wealth is what you have. Someone can bring in a high income without being wealthy, and can also be wealthy without bringing in any income. For example, some people earn a large salary but spend it all on a large house, fancy cars, travel, etc. These individuals basically live from paycheck to paycheck, and if they were to stop working, they would quickly become destitute. On the...
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...In his work “Who Rules America?”, G. William Domhoff provides us with a revealing look at class domination. He defines social and economic class status; the corporate world and it`s power and the intertwining between the corporate community and the upper class. To gain insight how one class can dominate the other we must define the terms social class and power. “They (social scientists) begin with a crucial analytical distinction between economic classes, which consist of people who have a common position in the economic system, such as ‘business owners’ or ‘employees’ and social classes, which consist of people who interact with each other, develop in-group social organizations, and share a common lifestyle” (Domhoff, 4). According to the author the most dominate social class in America is the upper class. This group can be defined as less than one percent of the population yet owns 34.3 percent of all marketable assets. As a group this class is very private, elite and secretive. They attend selected schools; they are members of private clubs and possess the most wealth in America. The upper class consists of networks which are created through social circles, alumni groups and club memberships. “This network-based way of thinking about a social class as a duality of persons and groups fits well with earlier definitions of social class” (Domhoff, 6). This group`s networks are the basis for shared interests. In an ideal world no...
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...this will carry on through their family, suggesting that the rich will continue to be rich and the poor will continue to be poor. The second way the middle class are advantaged is in terms of Housing. Stats can show this advantage as 92% of those in social class 1 own homes outright or with a mortgage compared to the 14% of those who are long term unemployed, or have never worked in social class 8. This shows that the middle class are at advantage compared to the working class as most of them own their own homes, and can afford to whereas the working class cannot due to lack of resources. Studies can support this advantage as Scott (1997) argues upper class advantaged over other classes. He also found they have better life chances because of their use of "property for power", rather than the other classes "property for use", which...
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...Define the concept of social class identity Social class identity is the term used when referring to the differences social classes have, such as different cultures, norms and values. This is a very difficult term to be used in order to categorise an individual as social class can be subjective or objective. The government uses the objective view, based on the based on the economical status of the individual, to be able to identify them into a social class. However, the person’s subjective sense of identity, (what they think they are), may come into conflict or slightly differ from the objective view of the society It can be said that those who share a social class identity normally share the same socio- economic status in society, educational backgrounds, experiences, lifestyles and outlooks on life. There is some evidence to suggest that there are inequalities between social classes, in terms of infant mortality, mortality in general, life expectancy, type of futures (positive or negative) and their material wealth or possessions. Outline and explain two changes that have occurred in working class identity over the past thirty years Many changes have occurred in the working-class in the past thirty years. They have seemed to evolved in the way they see themselves and see their class. There seem to be two new groups that have emerged of the once united traditional working class. In the past the traditional working class was more involved in heavy industries such as mining...
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...As defined, conflict theory is a Marxist-based social theory which argues that individuals and groups within society have differing amounts of material and nonmaterial resources (the wealthy vs. the poor) and that the more powerful groups use their power in order to exploit groups with less power. This theory also can be applied to common social situations especially to crimes and other deviant acts or situations. As I’ve read and analyze this theory, I learned that people in different social classes compete for the available resources. For me, through this, people learn to be competitive and fight for their rights and for the things or resources that they need but there is an explanation in this theory that people who are in the upper or in the middle class, which is obviously have their resources, abuse the weaknesses of those people in the lower class or the poor because they know that lower class people need the resources they have which is for me, a negative impact in the term “equality”. And this is the reason why poor people have a big possibility in committing crimes rather than the upper-middle class people. But it depends also because the social justice system is somewhat in favor of the upper-middle class people. They did heavy punishment for the poor or the lower class people when they commit crimes but when the upper-middle class people also commit crimes, most of the time, they didn’t punish them or if they did, the punishment is not that heavy. So as a result...
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...working class parents will want a wider range of opportunities for their children than to what they have experienced […] many will socialise their children into the world they know” (Gaine, Dr.Chris, George, Ms Rosalyn (30 Nov 1998). Gender, 'Race' and Class in schooling: A new introduction. 3rd ed. l: Taylor and Francis. 35.) Although parents would want their kids to have high aspirations they know that because of the social injustice and because they belong to working class families that’s all they’ll be aspirations. Furthermore such decisions as to what the child receives in terms of education wise and career wise all depends on the students willingness and those that don’t have the determination and for some the ones that come from lower classes it is a constant circle for them of dropping out of education and living on government benefits because they feel out of place when attending schools that are highly populated with middle and higher class...
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...hierarchy in which individuals and groups are classified on the basis of esteem and prestige acquired mainly via economic success and accumulation of wealth. Social class may withal refer to any particular level in such a hierarchy. Four prevalent social classes informally recognized in many societies are: (1) Upper class, (2) Middle class, (3) Working class, and the (4) Lower class. The effects of social class can be felt anywhere. Virtually every aspect of society is influenced in some manner by social class. The magazines one reads, the television shows one watches, and the apparel a person buys affect social class. School, work, religious, and home lives are withal linked to the influence of social classes. Schools and the workplace are greatly influenced by social class. The look of employment is transmuting because workers can no longer expect to work their way up through a company. Many companies look outside of the company for people with the right educational background instead of hiring from within. The reporting of social class contributes to the lack of reliability as well. Since social class is often self-reported, it is difficult to assure the precision of the information collected. Even if the data is precise, social classes are not the same in each region or city. What constitutes upper class in one location may be middle class in another. The lack of consistency involved in researching social class accounts for the difficulty in utilizing it as a reliable...
