...Introduction “The key is not to eliminate risk; it is to measure it and manage it wisely” (Steiger, Strong, & Wilson, 2009). In the world of finance, the most difficult objective to achieve for individuals, corporations, and small businesses is the balance between financial risk and reward. This paper will look at both historical tools and avenues modern technology has adopted to create a balance for financial investors in the market today and how these tools are implemented in today’s businesses. Identifying opportunities and recognizing the risk associated with them is crucial to financial growth and success. Entities are continuing to find ways of leveraging risk by using different modeling tools to understand the source of risk, measure risk and transfer risk (Schwartz, 1996). Due to the expansion and growth of companies into new markets, risk has become an increasing concern for many businesses. It is clear through the recent market crash that more robust risk management tools must evolve with the changing investment practices that are taking place in today’s society. “The world’s financial markets have exploded with new products and new techniques such as derivatives and securitizations giving rise to huge new markets” (Epetimehin, 2012). If implemented strategically and used correctly, risk management tools can aid businesses in their journey of financial success and help them develop finely tuned investment planning and business strategies (Anonymous, 1983)...
Words: 2301 - Pages: 10
...3.0.1 International Business - University Assessment 100 Marks Course Content 1. Overview of the International Business Process 2. PEST factors affecting International Business 3. Government influence on trade 4. International Trade Theories 5. FDI 6. Country Evaluation and Selection 7. Collaborative Strategies 8. International Marketing 9. International Trade Agreements 10. International Trade Organizations 11. International HR Strategies . 12. International Diplomacy - . Reference Text 1. International Business - Daniels and Radebouqh 2. International Business - Sundaram and Black 3. International Business — Roebuck and Simon 4. International Business – Charles Hill 5. International Business— Subba Rao 3.0.2 Strategic management 100 Marks Course Content 1. Strategic Management Process: Vision. Mission, Goal Philosophy. Policies of an Organization. 2. Strategy, Strategy as planned action, Its importance, Process and advantages of planning Strategic v/s Operational Planning. 3. Decision making and problem solving. Categories of problems, Problem solving skill, Group decision making. Phases indecision making, 4. Communication Commitment and performance, Role of the leader, Manager v/s Leaders Leadership styles 5. Conventional Strategic Management v[s Unconventional Strategic Management. The Differences, Changed Circumstance. 6. Growth...
Words: 2761 - Pages: 12
...guidelines used in accountancy and one of these is the historical cost accounting. This concept is an accounting technique that values an asset on the balance sheet at the price paid for the asset at the time of its acquisition. Moreover, the historical cost accounting is the situation in which accountants record revenue, expenditure and asset acquisition and disposal at historical cost. This means the actual amounts of money, or money’s worth, received or paid to complete the transaction. However, there are several limitations and flaws of the traditional historical costs method. But still, historical costs are the standard form of accounting due to its unique features and convention that make it better than most bases of measurements. Table of Contents 3. ------------------------------------------------------- Introduction. 4. ------------------------------------------------------- Case 1. Relevant for decision-making. 5. ------------------------------------------------------- Case 2. Less subject to manipulation. 6. ------------------------------------------------------- Case 3. Irrelevant for decision-making. 7. ------------------------------------------------------- Case 4. Have flaws in times of inflation. 8. ------------------------------------------------------- Conclusion. 9. ------------------------------------------------------- References. Introduction Historical cost is a generally accepted accounting principle requiring...
Words: 1312 - Pages: 6
...Financing and Capital Structure Clifton Williams Strayer University Professor Henderson Fin 100 May 24, 2014 Business have to make many financial decision that a direct impact on operations and the ability to successfully compete in the marketplace. I will assume that I am a financial advisor to a business. I will give advice that I would give to the client for raising business capital using both debt and equity options in today’s economy. I will give advantages and disadvantages of each option. I will summarize the advice that I will give the client on selecting an investment banker to assist the business in raising capital. I will discuss the historical relationships between risk and return for common stock versus corporate bonds. I will explain the manner in which diversification helps in risk reduction in portfolio. I will support my response with actual data and concept learn from class. As financial advisor to a business I will give my client advice on raising business capital using debt and equity capital with their advantages and disadvantages. As my clients advisor I would describe the two most common types of financing which are debt and equity capital. I would tell them the difference between the two and the advantage and disadvantage of the two. Debt capital is an agreement contract between lenders and companies trying to start or grow its organizations. All debt issued have a maturity date when the firms are to pay the bond principal (par-value...
