Random movement of the stocks makes capital market the most uncertain of its kind. The financial analysts attempt to predict the movement of the capital market by employing statistics and other models. The stock…
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The brokers of the stock exchanges or any qualified individual can play the role of the analysts. They try to identify the trends by analyzing the past behaviour of the stock and other market important information. The statistical tools such as beta, alpha, regression, time series etc are popular among the analysts.
London Stock exchange (LSE) is the prominent exchange in UK and FTSE 100 is a popular index of LSE followed by most of the investors and analysts. Beta of a stock measures the volatility of that particular stock with the market movement. In this report the betas of two FTSE 100 companies will be calculated using covariance and variance, and using the linear regression model. The two chosen companies are Experian (EXPN) and Sainsbury(J) (SBRY). EXPN is one of the leading companies in global information services. It provides data analytical tools and other systems that help an organisation to take proper decisions (Experian, Plc. n.d.). Organisations like banks, government departments or retailers etc are the clients of EXPN. SBRY is UK’s third largest chain of supermarket and convenience store engaged in retail marketing of daily household products like grocery, garments etc. “Sainsburys Supermarkets is UKs longest standing major food retailing chain, having opened its first store in 1869, presently consisting a chain of 525 supermarkets and 303 convenience stores – and Sainsburys Bank” (J Sainsbury Plc. 2010). SBRY and EXPN, both the companies were listed in the LSE on July 11, 1975 and on October 26, 2006 respectively and the stocks of these companies are currently traded at the rate £323.78 and £600 respectively (London Stock Exchange. 2010).
In order to calculate the betas of both the companies, the historical stock prices are required. The beta will be calculated using the covariance of stock return and market return relative to the variance of market return. The second method uses linear
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Generally for publicly traded stocks the process of comparing the stock’s performance can be done much easier than a non public company. Traditionally individuals looking to invest in publicly traded company investors can use the price earnings ratio and eps.
So, the problem is how the information and concepts were structured. The graphical representations of the elements and the way they interact should have been presented in a more clear and concise manner. For example, the link between the value proposition and customer segment was clearly established.
The other bodies governing the Hong Kong Financial reporting operates as; Hong Kong Financial Reporting Standards (HKFRS), Accounting standards (HKAS) handling the related interpretations; while the section of stock exchange works under the financial listing rules appendices 14 and 23.
Seminal research works of Milton Friedman (1970) has forced the researcher in this essay to look deep on role of ethics and ethical decision making in financial institution or more specifically for banking industry. In the first part of this essay, the researcher will try to define the concept of free competition and business ethics in the light of research works of previous research scholars.
Manager's expertise like analysis, forecasting and budgeting plays a vital role in decision making. Managerial decision making is no doubt a complex problem-solving process; which consists of a definite series of stages (Garrison, 1985). Corporations expect from their key persons that they generate cash for the entity by their expertise and the decisions they make should be for the sake of the organization.
They are the foundations for ensuring a culture' of continuous performance improvement and preparing the overall business for both the boom and recessionary periods which typify the economic cycles in which companies operate (Brown, 1996). The approach is derived from a concept called Balanced Scorecard', which was developed by Robert Kaplan and David Norton.
Borrowings include loans from financial institutions; corporate bonds etc. while shareholders funds include equity share capital, preference share capital, accumulated profits. However, the amount of risk involved in both the sources of financing differs.
Every enterprise, whether public or private, large or small, profit making or not is a financial concern. Most of its decisions involve finance. Success or failure of the decisions and hence the enterprise depends on the quality of its financial decisions.
For the assignment Sage Group (SGE) and Diageo Plc (DGE) have been selected. Sage Group is a software and computer services company in UK. Diageo Plc is a leading company in premium drinks with a collection of brands across wine, spirit
The process of new product development process can be divided into three stages: the front-end, the development, and commercialization (Postma, Broekhuizen, and Bosh, 2012: 642). The frond-end phase is recognized to be the “fuzziest”
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