Notes On Investment Policy And Portfolio Development

Notes On Investment Policy And Portfolio Development
Investment Policy & Portfolio Development
Assignment 2
Beiyi Qi
FINA–3041 Portfolio Management
Prof. Brad Bishop
April 7, 2015
SECTION 1. INVESTMENT POLICY STATEMENT
1. CLIENT PROFILE Client Name: Hayey Wickett
Age: 45
Gross annual income: $45000
Net worth: $600,000
Anticipated annual contributions (next 5 years): $9,000
Phone: (226) 465–456Anticipated annual contributions (until retirement): $10,000
Date: 03/24/15
Address: 123 King St
Province: Ontario
Postal Code: N6H 0A1
Risk Tolerance: Medium to High
Investment Knowledge: Fair
Objective: Growth
Liquidity: Low 2. INVESTMENT OBJECTIVES
Your primary investment objective is to achieve growth on investments. Generally, there is a
correlation between portfolio ... Show more content on Helpwriting.net ...
However, unscheduled withdrawals work against your investment plan and are not recommended.
Therefore, we will work on this and I will re–organize your asset and put a reasonable amount in
your asset allocations.
Tax
Your Marginal tax rate is 31% and average tax rate based on taxable income is 16.25%. One of your
goals is tax minimizing. You will not be taxed until your withdrawal money as income.
Regulatory
Any investment activity during the service consider by Act, By–law, Regulation, Rule or the
Criminal Code must be considered a constraint. All the service steps I provided will follow the firm
regulation and business law. There will a firm regulation provided if there any law issues happened

during the service.
Unique
This stand for any specific requirement or prohibit relate to this investment by client. Examples of
unique circumstances include the desire for ethically and socially responsible investing.
➢ No alcohol stock
➢ Maximum stocks 10% of the portfolio
4. LIST OF ACCEPTABLE/PROHIBITED INVESTMENTS
Acceptable:
Cash includes high–interest savings accounts, cashable GICs, money–market funds or T–bills.
Bond includes Government of Canada bonds, GICs or XSB. REITs.
Equities include stocks, index mutual funds or actively managed mutual funds, and US equities,
global equity, and emerging markets. Stock portion will not be exceeds 10% in investment portfolio.
... Get more on HelpWriting.net ...

238720918 Zeus Asset Management Case Week 5
Executive Summary Main differences of Zeus from its main competitor are its customer–oriented
services, their core strategy of teamwork and they used municipal bond fund to purchase securities.
Estimation of risk–adjusted returns is important to Zeus as In Zeus opinion, investors will not pay
for the higher return generated by merely taking the higher risk. Investors demand Zeus to utilise
professional skills to provide them with a return above the benchmark. There are also advantages
and disadvantages of each of the risk–adjusted return measures employed, making some of them to
be better applied to a specific type of fund comparison than the others. Introduction: Zeus Asset
management is a fund management firm founded in 1968 in ... Show more content on
Helpwriting.net ...
Measuring systematic and idiosyncratic risk. Disadvantages: Merely a ranking criterion. Number
value is not economically meaningful Normal distribution assumption result in bias. Treynor ratio:
measure return in excess of the risk free rate relative to systematic risk. Advantages: It can be
compared with the benchmark performance or other portfolio with the same benchmark.
Disadvantaged: Only useful as a sub–portfolio measure of a board or fully diversified portfolio.
Jasen's Alpha: measures the average return on portfolio over and above that predicted by CAPM.
Limitation: An absolute measure does not adjusted for any risk. It is not able behave proportionally
to the level of required return of portfolio. Information ratio: the information ratio divides the alpha
of the portfolio by the nonsystematic risk. Limitation: it relies on a measure of standard deviation. It
does not present the averaging property. For Zeus, risk–adjusted return is very important due to
several reasons: By analyzing the performance of the various mutual funds, it would help the
company to establish its internal rules regarding the level or risk and return. They can use this
method to measure the excess return they earned for each unit of risk they take. It is more
comparable to the benchmark and other portfolios with different structure and risk level. Benchmark
comparison Equity fund: Zeus's equity fund aim for long–term growth of capital through
investments in a

Corporate Finance Analyst Of The Investment Bank
Introduction:
The corporate finance analyst of the investment bank is required to compute the fair price of the
bond and to estimate the number of bond issuing. The computation is based on the yield to maturity,
which measures the return that an investor would expect to receive by holding a bond until maturity.
The Yield Curve, also known as term structure of interest rate, is a commonly used financial tool
that tracks the relation between the yields and the time to maturity of a bond. Estimating the yield
on a non–currently traded bond and identifying mispriced bonds are the purposes of using the yield
curve.It could, furthermore, be used to forecast future performance of the yield on a bond. (Harris,
2014) The yield curve could be ... Show more content on Helpwriting.net ...
(Fig. 1)
Knowing that, the A – rated bond, which was required to issue for the purpose of raising five million
dollars debt, had a coupon rate of 5.5%, a maturity of 15 years and one $1000 face value .
Results:
Considering the third – order polynomial method with using the OLS regression, gave the values of
estimated parameters. (Table 1) Thus, the function of fitted yield curve, which estimated the
relationship between the yields and the time to maturity, could be determined. ( Fig. 2) Given that
the time to maturity of required issuing bond was 15 years, which could therefore gave the yield of
5.005% according to the fitted yield curve function. Consequently, this would give the bond price of
$1051.748 and the number of bond that investment bank should issue to raise debt was 4754. For a
more precise estimation, the sub data–set of the A – rated bonds that had the coupon rate ranging
from 5% to 6% could be picked out and calculated with the same procedure applied as before. This
would then gave the the yield to maturity of 4.957%, bond price of 1056.979 and the number of
issuing bond of 4730. (Table 2)
Limitation:
The third order polynomial fitted yield curve approach gives the estimated relationship between
yields and maturities, however, the fitted trend is not capable enough to explain the variation in
bond yields perfectly. If the required issuing

capsim strategies
Team: Strategies
1. Broad Cost Leader
2. Broad Differentiator
3. Niche Cost Leader (Low Technology)
4. Niche Differentiator (High Technology)
5. Cost Leader with Product Lifecycle Focus
6. Differentiator with Product Lifecycle Focus
12.1 Broad Cost Leader
A Broad Cost Leader strategy maintains a presence in all segments of the market. The company will
gain a competitive advantage by keeping R&D, production and material costs to a minimum,
enabling the company to compete on the basis of price, which will be below average. Automation
levels will be increased to improve margins and to offset second shift/overtime costs.
Mission Statement
Low–priced products for the industry: Our brands offer solid value. Our stakeholders are ... Show
more content on Helpwriting.net ...
Automation levels will be increased to improve margins and to offset second shift/overtime costs.
Mission Statement
Reliable products for low technology customers: Our brands offer value. Our stakeholders are
bondholders, stockholders, customers and management.
Tactics
Research & Development: We will concentrate our existing product line into the Low End and
Traditional segments. The traditional product will migrate to the Low End segment. The High
product will migrate to the Traditional segment. During the early years we will migrate (gradually)
our Performance and Size segment products to the Traditional segment. We can also introduce a
new product to work in the Traditional market.
Marketing: Initially we will attempt to keep pace with the awareness and accessibility of our
competitors ' products. After we establish our cost leadership position we will revisit our situation to
decide whether sales and promotion budgets should be reduced or if we should continue to match
our competitors. Our prices will be lower than average.
Production: We will significantly increase automation levels on our products. However, because
automation sets limits upon our ability to reposition products with R&D, we will postpone
automation for the High End and Size products until they arrive in the Traditional Segment. We will

prefer second shift/overtime to capacity expansions.
Finance: We will Finance our investments primarily through long–term bond