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...dependent upon the under paid, over worked, and exploited minority. Le Guin illustrated this when she states, “It is the existence of the child, and their knowledge of its existence, that makes possible the nobility of their architecture, the poignancy of their music, the profundity of their science” (Le Guin, 1973, p.5). The author also lets us know that the child is better off in these heinous conditions and would be unable to thrive if let go. She states, “It is too degraded and imbecile to know any real joy. It has been afraid too long ever to be free of treatment. Indeed, after so long it would probably be wretched without excrement to sit in” (Le Guin, 1973, p.5). Le Guin identifies with the co dependency of the economic and social classes. She shows us that they need each other in order to exist. Task C After reading The Ones Who Walked Away from Omelas, I can recall a situation in my life where I encountered identity issues of economic and social class similar to those in the short story. I was a manager for a large corporate restaurant chain. The chain was very concerned with sales levels and profits. In order to maximize profits, we were encouraged to hire employees in at minimum wage,...
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...Social status, education level, age and gender. These are minor words that have a huge impact on different cultures around the globe. In America the talk of social status seems be more seen and not heard. It shows up in actions of those in this culture. If you want to raise money for a certain charity or event, the first crowd you will go out your way to extend an invitation to will be those in a high social status or class. America has come a long way in its views of status and age. Even though there is no set class structure as in other countries, America has its own views of social class. The words upper class and middle class and lower class are often mentioned. They were often referenced on the road to the White House in the Presidential elections of 2008. Many from outside American culture can often be blind when it comes to seeing our class structure since the homeless are often seen in the same areas as those who are wealthy. If one hangs around the Washington, DC area long enough, they will start to hear terms such as “The DC Elite” social status. These are people who are usually in the upper class and are invited to the important (often political) events in the city. Even certain areas of the city are known for where those with the money reside. Mention you live in Georgetown, Capitol Hill or one of the neighboring counties known for their wealth, and you will automatically be listed as someone with “status.” Titles in America are not as important...
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...A peer-reviewed academic journal article that is a beneficial resource to our pursuit of seeking how education and social classes intertwine is an article called An Inside Look at Education and Poverty by Carol M. Swain. We will be discussing three key points from this peer-reviewed academic journal article. The first of the three key points that we will be discussing is the black/white achievement gap in educational performance that affects every economic level. The second key point that we will be discussing problems plaguing lower-class Americans. The third and final key point is a list of recommendations presented Carol Swain to improve the K- 12 educational experience for low-income students. The first key point is discussing is the black/white achievement gap in educational performance that affects every economic level. African American children reared in families earning $50,000/year score no better than Caucasian and Asians reared in families earning from $10,000-$20,000/year. These distinct differences in achievement levels grow themselves during the K-12 years. The National Assessment of Education Progress (NAEP) portrays familiar patterns of African Americans lagging behind other groups. Studies show that African Americans in their senior year of high school function at a skill level of four years behind the levels of Caucasian and Asian students. This information will be beneficial for us to understand...
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...Erika Garcia Wednesday, February 5, 2014 Conspicuous Consumption! ! - Consumers who buy expensive things to publicize their wealth & evidence. Rather than covering the needs that one may truly have.! ! - Conspicuous displays of consumption. And Leisure displays one superiority. ! ! - To Maintain or Gain higher statuses! ! ! - They have an affect and influence on other classes which lead those inferior classes to emulate such behavior. ! - Once the basis of social status becomes about wealth there are no morals, no knowledge, no character.! - The rich needed to find ways of spending money that had no other objectives other than the display of wealth itself (luxury)! - when you can buy expensive symbols of wealth you are showing people you are wealthy and part of the leisure class.! - Wasting money and time can benefit people by showing people you are wealthy and ! part of the leisure class. or time blowed means you don’t have to work, lay around and be leisurely (playing golf, suntanning)! - rests is pecuniary strength; and the means of showing! pecuniary strength, and so of gaining or retaining a good! name, are leisure and a conspicuous consumption of goods! Hierarchical Gradations! - Inheritance of Wealth or belonging to an elegance society. ! - Potential to inherit a life of leisure without wealth needed to maintain a aspect of leisure. ! Vicarious Consumers! - Usually a servant or attendant, who has served the family for yrs! - Affiliated...
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...In school factors can have a big impact on the social class differences in education achievement. However, it isn’t the only factor. In school factors include labelling; this is done by both students and teachers. Pupils will be labelled based on social class; a working class child is more likely to be labelled as ‘stupid’, and other degrading names. This labelling can lead to the self-fulfilling prophecy; this disadvantages them because the teacher is favouring other students. However, teachers are more likely to label a middle class child as smart, intelligent etc. Which makes them feel good and they achieve. This puts them at a starting advantage over their working class peers. Marxists would say this is creating inequality, and reproducing the ruling class ideology as they are above working class from an early age. Class size is also an in school factor; a small class means more one to one time with a teacher. Only middle class can afford public schools, and therefore have smaller class sizes and therefore are more likely to achieve more due to more time with the teacher. A middle class child is more likely to be placed in a higher set, as Bowles and Gintis says. This means they are more likely to be taught to a higher grade, which means they will perform better in the exam as they will be prepared for the exam. Some people may also argue that public schools have better teacher standards, only middle class can afford the public schools, which means they get this higher teaching...
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