Investment Portfolio Essays (Examples)
Study Document
Risk Management And Insurance
… The Contingent Deferred Annuity
vii. Survivorship or Reversionary Annuity
Q3
Investors have to account for inflation when projecting the future value of their investment. The Variable Annuity helps investors cope with the effects of inflation on investment portfolio. The underlying theory is that while the value of a dollar will change over time, a diversified investment portfolio will adjust to reflect the prevailing prices of commodities and services in the economy with inflation factored in. Common stocks represent the value … the current securities value accumulated by a client by the outstanding number of accumulation units.
Q4
Just like in life insurance, annuities’ earned investment income during the period of accumulation is not taxable. Taxation happens only when the income is disbursed. The disbursed amount is taxed on … only when the income is disbursed. The disbursed amount is taxed on the basis that the payment made is in……
References
References
Vaughan, E. J., & Vaughan, T. (2007). Fundamentals of risk and insurance. John Wiley & Sons.
Study Document
Investing Overseas Market Entry Decision Making
… better
All told, international expansion allows any business to do business where its customers do business, but also to build a more diversified portfolio, tap into new growth opportunities, and manage risk more effectively. Each international market has its own……
References
References
CE Intelligence. (2019) EU – market entry strategies. CE Intelligence.com. Retrieved December 5, 2019 from http://www.ceintelligence.com/content_manager/contentPages/view/eu-market-entry-strategies
Chapman, K. & Edmond, H. (2010) Mergers/acquisitions and restructuring in the EU chemical industry: Patterns and implications. Regional Studies. Vol. 34 (8) 753-767
Conyon, M., Girma, S., Thompson, S. & Wright, P. (2003) The productivity and wage effects of foreign acquisitions in the United Kingdom. The Journal of Industrial Economics. Vol. 50 (1) 85-102.
EF.com (2019) English proficiency index. EF.com. Retrieved December 5, 2019 from https://www.ef.com/wwen/epi/
Export.gov (2019) European Union – market entry strategy. Export.gov. Retrieved December 5, 2019 from https://www.export.gov/article?id=European-union-Market-Entry-Strategy
Girma, S. (2002) The process of European integration and the determinants of entry by non-EU multinationals in UK manufacturing. DOI:10.1111/1467-9957.00305
Girma, S. (2005) Technology transfer from acquisition FDI and the absorptive capacity of domestic firms: An empirical investigation. Open Economies Review. Vol. 16 (2) 175-187.
Lamson, M. (2016) 5 things you need to know before doing business in Europe. Inc. Magazine. Retrieved December 5, 2019 from https://www.inc.com/melissa-lamson/5-things-you-need-to-know-before-doing-business-in-europe.html
Study Document
Integrated Waveguide Technologies Preparing For A Public Offering
… information signaling effect. Therefore, a dividend distribution is informing the management of the earnings to allocate as dividends and contribute to sharing purchase investment decisions. Dividend distribution policy is informed by multiple factors such as financial flexibility, investment opportunities for the company, tax consideration, contractual and legal restrictions, the volatility of expected future earnings, and flotation costs (Baker & Weigand, 2015).
… ensure investor confidence. Therefore, management faces the tradeoff of adopting a capital budgeting decision to lower dividends and use the resources for new investment, which potentially decreases the stock prices or the undertake borrowing to pay dividends that result in a stock price increase (Travlos et al., … is founded on a perfect capital market concept while, in reality, markets are imperfect. Empirical analysis by Black & Scholes (2010) of a portfolio of 25 common stock listed on the New York Stock Exchange identified no causal relationship……
References
References
Al-Malkawi, H.-A. N., Rafferty, M., & Pillai, R. (2010). Dividend Policy?: A Review of Literatures and Empirical Evidence. International Bulletin of Business Administration, 5(9), 38–45. https://doi.org/10.12816/0037572
Baker, H. K., & Weigand, R. (2015). Corporate dividend policy revisited. In Managerial Finance (Vol. 41, Issue 2, pp. 126–144). https://doi.org/10.1108/MF-03-2014-0077
Black, F., & Scholes, M. (2010). The effects of dividend yield and dividend policy on common stock prices and returns. In Journal of Financial Economics (Vol. 1, Issue 1, pp. 1–22). https://doi.org/10.1016/0304-405X(74)90006-3
Farre-Mensa, J., Michaely, R., & Schmalz, M. (2014). Payout Policy. Annual Review of Financial Economics, 6, 75–134.