Words: 1104 - Pages: 5
...THE LASTING EFFECTS OF THE TERMS OF TRADE BOOM ON THE AUSTRALIAN DOLLAR Word Count: 1406 Introduction The Australian Dollar (AUD) has experienced significant appreciation in the last decade culminating in record highs over the last 36 months. This sustained appreciation has raised concerns over the impact that a high AUD has on the Australian economy and its people. This paper analyses the underlying causes of the sustained rise, the impact that the exchange rate plays on the Australian economy and the implications for monetary and fiscal policies, particularly policies that will reduce the overall exchange rate. Background There are two distinct trends, which can be discerned from the nominal exchange rate of the AUD against the United States Dollar (USD) over the last 36 months. The AUD has achieved record ‘post float’ highs and sustained strength against the USD for much of this period (Garton, Gaudry, & Wilcox 2012). The trend of appreciation is most notable in Figure 1.1 between August 2011 and April 2013 where the AUD was consistently above parity with the USD. However, in the final 12 months of this period the AUD has fallen below parity and has continued to depreciate until the present day (RBA, 2014). Thus, it can be said that the AUD has experienced two separate trends in recent times, a record period of appreciation followed by a gradual and continuing depreciation. Figure 1.1: The AUD vs. USD nominal exchange rate over the last 36 months. Available...
Words: 1951 - Pages: 8
...Footnote:/ Bottom of the slide: Substance: How the numbers were computed? Sales are recognized at the “point of sale,” which occurs when merchandise is taken in an “over-the-counter” transaction or upon receipt by a customer in a shipped transaction, such as through the Internet and catalog channels. Revenue associated with gift cards and merchandise credits is recognized upon redemption. Sales are reported net of returns, sales tax and other similar taxes. Shipping and handling fees billed to customers are included in net sales. The Company maintains a reserve for potential product returns and it records, as a reduction to sales and cost of sales, its provision for estimated product returns, which is determined based on historical experience. Additionally, outside of the U.S. the Company operates certain TIFFANY & CO. stores within various department stores. Sales transacted at these store locations are recognized at the “point of sale.” The Company and these department store operators have distinct responsibilities and risks in the operation of such TIFFANY & CO. stores. Footnote: Swelling inventories may be an indicator of a number of factors, not all of which are necessarily negative. High growth companies tend to have rapidly increasing inventory levels (which are necessary to accommodate increased sales). However, this could be a warning sign, depending on the nature of the business. Stockpiles of perishable inventories or those that become obsolete quickly...
Words: 374 - Pages: 2
...Rules of Procedure Maintains oversight and responsibility The CFA Institute Board of Governors Through the Disciplinary Review Committee (DRC) Is responsible for the enforcement of the Code and Standards Conducts professional conduct inquiries Structure of the CFA Institute Professional Conduct Program Professional Conduct program (PCP) The CFA Designated Officer Selfdisclosure An inquiry can be prompted by several circumstances Directs professional conduct staff Written complaints Evidence of misconduct Report by a CFA exam proctor jim do Interviewing The Professional Conduct staff conducts an investigation that may include cf a. 1. Code Of Ethics And Standards Of Professional Conduct Collecting documents and records in support of its investigation Conclude the inquiry with no disciplinary sanction Issue a cautionary letter If finding that a violation of the Code and Standards occurred, the Designated Officer proposes a disciplinary sanction ay to Process for the enforcement of the Code and Standards When an inquiry is initiated Upon reviewing the material obtained during the investigation, the Designated Officer may .c Requesting a written explanation from the member or candidate The member or candidate Complaining parties Third parties om / a. Accepted by member The matter is referred to a hearing by a panel of CFA Institute members :/ /w Continue proceedings to discipline the member or candidate Rejected by member ...
Words: 5900 - Pages: 24
...Contents Introduction 3 Suggested Information Systems 5 Conclusion 6 References 7 Introduction The main focus of Back in the Day Records is TO provide consumers with the type of music he or she grew up listening to, but may no longer be easily available due to the advances in today’s technology. Today all of the same songs or music from the past is available for electronic download using applications such as iTunes ("All The Music, Movies, TV Shows, And Apps You've Got. And Want To Get. All In One Place", 2012) or can be purchased from other stores on compact disks, he or she may want to hear the sound of the record crackling as it spins on the record player like it did back in the day. Collaborating with other established records stores and by taking full advantage of the internet, we want to at least give the customer all of the optional formats that are available. Though it may be impossible to locate some songs in their originally released format such as record, cassette tape, or eight track tape, the greatest advantage for our customers is that we will do the work to locate the music. When we do not have what he or she is searching for in our inventory, we will attempt to locate the song or music in the inventory of the other record stores that we have formed partnerships with. No business venture is guaranteed to succeed, however by taking advantage of some of the proven information systems available we can enhance our chances. These systems can...
