Shrewd Gerald this the mini case study: Ho Ching’s power has been recognized by many. As chief executive officer of Temasek Holdings, she ranked Number 18 on a list of Asia’s Most Powerful Business People and number 24 on Forbes list of the World’s Most Powerful Women. How does a shy, Stanford-educated electrical engineer end up with this kind of power? Ho was a government scholar who started off in a civil service and ended up working for the Defense Ministry in Singapore. There she met and married Lee Hsien Loong, Singapore’s current prime minister and the son of Lee Kwan Yew-one of modern Singapore’s founding fathers. Ho’s experience, education, and corrections led to her appointment as chief executive of Temasek where she oversees a portfolio worth over $50 billion and influences many of Singapore’s leading companies. Temasek Holdings was established in 1974 in an attempt by the Singapore government to drive industrialization. Through Temasek Holdings the Singapore government took stakes in a wide range of companies including the city-state’s best known companies: Singapore’s Airlines, Singapore Telecommunication, DBS Bank, Neptune Orient Lines, and Keppel Corp. The company’s website describes Temasek’s, “humble roots during a turbulent and uncertain time” and its commitment to building a vibrant future (for Singapore) through successful enterprise.” Ho’s appointment to Temasek in May 2002 caused some controversy; as prime minister her husband has a supervisory role over the firm. Ho denies any conflict of interest: The issue of conflict does not arise because there are no vested interests. Our goal is to do what makes sense for Singapore, I don’t always agree with him. (Mr. Lee) and he don’t always agree with me. We have a healthy debate on issues. In her role as Ceo, Ho is pushing for a more open policy and an aggressive drive into the Asian market. Under Ho’s leadership Temasek has decided to publicly disclose its annual report with details of its performance-details that have formerly remained private and been known only to Temasek executives. Ho is concentrating on broadening Temasek’s focus beyond Singapore, most recently opening an office in India. At a recent conference of top Indian companies, Ho appealed to investors to look to India for opportunities for Asian growth: Since the Asian Financial Crisis in 1997, the word Asia had lost a bit of its sparkle. But that sparkle is beginning to return. In the 60’s and 70’s, the Asia economic miracle referred to East Asia, specifically Japan. The 70’s and 80’s saw the emergence of the four Asian Tigers of Korea, Taiwan, Hong Kong, and Singapore. Now is India’s turn to stir, standing at an inflexion point, after 10 years of market liberalization and corporate restructuring. Since 1997, Singapore’s trade with India grew by 50 percent or a respectable CAGR about 7.5 percent. Confidence is brimming in India, and Indian companies began to reach out boldly to the world ove.

1. Shrewd Gerald this the mini case study:
Ho Ching’s power has been recognized by many. As chief
executive officer of Temasek Holdings, she ranked Number 18
on a list of Asia’s Most Powerful Business People and number
24 on Forbes list of the World’s Most Powerful Women. How
does a shy, Stanford-educated electrical engineer end up with
this kind of power? Ho was a government scholar who started
off in a civil service and ended up working for the Defense
Ministry in Singapore. There she met and married Lee Hsien
Loong, Singapore’s current prime minister and the son of Lee
Kwan Yew-one of modern Singapore’s founding fathers. Ho’s
experience, education, and corrections led to her appointment as
chief executive of Temasek where she oversees a portfolio
worth over $50 billion and influences many of Singapore’s
leading companies.
Temasek Holdings was established in 1974 in an attempt by the
Singapore government to drive industrialization. Through
Temasek Holdings the Singapore government took stakes in a
wide range of companies including the city-state’s best known
companies: Singapore’s Airlines, Singapore
Telecommunication, DBS Bank, Neptune Orient Lines, and
Keppel Corp. The company’s website describes Temasek’s,
“humble roots during a turbulent and uncertain time” and its
commitment to building a vibrant future (for Singapore) through
successful enterprise.” Ho’s appointment to Temasek in May
2002 caused some controversy; as prime minister her husband
has a supervisory role over the firm. Ho denies any conflict of
interest: The issue of conflict does not arise because there are
no vested interests. Our goal is to do what makes sense for
Singapore, I don’t always agree with him. (Mr. Lee) and he
don’t always agree with me. We have a healthy debate on
issues.
In her role as Ceo, Ho is pushing for a more open policy and an
aggressive drive into the Asian market. Under Ho’s leadership

