Diminishing returns

Systematic risk which is known as market risk that refers to the variation in the returns on securities, which arises due to macroeconomic factors of business such as social, economic and political factors. Changes to the government policies cause an effect or influences systematic risk. There are different types of systematic risk such…

December 2013 showed by the attached excel, the annualized expected return, standard deviation and correlation of the two stocks are calculated and revealed. Using the result of the closing price minus the opening price to divide by the opening price can figure out the monthly returns during the 5 years in order to obtain the average monthly return. Then, the average monthly return time 12 months that can lead to the annualized return. Afterwards, the standard deviation applies the formula…

job training for the workers decrease production. The forest production division contains paperboard and timber plant. In the paperboard division, Missouri competitions designed new plants that created quality products at a low cost. This created no return on investment and declined profits. The cash flows for this sector would go negative for next six years. Consultants believed felt that the range for negative cash flows would be $100,000,000 to $125,000,000. This segment could be purchased…

methods. Whether it is OJT, an apprenticeship/internship, traditional lecture, online learning or simulations; training employees is crucial to organizational success. Sufficient funding should be placed in the training budget to ensure a satisfying return on investment (ROI). Through my adult life, I have encountered most, if not all of the methods of training that many organizations use today. Companies are in the business of making profits, and the cost of training is always a…

relationships (linear relationship) between two or more securities. They help to show how securities are performing in relation to one another; the possible range for the correlation coefficient is -1 to +1. A positive correlation means two different asset returns are moving in the same direction over time. A negative correlation is just the opposite; they are moving in different directions over time. If the correlation is 0, there is no…

The issue emerged on the grounds that the amplification of the company 's profits could genuinely debilitate its liquidity, and the quest for liquidity tended to weaken returns. This article assessed the relationship in the middle of conventional and option working capital measures and degree of profitability (return for money invested), particularly in mechanical firms recorded on the Johannesburg Stock Trade (JSE). The issue under scrutiny was to make whether the all the more as of late…

measured by cumulative stock returns, Return on Assets and Return on Equity. Also will control…

between returns and of the portfolio and the market portfolio. An absolutely diversified portfolio will correlate accurately with completely diversified market portfolio since only has a systematic risk. Portfolio performance measures are the most important aspects of the investment process. Performance measures enable the availability of information necessary for investors to make a decision on how effectively the money has been invested or should be invested. Evaluation of risk-adjusted…

Portfolio rebalancing model is powerful to explain the exchange rate and equity returns by Hau (2004). Based on the portfolio balance approach, M.Gelman et al. (2015) found a new approach to estimate the correlation between foreign exchange rates, asset prices and capital flows. They showed a long-run equilibrium between REFER and NFH. According to this new equilibrium, there is an equilibrium relationship between the stock of assets held by international investors and the asset prices. The…

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