Questions On Stock And Corporate Bonds
Introduction
There are two basic types of securities, stocks and bonds. Although with both of these investments,
money in exchanged for a certificate, they are fundamentally different. A stock is evidence of being
a shareholder, hence an owner in a company. A bond, on the other hand, while still a certificate,
represents a contract and evidence of a loan to a company. Therefore stock is a form of an equity
investment and bonds are a form of a debt investment. Although there are a variety of stocks and
bonds, this paper will focus on common stock and corporate bonds and highlight the advantages and
disadvantages of investing in either of these two financial instruments. Knowing the difference
between stocks and bonds will help investors find the right level of risk and return for their
portfolios.
The Advantages of Stocks
Corporations issue both stock and bonds to raise capital to purchase land, equipment, building, or
even pay off debt. However, there are several advantages to investors to purchase a stock in a
corporation over bonds. First, when you purchase a share of stock you essentially become a part
owner in the company. With this ownership comes special privileges, such as the right to vote on
matters that could affect the future of the company. The stockholder also has the right to a share of
the company's profits, paid out in dividends as well as he appreciation in the value of the stock.
There is no limit on how much his stock value can increase which

The Strategy For A Portfolio Management Strategies
This argument is flawed. In order to know performances of both strategies, both the shift direction
and shift size should taken into consideration. First, it is not appropriate to conclude that one
strategy can outperform another strategy in the category of active portfolios management strategies
even though under the condition that there is a steeping of the yield curve. Performances of different
strategies are various, different, even though under one same condition, since the detailed
information of each strategy is unknown. Theoretically, performances of two strategies depends on
the detailed shift situations (trend and size) of the yield curve. Second, the core method of the
barbell strategy is focusing on the exceeding situations. To be more specific, the barbell strategy
concerns securities with the longest and the shortest maturities. Meanwhile, the main approach of
the ladder strategy is to build a portfolio including securities with approximately equivalent
maturities. Third, however, under some situations, ladder strategy will outperform the barbell
strategy. To be more precise, once the maturities of these two strategies are same, and if the yield
curve will experience a negative steepening trend, the discount rate of the ladder strategy will be
lower. Consequently, as the denominator of the ladder strategy is smaller than that of the barbell
strategy, the ladder strategy will beat the other one. Fourth, on the other hand, if the maturities of
these two

Zeus Asset Management
1. What is Zeus's investment philosophy?
Zeus's investment philosophy is based on the belief that superior investment results can be achieved
over many years by following a conservative, risk–averse, quality–oriented approach to investment
management. In other words, the firm uses active approach to investment management, which
means the primary job of portfolio managers is to deliver the best possible performance relative to
the benchmark's performance working within the risk and other constraints specified in the client's
mandate.
In detail, the equity fund aims to seek long–term growth of capital through investments in a high
quality portfolio of stocks, whose earnings are expected to grow at above–average rates. That is the
growth ... Show more content on Helpwriting.net ...
Thus, Lipper Growth Index was proved to be an appropriate benchmark for the evaluation of the
equity funds.
In one word, Zeus's equity funds outperformed the relevant Lipper Growth Index on both an
absolute basis and a risk–adjusted basis. The current investment–process and performance–
evaluation measures were proper to the firm.
The table below shows some statistics computed from monthly returns of Zeus equity funds,
S&P 500 Index, and Lipper Growth Index during the given period. | Subperiod 1 | Subperiod 2 |
Whole period | | Zeus | S&P500 | Lipper | Zeus | S&P500 | Lipper | Zeus | S&P500 |
Lipper | Mean | 0.0070 | 0.0097 | 0.0084 | 0.0188 | 0.0220 | 0.0190 | 0.0130 | 0.0159 | 0.0137 |
Standard Deviation | 0.0224 | 0.0244 | 0.0255 | 0.0324 | 0.0355 | 0.0349 | 0.0280 | 0.0306 | 0.0305 |
Jensen's α | –0.0016 | | –0.0010 | –0.0006 | | –0.0013 | –0.0012 | | –0.0013 | Sharpe | 0.1614 | 0.2619 |
0.1976 | 0.4499 | 0.4996 | 0.4208 | 0.3281 | 0.3950 | 0.3247 | Treynor | 0.0044 | 0.0064 | 0.0054 |
0.0170 | 0.0177 | 0.0163 | 0.0107 | 0.0121 | 0.0107 |
Bond Fund
Overall Performance (from Jan.1, 1991 to Dec.31, 1997)
Compared to the index––Lehman Brothers Aggregate Index, the average monthly return of the bond
fund was 0.662%, which was slightly lower than that of the index, 0.718%. However, Zeus did stick
to its

Starbucks Bond Information On Morningstar Essay
Starbucks bond information on Morningstar displays a quoting market price of $107.73 with a fixed
coupon rate of 3.850%, a maturity date of October 1, 2023, and a current yield to maturity of 2.80%.
Starbucks bonds mature in 2022 and 2045 with early indications of yields close to 2.80% and 4.17%
respectively. Starbucks coupon rate of 3.850% is more than the yield to maturity rate of 2.80%
indicating the bond is selling at a premium. Starbucks bond is disbursed semiannually with the bond
maturing in 16 years with a payment of $19.25 and a yield to maturity rate of 1.40% resulting in a
present value of $1074.79. The present value of $1074.79 is slightly less than the purchasing price
of $1077.30 indicating the bond is overvalued, therefore an individual should not purchase
Starbucks' bond at this time. Starbucks capital structure as of June 2015 reveals a comparatively low
percentage of debt of 33.1% ($2.9 billion) and a noticeably high equity of 66.9%. These percentages
indicate that 67% of Starbucks assets are financed with equity and the remaining 33% is financed
with debt. In other words, Starbucks has a healthy proportion of equity capital as opposed to debt
capital, which is a very positive indication of effective investment quality. Starbucks identified their
risk factors on their company website through their Investor Relations link. Starbucks risk factors
are listed on Starbucks Corporation 10–K Report under Item 1A "Risk Factors." There are five key
risk

Jetblue Airways Ipo Valuation
JetBlue Airways IPO Valuation
Summary
In July 1999, David Neeleman announced his plan to launch a new airline that would bring
"humanity back to air travel." Despite the fact the airline industry had 87 new–airline failures in
U.S. over the past 20 years. Neeleman's plan convinced a group of investors and quickly raised $130
million from venture–capital community. This is the way JetBlue Airways established. With its
strong capital base, JetBlue acquired a fleet of new Airbus A320 aircraft and focused on low–cost,
point–to–point service to large metropolitan areas with high average fares or highly traveled markets
that were underserved. This strategy brought JetBlue Airways an excellent position in the beginning
phase. JetBlue Airways ... Show more content on Helpwriting.net ...
Most of each production run is manufactured for such national brands as GE and Maytag, although
the company distributes its own line of appliances for selected discount stores under the brand
"Royal Flush". There are two major manufacturing plants–in Phoenix AZ and Roanoke VA. Over
60% of sales are to chains like Wal–Mart.
Appliance Station must now raise $75 million to modernize the two plants and expand the Phoenix
facility in order to accommodate expected sales increases in Appliance Station's business in the
housing market in the Nevada and Arizona markets. There are three possible financing alternatives
to raise the needed $75 million: 1) a stock issue, 4 million new common shares at a price of $20 per
share. Appliance Station would net $75 million after $5 million cost. 2) a bond issue, ten–year
debentures bearing an interest rate of 8%. 3) a combination of stock issue and a bond issue.
Questions
What is the risk of issuing bond?
First, debentures means without any security, it's paid back up on company's earning. Appliance
Station needs to get rating for its bond. If the rating is not good such as BB, then it's not easy to sell
the bond and the interest rate will be higher, so the company might not raise enough money. Second,
Appliance station needs to pay interest for the bond. (AAA rating's interest is the lowest around
1%). If the company cannot pay the