2. Temasek has decided to publicly disclose its annual report with
details of its performance-details that have formerly remained
private and been known only to Temasek executives.
Ho is concentrating on broadening Temasek’s focus beyond
Singapore, most recently opening an office in India. At a recent
conference of top Indian companies, Ho appealed to investors to
look to India for opportunities for Asian growth:
Since the Asian Financial Crisis in 1997, the word Asia had lost
a bit of its sparkle. But that sparkle is beginning to return. In
the 60’s and 70’s, the Asia economic miracle referred to East
Asia, specifically Japan. The 70’s and 80’s saw the emergence
of the four Asian Tigers of Korea, Taiwan, Hong Kong, and
Singapore.
Now is India’s turn to stir, standing at an inflexion point, after
10 years of market liberalization and corporate restructuring.
Since 1997, Singapore’s trade with India grew by 50 percent or
a respectable CAGR about 7.5 percent. Confidence is brimming
in India, and Indian companies began to reach out boldly to the
world over the last five years.
All these waves of development have shown Asia; with a
combined population of 3 billion has been resilient. If Asia
continues to work hard and work smart, honing her competitive
strengths and leveraging on her complementary capabilities
across the borders, the outlook in the next decade or two looks
very promising indeed.
Questions
1. We have described power as the capacity to cause change
and influence as the degree of actual change in a target’s
behaviors. Ho Ching’s power as a leader has been recognized
by many, but would you describe Ho Ching as an influential
leader? Why?
2. Based on the excerpt from Ho Ching’s speech, what type of
tactics does she use to influence the behavior of others?
3. Ho Ching has been named one of the most powerful leaders
in Asia. What are her major sources of power?
Resource: The Prime Minister’s Powerful Better Half Mini Case

3. Review The Prime Minister’s Powerful Better Half.
Answer the questions at the end of the Mini Case.
Address the following:
· Review the Leader Motives in Ch. 5 of Leadership: Enhancing
the Lessons of Experience. How would you characterize Ho
Ching’s motives?
· Review Highlight 5.3 in Leadership: Enhancing the Lessons of
Experience. What role, if any, do managerial differences based
on gender play here?
Format your paper consistent with APA guidelines.
I would like the paper to to be at least 500-700words in APA
format. Please make sure that all the references are all the same
font.
Now that you have read about the CAPM, would you ever use it
to make personal investment decisions? How can an individual
investor use or think about CAPM?
Consider the following:
WHAT IS THE MAIN MESSAGE OF THE CAPM? IT
EVOLVES FROM THE NOTION THAT INVESTORS IN
GENERAL AREN'T STUPID: THEY DIVERSIFY THEIR
INVESTMENT FUNDS INTO A WELL DIVERSIFIED
PORTFOLIO. MORE SPECIFICALLY - THE MAIN MESSAGE
OF THE CAPM IS THAT THE RATE OF RETURN ONE
SHOULD EXPECT TO EARN ON A PARTICULAR
INVESTMENT IS ONLY RELATED TO THE SYSTEMATIC
RISK OF THE SECURITY, NOT TO ITS TOTAL RISK. WHEN
YOU PURCHASE A STOCK (BECAUSE YOU LIKE IT OR
BECAUSE YOU GOT A 'TIP'), YOU'LL BE EXPOSED TO
THE TOTAL RISK OF THIS STOCK, BUT THE MARKET
THEORY IMPLIES THAT YOU'LL ONLY BE
COMPENSATED FOR A SMALL PROPORTION OF THAT
RISK. HENCE, IF YOU DO LIKE RISK YOU SHOULD
INVEST IN A WELL DIVERSIFIED RISKY PORTFOLIO
WITH MANY SECURITIES HAVING A HIGH BETA,

4. RATHER IN AN INDIVIDUAL STOCK. NOW GO BACK TO
THE INITIAL QUESTION AND PRESENT YOUR
THOUGHTS...
Do research on the Internet and show the reference for the
information. Don't forget to respond to a colleague's posting
also.
Professor’s Note: In addition to searching the Internet for text
related to this threaded discussion, please watch the
following video (click on the following link to access this video
and further Part 2) and post your comments.
http://www.youtube.com/watch?v=LWsEJYPSw0k CAPM
Capital Asset Pricing Model in 4 Easy Steps - What is Capital
Asset Pricing Model Explained
Grading Criteria: Try to add information not previously
discussed by others. Please, provide factual information (not
merely opinions) backed up by details or examples. Your
comments should be in your own words and include references.
Module 3 - Outcomes
The Capital Asset Pricing Model
· Module
· Describe the theoretical and practical problems associated
with using the Capital Asset Pricing Model.
· Discuss the content and assumptions of the Capital Asset
Pricing Model.
· Identify practical uses for Capital Asset Pricing Model.
· Demonstrate the difference between diversifiable and
undiversifiable risks.
· Case
· Distinguish between diversifiable and undiversifiable risks
and explain the implications.
· Discuss the content and assumptions of the Capital Asset

