Managerial finance

rating system should be further tailored to each investors loss aversion which would allow investors to choose the fund that best reflects their financial needs and risk tolerance. I personally feel that properly educating individuals in personal finance and investing would mitigate the need to expand on the current rating system for mutual funds. Financial loss from investing comes from a permanent decrease in value (bond defaults) or from a temporary decrease in value (market correction) which…

ESSAYS: (4 QUESTIONS, EACH WORTH 5 POINTS) 1. Describe and discuss the Investment Pyramid including its financial foundation. A venture procedure in which a speculator enhances the danger of his/her portfolio while likewise leaving the likelihood for a substantial return. One does this by putting a large portion of the financial specialist's cash in generally safe speculation vehicles; this structures the "base" of the pyramid. The base (the widest part of the pyramid) would contain government…

Typical teenagers go all out for their sixteenth birthday party, some even spend up to $600. However, that is nothing compared to a Quinceanera. They can cost up to $5000 or $10,000. A Quinceanera is a Hispanic traditional celebration that celebrates a girl's 15th birthday. I was quite shocked when I got the invitation. I knew if I said yes to this, I would be going far beyond my comfort zone. I barely knew any Spanish and I did not know the majority of the people on the court. Although, I was…

In the chapter “July: Buy Some Happiness” from The Happiness Project by Gretchen Rubin, sets out to find out how money affects a person’s happiness. She first introduces the reader as to why she is interested in finding out how money affects happiness and what money actually is. Throughout the chapter, the author gives the reader some background to what she had been doing throughout her year and why money was her focus on the month of July. Through her argument she presents her audience with the…

In the book Money, Greed, and God, Jay W. Richards talks about many great concepts involved with economics and God. The four concepts I will be going over are, usury, The first concept that I will be going over is usury. Webster’s dictionary defines usury as, “the lending of money with an interest charge for its use; especially: the lending of money at exorbitant interest rates.” This concept has helped me view money in a different light due to the fact that I haven’t put a lot of thought into…

You would think in order for a society to push forward, it should strive for constant growth, but that is almost most certainly not the case. A period of slow and steady constant growth may lead to progress, but at a very slow rate. Surprisingly, a conflict is the most efficient and successful way an adapting society becomes better. A conflict is a result of two incompatible situations. These two situations cannot be present at the same time, so one must change or reform for the conflict to…

Ethical Situation Bernie Madoff is a prime example of an ethical situation involving a salesperson with a real world company. This man founded a Wall Street firm, in his name, and was the chairman of Bernard L. Madoff Investment Securities LLC. His employees surrounding his business included family members such as a brother, niece, daughter and sons. The firm was a well-known marketing business and he was an individual who was trusted among his peer. At the start of his…

“The NPV Profile: A creative way at looking at the NPV” by Frank Lefley and Malcolm Morgan explores the battle between using NPV (net present value) and IRR (internal rate return). NPV is the correct method of investment appraisal, but IRR is still the preferred method. Although this method is preferred, the article simply states that no single investment technique will give all the answers to investment situations. There are some weaknesses to NVP which include; failing to take into account the…

belief of a manufacturer in economic markets, and it might also have a direct effect on its stock cost. There are also different types of dividends. Organizations using the residual dividend policy select to rely on internally generated fairness to finance any new projects. Because of this, dividend repayments can come out of the residual or leftover fairness only finally challenge capital requirements are met. These organizations in most cases attempt to maintain steadiness of their…

Americans have adopted other more frugal habits. 41% of People are going longer than they used to between haircuts, 43% of people are taking staycations instead of big trips and 48% of people are packing a brown bag lunch instead of eating out. The biggest cutback is 57% of women that were surveyed said they are painting their own nails rather than going to the nail salon. Consumers used to blow their tax return on vacations and lavish material things, but not anymore, the Consumer Reports…