Ir35 Case
FOR IMMEDIATE RELEASE (Tower Hamlets, London) Independent contractors wondering how
to avoid ir35 will find they have options. One may establish an umbrella company, a limited
company or make use of an existing limited company to maximize their earning potential and
flexibility without running afoul of the legal requirements concerning independent contractors. UK
Contract Partners assists those in this situation, offering a variety of solutions to meet each
contractor's unique needs, and one can make use of the free, no obligation assessment to determine
which option best meets their needs. "Umbrella companies often get into trouble with the HMRC, as
they are taking advantage of loopholes that the HMRC is in the process of closing. They pay
contractors in loans that don't have to be repaid, as this is where the problem lies. UK Contract
Partners offer an alternative to this, allowing one ... Show more content on Helpwriting.net ...
One must be aware that 90 percent of contractors choosing this option encounter problems when it
comes to IR35, as the substitution clause confuses many. In addition, those selecting this option
frequently find they cannot take advantage of certain tax breaks granted by the government. "With
the aid of UK Contract Partners, independent contractors find they can obtain the benefits of a
limited company and comply with IR35 regulations. In addition, they gain access to tax breaks they
may not even be aware of, and virtually no admin is required. These are only a few of the benefits
one finds when working with our company to establish a limited company," Spowart states. As
contracting opportunities continue to expand in the country, more individuals will turn to
independent contracting. It's best to turn to a professional to ensure one receives the maximum
income, while avoiding IR35 problems. Those who do so find they enjoy being their own boss, as
they encounter fewer headaches and

Final Exam Cheat Sheet
Ch.1 financial intermediation results from economies of scale and the specialization of financial
transactions. (banks, inv. companies [mutual & pension funds], insurance companies, credit
unions, brokerage firms, investment banks). Inv. banks assist firms in raising capital, create the
market for innovative new securities that meet the risk and return demand (CMOs, collateralized
mortgage obligations – derivative security that separates the cash flows of a mortgage pool into
different classes with different maturities and risks). risk and return are the most important
characteristics of financial assets. Another is tax. (high tax–bracket investors would, other things
equal, would prefer tax–exempt securities [municipal bonds]). ... Show more content on
Helpwriting.net ...
spreads are commissions to dealers. dealers are called a specialist (one security, one dealer) in major
exchange markets [specialists only sometimes act as a dealer, but primary job is to execute limit
orders that investors submit. some trades are executed inside the quoted ask and bid prices; this
occurs when two brokers agree on a price without the specialist directly involved.], or market
makers (one security, many dealers) in the OTC market. commission is another transaction cost.
Some on–line brokers have lowered the commission rate and partly profit from "paying for order
flow" (the practice stating that brokers may be compensated by specific dealers by directing orders
to these dealers). buying on the margin is borrowing money (a broker's call money) to buy a
security. margin is the ratio of net worth [(total security value – amount borrowed)/total security
value]. SEE TEXT FOR EXAMPLE OF HOW TO COMPUTE. short–selling is (borrowing and)
selling a security that an investor does not already own. Short seller must purchase the security later
to replace the shares that were borrowed. short sales have some restrictions: 1)up–tick rule (short
sales are allowed only when the most recent price change was an increase); 2)investors must put up
margin as collateral and generally are not allowed to use the sale proceed until the shares are
replaced. Important regulations: 1)SEC ensures all relevant facts are disclosed; 2)circuit breakers
(trading halts

Capital Markets and Investment Banking Process Paper
Capital Markets and Investment Banking Process Paper Investments banking process and capital
markets are elements in understanding how to invest and be successful in the investments. In the
investment backing process, investor might enlist the help of an investment banker which can help
the investor with buying, selling, and trading of securities, managing assets and give financial
advice. Portfolio construction is another area that should be examined to make sure that
diversification, asset allocation and investment performance in being achieved for increase return. A
complete understanding of capital markets is vital to the investor which can give a greater
understanding on how and where investments are being processed. Investment ... Show more
content on Helpwriting.net ...
31). Municipal bonds are bonds that the state or local government issues to raise funds. Corporate
Bonds are issues by companies to raise funds. Equity Securities are Stock and Depository Receipts.
Stock can be common or preferred. Commons stock is voting shares as preferred stock has no
voting rights. Depository Receipts are like stock but are for ownership of foreign companies.
Selecting an asset class to invest in is a personal choice. The investor need to exam the risk verse the
return of the asset class that is chosen. The investor should also analyze the market and the economy
as well. The investor's personal needs and goals should always be part of the consideration in all
investment decision. Capital Markets When an investor wants to build or construct their portfolio,
the investor needs a marker where this can be accomplished. The Capital Markets have to segments
which are primary markets and secondary markets. Primary markets are where securities are sold
for the first time. For example, if a company decides to go public the stock of said company which
is called the Initial Public Offering or IPO would be sold on the Primary markets because it has a
new security. At this point is when an Investment Banker would be use to underwrite and value the
stock for the company. The secondary market is where securities are sold and bought after the
security has been sold on the primary market. The secondary markets are

The On The Bank Of Canada Website
Problem 1
a) Base on the Bank of Canada website, as of December 31, 2014, the total balance outstanding of
Treasury Bills and Bonds is 628,665,887,500("Government of Canada Treasury Bills and Domestic
Marketable Bonds Outstanding", 2016), as of April 30, 2016, the total balance outstanding of
Treasury Bills and Bonds is 655,400,506,500 ("Government of Canada Treasury Bills and Domestic
Marketable Bonds Outstanding", 2016)
What happened: The total balance outstanding of Treasury Bills and Bonds is increasing.
I would invest in bonds.
2 examples of fixed–income:
Preferred stock, corporate bonds
Additional risk:
Interest rate risk: When the interest rate goes up, the bond price will goes down.
Inflation risk: When the inflation comes ... Show more content on Helpwriting.net ...
Second, when the growth happens for the stock, the investor can achieve more money. Third, the
investor can avoid inflation through buying stocks.
Investing call options: First, to achieve the benefits from differences in price. If the future price
increases, the investor can sell it at a higher price to get benefit. Second, investing call options can
reduce transaction exposure. Third, the investor can achieve leverage effect and take advantage of
the leverage effect to do the transaction.
Investing put options: First, to achieve the benefits from differences in price as well. Second, the
investor can achieve leverage effect. Third, investing put options can protect book profit.
c) Cumulative returns:
S&P/TSX is: 8.10% Nikkei 225 is: –8.33% FTSE 100 is: 3.08% DAX is: –1.44%
Plot:
S&P/TSX:
Nikkei 225:
FTSE 100:
DAX:
How to calculate: Using excel. First finding out the price data from the beginning of 2016 to the end
of April on the internet (yahoo finance), and then using everyday's price to calculate the returns.

