Peachtree Securities Case
1. The return on a 1-year T-Bond is risk-free since it does not vary
according to the state of the economy. The T-Bond return is
independent of the state of the economy because the estimated return
is 8% at all times. The only possible factor affecting a T-Bond may be
inflation.
2. If we were only to consider the expected return,
then the S&P 500 appears to be the best investments since it has the
greatest expected return.
3. The standard deviation provides a measurement of the total risk by
examining the tightness of the probability distribution associated
with the different possible outcomes whereas the coefficient of
variation measures risk per unit. The coefficient of variation is a
better measure when investments have different expected returns and
different levels of total risk. When risk is considered, the best
alternative depends on how much risk the investor is willing to take.
The S&P 500 may be the stock with the greatest expected return
therefore is also expected to have the greatest standard deviation
while the other potential investments have lower expected return and
consequently a lower standard deviation.
4.
a) A portfolio between TECO – Gold Hill’s would yield a expected
return of 11.2%, with a standard deviation of 2.9%, and coefficient of
variation of 0.26. Compared to TECO, this portfolio yields a lower
return because Gold Hill’s expected return is low and that brings the
average between the two down. The opposite occurs to Gold Hill’s
expected return because TECO’s expected return brings the portfolio
return up
The correlation between the two investments, offers somewhat of a
reduction if risk.
b) In case the portfolio was 75% Gold Hill the...
... middle of paper ...
...explains the increment.
If investors’ risk aversion increased so that the market risk premium
rose from 7% to 8%, TECO’s required rate of return would increase
= 8% + (8%)0.6
= 8% + 4.8%
= 12.8%
If TECO’s beta rose from 0.6 to 1, TECO’s required rate of return
would increase
= 8% + (15% - 8%)1
= 8% + 7%
= 15%
10. According to the EMH stocks are always in equilibrium. Investors
can never beat the market. Additionally, according to the EMH concept,
the expected return of a stock would be the required return of such
stock. The concept does not consider plant property and equipment.
EMH does affect corporate decisions since according to this concept,
stocks are fairly valued because its price it’s a reflection of public
information. Jack Taylor may consider acquiring personnel with
knowledge on EMH because this hypothesis seems to work.
This case is based on Mrs. Jennifer Sharkey, who sued J.P. Morgan & Co. (JCMC), Mr. Kenny, Mr. Green, and Mrs. Lassiter, alleging breach of contract and violations of the SOX anti-retaliation statute. The facts started when Mrs. Sharkey was assigned to a Suspect Client 's account where members of JPMC expressed to her their concern regarding to this account because they suspected that the Suspect Client was involved in illegal activities. After Mrs. Sharkey’s investigation, she claimed that she informed her conclusions to superiors Mr. Kenny, Mr. Green, and Mrs. Lassiter, of the Suspect Client 's potential unlawful activities, such as: money laundering, mail fraud, bank engaged in fraud, and violations of federal securities laws. After
The auteur theory is a view on filmmaking that consists of three equally important premises: technical competence, interior meaning, and personal signature of the director. Auteur is a French word for author. The auteur theory was developed by Andrew Sarris, a well-known American film critic. Technical competence of the Auteur deals with how the director films the movie in their own style. Personal signature includes recurring themes that are present within the director’s line of work with characteristics of style, which serve as a signature. The third and ultimate premise of the Auteur theory is the interior meaning which is basically the main theme behind the film.
What is an auteur? Answer this question with detailed reference to one film director: Alfred Hitchcock
Auteur theory holds that, ‘a director’s films reflect that director’s personal creative vision, as if he/she were the primary author. From the earliest silent films to contemporary times motion pictures have crossed over and both entertained and educated the viewing audience.
Auteurism is a term first coined by Francois Truffaut to describe the mark of a film director on his films. A director can be considered an auteur if about five of his film depict a certain style that is definitely his own. In other words, much like one can look at a painting and tell if it is a Monet, a Renoir, or a Degas, if a film director is an auteur, one can look at his film and tell by style and recurring themes that it was made by a certain director. In auteur films, the director is many times what brings an audience to the theater, instead of the actors or storyline. I am going to take a look at three of the most noted auteurs: Frederico Fellini, Satyajit Ray, and Alfred Hitchcock.
