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The document contains information about 7 students including their names and roll numbers. It then discusses various topics related to financial analysis such as statistical analysis, measurement of return, probabilities, expected rate of return, average rate of return, standard deviation, fundamental analysis involving analysis of economy-wide factors, industry-wide factors and company-wide factors. It also discusses technical analysis and different types of charts used including bar charts, line charts and candlestick charts.

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Security Analysis and Portfolio Management - Investment-and_Risk

Investment involves allocating funds to assets with the goal of earning income or capital appreciation over time. Speculation aims to profit from short-term price fluctuations by taking on high business risk. Investors typically have a longer time horizon, consider fundamentals, and accept moderate risk for returns, while speculators have a very short horizon, rely on market behavior, and use leverage to seek high returns for high risk. Risks include systematic market, interest rate, and inflation risks that affect all investments, as well as unsystematic business and financial risks that are specific to individual firms.

Security Analysis And Portfolio Managment

Fundamental analysis involves analyzing macroeconomic conditions, industries, and individual companies. At the macroeconomic level, factors like GDP growth, inflation, interest rates, and fiscal/monetary policies are examined. Industry analysis evaluates the attractiveness of industries based on their growth stage, competitive environment, and sensitivity to economic cycles. Finally, company analysis assesses the financial statements, management quality, and competitive positioning of specific firms. Together, this three-tiered fundamental analysis helps investors evaluate investment opportunities.

introduction to fundamental analysis

Fundamental analysis is used to analyze the intrinsic value of securities by examining related economic, financial, and other qualitative and quantitative factors. It is performed to forecast future performance and determine if securities are undervalued or overvalued. Specifically, fundamental analysis compares the market price of securities to their estimated intrinsic value based on factors like assets, earnings, dividends, and management. If the market price is higher than intrinsic value, the security is considered overvalued. If it is lower, it is undervalued. The objective of fundamental analysis is to calculate a security's fair value and determine if it presents investment opportunities.

Chapter 09a

Corporations forecast exchange rates for several reasons: to decide on financing in foreign currencies, hedging foreign cash flows, investing in foreign projects, and having foreign subsidiaries remit earnings. There are four main types of forecasting techniques: technical analysis uses historical data, fundamental analysis uses economic factors, market-based analysis uses current spot and forward rates, and mixed forecasting combines approaches. Corporations evaluate forecasts over time by measuring absolute forecast errors to assess bias and accuracy. Exchange rate volatility is also forecast to specify a confidence interval around point estimates.

3. risk and return

This document discusses key concepts related to risk and return including:
1. Definitions of actual, expected, and required returns. Expected return should equal required return for fair pricing.
2. Sources of total risk including systematic and unsystematic risk. Unsystematic risk is diversifiable while systematic risk requires compensation.
3. Measures of return such as holding period return and arithmetic/geometric means. Measures of risk include variance, standard deviation, and downside risk.
4. The relationship between risk and return showing that higher risk investments require higher expected returns. Investor indifference curves illustrate risk preferences.
5. Models relating return and risk including the CAPM and multifactor models. Security pricing relates

Exchange rate forecating

Multinational enterprises need short-term currency forecasts to make bank deposits in various currencies. There are three main types of exchange rate forecasting: judgemental forecasts which consider economic, technical, and psychological factors; technical forecasts which extrapolate past exchange rate trends; and fundamental analysis which uses econometric models incorporating macroeconomic variables. However, obtaining all relevant information and quantifying hard to measure factors make accurate exchange rate forecasting difficult.

Security analysis and portfolio management

This document discusses security analysis and portfolio management. It defines key concepts like systematic risk, market risk, interest rate risk, purchasing power risk, and exchange rate risk. It also explains how to calculate measures like beta, variance, and covariance that are used to evaluate risk and return of investment portfolios. The goal is to construct efficient portfolios that maximize return for a given level of risk based on Markowitz portfolio theory.