Mohanasundari, M., & Vidhya, P. (2016). Dividend Policy and Its Impact on Firm Value: A Review of Theories and Empirical Evidence. Journal of Management Sciences and Technology, 3(3), 59–69.
Travlos, Trigeorgis, & Vafeas. (2001). No Title. Multinational Finance Journal, 5(2), 87–112.
Study Document
Enterprise Risk Management In Wells Fargo During The Pandemic
… the banking sector and Wells Fargo specifically because of its role in managing loan products, using interest rates to attract savers, and offering investment advice. “No single risk associated with the COVID-19 pandemic crisis can be managed in isolation,” as Beasley (2020) points out (p.2). This means … his hedge fund netted billions by speculating with derivatives a stock market crash.
Wells Fargo could hedge risk by buying derivatives on its investment, using a call/put (i.e., long/short) strategy with options. The company could buy or sell long-dated puts or calls depending on the investment it has in the underlying. The point would be to protect against an opposite move in the price of the underlying. Thus, if … the expected alpha should also be identified and factored into planned trading strategies. Wells Fargo currently uses derivatives effectively in hedging risk against portfolio investment in MBS. Derivatives do come with……
References
References
Beasley, M. (2020). How to Leverage ERM Principles to Better Respond to COVID-19-Related Risks. ERM Professional Insights.
Derysh, I. (2020). Watchdog questions why Wells Fargo reported giving only one large PPP loan to a Black-owned business. Retrieved from https://www.salon.com/2020/07/22/watchdog-questions-why-wells-fargo-reported-giving-only-one-large-ppp-loan-to-a-black-owned-business/
English, C. (2020). Wells Fargo Forced to Cut Its Dividend After Fed Stress Test. Here’s What Other Banks Did. Retrieved from https://www.barrons.com/articles/wells-fargo-forced-to-cut-its-dividend-after-fed-stress-test-51593467664
Hall, J. (2007). Internal Auditing and ERM: Fitting in and Adding Value. Retrieved from https://global.theiia.org/about/about-the-iia/Public Documents/Sawyer_Award_2007.pdf
Kaplan, R. & Mikes, A. (2012). Managing risks: A new framework. Harvard Business Review, 3.
Lewis, M. (2010). The Big Short. NY: W. W. Norton.
Lundqvist, S. (2014). Abandoning Silos for Integration: Implementing Enterprise Risk Management and Risk Governance. Lund University.
Morgenson, G. (2020). More Wells Fargo customers say the bank decided to pause their mortgage payments without asking. Retrieved from https://www.nbcnews.com/business/personal-finance/more-wells-fargo-customers-say-bank-decided-pause-their-mortgage-n1234610
Study Document
Globalization Of Insurance
… the spread of wealth throughout the world. Insurance companies and finance go together as the former depends upon the latter for return on investment (ROI). Part of the problem with the globalization of insurance is that everything has been globalized—right down to investable markets. Since 2008, central … pension funds to, yes, insurance funds—need access to a market that will provide an adequate ROI. Insurance companies are part of the institutional investment community and with the kind of ROI that the S&P 500 has provided this year, the insurance companies would go out of business. … this year, the insurance companies would go out of business. Thus, even regulation that impacts publicly traded companies impacts insurance companies and their investment because investors are watching the S&P and looking at the financial statements of companies, too—and their actions will determine where the market prices … at the financial statements of……
References
References
Egan, M. (2018). Tax cut triggers $437 billion explosion of stock buybacks. Retrieved from https://money.cnn.com/2018/07/10/investing/stock-buybacks-record-tax-cuts/index.html
Flegm, E. H. (2008). The Need for Reliability in Accounting. Why historical cost is more reliable than fair value. Journal of Accountancy, 205(5), 34.
