Table 6: The Estimates of Modified Fama French Model R2 AFF 0.04 (-1.46) 0.03 (0.95) 0.55* (2.77) 0.04 (0.76) -0.01 (0.21) 0.41 AIF 0.003 (0.20) -0.03 (-1.37) 0.39* (2.96) -0.002 (-0.35) 0.006 (0.01) 0.33 AMZ -0.02 (-0.54) 0.016 (0.14) 0.61* (2.38) 0.006** (1.75) -0.007 (-0.63) 0.35 ASFL -0.02 (-0.27) 0.02 (0.28) 0.41** (1.79) 0.001 (0.08) 0.004 (0.16) 0.37 ASMF -0.03 (-1.67) 0.04 (1.55) 0.71* (4.70) -0.001 (-0.23) -0.01 (-1.46) 0.55 BSJ 0.02 (0.46) 0.04 (0.76) 1.005* (3.33) 0.003 (0.39) 0.02*** (1.76) 0.33 CDF -0.03 (-1.05) 0.02 (0.57) 0.85* (4.32) -0.001 (-0.27) -0.004 (-0.43) 0.54 CMFL 0.02 (0.62) -0.03 (-0.77) 0.85* (3.37) -0.004 (-0.52) -0.006 (-0.06) 0.39 DMMF -0.01 (-0.74) 0.001 (0.06) 0.25 (2.56) 0.002 (0.49) -0.003** (-1.76) 0.36 FBGF -0.03 (-2.01) 0.03 (1.89) 0.57* (5.59) 0.002 (0.61) -0.006 (-1.44) 0.74 GA -0.007 (-0.22) -0.03 (-0.67) 1.82* (3.00) 0.005** (-1.75) 0.083 (0.22) 0.57 JSIF -0.008 (-0.53) 0.01 (0.99) 0.36 (3.02) -0.002 (-0.49) 0.005*** (1.83) 0.42 JSLF -0.002 (-0.08) -0.04 (-0.82) 1.17* (5.58) -0.006 (0.09) -0.07 (-0.73) 0.60 MBF -0.007 (-0.02) 0.002 (0.068) 0.66** (2.56) 0.01** (1.71) -0.008 (-0.74) 0.46 MBPSF -0.02 (-0.029) -0.04 (-2.39) 0.49 (1.260) 0.001 (0.34) -0.033** (1.89 ) 0.49 ... ... middle of paper ... ...ry id doing well in high market condition. The mutual funds are supposed to be used for risk hedging purpose and it is expected that this industry should outperform in low market conditions. The need is that concrete steps should be taken by the authorities to improve the mutual funds. 5.1 Limitations The empirical results of estimation are showing mix performance of mutual funds which is not according to performance of mutual funds in other emerging markets like India. The data is a big limitation in this research sample. Presently 69 Open end and 22 close end mutual funds are available for investor, but only 28 mutual funds out of 91 possess data of five or more years, remaining funds have less than five years period which does not fulfill the requirement for analysis. Secondly cross country analysis would give more insight in this issue.
Student Answer: Professional management and diversification are the major reasons investors purchase mutual funds, as well as they are easy to invest in for beginning investors or those who lack large amount of money as required by other types of investments. Investment companies are employed with experienced and profession fund managers who research and devote a lot of time to finding the perfect securities for their investment portfolios. The diversification allows for gains, even in a loss, because one investment in a mutual fund can offset the loss of another by it’s gains. Basically, your investments are scattered around and offer somewhat of a safety net for your
...ial for these private equity funds to move from not meeting expectations to meeting expectations and consequently exceeding expectations, but that is highly contingent on the future macroeconomic landscape and future credit markets. With a heavy concentration on mid-size buyout funds, private equity managers have a heavy dependence on the ability to utilize leverage and refinance their underlying investments. The 2009 financial crisis created portfolio drag in mid-sized buyout funds that can be seen throughout this portfolio. This is due to a number of capital intense and over-leveraged investments that are, or have been, in default in the last few years. If macroeconomic conditions and credit markets continue to develop we could see underlying positions improve. This would allow for the transition from not meeting expectations to potentially exceeding expectations.
Despite the increase in volatility, the NASDAQ Composite Index is up by 15.4% for 2007 and by 28% since the last MoneySoft M&A Outlook was published. During the same period, the Dow Jones Industrial Average has moved from 10,705 to 13,930—an increase of 30%, but the market is “wobbly.”
The Financial Crisis of 2007-2009 was one of the hardest financial times in the United States since the Great Depression. This was a time where many financial institutions failed, housing markets collapsed, and when banks had to be bailed out by the government. This caused the unemployment rates to increase, homes to be foreclosed, and the interest rates to fall. With all of these different systems failing, it raised concerns for many investors if their money was safe in Money Market Mutual Funds. Money Market Mutual Funds (MMMF) were first established in 1971, and they are a type of mutual fund that is required to invest in low risk securities.