Base on the returns, using I dollar invest as a transaction to calculate the monthly cumulative
returns. Finally, adding monthly cumulative returns to get cumulative returns of these four months.
Highest performance and reasons: S&P/TSX: The highest performance is at the end of April, 2016
(April 29, 2016). Because mining stocks increased to a highest price

The Position Of Proventus Capital Partners
The position of Proventus Capital Partners (PCP) as a bondholder of Corral Petroleum AB bond was
difficult. Even though PCP's holding of Preem notes was only about 1% of the total par amount, but
they had invested approximately $7million in dollar– and euro–denominated bonds at around 60%
of par. PCP felt there was considerable upside in this position. However, PCP had been aware of the
risks when acquiring the bonds in the weak operating performance of the oil refining such as the
low oil price, excess capacity and the high leverage of Preem compare to many firms in the industry.
PCP was considered the long performance of the firm in the future because Preem was more
profitable than many of its peers. The economic turmoil that affected oil price was created conflict
of interest between bondholders and syndicated banks as creditors. For instance, Corral was unable
to make coupon payment because Preem was now disallowed from transferring profit to Corral. If
each party insists on taking their own advantage to save their assets and avoid loss, there was one
party loss in their investment in Corral and Preem. Alternatively, all parties included the owner
might draw an agreement that provides win–win solution to all parties. Several possible scenarios
that PCP had to consider were: a. Complete or partial sale of assets. The sale of some Preem's assets
might generate immediate cash. But, the uniqueness of business makes uncertainty in pricing and
buyer in the economic downturn.

Types Of Investments And Bonds
Introduction
This paper will examine two basic types of investments; stock and bonds, from an investor's
perspective highlighting the advantages and disadvantages between common stock (equity) and
corporate bonds (debt).
Webster Dictionary defines investment as "the outlay of money usually for income or profit usually
in a tangible asset such as property ". With both stocks and bonds, the only thing tangible is a simple
piece of paper, a certificate. On the surface, these certificates may seem the same, however there is a
very important fundamental difference. Owning a stock certificate is evidence of being a
shareholder; hence money is exchanged for a portion of ownership in a company. A bond certificate,
on the other hand, represents a contract and evidence of giving a loan to a company. Stocks are
considered equity investments and bonds debt investments. This key difference brings its own set of
pros and cons to each of these types of investment and affects their level of risk and return.
The Advantages of Stocks
Corporations issue both stocks and bonds to raise capital to purchase land, equipment, building, or
even pay off debt. However, there are several advantages to investors to purchase a stock in a
corporation over bonds. First, when you purchase a share of stock you essentially become a part
owner in the company. With this ownership comes special privileges, such as the right to vote on
who sits on the board of directors and on matters that could

Stocktrak Simulation Paper
Executive Decision: This was a simulation project related to application of different tools of
portfolio management. The project was applied by using stocktrak.com platform. This website
provides the students and teachers with a real time simulation platform for learning the portfolio
investment. A specific allocated amount was used in this simulation project for portfolio investment.
A portfolio was created of different securities like stocks, bonds and currencies. These bonds and
securities were from different sectors of economy like technology industry, financial industry,
consumer goods industry, services industry, health industry, industrial goods industry, utilities
industry, and basic materials industry. The top performing stocks in this simulation project were
Bank of America Corporation, Hersha Hospitality trust, Deans Food Company, Loews Corporation,
and Pepsi Co Inc. The study also found that the percentage return on portfolio remained above the
return realized on Dow Jones ETF during the timeline of the project.
Objectives and ... Show more content on Helpwriting.net ...
These decisions may include selling and buying of stocks, bonds, futures, currencies and so on.
Stocktrak.com helps to implement the investment decision process as it includes evaluation tools for
securities being traded at stock market. The website provides graphical historical performance of
stock prices and this graphical performance can be analyzed for making different investment
decisions related to those stocks. This project will be investing the given specified amount in a
portfolio. The portfolio investment will help to reduce the level of risk associated with investment.
With the reduction in level of risk, the average return of portfolio investment will increase as
compare to individual investments. Thus, portfolio investment is better option for investment as
compare to individual

A Case For A Stock
2. According to "The difference," (n.d.), a bond is defined as "a loan from the investor to the bond
issuer, to help raise capital for a company or government." A share is defined as a unit of ownership
interest in a corporation or financial asset that provide for an equal supply in any profits, in the form
of dividends ("Shares,"n.d.).
Ownership and rights
As stated in the beginning, a bond is considered as a loan from the investor. Therefore if a person
bought a bond such as corporate bonds from a bond issuer, he or she does not have any ownership in
the company with no direct control over the business. It will be just limited to lending and
borrowing.
In the case for a stock, when companies wish to expend but unable to do solely through the income
they earn and turn to the financial markets for additional financing by splitting the company up into
"stocks," and then sell a portion of on the open market. A person who buys stock is therefore buying
an actual share of the company, which makes him or her part owner (Kenny, 2016). Due to this, the
person who owns the stock (with the exception to preferred stocks) is entitled to vote on annual
general meeting.
Period of ownership
As bond has a loan period. The issuer issues a bond that contains the interest rate that will be paid
and the time at which the loaned funds (bond principal) must be returned also known as maturity
date ("Bond," n.d.) As for stocks, the owner can own for an unlimited period until he or she

The Department Of Labor Has Issued New Guidance On...
BACKGROUND: The Department of Labor has issued new guidance on differentiating between
employees and independent contractors.
ISSUE:
Issue #1: How does the new DOL guidance change the way in which employers classify employees
and independent contractors?
CONCLUSION:
Issue #1: The DOL has now rejected the common law control test utilized by the IRS and adopted
the economic realities test, saying that most workers are considered employees under the FLSA's
broad definition.
APPLICABLE LAW:
The DOL defines employ as "to suffer or permit to work" and has adopted the "economic realities"
test to determine whether an individual is an employee or an independent contractor. This test
focuses on whether the worker is economically dependent on the employer or legitimately in
business for himself (herself). This test involves six factors, but the DOL notes that they "should not
be applied in a mechanical fashion" but instead with an understanding that the factors are indicators
of economic dependence.
Courts have noted that the "suffer or permit" standard ensures as "broad of a scope of statutory
coverage as possible" and this broad coverage is essential to accomplish the Act's goal. This
definition means that an individual is dependent upon finding employment in the business of others,
whereas independent contractors are those workers with economic independence who are operating
their own business.
The six factors under the "Economic Realities" test are as follows:

Essay On Mutual Fund
Maybe you won't find the single best mutual fund investment for 2015, but you can get hooked up
with some of the best funds around if you know what to look for. We're talking about both the stock
and bond variety here, and if you think that the best funds for 2015 will be those with the best
mutual fund investment management team – think again.
These packaged investments are large professionally managed portfolios of securities (like stocks
and bonds) where investors pool money by buying shares. They all charge for their services and
claim to offer great service and some of the best funds around. Some tout past investment
performance, claiming to have the best mutual fund investment team in the business. In the years
leading up to 2015, ... Show more content on Helpwriting.net ...
But you can control one major factor that directly affects both fund performance and your net
returns for 2015 and beyond: the cost of investing.
The best funds for the past few years have been no–load "index funds". These are passively
managed to simply mimic the performance of major stock and bond indexes vs. trying to outperform
them. Since time has vindicated the fact that actively managed funds DO NOT significantly
outperform over the longer term, why pay an upfront sales charge (load) of 5% (or more) to invest,
and/or 2% or more in ongoing expenses and fees every year for active management? The best
mutual fund investment keeps costs low, and never underperforms its benchmark, which is an index.
The cost of investing can be less than ½% per year for expenses. Period. Now let's get more specific
about the best funds for 2015 and beyond. The best mutual fund investment for stocks: one with no
load (sales charge) that tracks a major stock index like the S&P 500 Index. This will perform right in
line with the market as measured by the same index that actively managed competitors try to beat
(and usually can't due to their high cost of active management).
The best mutual fund investment in the bond arena: one with no load and mid–to–high quality that
tracks an intermediate–term bond index. Think of bond funds (which people buy for the dividend
income) like this: if you pay a 3% load (sales charge) upfront to buy it and 1% a