Forecasting Exchange Rates

here we are trying to explain how firms can benefit from forecasting exchange rate, to describe common technique that used to forecast, how to evaluate forecasting performance

Security Analysis and Portfolio Management - Investment-and_Risk

Investment involves allocating funds to assets with the goal of earning income or capital appreciation over time. Speculation aims to profit from short-term price fluctuations by taking on high business risk. Investors typically have a longer time horizon, consider fundamentals, and accept moderate risk for returns, while speculators have a very short horizon, rely on market behavior, and use leverage to seek high returns for high risk. Risks include systematic market, interest rate, and inflation risks that affect all investments, as well as unsystematic business and financial risks that are specific to individual firms.

Security Analysis And Portfolio Managment

Fundamental analysis involves analyzing macroeconomic conditions, industries, and individual companies. At the macroeconomic level, factors like GDP growth, inflation, interest rates, and fiscal/monetary policies are examined. Industry analysis evaluates the attractiveness of industries based on their growth stage, competitive environment, and sensitivity to economic cycles. Finally, company analysis assesses the financial statements, management quality, and competitive positioning of specific firms. Together, this three-tiered fundamental analysis helps investors evaluate investment opportunities.

introduction to fundamental analysis

Fundamental analysis is used to analyze the intrinsic value of securities by examining related economic, financial, and other qualitative and quantitative factors. It is performed to forecast future performance and determine if securities are undervalued or overvalued. Specifically, fundamental analysis compares the market price of securities to their estimated intrinsic value based on factors like assets, earnings, dividends, and management. If the market price is higher than intrinsic value, the security is considered overvalued. If it is lower, it is undervalued. The objective of fundamental analysis is to calculate a security's fair value and determine if it presents investment opportunities.

Chapter 09a

Corporations forecast exchange rates for several reasons: to decide on financing in foreign currencies, hedging foreign cash flows, investing in foreign projects, and having foreign subsidiaries remit earnings. There are four main types of forecasting techniques: technical analysis uses historical data, fundamental analysis uses economic factors, market-based analysis uses current spot and forward rates, and mixed forecasting combines approaches. Corporations evaluate forecasts over time by measuring absolute forecast errors to assess bias and accuracy. Exchange rate volatility is also forecast to specify a confidence interval around point estimates.

3. risk and return

This document discusses key concepts related to risk and return including:
1. Definitions of actual, expected, and required returns. Expected return should equal required return for fair pricing.
2. Sources of total risk including systematic and unsystematic risk. Unsystematic risk is diversifiable while systematic risk requires compensation.
3. Measures of return such as holding period return and arithmetic/geometric means. Measures of risk include variance, standard deviation, and downside risk.
4. The relationship between risk and return showing that higher risk investments require higher expected returns. Investor indifference curves illustrate risk preferences.
5. Models relating return and risk including the CAPM and multifactor models. Security pricing relates

Exchange rate forecating

Multinational enterprises need short-term currency forecasts to make bank deposits in various currencies. There are three main types of exchange rate forecasting: judgemental forecasts which consider economic, technical, and psychological factors; technical forecasts which extrapolate past exchange rate trends; and fundamental analysis which uses econometric models incorporating macroeconomic variables. However, obtaining all relevant information and quantifying hard to measure factors make accurate exchange rate forecasting difficult.

Security analysis and portfolio management

This document discusses security analysis and portfolio management. It defines key concepts like systematic risk, market risk, interest rate risk, purchasing power risk, and exchange rate risk. It also explains how to calculate measures like beta, variance, and covariance that are used to evaluate risk and return of investment portfolios. The goal is to construct efficient portfolios that maximize return for a given level of risk based on Markowitz portfolio theory.