Words: 799 - Pages: 4
...portfolio manager of the Everglades Fund. In its first year the fund generated a return of 30 percent. Building on the fund’s performance, Sneadle created new marketing materials that showed the fund’s gross 1year return as well as the 3 and 5-year returns which he calculated by using back-tested performance information. As the marketing material is used only for presentations to institutional clients, Sneadle does not mention the inclusion of back-tested data. According to the Standards of Practice Handbook, how did Sneadle violate CFA Institute Standards of Professional Conduct? A. He did not disclose the use of back-tested data. B. He failed to deduct all fees and expenses before calculating the fund’s track record. C. The marketing materials only include the Everglades Fund’s performance and are not a weighted composite of similar portfolios. 2. Roberto Vargas, CFA, is in charge of the compliance program at his investment firm. According to the Standards of Practice Handbook, as a supervisor, Vargas is least likely required to: A. respond promptly to all violations. B. disseminate the contents of the program to all personnel. C. incorporate a professional conduct evaluation as part of an employee’s performance review. 3. Regarding the definition of the firm, the GIPS Standards require all of the following except: A. firms must be defined as an investment firm. B. a firm’s organization alters historical composite results. C. total firm assets must be the aggregate of the market...
Words: 4875 - Pages: 20
...Personal Investment Project Student’s Name Institutional Affiliation 25th June 2016 Introduction When creating an investment policy statement, the first step is to consider an investor’s objectives, preferences, and constraints in investing. One should quantify and specify their investment needs and hence seek out those investments which meet these criteria. My personal investment strategy is based on the analysis of the company’s fundamentals and the macroeconomic environment in which it operates. As such, I invest in historically steady companies in less volatile industries. This strategy may be considered as fundamental investing. For this reason, I desire to invest in a company that has a proven track record of strong financial performance and operates in an industry that is not overly disruptive. For this project, I will elaborate this investment strategy with reference to the Coca-Cola Company, which is one of the companies I am interested in investing in. Coca-Cola (KO) is a well-known brand in the world, consistently ranked as the most valuable brand in the world by Forbes Magazine. Statement of Strategy and Investor Style In my investment strategy, the most important factors I consider are the company’s earnings performance, dividend payout, value of stock and the company’s market leadership in the industry it operates. Earnings Performance I also analyze the company’s earnings per share (EPS) to measure the profitability per unit of equity. High EPS means...
Words: 1232 - Pages: 5
...Riordan Business Systems Christina Cruel, Steven Keller, Mick Robey, James Simkins BSA/310 November 4, 2013 Paula Billups Table of Contents Abstract……………………………………………………………………………………………3 Company Background…………………………………………………………………………….4 Business Systems Overview...…………………………………………………………………….4 Riordan Business Systems……………………………………..………………………………….5 Accounting and Finance……………………………………………………………….….5 Sales and Marketing…………………………………………………………….…………8 HR……..………………………………………………………………………….……….9 Legal……………………………………………………………………………………..11 Operations………………………………………………………………………………..12 IT Security……………………………………………………………………………………….13 Conclusion……………………………………………………………………………………….14 References………………………………………………………………………………………..15 Appendices: Service Requests…………………………………………………………………...16 Appendix A: Accounting and Finance...…………………………………………………16 Appendix B: Sales and Marketing……………………………………………………….17 Appendix C: Human Resources - HRIS…………………………………………………18 Appendix D: Human Resources – CM...……………………………………...…………19 Appendix E: Operations – CAD...……………………………………………………….20 Appendix F: Operation – ERP…..……………………………………………………….21 Appendix G: Operations - Legal…...…………………………………………………….22 Appendix H: IT Security…………...…………………………………………………….23 Abstract This is a formal response to Service Request, SR-rm-012 Business Systems, which requests analysis and recommendation of Riordan Manufacturing’s current business systems. This paper evaluates the electronic...
