Chapter 1 the Investment Environment

Chapter 1 The Investment Environment 1. 1. Real Assets versus Financial Assets (Page 30) ? Real Assets ? Determine the productive capacity and net income of the economy ? Examples: Land, buildings, machines, and knowledge used to produce goods and services ? Financial Assets ? Claims on real assets 1-2 1. 2. Financial Assets (Page 32) ? Three types: 1. Fixed income or debt Common stock or equity Derivative securities 2. 3. 1-3 Fixed Income ? ? ? ? 1-4 Payments fixed or determined by a formula Money market debt: short term, highly marketable, sually low credit risk (T-bills, certificates of deposits etc) Capital market debt: long term bonds, can be safe or risky (Treasury bonds, municipal bonds, corporate bonds, etc) Bond ratings: in terms of default risk, from very safe to junk Common Stock and Derivatives ? Common Stock is equity or ownership in a corporation. ? ? Derivatives ? ? 1-5 Payments to stockholders are not fixed, but depend on the success of the firm Value derives from pri ces of other securities such as stocks and bonds Used to transfer risk (hedge) 1. 3.Financial Markets and the Economy (page 33-36) ? ? ? ? ? 1-6 Information Role: Capital flows to companies with best prospects Consumption Timing: Use securities to store wealth and transfer consumption to the future Allocation of Risk: Investors can select securities consistent with their tastes for risk Separation of Ownership and Management: minimize the famous agency costs and maximize firm value Corporate Governance and Corporate Ethics How to reduce the agency problems (Page 34-35) ? ? ? ? 1-7 Compensation plans: bonus, stock options, etc.The power of the board of directors Outsiders’ monitor Threat of takeover: proxy contest, mergers, etc. 1. 4. The Investment Process (page 36) ? When constructing a portfolio, investors need to decide: ? ? 1-8 Asset allocation ? Choice among broad asset classes Security selection ? Choice of which securities to hold within asset class ? Security analysis to value securities and determine investment attractiveness 1. 4. The Investment Process (page 37) ? 1-9 Portfolio strategies ? Top-down: starts from asset allocation Bottom-up: starts from individual securities 1. 5. Markets are Competitive (page 37-39) ? Implications from â€Å"no-free-lunch† proposition: ? ? Risk-Return Trade-Off Efficient Markets (security prices have reflected all information) (Chapter 11-12): ? Passive management ? No attempt to find undervalued securities ? No ? attempt to time the market ? Holding a highly diversified portfolio Active Management ? ? 1-10 Finding mispriced securities Timing the market 1. 6. The Players (page 39-42) ? ? ? ? Business Firms– net borrowersHouseholds – net savers Governments – can be both borrowers and savers Financial Intermediaries: Pool and invest funds ? Investment Companies ? Banks ? Insurance companies ? Credit unions 1-11 Universal Bank Activities Investment Banking †¢ Underwrite new stock and bond issues †¢ Sell newly issued securities to public in the primary market †¢ Investors trade previously issued securities among themselves in the secondary markets Commercial Banking †¢ Take deposits and make loans †¢ †¢ 1-12 1. 7. Financial Crisis of 2008 Reading (page 42-51) 1-13

Achieving water neutrality in the Severn Trent region (technical Assignment

Achieving water neutrality in the Severn Trent region (technical report) - Assignment Example The second vital factor is the consideration of the accessibility of water resources both in the future and in the present-day, which can be used to meet the demand for water in areas of Wales and England. Severn Trent serves to bring in water neutrality and efficiency, and it occupies most of the East midland regions. Keeping new developments in mind, the notion of water neutrality serves as a crucial concept. This is so basing the ideologies on water resource management. It can be termed as offsetting the demand for water in a certain community at hand by making existing buildings and homes in the region, to an increasing extent, more water efficient (Environment Agency, 2007). In simpler terms, the up to date house developments should be equivalent to the total demand for water in a certain area. Notably, most studies undertaken on water neutrality have a background related to the definition of the notion. It is imperative to note that the Environment Agency performed a study on the possibility of attaining water neutrality in the Thames Gateway region (Community and Local Government, 2007). This served as a crucial part of the government policy for housing growth which targeted the betterment of the affordability of housing. In order to address this issue, the government’s 2007 Green Paper on Housing was tasked with devising a policy to establish over 3 million new homes by the year 2020. This was to be achieved by working with the rate of 240,000 homes annually. This paper delves to pinpoint that the auxiliary increment in housing would have to be planned for pre-existing Regional Spatial Strategies (RSSs) for recent and existing eco-towns as well as points of growth. The growing trend in housing projects and insubstantial water supplies combined with the threats of variations in climatic conditions, led to the further exploration of

The Concept of Ethnocentrism Essay Example | Topics and Well Written Essays - 1000 words

