Nobody downloaded yet

International financil markts - Essay Example

Comments (0) Cite this document
It is known to everybody that risk and return are inversely related and therefore every investor tries to increase their return by investing in risky securities. However, this need not…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.3% of users find it useful
International financil markts
Read TextPreview

Extract of sample "International financil markts"

Download file to see previous pages Many of the investment management theories were found worthless in an investment climate which is characterized by innumerable number of investment opportunities with differing categories of risk. This has led the investors to think about collective investment to set off the risk from one investment with the return from another investment. This was formally called portfolio and many theories have been developed thereafter to facilitate portfolio management. This paper discusses some of the important concepts of modern portfolio management. The paper takes a descriptive approach where all the concepts are described in such a way how they are useful for investors.
Investors always seek for an optimal investment portfolio where the returns are more and risk is less. This can be met through Portfolio Theory. The Theory helps in developing an optimal portfolio that will enable an investor to optimize market risk and generate more return from the business. Thus Portfolio theory is an approach to manage risk and return. The Theory has got much relevance in of financial management literature as many investors found them effective means of increasing the return at a given risk level. The theory is basically applied to the stock market and is based on the idea that there are basically two kinds of risk: (a) diversifiable or relevant risk (risk associated with events occurring in individual companies such as strikes, new marketing programs, lawsuits and new inventions (b) non diversifiable or market risk (risk associated with factors that affect all companies such as inflation, war and recession (Elton, 1999). The careful construction of portfolio of securities helps investors to reduce the diversifiable risk to zero and optimize the market risk. However the market risk cannot be eliminated as it is uncontrollable one. And to the investment managers it helps to meet the ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“International financil markts Essay Example | Topics and Well Written Essays - 2000 words - 1”, n.d.)
International financil markts Essay Example | Topics and Well Written Essays - 2000 words - 1. Retrieved from
(International Financil Markts Essay Example | Topics and Well Written Essays - 2000 Words - 1)
International Financil Markts Essay Example | Topics and Well Written Essays - 2000 Words - 1.
“International Financil Markts Essay Example | Topics and Well Written Essays - 2000 Words - 1”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF International financil markts

International Finance International Investing Project

... This project allows you to learn more about international investing and about firms that compete in the global arena. You will be asked to create a stock portfolio of at least two U.S.-based multinational corporations (MNCs) and two foreign stocks. You will monitor the performance of your portfolio over the school term and ultimately will attempt to explain why your portfolio performed well or poorly relative to the portfolios created by other students in your class. The explanations will offer insight on what is driving the valuations of the U.S.-based MNCs and the foreign stocks over time. Select two stocks of U.S.-based MNCs that you want to include in your portfolio. If you want to review a list of...
5 Pages(1250 words)Research Paper

International Business - International Market

...Introduction Trade has become increasingly global in some scope today and there are reasons for this. One is the advancement in technology including communication efficiency and modernization where people are migrating to live in areas where they feel they are comfortable. Increasingly, rapid technology lifecycles has increased competition among countries as to who can produce the best in the market hence the need to employ competitive marketing and business strategies (Dole, 2003) This paper will deal with Dell Inc. as a computer hardware and software company. It will investigate the current business strategies used by the company to conquer international markets, licensing and franchising, market strategies and...
10 Pages(2500 words)Case Study

International business and International Trade

...International business and International Trade 1. What are the primary forces driving the increased growth in globalization and international business? International business concerns international trade. Nowadays, most companies do business worldwide. The reasons are various, among them are the contacts that people have over a wide range of countries. These contacts enable people to acquire more products and services and have access to various resources. The countries have lowered import and export barriers and many local assets are owned by foreigners. An additional reason is the rapid technological evolution and expansion. With technology people...
6 Pages(1500 words)Coursework