Words: 3750 - Pages: 15
...The concept of Fair Value Fair value is defined as “the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction”. Prior to the introduction of Fair Value Accounting (FVA), accounting was carried out on a historical cost basis. However there were many limitations of Historical Cost accounting (HCA). HCA assumes money holds a constant purchasing power. It ignores specific price-level change, general price-level change and fluctuations in exchange rates. During inflationary periods, HCA can become irrelevant and can lead to an erosion of operating capacity. IASB framework states “the objective of financial statements is to provide information about the financial position, performance and changes in financial position of an entity that is useful to a wide range of users in making economic decisions. It also states “financial statements also show the results of stewardship of management, or accountability of management for the resources entrusted to it”. FVA is superior to historical cost accounting for these purposes. FVA is dominant in numerous IFRS’s and IAS’s. The IASB have yet to finalise an IFRS on fair value measurement, but it is expected it will have been completed by early 2011. Furthermore, the IASB is developing extra educational material to accompany the publication of the IFRS on fair value measurement. This material will give a description on the thought process for the measurement of assets, liabilities...
Words: 3059 - Pages: 13
...Bill Miller and Value Trust Background Information Bill Miller is one of the most renowned professional fund managers. This can be proven by the outperformance of the Value Trust, which is managed by him, compared to its benchmark index, the Standard & Poor’s 500 Index (S&P 500), for an astonishing 14 years in a row; and this marked the longest streak of success for any manager in the mutual-fund industry. By the middle of 2005, Value Trust is worth $11.2-billion. Bill Miller’s approach to investment management was research-intensive and highly concentrated. For instance, nearly 50 percent of Value Trust’s assets were invested in just 10 large-capitalization companies. While most of Bill Miller’s investments were value stocks, he was not averse to taking large positions in the stocks of growth companies. In other words, Bill Miller’s investing style is iconoclastic: “You simply can’t do what he’s done in the supremely competitive, ultra-efficient world of stock picking by following the pack…The fact is that Miller has spent decades studying freethinking overachievers, and along the way he’s become one himself.” Mutual Funds Definition A mutual fund is an investment vehicle that pooled the funds of individual investors to buy a portfolio of securities, stocks, bonds, and money-market instruments to meet specific investment objectives; investors owned a pro rata share of the overall investment portfolio (Bruner, 2007). The various investments included in a fund’s...
Words: 1805 - Pages: 8
...1.0 INTRODUCTION The main objective of doing this project is to develop students understanding about Malaysia Capital Market. Malaysia Capital Market involve of shares and investment. This project also study the relationship between expected return, standard deviation, coefficient of variation, covariance, correlation, beta and capital asset pricing model. One of the financial objectives of business organization is to maximize returns on its investments and operations. Various components of returns make up the returns to proportional with the various types of risks borne and market conditions. Risk can be defined as the chance of financial loss in the common of basic definition. Assets having greater chances of loss are viewed as more risky than those with lesser chances of loss. While for the return obviously assess to risk on the basis of flexibility of return then we need to be certain for what return is and how to measure it. For a company, investments and shares are always being the common equity and fund for them cycling their business every day. They must have their expected return in gaining a profit and a given trust towards their clients. Investment is the application of funds with the target of attaining additional income or growth in terms of value. This project is to calculate the closing daily share prices of five companies from the main market and KLCI for year 2013. Our group has proposed five companies which are Magnum Berhad, Faber Group Berhad...
Words: 4827 - Pages: 20
...Coursework analysis Contents * Introduction of HSBC * Beta and CAPM model analysis * Advantages and disadvantages about the data * Advantages and disadvantages about the CAPM model * Conclusion * Appendix * Bibliography and references * INTRODUCTION OF HSBC HOLDINGS PLC HSBC Holdings Plc. is a global banking and financial services company headquartered in Canary Warf, London, United Kingdom. It was founded by the Hong Kong and Shanghai Banking Corporation in 1911. It was originally created to pursue and establish exchanges between Europe and Asia using the Midland Bank as a connecting link. The first branch was opened in 1865 in Hong Kong and Shanghai. Over the last century HSBC expanded from Asia to 4 other continents including Africa, Europe, North and South America. The financial statements show that HSBC has successfully established services in more than 87 countries, with more than 7,500 offices and more than 100 million customers. The annual statements indicated that its assets are more $2.418 trillion. HSBC is listed in the London Stock Exchange market. It is included in the FTSE 100 company list earning deservedly the 3rd place in the table list with the 10 largest companies measured by market capitalization with equity equal to £118 billion, coming after BHP Billiton with £148 billion and Royal Dutch Shell with £135 billion. FTSE 100 is arguable the most useful tool for the estimation of the market returns, which in later use can help...
Words: 8300 - Pages: 34
