Return

is also used to see the short run dynamic relationship between Bharat and other selected stock markets. The variance decomposition analysis of the selected stock exchanges is presented by the tables from 7 to10. The following tables decompose the returns at the selected stock exchanges for a period ranging from 1 to 10: Table 7: Variance Decomposition of Bharat Period S.E. Bharat H.K. CHINA U.S. 1 0.014078 100 0 0 0 2 0.014455 94.9745 0.037171 0.108475 4.879855 3 0.01451 94.2543 0.353383…

Question 1— Sarah and John have filed timely tax returns for the tax years 2010-2015 as married filing jointly. In November 2016, Sarah has engaged me for some tax advice. She tells me that in January 2014, she discovered that her husband was running an illegal side business and that he has intentionally not reported the extra income on any of his tax returns. She is scared because they have received a notice that the IRS will audit their 2015 return. She wants to know how far they can go back…

expectations, and stocks and future goods are too risky for general investors even if they have high expect returns. As a result, investing in property is a good way among all methods and attracts investors in all over the world. Property can generate a flow of income, as well as a return of capital. People will invest in the property which could be preserved or increased in value or returns. It is a large asset class of portfolios in financial areas, and investing in commercial property is…

similarities, there are also significant differences one needs to be aware of, such as how the investment works, the outside forces that influence value, liquidity, and the markets where they are traded. It is also important to understand rates of return, so I shall include multiple examples using a stock with and without a dividend component. Stocks are probably the most easily understood by the novice investor and are a market that is accessible by almost anyone. There are dozens of online…

present. Therefore, you will receive higher interests with each return. This ensures that so long as the principal keeps increasing, the…

If the IT investment has a short payback period then it is more viable. Information economics; this type of information technology investment incorporates the calculation of the total value of the IT investment, based on a enhanced return on investment by the organization. Balanced scorecard; this type of information technology investment incorporates assessing and evaluating the value of the IT investment from different perspectives in the organization, namely the business perspective…

Case Study of Kraft-Heinz Mergers In the late March of 2015, two investment firms – 3G Capital and Warren Buffet’s Berkshire Hathaway invested $10b and created a new merger company, The Kraft Heinz Company (NASDAQ: KHC). It is a merge between Kraft Foods Group (Kraft) and H.J. Heinz Company (Heinz). This merger will make them the third largest Food and Beverage Company in the North America and fifth in the world (CNBC, 2015). The H.J. Heinz Company was founded in 1869 by Henry John Heinz with…

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…

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…

realize low returns, triggering outflows by investors who update negatively about the efficiency of the managers running these funds. As a consequence of the outflows, funds sell assets they own, and this depresses further the prices of the assets hit by the original shock. Momentum arises if the outflows are gradual, and if they trigger a gradual price decline and a drop in expected returns. Reversal arises because outflows push prices below fundamental values, and so expected returns…