Forecasting Exchange Rates

here we are trying to explain how firms can benefit from forecasting exchange rate, to describe common technique that used to forecast, how to evaluate forecasting performance

Risk and return measurement

This document discusses the concepts of risk and return in investments. It defines risk as the uncertainty of expected returns, which can be caused by factors both related and unrelated to the investment. Systematic risk refers to uncertainty from broader market factors that affect all investments, while unsystematic risk is specific to a particular investment. Standard deviation and beta are introduced as quantitative measures of risk. Standard deviation measures how much returns vary from the average, while beta measures the volatility of a security compared to the overall market. The security market line equation is presented to demonstrate how beta is used to determine the required rate of return based on the risk-free rate and market risk premium.

Financial Management: Risk and Rates of Return

This document discusses risk and rates of return in investments. It defines different types of risk like stand-alone risk and portfolio risk. It shows how to calculate expected returns, standard deviation as a measure of risk, and the coefficient of variation to compare risk-adjusted returns. It introduces the Capital Asset Pricing Model (CAPM) and how it uses beta to measure non-diversifiable market risk and determine required rates of return based on the security market line. It provides examples of calculating betas, expected returns, and portfolio risk measures like standard deviation and required returns.

Ch 12

- The document discusses various techniques for analyzing risk in capital budgeting decisions such as payback period, certainty equivalent, risk-adjusted discount rate, sensitivity analysis, scenario analysis, and simulation analysis.
- It also covers using decision trees for sequential investment decisions and incorporating utility theory to explicitly include a decision-maker's risk preferences in the capital budgeting analysis.

Ch 04

This document discusses key concepts in capital market theory and risk/return analysis, including:
1) Defining average and expected rates of return, and how to measure risk for individual assets using standard deviation and variance.
2) Calculating historical average returns for securities and determining the relationship between higher risk and higher expected returns.
3) Explaining how expected risk is calculated using variance, and how risk-averse, risk-neutral, and risk-seeking investors approach investments differently depending on risk and return levels.

A Simplified Approach To Calculating Volatility

This article explains the issues with using standard deviation to measure risk and provides a better alternative for measuring volatility.

Fundamental analysis

Fundamental analysis examines factors like a company's financial statements, management, and competitors to determine a security's intrinsic value. Technical analysis uses historical stock price movements and trading volume to identify patterns and predict future price movements. This presentation discusses both fundamental and technical analysis approaches. It defines concepts like moving averages, support/resistance levels, and patterns like head and shoulders and double bottoms that technical analysts use to identify trends and make trading decisions.

Financial Management- Risk & Uncertainty

This document discusses various techniques for risk analysis in capital budgeting. It defines risk and uncertainty and outlines methods such as risk-adjusted cutoff rate, variance, standard deviation, coefficient of variation, certainty equivalent, and sensitivity analysis. It provides examples of calculating standard deviation and using probability to assess cash flow estimates for projects. Finally, it summarizes risk-adjusted discount rate, certainty equivalent, and decision tree approaches to capital budgeting under uncertainty.

Portfolio management ppt

This document contains information about 6 students including their names and roll numbers. It also discusses concepts related to portfolio management such as determining strengths, weaknesses, opportunities, and threats to maximize returns given a risk appetite. Some benefits of project portfolio management are also listed such as higher returns, lower risks, and increased throughput. Key questions and steps for diversification and project management are outlined. Modern portfolio theory and the capital asset pricing model are also summarized.

Risk analysis in investment

This document discusses risk analysis in investment. It defines risk as the potential for losing value and discusses different types of risk like financial risk and project-specific risk. It also outlines various techniques used for risk analysis like sensitivity analysis, probability distribution approach, and payback period. As an example, it shows how adjusting the discount rate for risk can impact a project's net present value. Overall, the document provides an overview of risk analysis in investments, outlining key concepts like different risk types and techniques used to evaluate risk.

Risk in capital budgeting

Discusses various risks involved in capital budgeting - useful to the students of under graduate, post graduate and professional course students in finance and management

Return and risks ppt @ bec doms on finance

The document discusses key concepts related to investment returns and risks. It defines return as the level of profit from an investment, including current income and capital gains or losses. Key factors that influence returns are the type of investment, risks, and external economic and political forces. The time value of money is important in measuring returns, as is calculating required, real, and risk-free returns. Risks to investments include business, interest rate, currency exchange, tax, market, and event risks. Risk is evaluated at both the single asset and portfolio levels.

