Nobody downloaded yet

Finance - Essay Example

Comments (0) Cite this document
Summary
Analysis GARCH Model Generalized Autoregressive Conditional Heteroskedasticity (GARCH) is a popular model widely used to estimate stochastic volatility (Chance & Brooks, 2009). Its application on finance has been very successful over the years. The most important factor that plays a significant role in finance is the gap that lies between risk and return…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.3% of users find it useful
Finance
Read TextPreview

Extract of sample "Finance"

Download file to see previous pages standard deviation. GARCH model is used in mathematical finance for evaluating derivative securities. GARCH model works on the assumption that underlying volatility is consistent throughout the life of the derivative and do not respond in the changes of its price (Chance & Brooks, 2009. Ans-1) Six Series Co integrate In order to complete the same, we have to recognize and consider below mentioned table and graph,   Oil Gasoil JK Naph LSFO HSFO Mean 41.93075824 49.91961538 51.13502198 41.9046 34.92238 31.07245 Ans-2) Sign of Contagion From the analysis, it is clear that the mean price of JK is the highest as compared to other pricing of oil. The mean price of the crude oil was 41.93, which is comparatively lower than that of other line of services, but it deems extremely beneficial for the company as a whole (Chance & Brooks, 2009. Contingent test has found that the price of JK would remain the same for a long span of time, merely due to low fluctuation in the market. The highest fluctuation among the prices has been found among the prices of oil and Gasoil. By considering the same, it is also analyzed that HSFO has the lowest price provision (average) as compared to other sections. ...
Financial markets are those places where organizations and individuals can trade commodities, securities in bulk. Financial markets have both specialized and general markets. In specialized market a single commodity is dealt where as general market trade different commodities (Chance & Brooks, 2009. A number of studies have been conducted over the relationship between crude oil and its impact on financial market in different regions and economies. These economies include both oil dominant and non oil dominant countries. As a result different interpretations were given by various researchers of their analysis conducted (Chance & Brooks, 2009. (Park, 2007) analyzed the impact of oil supply and demand gap and its impact on the real price of crude oil in stock market of U.S. The total impact of oil demand and supply is only on the one fifth of the stock market of U.S. It was found that the crude oil fluctuation in the international market has a greater impact on U.S. stock market (Chance & Brooks, 2009. Istemi Berk & Berna Aydogan investigated the impact made on Turkish stock market returns by the variations created in crude oil price. Vector autoregression model was applied on the secondary data of crude oil prices and National Stock Exchange of Istanbul Index (ISE-100) over 21 years of data between 1990 to 2011. The study also looks into the association between stock market returns and oil prices under global liquidity conditions (Chance & Brooks, 2009. The Turkish stock market was slightly influenced by the local prices and was greatly dependent on the global liquidity conditions (Crude Oil Price Shocks and Stock Returns: Evidence from Turkish Stock Market under Global Liquidity Conditions, 2012). Maghyereh & Al-Kandari ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Finance Essay Example | Topics and Well Written Essays - 2000 words”, n.d.)
Finance Essay Example | Topics and Well Written Essays - 2000 words. Retrieved from https://studentshare.org/finance-accounting/1471560-finance
(Finance Essay Example | Topics and Well Written Essays - 2000 Words)
Finance Essay Example | Topics and Well Written Essays - 2000 Words. https://studentshare.org/finance-accounting/1471560-finance.
“Finance Essay Example | Topics and Well Written Essays - 2000 Words”, n.d. https://studentshare.org/finance-accounting/1471560-finance.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Finance

Finance

... Executive Summary GE Capital is considered to be a global market powerhouse. The total assets of the company are thought to comprise the fourth largest source of finance in Canada. It works with a combination of individuals and commercial entities. It also comprises insurance and renting companies all over the world. Transportation finance had an expectation of improved business conditions (Norton, Diamond and Pagach 245). This expectation was, however, prone to getting the effects of external and internal aspects on their profit margin. This involved the rise in the price of diesel, a shortage of drivers and an effort to maintain their depreciating fleets. Problem Statement The biggest challenge included debts from credit cards... ,...
4 Pages(1000 words)Case Study

Finance

...?Finance Table of Contents INTRODUCTION 3 Overview 3 Risk Measurement 5 Popular Way of Risk Measurement 6 ANALYSIS 8 Liquidity Risk Analysis of ANZ and CBA 8 Comparative Analysis between ANZ and CBA 10 CONCLUSION 11 References 13 INTRODUCTION The study aims at analyzing liquidity risk and the different facets of the risk measurement issues involved in this case. The examples of Australia and New Zealand Banking Group Limited (ANZ), and Commonwealth Bank of Australia (CBA), has been utilized here to discuss and compare the international liquidity risks of these financial institutions, and a comparative analysis between these have been done. Overview The term liquidity refers to the ability of the firm to cover its debt...
9 Pages(2250 words)Essay