International financil markts

...International Financial Markets (2200 words, without the reference list) Introduction: Large ventures are generally organized as corporations. Conglomerates have three key features. First, they are officially distinct from their employers and pay their individual taxes. Second, conglomerates offer limited liability, which indicates that the stockholders who possess the company cannot be held accountable for the firm’s obligations. Third, the employers of a conglomerate are not typically the managers. The overall job of the financial manager can be divided into the venture, or capital budgeting decision and the financing decision. In other words, the company has to decide what real assets to purchase and how to increase...
8 Pages(2000 words)Essay

International business - ideas international

...International business - ideas international Introduction: Film industry is one of the emerging industries globally. The entertainment has become a major factor in the human society. The film industry works as the mass media. It conveys many dialogs and thoughts though the movies. Indian film industry is a particular industry where much diversity is observed. India has been portrayed as the unity in diversity, and that ideology is reflected clearly on the Indian film industry. There are many numbers regional languages in India and at the same time there are many regional films are getting released in India. However, Hindi is the main language in which most of the high budget films are getting introduced...
8 Pages(2000 words)Essay

International Relations and International Oganization

...International Relations and International Organizations What is the significance of understanding the relationship that exists between international relations and international organizations on issues pertaining global economic crisis? Statement of purpose The importance of establishing the relationship between the two variables is to determine the current economic and political environment at a global platform. Due to the dynamic changes in technology and other social and cultural factors, the world is continuously turning into a competitive and congested place of living with its inhabitants struggling to acquire the available means of live. These struggles often steer...
8 Pages(2000 words)Research Paper

Econ 3077 management of financil institution

... to get married to him or her. financial institution company Number of companies Total assets (in millions) Percent (%) Insurance companies Life insurance 94 1009617 14.6789 Property and Casualty 196 427411 6.214163 Pension Plans 1350 1189781 17.29832 Depository Institutions Banks 73 3849384 55.9665 Trust and Loan Companies 70 49495 0.719612 Cooperative Associations 8 352326 5.122496 Total 6878014 100 References Hansanti, S., Islam, S., & Sheehan, P. (2008). International finance in emerging markets. Heidelberg: Physica-Verlag.... Econ 3077 management of financial Adverse selection and moral hazards The anxiety that rich people may have concerning other people marrying them merely for their money is a classic example of adverse selection...
1 Pages(250 words)Coursework


...incorporated within a company then it gives the ability to the company to gain several advantages like increased in flow of investments, higher sales and profit ratio, systematic human resource base, a better and much improved image of the brand and development of good reputation, the ability to make good decision to avoid any risky management or processes (, n.d.). A stakeholder is someone who takes an interest or may influence the decision making processes of the company. Stakeholders may be internal such as employees or shareholders or External stakeholders such as suppliers, consumers or the area where the business runs. Because Nestle is one of the leading multinational companies therefore it is also...
4 Pages(1000 words)Essay

Econ 3077 management of financil institution

...The Bank of Canada The Bank of Canada Due to the weighty decline in the global oil prices, the Bank of Canada has lowered its projected overnight rate target by a quarter of a percentage to three-quarters per cent. Consequently, the bank rate is 1 % while the deposit rate is 0.5 percent. The persistence of inflation in the global market has reflected in the fall of the oil prices (Bank of Canada, 2015). For this reason, the underlying inflation in the country might have an adverse impact on the economic growth. In the recent quarters, inflation has remained at 2 percent, and sector-specific factors cause it. Consequently, the effects are manifested in the poor performance of the Canadian dollar. The decline in the oil prices... Bank of Canada ...
1 Pages(250 words)Coursework

International HRM: International Electronics

...International HRM: Case Study of International Electronics . Introduction Human resource management is the process of managing and controlling the workforce within an organization and international human resource management indicates the system of managing the human resource in global framework. International HRM deals with issues related to human resource of the multinational companies and their foreign subsidiaries. The process includes but not limited to sourcing of candidates with relevant skills and knowledge base, recruitment and selection of those candidates, imparting necessary training for their further development and rewarding their performance after...
13 Pages(3250 words)Book Report/Review
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 International financil markts for FREE!

Contact Us