(Ri,Rm)=correlation of security I to that of the market ?(Ri)=standard deviation of security i And ?(RM)=standard deviation of the market security. By using this formula Beta of security A= =0.27 Beta of security B== 0.75 The capital asset pricing model gives us the formula for determining the expected return of the securities.
The Chinese have vast economic undertakings in a number of African countries with enormous investments in agriculture, mining, infrastructure development, and energy sector among others. Whereas this provides huge economic opportunities for the Chinese, there is increasing criticism on the conduct of business and the impact it has on the African workers, the natural environment, and economic development of the host countries on one end and the gains to the Chinese on the other.
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It takes a lot of effort, commitment, sacrifice and selflessness to reach this level, once again congratulations. Much as this is a time for celebration that you have finally completed your courses successfully, I believe, it is also a time to come to terms with the realities of our times, in particular your future careers and occupations.
It is essential for the organizations to capture large set of information or data and monitor it cautiously. One of the most important data in this regard is economic data. For this reason, most of the business analysts uses different economic data in order to interpret important signals about the future condition of the economy and country.
The US is experiencing weak economic growth, unemployment, and stock market instability, which are raising serious concerns about the state of US economy. The continuing challenges in the labor market and the account of the debt limit emphasize the problem faced by the state; unsustainable debt mount for the future.
Nonetheless, the MNEs need not be large firms, and neither must they be operating in the technologically intensive industries (Huang, 2003, p.73). The main conventional objective of an MNE is to maximize the wealth of the shareholders. The decisions of the MNE will be made towards the achievement of this objective (Multinational Enterprise, n.d).
The BMW launched the production of the BMW 3 series in 1975 as a successor of the 02 series, which later became the premium compact car brand. The company went ahead to produce five different generations of the BMW 3 Series which has sold over twelve million units to date. This has remained to be the marquee brand of the BMW Group, which is also the most profitable to the company.
The Federal Reserve is the fundamental bank of America initiated in 1913 through the ratification of Federal Reserve Act as a reaction to the financial apprehensions of 1907 (Greider 67). However, the functions of the Federal Reserve have widened over time as the bank develops to meet the tests of organization in the economy.
Due to the appreciation of the Renminbi by 6% in real terms in 2011, upward pressure on this currency has diminished. The report said that the pace of China’s reserve accumulation has slowed down due to ”smaller trade surplus, higher global risk aversion, and valuation effects associated with a stronger dollar” (IMF).
Inward FDI increased from 9.6% of GDP in 1990 to 26.7% in 2006. (Woodward, 2011). There has also been a recent flow of FDI towards developing economies and this has had a plethora of effects, both for home and host countries. (Raj and Sager, 2005). Foreign Direct Investment has over the last three decades aroused conflicting responses from the first and third world.
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, Book Report/Review
The author elaborates the existence of profit economies and profitless economies with a desire to preserve the cultural identity against the complex interaction of globalization, trade and culture from an economic point of view. As the book opens, Cowen examines the dominance of Haitian music among numerous cross-cultural regions.
The International Labor Organization defines unemployment as the number of workers who are currently not working, although are willing and able to work for the available pay, have actively searched for work, and are currently available to work (Timmons, 2008).
The main idea behind austerity and stimulus dispute is simple; if you got a lot of debt then you should stop spending to avoid a financial crisis. The argument emerges when the government hinders certain economic growth due to its cutbacks. The cutbacks will mostly be brought by the number of reduced tax revenues.
The current economic situation being witnessed in the Britain has led to the Government admitting that it is its past strategies and approaches towards dealing with the economic crisis that faced Europe in 2008 that have led to the economic failures being witnessed in the country.
The perception that growth of money is entirely not relevant for inflation is quite surprising. One of the ancient and most held economics propositions is the idea which suggests that persistent variations in level of prices are directly linked with money supply.
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, Research Paper
The scarcity imposes a variety of constraints on both the choices of the society and the opportunities open to members. Economists, therefore, examine the activities of consumers, producers, suppliers of resources and the actions of the government in an attempt to examine how resources will be allocated efficiently.