Employee Contract Case Summary
The main issue in this case I whether or not Far Left misclassified Jimmy C as an independent
contractor, and in an extrapolation of that, is Jimmy entitled to workers compensation claim
benefits, minimum wage, and overtime pay for his 60+ hours. According to the U.S. Department of
Labor "the misclassification of employees as independent contractors presents one of the most
serious problems facing affected workers, employers and the entire economy." (The
Misclassification of Employees as Independent Contractors). Those misclassified employees often
unknowingly forfeit access to vital health insurance plans, retirement savings accounts and basic
entitlements, such as the minimum wage, overtime compensation, family and medical leave,
unemployment ... Show more content on Helpwriting.net ...
An independent contractor would supply many of his own necessary tools and supplies.
What is the nature and degree of the employer's control: an independent contractor must control
meaningful aspects of the work performed such that it is possible to view the worker as a person
conducting her own business.
Does the work performed require special skill and initiative and/or specialty licensing: an
individual's business aptitudes, judgment, motivation and initiative, not technical skills, will aid in
determining whether the worker is economically independent. If the individual can easily be
replaced than it is probably an employee/employer relationship.
Is the business relationship defined as permanent or indefinite: permanence or indefiniteness are
indicative of an employee as compared to an independent contractor, who typically works one
project for an employer and does not necessarily work continuously or repeatedly for an employer
unless his contract is

Bus 405 Principles of Investment Complete Class
BUS 405 PRINCIPLES OF INVESTMENT COMPLETE CLASS
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BUS 405 PRINCIPLES OF INVESTMENT COMPLETE CLASS
Week 1 Assignment Annualized Returns Chapter 3 problem 18
Complete problem 18 in Chapter 3 (shown below) and submit to the instructor. Show your work to
find the annualized return for each of the listed share prices. Write a 100 word analysis of the
process to calculate these annualized returns.
Suppose you have $28,000 to invest. You're considering Miller–Moore Equine Enterprises
(MMEE), which is currently selling for $40 per share. You also notice that a call option with ...
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Remember to complete all parts of the question and support your answers with examples from the
text and other resources.
Chapter 5 The Stock Market
Chapter 6 Common Stock Valuation
Chapter 7 Stock Price Behavior and Market Efficiency
Chapter 8 Behavioral Finance and the Psychology of Investing
Week 3 Assignment Bootstrapping Chapter 10 Problem 31
Complete problem 31 of Chapter 10 (shown below), and submit to your instructor. Show your
calculations and the algebraic manipulation of the price equation for the bond. In addition to solving
the problem, write a 100 to 200 word essay on the term structure of fixed income securities.
One method used to obtain an estimate of the term structure of interest rates is called bootstrapping.
Suppose you have a one–year zero coupon bond with a rate of r1 and a two–year bond with an
annual coupon payment of C. To bootstrap the two–year rate, you can set up the following equation
for the price (P) of the coupon bond: /(1+r_1 )+(C_2+Par value)/(1+r_2 )^2
Because you can observe all of the variables except r2, the spot rate for two years, you can solve for
this interest rate. Suppose there is a zero coupon bond with one year to maturity that sells for $949
and a two–year bond with a 7.5 percent coupon paid annually that sells for $1,020. What is the
interest rate for two years? Suppose a bond with three years until maturity and an 8.5 percent annual
coupon sells for $1,029. What is the interest rate for three

Essay On Team Work And Performance Management
Independent Contractors – Team work and Performance Management
Many organizations are open to various ways of acquiring resources for their projects; using
existing employees, hiring new employees, hiring contract resources or perhaps outsource part or
the entire project. Right resources are not always available to the PM within the organization and
will often look to hire from outside. Moore (2007, p.6) informed that globalization, advances in
communication and technology, and many baby boomers entering retirement age are some of the
reasons why organizations do prefer to use independent contract resources especially for specific
projects or certain organizational challenges. A PM acquires team members for a project; builds and
develops ... Show more content on Helpwriting.net ...
❖ Excluded from accessing vital project information: Despite the fact that project managers want
hired contractors to work with other team members seamlessly, they do not want them to have
certain information because ideally "they are not part of the team" Barley & Kunda (2004). This
notion or action could exclude independent resources from getting along well with the project team
since they are aware they are deliberately shut off or starved of necessary information to work with.
❖ Focussed on their personal ambitions and may not be interested in team work: Hired independent
contractors see themselves as very valuable people due to the skills they possess and many of them
have personal ambitions on just delivering on what they were asked to do solely, not working as
team to achieve success together. Often times, they work alone to achieve results so they will remain
relevant to the project superior to others. Such actions hinder team building and diminish
interdependence that is vital in a cohesive and high performing team. There is less control of their
activities and how they want it done (Dunlap & Girvin 2009, p.14) ❖ Envy from employees who
think they earn less: Often times, hired contractors earn far more than organization employees for
same work they do on a project. Although some company employees may not be ignorant of the
reason why they earn more, they feel bad and disheartened that they do

Mccubbin Case
1. Employee or independent contractor.
The most important factor in determining an independent contractor versus employee status of a
worker is the amount of control the employer has over the workers in performing a particular task.
McCubbin by & through McCubbin v. Walker, 256 Kan. 276, 281, 866 P.2d 790 (1994). There must
be a contract between the person wanting work done and the person doing the work in order to
establish either an employer–employee relationship or an independent contractor relationship. Id at
282, 866 P.2d at 795.
An independent contractor is defined as someone who is contracted to perform a job. The person
whom is performing the job will perform by their own means and on their own time, as long as it
falls within the time ... Show more content on Helpwriting.net ...
For starters, George had control over the scheduling of employees, the way the workers dressed, the
payment, and the procedure of selling peanuts. Even if George did not explicitly use this right (like
with the scheduling system used) he still had the right to use that control (when he scheduled people
to work games they did not sign up for. There is no formal training for the employees. However, the
worksheet and discussions with George if a particular vendor is struggling can be seen as a form of
training for employees in order to up their sales. This leads into another factor with how the
worker's services tied into the business. The Vending Company's business is to be a food and drink
vendor for all of the BeanBalls' baseball games. Kary along with the other employees played an
integral part of the Vending Company's business since they were the people actually selling the
products at the game. Kary personally provided the services to the Vending Company, there was no
person hired by Kary as a third party to do her job. The fact that Kary was paid by the hour and not
by the game is indicative of a continuing relationship between The Vending Company and Kary.
George had set work hours for his employees, since they could only work during the games plus the
additional hour before that is required to get all of the equipment and peanuts ready to sell. There
was a specific procedure to how the employees were supposed to go about their work for that day.
The employees will first show up and pick up their carrier. From that point, the employee will go
and scoop/bag the peanuts they are going to sell. At the end of the game there is a final tally of how
many bags were sold, and whoever sold the most would receive a 20–dollar bonus. The employees
must wear uniforms, though they can embellish it as they please, and they must wear black shoes.
George