Finance

...that includes the steps that should be done, needed resources, and feasibility of the proposal. Action Plan: 1. The principles of Islamic banking can be fully promoted among Muslims and non-Muslims by investing heavily on academic discipline, and research and development (R&D). The Islamic Foundation in UK had established the Markfield Institute of Higher Education (MIHE) just like the Islamic Financial Services Programs (IFSPS) in Australia, and Islamic Finance Professional Certificate (IFPC) in Malaysia. 2. Encourage different countries to capitalise Islamic banking and finance by giving seminars, workshops, trainings, etc. to their people. In fact, international orientation and conferences has been...
5 Pages(1250 words)Essay

Finance

.... The PV is the value on which the bond is currently trading. That value according to available data is $920. The FV for all bonds is the standard $1000. The annual coupon on the bond is 12.8% which make $128.2. Using this data the rate of return on the bond is 14.02%. Weights The following components are outstanding debt and equity: Book Value   Current portion of long-term debt 5.4 Notes payable 855.3 Accounts payable 432 Accrued liabilities 472.1 Long-term debt 435.9 Common stock, par (300 million shares outstanding) 2.8 Capital in excess of stated value 459.4 Retained earnings 3194.3 Total 5857.2 Weights are assigned to each according to their proportion to total financing: Weights   Current portion of long-term debt...
3 Pages(750 words)Case Study

Finance

...? Finance for Managers Faisal al Hajri number: 1068926 Mrs. Kay Smith  Word count: 4018 Question Analysis of The Present Position of Jools Furniture Ltd. The table below presents the calculations from the information provided in the case study about furniture business. Then, explanations and justifications of the results are discussed with some suggestions for improvements. Product Division Category Ratio 2009 2008 Result Liquidity Ratios Current Ratio 1.33 1.09 Unfavorable Quick Ratio 0.63 0.47 Unfavorable Stock Turnover 113.84 99.51 Favorable Debtor Days 42.69 27.58 Unfavorable Creditors Days 29.15 51.06 Unfavorable Profitability Ratios Net Profit Margin 3.36% 1.98% Favorable Operating Profit Margin 6.38% 5.71%...
4 Pages(1000 words)Essay

Finance

... Subprime Mortgage Crisis Introduction Since 2006, United s has experienced the worst housing market crisis that has run even up to today. Consequently, many Americans have lost their properties and some even left homeless following the subprime mortgage crisis. Prior this period, the U.S. housing market seemed a blooming and many borrowers believed that they would leap good fortunes in the future, and that refinancing would not be a problem. Far from that, the tempo of the housing market started cooling down. Very many borrowers could not refinance their mortgages that had gone up due to Adjustable Rate Mortgages (ARM). They were definitely in a big mess even as defaulters and foreclosures demanded their dues. I chose this topic... Subprime...
3 Pages(750 words)Admission/Application Essay

Finance

...? “In finance, risk is best judged in a portfolio context." Is this true? Why? Table of Contents Table of Contents 2 Introduction 3 Risk and Return 3Portfolio Theory 4 Capital Asset Pricing Model 4 Dividend Policy 5 Long Term Financing 5 Capital Structure (Irrelevance) 6  Capital Structure (in market perfection) 6 WACC Capital 6 Option (Financial and Real) 7 Empirical Evidence of Risk in Portfolio Context 7 Reference 8 Introduction In present corporate scenario, the market investors adopt the policy of undertaking diversified investments thereby resorting to a portfolio of investments. The investors take diversified investment strategy, where they invest their money in national as well as international investment instruments. Here... the...
6 Pages(1500 words)Essay

Finance

.... There were already reports of rising default on subprime mortgages that further fuelled quickly thereafter. Such mortgages are usually given to borrowers with below average credit ratings which are mainly due to their higher average risk of evasion in loan repayment. The financial institutions often charge higher interest on subprime mortgages in order to compensate for the risk taken. Thus, as the banks began clear out more loans to home owners, the housing prices rose. The easy accessibility of credit in U.S. in addition to large foreign inflows led to the boom in construction and increased consumer spending that was mostly financed by debt. The falling prices of houses resulted in more homes less worthy than...
9 Pages(2250 words)Essay

Finance

...Finance In the decision on who to hire, a good employer will be looking for an employee with a high quality that possesses good attributes. Many people who seek for jobs normally wonder why they are not picked for that particular job that they were interviewed (Arthur, pg 12). Some of the qualities that most employers are looking for include, Good communication skills, this is a process of passing a message from one party to another through a given media and immediate feedback is required. In regard to this quality, an employer will be looking for an employee who is able to communicate effectively and clearly in any medium, for instance it can be oral, verbal or written. This is because when an employee cannot be...
4 Pages(1000 words)Essay

Finance

...? Finance Table of Contents Introduction 3 Distribution analysis 3 2. Market analysis 6 3. Financial analysis 11 Fig 9: Efficiency Ratios 11 Liquidity ratios 12 Source: (Henry 8) 12 Profitability ratios 12 Source: (Henry 8) 13 Technical Analysis 13 Source: (Henry 9) 14 Risk analysis through Alpha and Beta testing 14 4. Prediction 15 Conclusion 16 Name of the Student Name of the Professor Subject Date Introduction The research report presents a general study and evaluation of the performance of an American company called American Eagle Outfitters (Bethel 20). The performance of American Eagle Outfitters is evaluated using four different types of analysis which is distribution analysis, marketing analysis, performance...
8 Pages(2000 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Finance for FREE!

Contact Us