Risk analysis in capital budgeting

This document discusses risk analysis in capital budgeting. It defines risk and uncertainty, noting that risk can be quantified while uncertainty cannot. It explains that risk arises in investment evaluation because the future is unpredictable. There are two main categories of risk: systematic and unsystematic. Systematic risk relates to overall market trends that affect all securities, while unsystematic risk is specific to individual firms or industries and can be reduced through diversification. The document also outlines reasons for different types of risks and describes investors' possible attitudes toward risk.

Measuring risk

This document discusses various methods of measuring risk, including variance, standard deviation, skewness, kurtosis, and the components of risk such as project-specific risk, competitive risk, industry risk, market risk, and international risk. It then discusses the capital asset pricing model (CAPM) and how it uses beta to measure non-diversifiable risk and translate that into an expected return. The document provides an example of estimating beta for Disney stock.

Risk, return, and portfolio theory

The document discusses risk and return in investments. It defines key concepts such as realized and expected return, ex-ante and ex-post returns, sources and measurements of risk including standard deviation and coefficient of variation. It also discusses the risk-return tradeoff and how higher risk investments require higher potential returns to compensate for additional risk.

Risk and return analysis

The document discusses key statistical terms used in analyzing portfolio performance including mean, standard deviation, variance, correlation coefficient, and normal distribution. It explains how mean measures average returns, variance and standard deviation measure risk/volatility, and correlation measures the relationship between two investments. The document also covers portfolio theory, the efficient frontier, and risk/return analysis tools like the Sharpe Ratio and Value at Risk (VAR) that are used to evaluate portfolio performance based on expected return and risk.

Risk and return

This document discusses sources of investment returns and how to measure risk and returns. It provides the following key points:
- Investments provide two basic types of returns: income returns from cash flows and returns from changes in the investment's price or value over time.
- Total return on an investment considers both income received and capital gains/losses. Various measures can quantify returns, including arithmetic mean, geometric mean, and expected rates of return.
- Risk refers to the uncertainty of investment returns and is measured by the variability of possible outcomes. The total risk of an investment includes systematic and unsystematic components. Systematic risk cannot be eliminated by diversification, while unsystematic risk can be reduced through diversification

Chap 18 risk management & capital budgeting

The document discusses key concepts related to risk and capital budgeting. It defines risk as the range of possible outcomes of a decision where the probabilities are known. Strategies are plans to achieve goals, while states of nature are future conditions that impact strategy success. Outcomes are gains/losses from strategy-state combinations. Capital budgeting refers to planning, raising funds, and allocating capital to projects expected to generate returns over multiple years. Projects are evaluated using techniques like payback period, IRR, and NPV to determine if they increase firm value.

L 11 the forecasting function

Forecasting is the process of making predictions of the future based on past and present data and most commonly by analysis of trends. A commonplace example might be estimation of some variable of interest at some specified future date.

CCP_SEC6_Economic Analysis Statistics and Probability and Risk

A CCP is an experienced practitioner with advanced knowledge and technical expertise to apply the broad principles and best practices of Total Cost Management (TCM) in the planning, execution and management of any organizational project or program. CCPs also demonstrate the ability to research and communicate aspects of TCM principles and practices to all levels of project or program stakeholders, both internally and externally.

Invt Chapter 2 ppt.pptx best presentation

This document discusses concepts of risk and return in investment. It defines return as the basic motivating force and principal reward in investment. There are two types of return - realized return which has been earned, and expected return which is anticipated to be earned in the future. Risk refers to the possibility that the actual return may differ from the expected return. There are two main types of risk - systematic/non-diversifiable risk due to overall market factors, and unsystematic/diversifiable risk that is firm-specific. Required return from an investment is determined by the risk-free rate, expected inflation rate, and risk premium. Various measures like variance and standard deviation are used to quantify investment risk.