Can I please have at least B for GRBA 811 Managerial Finance this semester? I did a terrible job on the final exam. I need to graduate in May, 2017 because I have to start working in May next year.
Over the previous five years, the return of the ProIndex fund have outperformed the S&P 500 index, as the 5-year-return is nearly 3 times than the benchmark and the annualised return is nearly 2 times than the benchmark. It means ProIndex fund has a significant increase in value within that period. However, the ProIndex Fund has a higher standard deviation which means it is more risk than the S&P 500 index. Especially for the annualised standard deviation, it is approximately 10% higher than the benchmark. The correlation coefficient between the ProIndex and benchmark is about 0.65 which means both two variables are positive changing consistently, but there are still some other factors which have impacts on the relationship between two variables as the correlation is less than 1. Furthermore, the higher beta, 1.0132, which is more than 1 and it may be one of the reasons for high risk as well since it is more sensitive to the market change. It means that the ProIndex fund would increase by 1.0132% if the market increased by 1%.
Ross, S.A., Westerfield, R.W., Jaffe, J. and Jordan, B.D., 2008. Modern Financial Management: International Student Edition. 8th Edition. New York: McGraw-Hill Companies.
The execution of our investment strategy occurred in three stages. First, we invested in t-bills and bonds according to our original set out investment plan. This was to decrease potential losses and risk associated with the declining equity market. Therefore, we invested about two hundred thousand of our funds into these low risk assets to maintain buying power. Due to inflation, we did not want to lose buying power by leaving funds in an account without earning interest. Further, we invested a small portion of funds into the commodity market. With a slumping equity market and a positive outlook on the gold commodity, we invested in Gold Corporation at the same time we invested in income assets.
According to Investopedia (Asset Allocation Definition, 2013), asset allocation is an investment strategy that aims to balance risk and reward by distributing a portfolio’s assets according to an individual’s goals, risk tolerance and investment horizon. There are three main asset classes: equities, fixed-income, cash and cash equivalents; but they all have different levels of risk and return. A prudent investor should be careful in allocating each asset class to his portfolio. Proper asset allocation is a highly debatable subject and is not designed equally for everybody, but is rather based on the desires and needs of the individual investor. This paper discusses the importance of asset allocation, the differences and the proper diversification within the portfolio.
Saudi Arabia’s capital market is considered to be young compared to other financial markets in the region. Saudi financial markets have been developing slowly because most enterprises in the country are either government owned or family-owned, most of which was funded through state budget, and as a result reduced the need for financing. In the recent past, Saudi Arabia has focused on a careful measurement for structural developments and regulatory changes. However, different phases of historical development of the capital market which can be classified into three phases; pre-industrialization phase, post industrialization phase and growth phase that sparked changes and shaped the kingdom 's capital market on
The aforementioned recommendations are ones with minimum risk and thus the returns while positive, will be realized over the long term. The one issue that always needs to be considered is that of future economic conditions. A serious downturn, or recession in the economy would threaten the financial sector. If such a downturn were to exist, the course of action would be for Mensa, Inc. to divert investments to the sectors of the company less influenced such as the energy sector. This sector would then support Mensa, Inc. through the economic downturn after which they can continue of the suggested action
Choosing two profitable stocks amongst a myriad of potential alternatives is a daunting task to say the least. In order to narrow my choices from thousands to two, I examined several aspects of companies I was interested in. Among these were, company overview, alpha and beta ratings, price ratios, price charts, and company headlines. After evaluating this information, I chose Intuit INC (INTU) listed on the NASDAQ and Johnson and Johnson (JNJ) listed on the NYSE.
For an organisation to rise fund, they usually tend to look at the stock market and capital market to do it so. This is two markets are usually seemed similar by the investors as they both contributes to the development of an economy. But there are significant difference between them. The capital market is a market that consist of stock market as well as the bond market. As a result, the capital market provides a long-standing finance using the debt capital and the equity capital. Capital markets divided into two sectors known as primary markets and secondary markets. The primary market is where securities are issued for the first time whereas the secondary market is where securities that have been already issued are traded among investors (Difference...
Machiraju, H. R. , 2002. International Financial Markets And India. 1st ed. New Delhi: New Age International.
Financial theories are the building blocks of today's corporate world. "The basic building blocks of finance theory lay the foundation for many modern tools used in areas such asset pricing and investment. Many of these theoretical concepts such as general equilibrium analysis, information economics and theory of contracts are firmly rooted in classical Microeconomics" (Oaktree, 2005)