Healy, P. M., Palepu, K., & Serafeim, G. (2009). Subprime Crisis and Fair-Value Accounting. HBS Case, (109-031).
Laux, C., & Leuz, C. (2010). Did fair-value accounting contribute to the financial crisis?. Journal of economic perspectives, 24(1), 93-118.
Light, L. (2019). More than Half of All Stock Buybacks are Now Financed by Debt. Here’s Why That’s a Problem. Retrieved from https://fortune.com/2019/08/20/stock-buybacks-debt-financed/
Reda, J. (2018). How Stock Buybacks Can Affect Executive Compensation. Retrieved from http://clsbluesky.law.columbia.edu/2018/08/03/how-stock-buybacks-can-affect-executive-compensation/
Young, M. R., (2008). Both sides make good points. Journal of Accountancy, 205(5), 34.
Vaughan, E. J., & Vaughan T. M., (2013). Fundamentals of Risk and Insurance, 11th Edition.
Study Document
CFOs Big Data Opportunities In Firms
… to inform decision making. In stock trading, algorithmic trading and big data help investors utilize historical data to maximize the returns on their portfolio. As the adoption of Big Data in the financial services sector continues, the landscape of the industry is likely to see significant changes … working under them (Zhou, Fu & Yang, 2016).
It is vital that organizations put their focus on business areas that Big Data…[break]…make huge investment to bring their capabilities up to par with the current reality of Big Data. However, waiting for resources for such big investment can slow down progress and extend the timeframes that businesses fail to take advantage of Big Data. CFOs should sell the need to ……
References
References
Chen, H., Chiang, R. H., & Storey, V. C. (2012). Business intelligence and analytics: From big data to big impact. MIS quarterly, 36(4).
Jin, X., Wah, B. W., Cheng, X., & Wang, Y. (2015). Significance and challenges of big data research. Big Data Research, 2(2), 59-64.
Joshi, N. (2018). How Big Data Can Transform the Finance Industry. Retrieved October 7, 2019, from https://www.bbntimes.com/en/technology/big-data-is-transforming-the-finance-industry .
Nath, T. I. (2019). How Big Data Has Changed Finance. Retrieved October 7, 2019, from https://www.investopedia.com/articles/active-trading/040915/how-big-data-has-changed-finance.asp .
Turner, D., Schroeck, M., & Shockley, R. (2013). Analytics: The real-world use of big data in financial services. IBM Global Business Services, 27.
Yin, S., & Kaynak, O. (2015). Big data for modern industry: challenges and trends [point of view]. Proceedings of the IEEE, 103(2), 143-146.
Zhou, K., Fu, C., & Yang, S. (2016). Big data driven smart energy management: From big data to big insights. Renewable and Sustainable Energy Reviews, 56, 215-225.
Study Document
Understanding The Factors Affecting The Success Of Credit Risk In
… financial establishment. Furthermore, the author points out that poor credit management policy give rise to poor lending practices, which bring about a ballooned portfolio of defaulted and unpaid loans. Furthermore, a study conducted by Bashir (2000) makes the argument that the ownership structure of a financial institution ……
References
References
Bhattarai, Y. R. (2016). Effect of credit risk on the performance of Nepalese commercial banks. NRB Economic Review, 28(1), 41-64.
Das, A. and Ghosh, S. (2007). Determinants of Credit Risk in Indian State-owned Banks: An Empirical Investigation. Economic Issues, 12(2): 48-66.
Derelio?lu, G., & Gürgen, F. (2011). Knowledge discovery using neural approach for SME’s credit risk analysis problem in Turkey. Expert Systems with Applications, 38(8), 9313-9318
Garr, D. K. (2013). Determinants of credit risk in the banking industry of Ghana. Developing Country Studies, 3(11), 64-77.
Gizaw, M., Kebede, M., & Selvaraj, S. (2015). The impact of credit risk on profitability performance of commercial banks in Ethiopia. African Journal of Business Management, 9(2), 59-66.
