Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Bbc 13 04

321 views

Published on

Published in: Business, Economy & Finance
  • Be the first to comment

  • Be the first to like this

Bbc 13 04

  1. 1. Investment and portfolio management
  2. 2. Agenda• Financial statements• Why people invest :• Investment Goals• Required Rate Of Return• Capital Markets• Stock Issuing• Debt• Risk Management
  3. 3. Financial statements• Balance Sheet• Income statement• Cash flow statement• Shareholders equity statement• Notes
  4. 4. Financial statements• Example : Differences Between – Company Balance sheet – Bank Balance Sheet
  5. 5. Financial statements• Differences Between Assets & Financial assets: – Assets ( Land , building , equipments , goodwill ) – Financial Assets ( T-bill , T-bond , Stocks , Currency , derivatives ) • Bank portfolio : Is an allocation of financial assets
  6. 6. Why people invest :• Maximizing Value• Inflation ( time value of money )
  7. 7. Investment Goals• Near-term, high-priority goals• Long-term, high-priority goals• Lower-priority goals
  8. 8. Required Rate Of Return• K = Rs = RFR + B ( MRP )• K = Rs : Required Rate Of Return• RFR : Risk Free Rate ( T- bond )• B : Beta = sensitivity to movements in the relevant market
  9. 9. Required Rate Of Return• Assume the company has a beta coefficient of 1.2, that the risk-free rate (the yield on T- bonds) is 7.0%, and that the market risk premium is 5%. What is the required rate of return on the firm’s stock? 7 % + 1.2 (5 %) = 13 %
  10. 10. Capital Markets :• Get Finance• Exit Strategy
  11. 11. Stock Issuing : Primary Market Private IPO Placement Issuer Underwriter Regulations company Investor
  12. 12. Stock Issuing : Secondary Market Stock Brokerage Corporateexchange firm events
  13. 13. Debt• (Debt Instrument ) Companies Issuing Bonds to Borrow money from investors and promised to pay it back at a certain rate of interest.• Example : – Interest At Maturity ( Deposits ) – Amortized Cash Flow ( Cars ) – Bond Time Line – Fixed and Floating
  14. 14. Debt• Rating Agency : Moodys , S&P : – The Rating Reflect The Credit Worthiness of the Issuer .
  15. 15. Risk Management• Risk is The uncertainty that an investment will earn its expected rate of return .• Types Of Risk : – Country Risk ( Political ) , Business Risk . Financial Risk ( Leverage ) , Liquidity Risk & Exchange Rate Risk .
  16. 16. Risk Management• Relationship between risk and return
  17. 17. Risk Management
  18. 18. Risk Management• Basel 1 , 2
  19. 19. • •• Mubasher .info• Amcham.org.eg• CFAinstitute.org • Eima.org.eg • egx.com
  20. 20. Thank YouAhmad-gad@hotmail.com

×