The Concept of Ethnocentrism - Essay Example Several nations and their cultures have placed themselves at the top of an imagined hierarchy of cultures and nations and therefore they have assigned other cultures lower ranks than theirs. This has led to the incorporation of the belief that one nation, its culture is superior, and that it will always be ahead of the rest hence making people believe this form of deception naturally. This form of belief has resulted in a few nations becoming the center of admirations making all other nations to strive to emulate the nations at the center in order to move higher in the imaginary rank. For example, the United States of America has always thought of itself as more powerful, more economically positioned, and as generally better in all spheres than other nations. This has been evidenced by the country's dabbling in the matters of other nations without much regard to the right formality that should be followed. A good illustration of this dabbling in the country's current involvement in a ffairs of Middle East, which is mainly castigated by the perceived belief that it is a superpower. This has led to the country spending a lot on affairs of other countries, which are not necessarily in its control, rather than focusing on funding development in needy developing countries. Cultural ethnocentrism continues to prevail in the majority of the African communities where the communities believe that these cultures are better than the rest and they in, particular, tend to be unreceptive to the western culture. They normally feel that their cultural order is threatened by the arrival of new groups and they thus strive to resist what they term as invaders in their communities. This evidenced by the disagreements in cultural markers of identity such as clothing and other visible elements which the people try by all means possible to uphold them despite the foreign influence.

Legal and Ethical Questions in Healthcare Assignment

Legal and Ethical Questions in Healthcare - Assignment Example It may be easier to argue that the physicians are right to suppress treatment on the patient, but a critical look at the case renders illegitimate, the approach they are taking. It is not lucid to argue that resources being used to treat the comatose patient are scarce, since not all patients are ICU or comatose patients. The growing number of outpatient referrals and attendees and the presence of patients needing less serious medical attention downplay the notion that healthcare resources are too scarce to support the right group. At the same time, the argument that it is unfair to spend a lot of money on the elderly instead of the relatively youthful smacks of ageism. The principle of benevolence (beneficence) also requires that the doctors should act in the patient’s best interests. It is clear that the comatose patient has not communicated his will (whether to have a Physician aid-in-dying, or not), and therefore, it is unlawful for these physicians to arrogate themselves this duty. The principle of non-malfeasance also prohibits these physicians from harming the patient. To extend the argument that non-malfeasance can have a double meaning to the elderly is not enough since even the young can be terminally ill. Likewise, the party that should characterize actions pertaining to non-malfeasance has not yet been ascertained; whether it is the doctor, the profession, the society or the patient. The action being taken by the physicians is unlawful, as it borders along passive euthanasia. Lastly, the principle of autonomy also asserts the right and legitimacy of patients to choose how their illnesses should be treated and to speak in this light. It is not right to argue that as people grow older, they lose the ability to make decisions, unless the patient is legally declared non compos mentis. Even in the case of non compos mentis, categorizing the patient as unwanted in lieu of wanted, must factor the input of the legal surrogate or an Advanced Directive . Question 2 As the government reduces payments for healthcare services, the ethical issues of limiting care that are bound to emerge, border on the EOL (end of life). Particularly, concerns such as the kind of care and the amount of money that should be expended on people with limited lifespan are to arise. This development is likely to catalyze conflicts between physicians and patients’ family members on the essence and extent of appropriate care. Annually, the government has had to absorb billions for undocumented and uncompensated care. In 2008 for instance, hospitals were compelled to absorb 36 billion US dollars in unpaid care. This figure included bills and charity care that remained unpaid by both the underinsured and the uninsured. Similarly, in the event that the government cuts its funding for healthcare services, people with no resources to access healthcare services are likely to turn to unqualified medical centers and practitioners. This is because restricted fu nding by the government will have made healthcare services inaccessible and too expensive for many (Leigh & Wheatley, 2010). According to Dewar (2010), the state's responsibility to ensure healthcare services is diverse, given that healthcare services and goods are public or social goods. It is the government’s responsibility to ensure the highest level of affordability and accessibility to healthcare services by the public. The government can do this by for instance, easing

LEADERSHIP Essay Example | Topics and Well Written Essays - 5000 words

LEADERSHIP - Essay Example ording to the case study, "each had their own primary spheres of responsibility, but they all worked very closely together, doing whatever it took to get the job done" (Suesse 79). Todd Krasnow, in particular, seemed to embody three elements that were present and necessary for the effective evolution of this particular team: 1. optimism, 2. dedication, and 3. perspective. As Suesse phrased it, "Krasnows optimism, exceptional dedication, and "big picture" perspective often helped keep even the most heated debates substantive, rather than personal" (79). A major element that influenced the effective functioning of this core team can be designated under Bartolomà ©s number one guideline for building and maintaining trust--communication. According to Professor Bartolomà ©, one needs to "Keep team members and subordinates informed by explaining policies and decisions and providing accurate feedback" (Kreitner 408). Looking at Staples background, one sees that according to Suesse, "they [the founders core team] hashed out virtually every decision together, early on developing the discipline to back up their intuitions with hard data" (79). Other important guidelines for building trust among team members include support, respect, fairness, predictability and competence (Kreitner 408). One can see respect in the shared decision-making authority within this team, fairness in their willingness to "hash out" important decisions as equals, instead of a timeframe getting imposed from above, and competence in each members consummate professio nalism. One mistake that Lewis made with her transition to the marketing merger team fall under category number two: failed to build group cohesion and trust. This is often a problem when a manager makes a lateral transition into a new department. People within the new department have their own culture, rituals, and expectations. Lewis demonstrated a lack of sensitivity to these cultural variables when she challenged a marketing

