FLCSX Data Analysis - Assignment Example

Using the Sharpe ratio, the mutual funds for FLCSX are still the best when comparing the risk and return for the investment. JFMAX is a greatly diversified stock. This is because it sells in many countries in different countries. That will ensure that the risk of loss is reduced because it will be subject to a few issues and hence it will have a high probability of doing good as compared to the other investments.

Beta is a measure of the volatility of investment toward market forces. That measures the rate at which an investment is affected by changes in the market. An investment that has a beta greater than one is very volatile to market forces and it is affected highly by market forces. That means that they are relatively risky and usually associated with high risk and returns. For investments that have a bet lower than one, they are less risky and also associated with lower rates of returns:
Domestic beta= 0.6/5=0.12.
Beta for the world= 12/5= 2.4.

Since the 1990s, China has become a huge player in the industrial area. This is because the country has emerged as a superpower in business. The country has been giving stiff competition to the prior year super powers that included the united states. That made the country a superpower in business. The other thing that made China develop tremendously was its ability to come up with new products that could be sold in different countries at a lower cost. China also took advantage of FDI. FDI is a system whereby a country or business relocates to regions where there is the availability of low-cost goods or labor. That ensures that the cost to the company is low and the company can supply the products to the target market. That means that the availability of cheap labor and raw products will make the supply and production of goods relatively cheaper. China also takes advantage of the countries whereby there is a huge target market. In that case, the target market becomes large and it can make more profits as compared to companies that are not located near the customers. The country was able to take advantage of the activities that took place in the 1990s. this is a situation whereby there was the emergence of a financial crisis that almost destroyed the economy of many countries.