Integrated Case 8-23 Merrill Finch Inc. Risk and Return Assume that you recently graduated with a major in finance. You just landed a job as a financial planner with Merrill Finch Inc.‚ a large financial services corporation. Your first assignment is to invest $100‚000 for a client. Because the funds are to be invested in a business at the end of 1 year‚ you have been instructed to plan for a 1-year holding period. Further‚ your boss has restricted you to the investment alternatives
Premium Investment Rate of return Standard deviation
1. Suppose you discover a treasure chest of RM10 billion in cash a. Is this a real or financial asset? Answer: Yes. 10 billion cash is the financial asset. This is because financial assets only obtain its monetary value from a contractual agreement of what it represents. In contrast‚ real asset itself has the physical value. b. Is society any richer for the discovery? Answer: No. This is because the cash does not contribute to the productive capacity of the economy. c. Are you wealthier
Premium Investment Interest Rate of return
Exchange Rate December 2014 THE EXCHANGE RATE KEY DEFINITIONS AND CONCEPTS 1. How is the exchange rate defined? The exchange rate is the price of a unit of foreign currency in terms of the domestic currency. In the Philippines‚ for instance‚ the exchange rate is conventionally expressed as the value of one US dollar in peso equivalent. For example‚ US$1 = P44.00. In every exchange rate quotation‚ therefore‚ there are always two currencies involved. 2. Why is the exchange rate important? The exchange
Premium Foreign exchange market Exchange rate
that the project will require additional manufacturing space‚ and RIC currently has an option to purchase an existing building‚ at a cost of $10 million‚ which would meet this need. The building would be bought and paid for on December 31‚ 2008‚ and for depreciation purposes‚ it would fall into the MACRS 39- year class. The annual depreciation rate for the five years of economic life of the project would be: Year 1 1.3% Year 2 2.6% Year 3 2.6% Year 4 2.6% Year 5 2.6% d. The necessary equipment
Premium Depreciation Variable cost
Since 2009‚ our unemployment rate has been steadily dropping. The Great Recession from 2007 to 2009 had a significant impact on the economy spiking the unemployment rate of the United States at a shocking ten percent. Thankfully‚ under the governing of President Obama we have managed to reduce that rate to under five percent. Nelson D. Schwartz at the New York Times suggested that the decrease has necessitated employers to increase their wages to entice new employees and retain current ones‚ but
Premium Inflation Economics Unemployment
such carrier which is needed by the interconnecting carriers for the origination and/or termination of all types of traffic derived from the interconnection. 2. Actual Cost Approach – refers to an approach in traffic settlement whereby the cost is allocated using a methodology‚ which most appropriately reflects actual cost of the service. 3. Cross Subsidy Approach – refers to an approach whereby a LE operator is entitled to some subsidy in the revenue settlement to earn a rate of return on its local
Premium Telephone Service provider
THE LAWS OF RETURN TO SCALE The laws of return to scale explain the behavior of output in response to a proportional and simultaneous change in input. Increase in inputs proportionately and simultaneously is in fact expansion of the scale of production. Statement: “As a firm in the long run increases the quantities of all factors employed‚ other things being equal‚ the output may rise initially at a more rapid rate than the rise of increase in inputs‚ then output may increase in the same proportion
Premium Economics of production Function The Return
| Evaluate international marketing opportunities | Unit Descriptor | This unit describes the performance outcomes‚ skills and knowledge required to evaluate the international environment‚ to identify market factors and risks‚ and to assess the viability of international marketing opportunities. No licensing‚ legislative‚ regulatory or certification requirements apply to this unit at the time of endorsement. | ELEMENT | PERFORMANCE CRITERIA | 1 . Review the global market environment |
Premium International trade
THE EMINENT RETURN OF CHRIST This has really raised a lot of questions in the hearts of many. When we talk about the return of a person‚ then it means that such a person has come before and yet to come again as being expected by those who know of him. The return of Christ is what many believers have always waited for and this has gone a long way to pattern their lifestyles because of the cost thereof. Before one can wait for a person‚ then such a person must have known and experienced whom he is
Premium Islam New Testament Christian terms
the streets with Hip-Hop music employing all the facets of larger than life model of life styles‚ fashion sense became more of a headline than the issues that plagued the ’80s era. People simply wanted to live outside of what their day to day experience was. It was an era where what you wore‚ watched on TV‚ listened to on the radio‚ how you danced and pretty much all your actions was fed to through the mainstream media to the trending youth. Fashion Cycles Just like most things we are exposed to
Premium Fashion Milan Economics