Memo to the teacher Essay Example | Topics and Well Written Essays - 500 words

Memo to the teacher - Essay Example This memo will seek to clarify the problems in the topic (the Mozart) and send it to the respective recipient with solutions. The structure and presentation of the Mozart advert topic is ambiguous. Specifically, an effective topic of a memo possesses the element of information. In this case, a topic of a memo appears effective when it provides readers with substantial information about the purpose of the article. Additionally, a sound memo topic makes a recommendation or simply asks for action after describing its content Concerning the Mozart advert topic, analysis shows that it does not support the school’s position. This leaves the readers with questionable doubts about the point of view of either the advert or the institution. A closer outlook into this topic reveals that the advert seeks to persuade. However, the since its topic seems to have a bit of problems, it is vital to provide a list of solutions in order to avoid repetition of such a thing in the future. First, the Mozart advert should restructure its topic and provide a precise, persuasive heading that grabs the concentration of every single reader. A persuasive advert increases the number of readers, which in turn increases the number of people taking action. Taking action in this scenario means having more students enrolling for music classes in Mozart School of Music. Lastly, this memo serves to suggest a specific action whose aim is to improve the current situation. Regarding the Mozart ad topic, the problem of ambiguity and obviousness needs to be addressed through changing it to have a persuasive message with a recommendable course of action in the end. Further still, the Mozart ad is clear with regard to the second component of a memorandum. This is so because it shows the benefits that a student will get upon enrolling at Mozart School of Music. I am sure that you will find these solutions valuable and approve them for action. I also the change will take course immediately as

The Turkish invasion in Cyprus at 1974 Research Paper

The Turkish invasion in Cyprus at 1974 - Research Paper Example All these were taking place in the knowledge of three guarantor powers which reacted three days after the Turkish invasion in Cyprus. The guarantor powers that included the United Kingdom, Greece and Turkey decided to agree upon the fate of the invaded island. Seemingly, Turkish had a lot of interest in having the most of the island, and, in fact, it ended up acquiring more than a third of the island illegally (Freedman 402). This came as a result of their Attila II pre-planned physical attack which saw them through their acquisition of the island disregarding opinions of other guarantor powers. The above actions were devastative in nature as many things were destroyed ranging from property in the island to individual lives that were claimed in the process of the attack. As a consequence of their brutality, more than 5000 individuals lost their lives. In addition, there resulted a fate unknown, and nobody could account for 1,614 missing Cypriots as well as 4 citizens from the US duri ng the invasion period, Congregation Record (18108). Before the attack on Cyprus by the Turkey, Greece had come up and led a coup whose intention was made known all. As Freedman (402) noted in his book, the Greek-led coup was to unite Cyprus Island with Greece. This is the sole reason why the Turkish military launched an operation to invade the same island to respond and resist the Greek dominion over the same island (Freedman 402). It is a clear fact that Greece was involved in the fight with Turkey over the Cyprus Island which led to atrocious consequences as the one that had previously mentioned. They tried various means of acquisition of the island including military approaches just to win it over Turkey, but it did not succeed as its expectation was. This fight between Greece, and Turkey over Cyprus made them differ over the Aegean territories. As a result, Greece itself tried to apply a diplomacy involvement in solving the issue at hand by then. This included their withdrawal from active participation in the NATO military command from the year that they experienced the fight between them and the Turkey (Freedman 402). This was s due to their partly protest over the issue regarding Cyprus Island that dominated largely by the Turkey. Huth, (136) brings an important aspect of Greek operations which are regarded to be full of diplomacy. For instance, the Greece itself was not willing to confront Turkey by counter attacking them using their available military to continue fighting over Cyprus Island. They avoided this kind of confrontation but rather withdrew and stayed calm over the issue. According to Huth (136), there have been three main crises that rank nationally between Turkey and Greece over Cyprus. The earlier ones, which happened before the 1974 Turkish attack like the 1964 and the 1967 ones, the government of Greece gave in to diplomatic intervention and resolutions. These diplomatic settlements were as a result of threats of using military for inte rvention posed by the Turkish government. Indeed, the 1974 confrontation did not see Greece use any military confrontation to contest against the Turkish invasion and domination upon Cyprus Island. There was a great challenge to international democratic peace in 1974when Turkey and Greece had the conflict over Cyprus Island, as Diez (169) has realized. It is important to note that, before this confrontation, Greece