Study notes of Bodie, Kane & Marcus By Zhipeng Yan Investment Zvi Bodie, Alex Kane and Alan J. Marcus Chapter One: The Investment Environment ....................................................................... 2 Chapter Two: Financial Instruments................................................................................... 4 Chapter Three: How Securities Are Traded........................................................................ 8 Chapter Six: Risk and risk aversion...
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award of the degree of “MASTER OF BUSINESS ADMINISTRATION” BY D.GANGADEVI (1313-10-672-042) UNDER THE GUIDANCE OF Mr.Manohar( Prof. ) MATRUSRI INSTITUTE OF PG STUDIES ( AFFILIATED TO OSMANIA UNIVERSITY,HYD) SAIDABAD, HYDERABAD 500079.
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proportions of various assets. Although MPT is widely used in practice in the financial industry and several of its creators won a Nobel memorial prize[1] for the theory, in recent years the basic assumptions of MPT have been widely challenged by fields such as behavioral economics. MPT is a mathematical formulation of the concept of diversification in investing, with the aim of selecting a collection of investment assets that has collectively lower risk than any individual asset. That this is possible
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Corporation: The Cost of Capital (Abridged) Executive Summary: The case "Marriott Corporation: The Cost of Capital (Abridged)" focuses on an ideal opportunity to review the capital asset pricing model and the weighted average cost of capital through calculation of the cost of capital for Marriott as a whole. Dan Cohrs is faced with making recommendations for the hurdle rates at Marriott Corporation and its three divisions utilizing CAPM and WACC. This case illustrates how to calculate
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Dear Andy! Sorry for my second delay with the case – it is all the preparation to university exams. I shall try to finish Friendly Cards in time. So I used to make parallels from cases to our real life and economic situation in Ukraine. At the time we do not have such companies as Ameritrade in Ukraine, because this kind of business does not have it’s customers right now. This is a new thing to our country, and as usual, all the new things are taken distrustfully. I can recall only one example
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Paper P4 is the advanced financial MANAGEMENT paper at the Professional level. It follows on from Paper F9 at the Fundamentals level. As throughout the ACCA syllabus, the Fundamentals paper covers the main technical areas that all accountants are required to master, whereas the Professional paper builds on that knowledge and explores advanced skills and techniques. In particular Paper P4 expects candidates to have more depth of knowledge, better analytical skills, and to be able to exercise greater
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What is Candlestick Trading? Back in the day when Godzilla was still a cute little lizard, the Japanese created their own old school version of technical analysis to trade rice. A westerner by the name of Steve Nison “discovered” this secret technique on how to read charts from a fellow Japanese broker and Japanese candlesticks lived happily ever after. Steve researched, studied, lived, breathed, ate candlesticks, began writing about it and slowly grew in popularity in 90s. To make a long story
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RESOURCES Overview This chapter focuses on the fundamentals of the risk and return relationship of assets and their valuation. For the single asset held in isolation, risk is measured with the probability distribution and its associated statistics: the mean, the standard deviation, and the coefficient of variation. The concept of diversification is examined by measuring the risk of a portfolio of assets that are perfectly positively correlated, perfectly negatively correlated, and those that are
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REPORT ON CORPORATE FINANCE Cost of capital The cost of capital is a term used in the field of financial investment to refer to the cost of a company's funds (both debt and equity), or, from an investor's point of view "the shareholder's required return on a portfolio of all the company's existing securities". It is used to evaluate new projects of a company as it is the minimum return that investors expect for providing capital to the company, thus setting a benchmark that a new
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Ameritrade – case study Executive Summary Ameritrade provides online brokerage services and operates an Internet-based financial management services business. 90% of the company’s revenues are from the provision of discount brokerage services. The company’s objective is to improve its competitive position in deep-discount brokerage. In order to achieve this objective, the company must grow its customer base, requiring an investment of $100 million to upgrade its technological capabilities
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