Johnson, B., & Christensen, L. (2008). Educational research: Quantitative, qualitative, and mixed approaches. New York: Sage.
Kithinji, A. M. (2010). Credit risk management and profitability of commercial banks in Kenya. (Doctoral dissertation, University of Nairobi).
Limam, I. (2001). Measuring technical efficiency of Kuwaiti banks. Kuwait: Arab Planning Institute.
Study Document
Online Auctions For Fund Raising By Non Profit Organizations
...Investment portfolio A Systematic Review of Online Auctions for Fund Raising by Non-Profit Organizations
Background
Its origin dating back to Babylon in 500 BC auctions account as one of the oldest forms of price determination mechanism in the markets. Auction is negotiation protocols that entail simultaneous bidding with the price determined bidders and products or services allocated based on competition amongst potential buyers (McAfee, 2017).
Classifications of Auctions
There are four major classifications of auctions formats in the market based on the information asymmetry and the flow of prices. The auction types include English Auction, Dutch Auctions, sealed-bid first-price auctions, and Vickrey auctions (Klemperer, 2004).
English and Dutch auctions are both open auctions implying that they are orally implemented but entail distinguishing value setting features. According to Klemperer (2004), an English Auction also known as the oral ascending auction or first-price auction entails an ascending sequential price strategy where the auctioneer sets a……
References
References
Cachon, G. P., Daniels, K., & Lobel, R. (2015). The Role of Surge Pricing on a Service Platform with Self-Scheduling Capacity. https://ssrn.com/abstract=2698192
Connelly, A., & Winter, M. (2003). Going...Going...Gone!: Successful Auctions for Non-Profit Institutions (Second). Target Funding Group, Inc. All.
Fasli, M., Co, C., & Co, C. (2014). Designing and Implementing E-market Games. Designing and Implementing e-Market Games. January 2005.
Forbes Magazine. (2019). The 100 Largest U.S. Charities. Forbes Magazine. https://doi.org/10.1007/springerreference_75918
Hasker, K., & Sickles, R. (2010). eBay in the Economic Literature: Analysis of an Auction Marketplace. Review of Industrial Organization, 37(1), 3–42. https://doi.org/10.1007/s11151-010-9257-5
Kingston, K. (2015). A Higher Bid: How to Transform Special Event with Strategic Benefit Auctions. John Wiley & Sons, Inc., Hoboken, New Jersey.
Klemperer, P. (2004). Auctions: Theory and Practice. In Princeton University Press. https://doi.org/10.4337/9781839107429.00004
McAfee, P. (2017). The Ideal Auction - Numberphile. YouTube. https://www.youtube.com/watch?v=4kWuxfVbIaU
Study Document
Logistical Support And Distribution Strategies
… or clients in particular sectors accustomed to this mode of order placement. A key consideration when adopting direct distribution approaches is how much investment is needed. For instance, producers must incorporate vehicles, delivery personnel, and warehouses into their portfolio for effective independent goods distribution. While “middleman” is a termed viewed negatively, it is these middlemen that prove valuable in ensuring products reach ……
References
References
Heskett, J. L. (1977). Logistics-essential to strategy. Harvard Business Review, 55(6), 85-96.
Jenkins, L. (2018). Distribution strategy | Cutting edge distribution strategies 2020. Software Selection Tool | Software Selection Management | SelectHub. https://www.selecthub.com/enterprise-resource-planning/cutting-edge-distribution-strategies/
La Londe, B. J., & Masters, J. M. (1994). Emerging logistics strategies. International journal of physical distribution & logistics management.
Li, X. (2014). Operations management of logistics and supply chain: Issues and directions. Discrete Dynamics in Nature and Society, 2014.
Ma, X., Yin, Y., & Liu, T. (2011, August). The simulation and optimizing of different distribution strategies for the distribution centre based on Flexsim. In 2011 IEEE International Conference on Automation and Logistics (ICAL) (pp. 201-204). IEEE.
Partida, B. (2017, November 14). The right distribution strategy affects logistics performance. Supply Chain Management Review. https://www.scmr.com/article/the_right_distribution_strategy_affects_logistics_performance
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