This short report aims to give a brief overview of Deutsche Bank’s alarming situation and describe the sharp decrease of its profitability. It will briefly introduce the context of this crisis and aim to explain it through an analysis of one of the most used indicators of performance for banks, the return on equity (ROE).
In my view, there are multiple of both past and present circumstantial factors that lead Shapiro to make a $250 million venture into a record with gigantic warnings on the basis of an earnest demand from Bernie.
The litigation of R. v. Buhay is a case where the Charter of rights and freedoms was violated by the policing parties but maintained and performed by the Supreme Court of Canada. This litigation began after two individuals; of which one was Mervyn Buhay, rented a locker at the Winnipeg bus depot. Buhay began to distract the security guards while his friend placed a duffel bag in the locker they had rented. After they left, the security guards were so engrossed by the smell coming from the locker that they unlocked it to find a sleeping bag full of marijuana in the duffel bag. Buhay was arrested the day after the bag was taken into possession even though no warrant was received to search the locker in the first place. During the first trial, due to the violation of the Charter by the police officers, Buhay was acquitted. The Crown, however, appealed this ruling and the case was taken to the Supreme Court of Canada where once again Buhay was acquitted in a 9-0 ruling. Although Buhay committed a crime by possessing marijuana, the police violated the Charter by searching Buhay`s locker without a warrant or his consent, making the Supreme court of Canada`s decision to acquit Buhay reasonable. The Supreme Court of Canada`s decision to acquit Buhay was reasonable due to the fact that the police violated the Charter of rights, no warrant was received to unlock the locker let alone seize the duffel bag, and lastly because the bus depots terms for the locker were not efficiently provided to the customers making them aware of any reasonable search conduct.
At the trial, after Sue calls her witnesses, offers her evidence, and otherwise presents her side of the case, Tom has at least two choices between courses of action. Tom can call his first witness. What else might he do? (See Following a State Court Case.)
This New Wave aesthetic solidified film as a mainstream artform, stressing that film was carefully crafted similarly to literature. Individual directors, or auteurs, were expected to “author” their films in much the same way that an author would write a novel. This auteur theory and its accompanying aesthetic became the backbone of the French New Wave and was what drove innovation. Breaking free from the screenwriter, producer, and studio driven systems of the past, and putting the creative power back in the hands of the director was seen as a crucial step in solving Cahiers’ perceived problems with French cinema before the movement.
William Sharpe, Gordon J. Alexander, Jeffrey W Bailey. Investments. Prentice Hall; 6 edition, October 20, 1998
Capital Asset Pricing Model (CAPM) is an ex ante concept, which is built on the portfolio theory established by Markowitz (Bhatnagar and Ramlogan 2012). It enhances the understanding of elements of asset prices, specifically the linear relationship between risk and expected return (Perold 2004). The direct correlation between risk and return is well defined by the security market line (SML), where market risk of an asset is associated with the return and risk of the market along with the risk free rate to estimate expected return on an asset (Watson and Head 1998 cited in Laubscher 2002).
The 1930’s is considered the Golden Age of Flight due to the rapid advances in technology regarding the introduction of flight in World War I and an increase of mass production ability. As the first commercial flights began during the beginning of the decade, approximately only 6,000 passengers boarded a plane. By 1934, there were about 450,000 and in 1938 there were bout 1.2 million passengers (Air Transport). Improvements in air travel during the 1930’s made traveling for both leisure and vacation easier and faster, yet it remained a luxury mainly for the wealthy, politicians and celebrities.
Auteur is a concept that originates in French in 1950. As its name translate to English “Author”, it is about the author. It segregates directors with unique styles and gives them more prestige. An auteur differs from other directors because they stick to their style. They are easy to distinguish. To be an auteur a director has to have three characteristics that would identify them: Technic, style, and interior meaning. This last one is more abstract, though. There are many directors that are considered auteur. Let us compare two great directors that fit into this definition. What are style, and technically used by Alfred Hitchcock and Akira Kurosawa?
Using the Modern Portfolio Theory, overtime risk assets will provide a higher expected rate of return, as compensation to the investors for accepting a high risk. The high risk will eventually lower collecting asset classes to the portfolio, thus reducing the volatile risk, and increasing the expected rates of return. Furthermore the purpose of this theory is to develop the most optimal investments portfolio which would yield the highest rate of return while ascertaining the risk for the individual or corporate investor.