Overview Of Statement No. 34
Per the provisions of Statement No. 34, governments must report their capital assets similarly to
business in their government–wide statements; however, the information provided is still inadequate
to facilitate the major types of decisions and judgments made by statement users. There are some
people, who agree to the above statement, and some are not; regardless of the information provided
it is important to be correct and adequate in order to know as a government leader where the money
has been spend and how it has to be spent; it is government's moral obligation to report it in their
government–wide statements. Therefore, this paper is going to address about whether it is important
to report capital assets similar to businesses, differences between moral obligation bonds from other
types of debt, and it is about why one government assume a moral obligation for another
government's bonds.
Governments Must Report Capital Assets Similar to Businesses It is important to report their capital
assets as similarly to business in the government–wide statements, but governments need to improve
on providing correct and adequate information for the government leaders. GASB No. 34 requires
capital assets report, and it needs to be reported in the applicable governmental or business–type
activities columns in the government–wide financial statements. According to Hegar (2016), capital
assets are those defined by the state as assets with an initial cost meeting the thresholds

Kannan Senthilkumar Case
Whereas, the parties to this Mediation agreement and release ("Agreement") are Dr. Kandasami and
Mrs. Vijayalakshmi Senthilkumar, individually and on behalf of student, Kannan Senthilkumar
(hereafter referred to as "Dr. & Mrs. Senthilkumar" or "Parents") and the Beaumont Independent
School District ("BISD" or "District"); Whereas, certain disputes exist concerning Kannan
Senthilkumar (Kannan S.'s) educational program while a student in the District, which claims are
described in the case styled Kannan S. b/n/f Kandasami and Vijayalakshmi S. v. Beaumont
Independent School District, 315–SE–0615 ("Claim"); Whereas, the District denies any liability
related to the Claim; Whereas, the District's participation in this Agreement is not an admission ...
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Dr. & Mrs. Senthilkumar, individually, and on behalf of Kannan S., in exchange for the agreements
made by the District in this Mediation Agreement, hereby releases, acquits, and forever discharges
BISD, its trustees, officials, and employees, representatives, and agents, both past and present, in
both their official and individual capacities from all obligations, demands, claims, causes of action,
or liability of any nature, whether in tort or contract, including claims for attorney's fees and/or
costs, which were raised or could have been raised against them which may have accrued against
any of the aforementioned under the Individuals with Disabilities Education Act ("IDEA') and/or its
implementing regulations, § 504 of the Rehabilitation Act and/or its implementing regulations, 42
U.S.C. § 1983, the United States Constitution, and any action under federal or state statutory law,
state or federal constitution related in any way to Kannan F's educational services or the case
Kannan S. b/n/f Kandasami and Vijayalakshmi S. v. Beaumont Independent School District, 315–
SE–0615, before a Special Education Hearing Officer for the State of Texas, other than the
enforcement of this Agreement, through the date this Agreement is executed and final. Dr. and Mrs.
Senthilkumar, individually and on behalf of Kannan S., acknowledges that they have read this
Mediation Agreement and fully understands its terms and conditions. They acknowledge that they
have had the opportunity to consult with an attorney with regard to this Mediation Agreement and
have not relied upon the representations of BISD, its trustees, officers, agents, servants, employees,
or attorneys, both past and present, regarding its contents. They further warrant that they enter into
this Mediation Agreement knowingly and willingly and without

Why Should I Use Workingperson. Com?
Who is WorkingPerson.com? WorkingPerson.com is an online marketplace for working clothes and
apparel. They were founded as a retail location in 1995. They have been marketing their products
online since 2001. What does WorkingPerson.com do? The working person needs to have quality
and comfortable things if they're going to do their job. This company carries footwear, outerwear,
workwear, flame resistant clothing, and even corporate clothing. They also carry other work
accessories such as socks, safety glasses, work gloves, knives, bags, bandanas, flasks, flashlights,
cooling products, and much more! Why should I use WorkingPerson.com? This company
understands the needs of the working person. And with this in mind, they've created a website

Essay Independent Contractor or Employee?
1.Do you feel that Karen is an independent contractor or an employee? What is your rationale for
this decision? The differentiation between an independent contractor and an employee is a critical
one for any employer to make. Furthermore, this choice can have significant implications for the
business regarding additional fees and taxes. In this situation, Karen was initially hired as a
temporary employee. Moreover, Karen has functioned as an independent contractor for 5 years. If
one were to look at her employment status, they would see that Karen has additional clients outside
of the local utility as well as the fact that she has not received benefits or proper tax documentation
for this period time. For these reasons, Karen should ... Show more content on Helpwriting.net ...
Furthermore, if no employer–employee relationship exists (regardless of what the relationship is
called), you are an independent contractor and Karen's earnings are generally subject to Medicare
and Social Security Taxes for Self–Employed (IRS, 2011). In any event, this is a very interesting
question for all involved. Despite the fact that Karen was hired as a consultant acting independently
of the utility, she has been working within a relationship with the employer for a long period of
time. 4.What are some potential legal implications in the case? What should the utility do to rectify
any wrongs in this situation? Challenges for the employer and the situation include the issues related
to government taxes such as Medicare and Social Security. In addition, the employer is bound to pay
reasonable benefits to all of its employees equally. If the utility does not do this, and it is determined
that Karen is an employee of the utility, and Karen is a legitimate case against the utility to recover
the lost benefits. To rectify this situation, the utility should clarify exactly what Karen's individual
situation is, and hopefully with the help of a tax advisor. The advisor may suggest that Karen's work
responsibilities be clearly delineated and that she be afforded the requisite benefits. Lastly, all
necessary taxes, including payroll amounts for charges such as Medicare and Social Security need to
be paid in full. 5.Draft a sample policy for

Analyzing The Concept Of Zeta Score And The Details It...
1. Expound on credit analysis. Use the concept of zeta score and the details it includes?
Credit analysis is the process by which financial institutions examine the creditability, credit history
and financial situation of a client or potential borrowers. No bank or moneylender would wish to
jeopardize their money, therefore necessitating this process. At the same time, for bond portfolio
managers or investors to debt issuing companies, the basis of their credit rating and financial
situations also need to be established. The process of investigation to get this information also
defines credit analysis. Credit rating is an important instrument used by lenders when performing
credit analysis of bond issuing institutions or individuals. ... Show more content on Helpwriting.net
...
It makes the issuer want to retrieve the bonds before the expiry of the allocated time so as to resell
them at lower interest rates. The issuer reserves the right to return investors ' principal and stop
interest payment before the maturity of bonds, of course at a higher rate than what the bond was
sold at. Due to this reason, the duration is not applicable to callable bonds.
Similar to this, duration has no applicability in the case of common stocks and real estate. It is
because a common stock is the subject of high risk due to fluctuations in prices. In the event of
stocks, investors will tend to sell stocks any time when their price is higher than prices on the date
of acquisition. The investment in stocks and real estate is made to gain higher returns whenever their
prices increase. Due to this reason, period or maturity term is not applicable in common stocks and
real estate, since their disposal is heavily pegged on the market prices.
b) Describe the way duration is used and how it is adjusted with convexity? The most popular way
in which duration is employed by the investors is to measure the volatility of the bond or any other
financial security. As time progresses, stock prices and yields fluctuate and in most cases, this
fluctuation was not foreseen. Due to this reason, investors usually select a specified period to
measure the performance of securities, which is significant identifying the level of risk associated
with their

What Are Mutual Funds?. By Sam Williams| Submitted On March
What Are Mutual Funds?
By Sam Williams | Submitted On March 30, 2016
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Expert Author Sam Williams
Mutual funds are those professionally managed investment pools that, in a way, show the
performance of several varied securities like stocks, bonds, and shares. They are usually organized
by an advisory firm for the purpose of offering the fund 's shareholders a specific investment goal.
With this, investors can buy ... Show more content on Helpwriting.net ...
Most investors pick mutual funds based on recent fund performance, the suggestion of a friend,
and/or the praise bestowed on them by a financial magazine or fund rating agency. While using
these methods can lead one to selecting a quality fund, they can also lead you in the wrong direction
and wondering what happened to that "great pick."
The past history is a good indicator, though not a guarantee, that a fund will do well. If you are
investing long–term, the history will be of more importance than in a short–term situation as they
say lightening rarely strikes the same place twice. When picking mutual funds, you have to rely on
the fund manager so researching him/her is also a good idea. The fund is only as good as the one
who is in charge of it.
You are probably aware that there are really a variety of investment opportunities available to you.
The lower the risk of an investment means the profit won 't be all that spectacular, but sometimes a
little gain is enough.
If you want to build a quality portfolio you have to focus on these three things:
1. The expected return on your investment.
2. The volatility of the market in that area.
3. How the performance of the mutual fund is directly linked to other aspects of the market.