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, Research Paper
When it comes to agricultural products which are among Finland imports, specific duties are normally imposed on weight or quantity or in some cases the combination of the two of the weighted-based and percentage duties applied. Most agricultural products fall under a sensitive category according to the EU regulations where there is limited tariff reduction.
The gold prices hit the lowest figure in 1980s. Since then the world economy has passed through several stages of crisis including inflation, debt crisis, housing market crisis, financial recession, etc. The weaker performance of the economic index led to rising demand for gold and the prices of gold increased.
U.S. government policies on economy
This paper will look at four policies developed by the US government to influence economic growth and productivity. Also, it will assess whether each item has improved or reduced life quality, and make fitting recommendations that may enhance the policies.
The management of these institutions has come out to calm the current rough terrain experienced in the markets. According to Brian Milner of The Globe and Mail in his article “Central bankers’ rush to calm jittery markets”, he asserts that the Central bankers are really trying hard to bring comfort to the markets.
Keywords: monopolistic, oligopolistic, competition. The Mechanics of Profit Maximization Answer the following questions to the best of your ability 6) The demand function is Q =100 - . 5 P. The cost function is TC = C =100 + 60 (Q) + (Q) 2: A) Find the MR and MC.
Unless the people of a country get educated, the country cannot grow and develop because the essential skills and expertise that the trained and educated people develop contribute to the national product of the country. Thus the policy makers of a country should be aware about the educational scenario and how the system can be run efficiently so that the country can develop a host of skilled labourers and educated professionals.
According to the Heritage Foundation Report, the number of employed Germans increased by 0.5% in September 2013 suggesting about 201,000 more Germans joined the workforce. The 2013 Index of Economic Freedom Report noted that the country has an average inflation rate of about 2.5% (Heritage Foundation, 2013).
Overview of IKEA Define IKEA In this age of stiff economic condition and tough competition, IKEA is one of the recognised brands of Sweden, dealing in the segment of ready-to-assembled furniture’s, fittings, appliances, and many others stylish accessories of the residence.
The Wage setting model of unemployment
Particularly it is assumed that the economy is split up into a number of sectors, with each sector producing one good. Each good is however assumed to be solely produced by labour. This means that each good is a final good as opposed to an input into other goods’ production.
For the Love of Water (FLOW)." "A Note on Water" Name School Water being the most essential element of life is sadly being turned into a business item. People believe that as water comes from heaven then it should be free and all should have access to it. Sadly this is not the case on the ground.
As from 2007, maintaining financial stability, rather than taming inflation was the Federal Reserve's main goal (Jickling 1). Although the Federal Reserve tried to manage the emerging crisis, the issues present were so complex, such that they defied conventional solutions.
There is a rapid technological growth in the world today, and despite fears that most companies adapt development technologies from overseas, the rapid advance of ideas and the demand for constant upgrades assures technology professionals of job security in the next five years.
5 The Benefits of EU-China Investment and Trade Relationship 7 Key issues EU investors face in China 9 Can these issues be resolved to benefit both EU and China? 12 Conclusion 16 References 17 Introduction Developing and sustaining a stable trade relationship with the key emerging economies has become a strategic priority for the developed world.
The objective of this paper is to evaluate the probable effect of the commodity market boom in the Western Australian economy’s sector of the iron ore. The iron ore production in the Western Australian economy explicates 97% of total production in Australia
The connections established with the local businesses through the International Joint Ventures also provide the opportunity to navigate the environments in which the business will be operating (Kwon, 2008). The joint venture between Inter-Optics plc and Singh Optical Industries (SOI) was established as a means for the international expansion of Inter-Optics plc in India.
China’s Inflation and related factors. This excerpt is from Dow Jones Newswires magazine. It considers the rise in inflation in China with connections to variations in GDP rate. The article even highlights the factors that are attributed to such rising inflation and GDP.
Pre-planned leaves are incorporated when absenteeism is measured. Pre-planned absence refers to the absence with prior notification of intended absence to the supervisor; for instance, need to go to the hospital for regular appointment or operation (Van der Merwe and Sylvia, 1998, p.4).
For different reasons, which significantly include economic impacts, immigration has become extremely important for many people. Generally, an increase in immigration results in an increase the average supply of labor in the country, which contributes to a larger labor force.