5. Pricing Model.
· Identify and explain practical uses for Capital Asset Pricing
Model.
· Describe the process of risk/return analysis.
· SLP
· Describe the process of risk/return analysis.
· Describe the theoretical and practical problems associated
with using the Capital Asset Pricing Model.
· Discuss the content and assumptions of the Capital Asset
Pricing Model.
· Identify and explain practical uses for Capital Asset Pricing
Model.
· TD
· Discuss the content and assumptions of the Capital Asset
Pricing Model.
· Identify and explain practical uses for Capital Asset Pricing
Model.
· Describe the process of risk/return analysis.
· Describe the theoretical and practical problems associated
with using the Capital Asset Pricing Model.
Module 3 - Home
The Capital Asset Pricing Model
Modular Learning Outcomes
Upon successful completion of this module, the student will be
able to satisfy the following outcomes:
· Case
· Distinguish between diversifiable and undiversifiable risks
and explain the implications.
· Discuss the content and assumptions of the Capital Asset
Pricing Model.
· Identify and explain practical uses for Capital Asset Pricing
Model.
· Describe the process of risk/return analysis.
· SLP

6. · Describe the process of risk/return analysis.
· Describe the theoretical and practical problems associated
with using the Capital Asset Pricing Model.
· Discuss the content and assumptions of the Capital Asset
Pricing Model.
· Identify and explain practical uses for Capital Asset Pricing
Model.
· TD
· Discuss the content and assumptions of the Capital Asset
Pricing Model.
· Identify and explain practical uses for Capital Asset Pricing
Model.
· Describe the process of risk/return analysis
· Describe the theoretical and practical problems associated
with using the Capital Asset Pricing Model.
In Module 2 you learned about the importance of present value
and the discount rate. But now that you know how to compute
present value and you know what a discount rate is, how do you
calculate an appropriate discount rate? That is one of the
purposes of this module.
The Capital Asset Pricing Model (CAPM) is one of the most
commonly used tools by financial professionals. Developed by
Nobel Prize winning economist William Sharpe the CAPM is
used today for a large number of purposes.
The CAPM is used to value stocks, and help choose portfolios.
It is also used to estimate appropriate discount rates in present
value calculations, especially in capital budgeting decisions. It
is a major tools used in the assessment of the rate of return that
shareholders of companies require as the 'minimum rate of
return' that their company should earn on the investors'
investment in the shares of the company.
Module 3 - Background
The Capital Asset Pricing Model Required Reading
I personally recommend reading up on the basic concepts

7. behind the Capital Asset Pricing Model first before worrying
about the formula. But still many of you are eager to learn the
formulas first, so here are a few links below. But don't fixate on
the formulas, spend an equal if not greater amount of time
reading up on the basic concepts:
Investopedia (n.d.). Capital Asset Pricing Model, retrieved
from: http://www.investopedia.com/terms/c/capm.asp
MoneyChimp, (n.d.) CAPM calculator, retrieved from:
http://www.moneychimp.com/articles/valuation/capm.htm
QFinance, (n.d.) Capital Asset Pricing Model, retrieved from:
http://www.qfinance.com/asset-management-
calculations/capital-asset-pricing-model
Value Based Management, (n.d.) Capital Asset Pricing Model,
retrieved from:
http://www.valuebasedmanagement.net/methods_capm.html
To gain a deeper understanding of the CAPM and associated
concepts beyond just the formula, read:
Damodaran, A. (n.d). Picking the right projects: Investment
analysis. Retrieved from:
http://pages.stern.nyu.edu/~adamodar/pdfiles/cfovhds/inv.pdf
Risk and Return (1991). The Economist, 318, 72-73
This Article on Investment Analysis is a highly comprehensive
overview on measuring risk and the use of the CAPM. This
article is a good place to start because it will give you an idea
of how the CAPM is used in the "real world" as well as
demonstrate the basic concepts of this Module.Optional Reading
Financial Concepts: Capital Asset Pricing Model. (n.d.).
Retrieved from
http://www.investopedia.com/university/concepts/concepts8.asp
Value Based Management Net, Capital Asset Pricing Model,
Retrieved from:
http://www.valuebasedmanagement.net/methods_capm.html
Teach Me Finance has a good Page on the CAPM as well as a
page on the Security Market Line. These are some brief but
informative tutorials on these important topics.
Here is a good slide presentation on Risk and Return. For an

8. alternative slide presentation, Click Here. No need to go
through both of them, pick one or the other. You will get quite
of bit of detail about this topic from these presentations.
If you still want even more information about the CAPM, the
meta-sites below will do the trick:
Investopedia.com's CAPM Overview along with this good Page
on the CAPM is worth looking over.
Business.com has a good List of Links on the CAPM (but please
ignore the references to the Certified Associate in Project
Management also nicknamed "CAPM").