Income Funds
These funds attempt to balance higher returns against the risk of losing money. Hence, most of these
funds split the money among a variety of investments and plot funds in a mix

A Brief Note On The Independent Contractors Organizations
Gregory Long
June 4, 2015
ACM 395 (Pricing)
Professor Adina Peyton
Independent Contractors Introduction Independent contractors are hired and used for various
reasons by companies. Probably one of the main reason businesses hire independent contractors is
that it will save the company money in the long run. Independent contractors are not employees of
the company for which they are hired. They are ultimately hired to perform a service or provide a
good for a fee. The definition of a contractor,
Independent entity that agrees to furnish certain number or quantity of goods, material, equipment,
personnel, and/ or services that meet or exceed stated requirements or specifications, at a mutually
agreed upon price and within ... Show more content on Helpwriting.net ...
A good independent contractor should have good networking skills. Most independent contractors
use subcontractors to complete the job. By having good networking skills, independent contractors
are able to hire subcontractors that are able to come in and help the project progress at a much faster
pace and ultimately finish the job on time. Most would say reliability is the most important trait of
all. When companies hire independent contractors they hope that the contractors is very reliable.
Reliable in the sense that they are able to meet all the requirement and deadlines outlined in the
contract. If companies have concerns about the reliability of an independent contractor, they should
move on to another contractor because in the long haul the job will not get accomplished which will
lead to headaches in the future. Competitive pricing is also important when selecting a contractor.
Hiring a contractor because of price is not always the best practice. Deciding which price to go with
can be a challenging task when it comes to hiring a contractor. According to Murphy (2009), "the
sellers wants to make as much money as possible and the buyer wants to save as much as possible".
When companies receive quotes from contractors that are extremely low or high those could be red
flags. Extremely low could mean that the

Marketing and Current Debt Essay
CAPSIM Quiz (done individually) Due Tuesday, September 11th at beginning of class number
answers only & signed honor code 1. If you or your team decides to introduce a new sensor product,
when should capacity and automation be purchased? 1. Two years or rounds prior to product release
2. One round prior to product release 3. The round of product release 4. The round after product
release 5. Purchase of capacity and automation is not necessary for new product release 2. The
promotion budget affects: 1. awareness 2. brand equity 3. performance 4. size 5. none of the above
3. What is the minimum amount of time that it takes to invent a new sensor? 1. 3 months 2. 6
months 3. 1 year at ... Show more content on Helpwriting.net ...
All of the above 15. How much do segment prices fall each year? 1. $0.50 2. $1.00 3. $0.75 4.
Segment price changes vary depending upon relative market demand 5. Prices remain constant in
each segment 16. Age and ___________ are the only two positioning criteria that remain constant
from year to year 1. perceived age 2. reliability 3. performance 4. size 5. price 17. Which of the
following are not considered in the Fine Cut? 1. Positioning 2. Automation 3. Age 4. Reliability 5.
Price 18. Inside each fine cut circle, 1. segments have an ideal spot where demand is at its highest 2.
product segments strive to be in the center 3. product segments strive to be near the boundaries 4.
demand is at its highest as long as product segments are within the circle 5. none of the above 19.
The Traditional segment's ideal spot is 1. near the upper–left corner of its circle 2. near the lower–
right of its circle 3. near the center of its circle 4. near the lower–left of its circle 5. near the upper–
right of its circle 20. Last year your company built 1,500,000 units of product Able and sold
1,405,000 After 14 months in R&D, a revision of product Able is due out tomorrow, on January 2
(the first business day of this year) What will happen to the unsold inventory of 95,000 units of
"old" product Able? 1. they'll compete for sales based on the product attributes they were built

Notes On Bonds And Debt Investment
Bonds are financial instruments that are used as debt investment. Bonds are a means for an investor
to lend or loan money to an entity or organisation or the government. Time of maturity is usually
predetermined (Bodie, Zvi, Kane, and Alan 12). The interest rate for this transaction however might
or might not be fixed or be variable, otherwise known as the spot rate. The bonds are very powerful
instruments in the market nowadays. T–bills, which are government issued are instruments that are
used to show the performance of the market, since the interest rate attracted by this instruments is
the risk free interest rate. The higher this interest rate is, the higher the rate of return for the investor
in this market. For this project, five bonds have been selected to serve as the drivers of the bonds
investments section. In this selection, diversification has been applied both in industry and
geographical positioning of the markets so as to achieve as optimal as possible. The volatility in
price and the volatility in the currency exchange rate of the various markets and financial
instruments have also been considered. Highly performing instruments were selected and have been
considered for this project. This include, the US Treasury bond, Municipal bond (US), Cooperate
bond (US), Fortress bond (UK) and the Turkey treasury bond.
Inflation is a factor that is very highly considered in terms of investments and long term financial
commitments such

Foundations And Hedge Fund Funds Essay
concerns and are less concerned with the performance of the hedge fund. FOUNDATIONS AND
HEDGE FUNDS
To escape income tax returns these are famous as they are not susceptible to high tax rates on
ordinary income and short–term capital gains.
What is a Foundation?
It can be said as a pool of money with a group of employees to invest that money and also give a
part of the pool to organizations with a set of objectives. Donated money is tax exemplary. To get
tax free status at least 5% of the foundation must be distributed. The returns are taxed only if the
returns are from the businesses run by the foundation.It can be invested in off–shore as well.
Foundations as Hedge Fund Investors
Convertible bond strategies and fixed income strategies are the favorable ones which has a leverage
of 6:1 to 40:1 unless it is an off–shore. Foundations take help of consultants for investing in hedge
funds. They help in recognizing the portfolio of investment and the industry to enter into, It is quite
often they take the aid of consultants. ENDOWMENTS AND HEDGE FUNDS
It is similar to a foundation except that it is concerned with a philanthropic organization. It is created
to fund a portion of the expense in that organization
Endowments as Hedge Fund Investors
These invest more into hedge funds compared to foundations. They have a stronger bond to hedge
funds compared to foundation. Their behavior towards hedge fund is the same as the foundation.
The commitment is longer and firmer

Advantages And Disadvantages On Bonds
What are bonds?
You have probably heard people talking about bonds, or read about them and how much one can
earn if they invest in bonds but you really do not know what bonds are or how they work. We shall
take you through all these and enlighten you.
Bonds are debt securities or debt investment whereby, if you buy a bond, you are actually lending
your money but with security. It is a way for you to invest your money by lending it. Borrowers will
issue bonds so as to raise funds from investors and most of the funds are usually used as capital for
further ventures or expansion. Some of the entities that issue bonds are governments, corporations,
municipalities and other federal agencies.
The entity that issues the bond is known as the Issuer and when you purchase one, ... Show more
content on Helpwriting.net ...
1. High taxes are charged on the interest payments from bonds than most of the other investment
incomes. Therefore this will affect how much you end up with as interest because what you get is
what is left after the taxes have been deducted.
2. Bonds may have low–risk factors; however, they also have lower returns if compared to other
investments such as stocks. This means that if you are going for high returns in a short time then
bonds are not the best option.
3. If you buy a bond when interest rates are low, even if the interest rates go up, you will still get
your interests calculated at the low rates rather than being revised to the high–interest rates. This,
therefore, means that you are stuck at earning using low–interest rates no matter how high the
interest rates rise.
4. The interest you an investor earns from bonds are mostly paid either once a year or twice a year in
most cases. This means that if you are looking for a more regular source of income as an
investment, then bonds would not be great for you unless you find bonds that pay off interest more