It was published on March 1, 2011; exactly a year after the Australian government increased the taxation on cigarettes and vowed to legislate for the plain packaging of cigarettes in order to deter its use. (Greenblat 2011) Introduction: The Australian government was wary of high smoking rates among its citizens.
Similar, thoughts are presented in the article written by Rober Pear in The New York Times, with the title “Recession Officially Over, U.S. Incomes Kept Falling” (Online Version). In this commentary, an attempt has been made to explore and analyze the information presented in this article in context to different economic theories and concepts.
Stock market traders are actually using fundamental analysis for the trade; keeping track of the values of key macroeconomic indicators. It is quite easy, as they are published in the strict time limit and they are actively discussing the situation at market.
Gross Domestic Product is the money value of all goods and services produced in an economy during a given year. Nominal GDP is that which has not been adjusted for inflation. It measures the value of output during a given year using the prices prevailing during that year. Over time the general level of prices rises due to inflation leading to an increase in nominal GDP.
There has been a great debate since its presentation as it has equally good & worse aspects regarding the economy. The revenue collection may become less or the consumption may grow more. FairTax The term “FairTax” has been in a vast debate since its arrival, as it equally contains some relaxations & some controversies for the masses.
Laissez-faire is a type of economy which promotes a free market and believes that government should not intervene in the decision making matters of the state. Laissez-faire economy liberates an economic system where self interest is the key role performed by the people of the country and also which is the best and the most efficient of ways while carrying out economic practices.
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, Literature review
These upsets, together with the extensively reported credit crisis, have deepened what otherwise might have been a placid financial slump. The UK financial system is now in the middle stages of a financial slump. A number of regions of the country will undergo excessively harsh financial situations.
They incorporate features like push email, instant messaging and on the go connectivity with the social world. The company grew to become one of the leading smartphone makers in the world, lacking behind only to the Apple’s iphone, Android phones and the Windows based phones.
Since then, the subject of economic development and international trade has been highlighted in the world media following the period of intense globalization. Economists believe that the impact of the international trade on the economic development of the developing nations depends on the level of the liberalization policies followed by the concerned nations.
Market entry can be discouraged through a host of inhospitable measures such as placing trading restrictions, legal restrictions, technical restrictions, copyright restrictions, control of critical resources and other measures. Collectively such measures are better known as barriers to entry.
The company has been involved in building a plant in the year 2009 (Amyris a) and in this project the company was using synthetic technology in order to make fuels by changing the sugarcanes and at the same time making sure that the chemicals are removed.
Total Revenue = Total Costs Output Price x Output Units = Total Fixed Costs + Unit Variable Cost x Output Units $25 x 200,000 = (TFC + $22) x 200,000 $5,000,000 = (TFC + $22) x 200,000 $5,000,000 = total revenues TFC = (p-v) times X where p is the unit sale price, v is unit variable price, x is unit sales TFC = ($25 - $22) x 200,000 = 3 x 200,000 = $600,000 Total Fixed Costs Profit = revenues – (Fixed Costs + Total Variable Cost) P = $5,000,000 – FC - $4,400,000 P = $600,000 - $600,000 = 0 Assuming a $1,000,000 Fixed Cost $4,400,000 + $1,00,000 / 200,000 = $5,400,000 / 200,000 = $27 Average Total Cost The business sustains a $400,000 loss in scenario two In the third scenario: P = $5,000
Thus, more and more forms working tilting the same hectare land will yield fewer and fewer extra bushels of grain. In agriculture the large the population with amount of fixed, the higher the price of food must go even though total food production is greater.
Commodity money is treated to be the good whose value serves as the value of money. There is no readily identifiable group of assets which all economists would agree are money. Answer 2 The banks held no deposit reserves and all cash were re-deposited. The deposit creation multiplier will be useful to arrive at the answer.
Football has demonstrated strategy, highly structured competition, clear outcomes, and profitability. In his book, Baye (267) identifies four market structures which include: competitive market, monopolistic market, monopolistic competitive market and oligopoly market structures.
This essay primarily focuses on the evaluation of the practical viability of two distinct socioeconomic theories, that explain consumption behavior of different groups of people. The theory of Life Cycle Hypothesis considers the age as the core factor. The second theory propagates the belief that people are divided into planners and reactors.