Risk and Return Relationships Analysis - Coursework Example

Topic: Risk and Return Relationships Analysis Question The current financial markets have developed into huge trading factories that are dominated ultra-fast traders with an ability to swap stocks, futures as well as option and other aspects of the market in a matter of seconds (Saunders & White, 2003). The traders arbitrate between different markets and bounce between stick index futures, stock options and stocks in various exchanges through trading that drives profits at the exchanges. However, the stock market is neglecting one of its core aspects, the small companies and this has led to fewer companies going public with many of the small companies being acquired by larger ones (Anson, Fabozzi & Jones, 2011).

It is important for the small companies to go public and grow as the best investment is in small companies that will develop to become bigger and in the process create wealth and jobs. Worldwide competitions as well as improvements in technology have brought changes in the manner in which the exchanges have been operating. In the US, the NYSE is considered as the dominant exchange regardless of the fact that it used a people extensive auction system. The NYSE faces competitive pressure from the other exchanges to automate so that it can maintain and increase its global listings as well as leadership position.

The operations of the NYSE involve a major physical presence on Wall Street while NASDAQ and the rest of the ECNs conduct their trade through computer networks that exist in the entire country. Question 2As far as the real estate industry in Baghdad is concerned, there are very limited signs of foreclosure and the industry keeps getting stronger making it the kind industry that is desired by the real estate agents of the United States (Dabrowska & Hann, 2008). The people who did not flee the country are looking for homes where they will start afresh making the nation become more of a real feeling than a dreamed feeling.

The people no longer develop uneasy feelings and think that their lives are in danger and thus real estate agents are doing better as a result of the reduced violence and improvement in safety. Regardless of the fact that the war continues, there is a significant number of investors who are looking for homes as far as the real estate industry is concerned. In the case of Chicago, there are exceptional opportunities for real estate investments. Being the third biggest city in the US, Chicago’s economy is stable and the costs of real estate are only a fraction of the prices that can be found in either Los Angeles or New York which are the only cities that are bigger than Chicago is (Hoekstra, Van Housen & Levy, 2009).

Since the city is comprised of a metropolitan population of almost ten million people, there are no shortages of potential investment properties or people willing to lease these properties (McDonald & McMillen, 2011).Question 3Fast foods restaurants such as McDonalds may not necessarily incur more risks if they choose to introduce a new sandwich or open a new store as customer always prefer to make a choice when they have a variety of choices for purchase, they are more likely to be satisfied with a particular restaurant.

Coming up with a new sandwich can be important as far as providing a choice of meal customization is concerned and the new sandwich can be made to contain low calories as well as fresh and nutritious contents that cannot be found in other stores. This can thus become a strength in terms of meeting the needs of the customers regarding healthier food choices. In the process, it can use it as an opportunity to increase its range of healthy and low fat foods for its health conscious customers. On the hand, opening the fast food chain might incur some risks if it opens a new restaurant since the fast food industry is saturated in most of the developed countries and this may be a threat in regard to increasing growth in the developed economies (Allen & Albala, 2007).

ReferencesAllen, G., & Albala, K. (2007). The business of food. Westport, Conn.: Greenwood Press.Anson, M., Fabozzi, F., & Jones, F. (2011). The handbook of traditional and alternative investment vehicles. Hoboken, N.J.: Wiley.Dabrowska, K., & Hann, G. (2008). Iraq. Chalfont St. Peter: Bradt Travel Guides.Hoekstra, D., Van Housen, A., & Levy, L. (2009). The unofficial guide to Chicago. Hoboken, N.J.: Wiley.McDonald, J., & McMillen, D. (2011). Urban economics and real estate. Hoboken, NJ: Wiley.

Saunders, A., & White, L. (2003). Technology and the regulation of financial markets. Washington, D.C.: Beard Books.