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.

Decision-making - Essay Example

Comments (0)
Since required rate of return serves as the basis for making economic decisions to invest or not to invest, it is therefore important that its assessment…
Download full paper
Read TextPreview

Extract of sample

Download file to see previous pages... sset Pricing Model or CAPM relates the returns on one individual security with that of the market and as such it considers the risk of the market as well as the risk of the individual security. So called beta is therefore the exact measure which shows the relationship between the risk and return of the individual security with that of the market by calculating the co-variance of returns on individual security with that of the market.
CAPM also assumes that the investors are well diversified and they only attempt to reduce the systematic risk that is arising out of the market. As such beta is the measure which calculates this systematic risk and is always assumed to be 1 for the market as a whole.
The above calculations indicate that the beta calculated through two methods is different from each other. Beta-1 is calculated through the traditional method of finding the covariance and variance and then taking the ratio of two whereas beta 2 is calculated through regression analysis by taking the slope of the % change in the returns of the market and the individual security. The differences in the value of the two betas may be attributed to the relative differences in the two methodologies.
The published betas of two companies are 2.48 & 2.14 and are significantly different from calculated beta. (digitallook.com,2010. The above calculations indicate differences between the beta calculated and beta that has been published in various external sources. The changes or differences in the value of two betas may be attributed to different betas. The beta which has been calculated is based upon the closing price of the stock whereas published beta may have taken the adjusted prices of the shares while accommodating any dividends or splits. Thus the overall beta may be different from published sources if there exists a difference in calculations.
The differences in the beta can also be attributed to the geared and un-geared beta based on the method of calculation. Un-geared ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Decision Making
However, teams regardless of their nature and size often confront with the threat of ‘groupthink’ which leads them to faulty decision making. The threat of groupthink was identified by Irving Janis (1972) who attributed groupthink to group’s extreme cohesiveness and high concern on unanimity.
3 Pages(750 words)Essay
In Egypt, Vodafone was operating their business on software from Business Objects. The manager’s task was to observe business performance and make decisions about business. The manager ensures better utilization of data, for example, billing information, customer information, sales information and inventory information.
2 Pages(500 words)Essay
Decision Making
I received numerous resumes from several Account managers at Mitchell and one of them was Tracy. My team and I selected the best qualified three candidates all of whom were Tracy’s candidates. I called Tracy to arrange for the phone interview before proceeding in looking at the other candidates from other account managers.
3 Pages(750 words)Essay
Decision Making
This report highlights the importance of market research and consumer buying behavior in the light of Grand Days Out plc, an organization that owns and operates theme parks and other leisure activities. It starts of by identifying three Critical Success Factors for the company.
8 Pages(2000 words)Essay
This is largely to due to the increase in complexity of modern organizations, the number of divisions or sub units within a division through which several decisions has to go through for approval. Apart from this, nine out of ten times an organization faces a situation to take decisions regarding organizational and transformational process.
8 Pages(2000 words)Essay
Decision-Making Process Paper
s been done, I find the reasoning for it so that my decision-making does not get affected by entirely alternate evidences which might be available at one point in time in the future. I want to be 100 percent sure that my decision-making process is absolute and comprehensive from
2 Pages(500 words)Essay
The Science of Muddling Through , Decision Making
Branch decision making begins from the existing or current situation and changes incrementally (Sutcliffe and Gerry 484). As a result, the branch
3 Pages(750 words)Essay
5.Discuss the characteristics of group decision making. Identify the benefits and issues in a hospitality or tourism context using relevant examples
An area examinable day in day out remains the issue of what decisions should be made by individuals or taken on by groups; also the type of group decisions are they programmed ones or non-programmed, as well as when best to use group decision making in the
2 Pages(500 words)Essay
Decision Making
Likewise, the educational background, various demographic factors, personal profile, and the situation which calls for the decision significantly influence the kind of decision-making to be used. As briefly explained in one of the course reading, intuitive decision making is
2 Pages(500 words)Essay
Decision making
However, this classical view is limited by numerous factors that eventually result in biasness in human decisions, paving way for
2 Pages(500 words)Essay
Let us find you another Essay on topic Decision-making for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us