Termask@smartmoney.com
Investing | Stocks or call us toll–free at 866–219–0687.
SMALL
BONDS
Published September 29, 2000 | A
AA
MARKETS
MY QUOTES
MOST ACTIVE
Index
Price
Chg.
% Chg.
DJIA
7223.98
53.92
0.75%
Nasdaq
1431.50
5.40
0.38%
PEOPLE TALK ABOUT interest rates going up and going down as if all rates moved together. The
truth is, the
S&P 500
756.55

5.81
0.77%
Russell 2000
393.09
2.97
0.76% ... Show more content on Helpwriting.net ...
In the absence of economic disruptions, investors who risk their money for longer periods expect to
get a bigger reward – in the form of higher interest – than those who risk their money for shorter
time periods. Thus, as maturities lengthen, interest rates get progressively higher and the curve goes
up.
December 1984, marked the middle of the longest postwar expansion. As the GDP chart above
shows, growth rates were in a steady quarterly range of 2% to 5%. The Russell 3000 (the broadest
market index), meanwhile, posted strong gains for the next two years. This kind of curve is most
closely associated with the middle, salad days of an economic and stock market expansion. When
the curve is normal, economists and traders rest much easier.
Back to Applet
Steep Curve
Date: April 1992
Typically the yield on 30–year Treasury bonds is three percentage points above the yield on three–
month Treasury bills. When it gets wider than that
– and the slope of the yield curve increases sharply – long–term bond holders are sending a message
that they think the economy will improve quickly in the future.
This shape is typical at the beginning of an economic expansion, just after the end of a recession. At
that point, economic stagnation will have depressed short–term interest rates, but once the demand
for capital (and the

North West Company Incorporation
North West Company Incorporation
North West company deals in foods and everyday products and services in US market and other
cross neighbours. It was founded in year 1783 and later merged with Hudson's Bay in 1821. The
company grew rapidly and expended into other regions even though facing tough competition and
other economic barriers.
1. Long Term Debt and Current Portion of Long Term Debt
Long term Debt
Long term debt is financial/economic obligation of company lasting over years. This includes any
financing or leasing liability that has a fixed interest rate and is to mature in more than one year.
Unlike short term loans, long term loans are paid in full at maturity. Long term debt includes
debentures, leasing, and Note payable (long term), bonds, deferred tax liability, mortgage loans and
pension liabilities etc.
a) Debentures: a debenture is an unsecure bond certificate that does not hold any claims on assets of
firms. In case of company liquidation debenture certificate holders becomes a general creditor
without any priority of claim on the company's assets.
b) Mortgage loans/Loans: mortgage loans are secured debt instrument issued by bank that places
liens on specific physical property of borrower (company). It is a legally recognised undertaking.
c) Bond: for meeting long term requirements firms or governments issues bond certificates maturing
from 5 to 30 years. Bonds are of two types, floating bonds and fixed rate bonds. The interest rate on
floating bond

Personal Finance Unit 4
Brittany James
FIN 1100
Module 4 Home Work Assignments
[Answer all questions in details]
1.|Matthew Boyd asks for your help! He has saved $10,000 and wants to invest in common stock.
Choose one of the long–term or short–term techniques described in this chapter and – long term
technique: Dollar cost averaging explain how that method could help Matthew achieve his
investment goals. – this method Dollar cost averaging is a long–term technique used by investors
who purchase an equal dollar amount of the same stock at equal intervals. This could help Matthew,
because he could avoid the common pitfall of buying high and selling low. He could make money if
the stock is sold at a price higher than the average ... Show more content on Helpwriting.net ...
(F) convertible bond |
9.|Explain the difference between a load fund and a no–load fund. From a performance standpoint,
is there a significant difference between mutual funds that charge commissions and those that do
not?
– the difference between load fund and no–load fund is Load fund is a mutual fund in which
investors pay a commission every time they purchase shares, and no–load fund is a mutual fund in
which the individual investor pays NO sales charge. There is no significant performance difference
between mutual funds that charge commissions and those that do not.|
10.|Describe the steps involved in a typical stock transaction.
–A market order which is a request to buy or sell a stock at the current market value.
–limit order which is a request to buy or sell a stock at a specified price.
–stop order which is an order to sell a particular stock at the next available opportunity after its
market price reaches a specified amount.
|
11.| Choose four of the investment alternatives presented in Chapter 13
– Stocks, bonds, mutual funds, and real estate describe how the factors of safety, risk, income,
growth, and liquidity affect that investment alternative.
–All these factors matter when choosing an investment alternative. Because you want to make sure
theres safety (minimal risk of loss) in the investment. there are many different risk such as inflation
risk, interest

Strengths And Weaknesses Of Primerica Model
Largest independent financial services marketing organization in North America
Partnership with 17 companies
Make house calls
Hours available 24/7*
124,000 licensed life insurance representatives
24,000 licensed securities representatives
Low startup cost
Low over head
No payroll
Home office
Use of technology to upload applications instantly
Paid within 3 days
Override income
Residual income
Great part time opportunity while working your job
No quotas
Set own hours
Opportunity to own your book of business
* Independent agents make their own hours and can sit at time agreed upon with client
Anyone can join, flooding the market
Training: no formal college education all hands on training
Find own clients
Commission pay only
No national advertising
Middle class market is under served and that is who Primerica helps
Technological advance allowing for more remote work at time convenient for all
Other organizations downsizing to stay within their margins
Other organizations raising their rates
Regulations have made it more difficult to operate without raising rates
Competitor potentially adapting the Primerica model
Volatility of the stock market

The SWOT analysis aided in determining what strengths and weakness each Independent Contractor
must observe closely in order to remain on a successful path. As well as which opportunities and
threats may present themselves in the future.
Primerica's unique business model

Barry Bonds: Performance Enhancing Drugs
"Bacsik 3–2 again. There's a swing and a high fly ball, right–center field. Back it goes. Racing back,
Logan jumping up, and that ball is gone! (Four–second pause) No. 756. Barry Bonds stands alone.
And on the night of August 7, 2007, in San Francisco, California, Barry Lamar Bonds has hit more
home runs than any major leaguer in the history of baseball." (Times Union, ESPN). Barry Bonds
hold the record for the most homeruns in baseball. His legacy is very well known, but it is also
tainted. Barry Bonds took performance enhancing drugs, to get to where he is today. Performance
Enhancing Drugs are hurting sports, and people. It defines the word "cheating" in all aspects.
Steroids have been a large part of sports, such as the MLB, NFL to name ... Show more content on
Helpwriting.net ...
First, PED use can influence kids in the wrong way and make them believe PED's are helpful.
Second, PED use is also a big problem in sports which can be fixed, through many things such as
better testing, and increased education on what PED's have an effect on your body. Finally the after
effects of PED's are also bad. They can lead to instability and serious problems that get the user into
the hospital. Think twice about using steroids. Don't end up like other athletes that have used
steroids. Take them as an example of somebody not to look up

Notes On Investment Policy And Portfolio Development

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