All inone financial mgt

This document provides an introduction to a course on financial management. It outlines the syllabus which will cover topics such as financial statements, ratio analysis, working capital management, time value of money, capital budgeting, and cost of capital. The document explains what will be included in each section of the syllabus. It also presents some introductory information on key financial concepts like the balance sheet, income statement, assets, liabilities, and cash flow statements. Rules for the course emphasize the importance of group work and that the lecturer acts as a facilitator rather than teacher.

Risk and return

This document discusses sources of investment returns and how to measure risk and returns. It provides the following key points:
- Investments provide two basic types of returns: income returns from cash flows and returns from changes in the investment's price or value over time.
- Total return on an investment considers both income received and capital gains/losses. Various measures can quantify returns, including arithmetic mean, geometric mean, and expected rates of return.
- Risk refers to the uncertainty of investment returns and is measured by the variability of possible outcomes. The total risk of an investment includes systematic and unsystematic components. Systematic risk cannot be eliminated by diversification, while unsystematic risk can be reduced through diversification

Risk and return measurement

This document discusses the concepts of risk and return in investments. It defines risk as the uncertainty of expected returns, which can be caused by factors both related and unrelated to the investment. Systematic risk refers to uncertainty from broader market factors that affect all investments, while unsystematic risk is specific to a particular investment. Standard deviation and beta are introduced as quantitative measures of risk. Standard deviation measures how much returns vary from the average, while beta measures the volatility of a security compared to the overall market. The security market line equation is presented to demonstrate how beta is used to determine the required rate of return based on the risk-free rate and market risk premium.

Financial Management: Risk and Rates of Return

This document discusses risk and rates of return in investments. It defines different types of risk like stand-alone risk and portfolio risk. It shows how to calculate expected returns, standard deviation as a measure of risk, and the coefficient of variation to compare risk-adjusted returns. It introduces the Capital Asset Pricing Model (CAPM) and how it uses beta to measure non-diversifiable market risk and determine required rates of return based on the security market line. It provides examples of calculating betas, expected returns, and portfolio risk measures like standard deviation and required returns.

Ch 12

- The document discusses various techniques for analyzing risk in capital budgeting decisions such as payback period, certainty equivalent, risk-adjusted discount rate, sensitivity analysis, scenario analysis, and simulation analysis.
- It also covers using decision trees for sequential investment decisions and incorporating utility theory to explicitly include a decision-maker's risk preferences in the capital budgeting analysis.

Ch 04

This document discusses key concepts in capital market theory and risk/return analysis, including:
1) Defining average and expected rates of return, and how to measure risk for individual assets using standard deviation and variance.
2) Calculating historical average returns for securities and determining the relationship between higher risk and higher expected returns.
3) Explaining how expected risk is calculated using variance, and how risk-averse, risk-neutral, and risk-seeking investors approach investments differently depending on risk and return levels.

A Simplified Approach To Calculating Volatility

This article explains the issues with using standard deviation to measure risk and provides a better alternative for measuring volatility.

Fundamental analysis

Fundamental analysis examines factors like a company's financial statements, management, and competitors to determine a security's intrinsic value. Technical analysis uses historical stock price movements and trading volume to identify patterns and predict future price movements. This presentation discusses both fundamental and technical analysis approaches. It defines concepts like moving averages, support/resistance levels, and patterns like head and shoulders and double bottoms that technical analysts use to identify trends and make trading decisions.

Financial Management- Risk & Uncertainty

This document discusses various techniques for risk analysis in capital budgeting. It defines risk and uncertainty and outlines methods such as risk-adjusted cutoff rate, variance, standard deviation, coefficient of variation, certainty equivalent, and sensitivity analysis. It provides examples of calculating standard deviation and using probability to assess cash flow estimates for projects. Finally, it summarizes risk-adjusted discount rate, certainty equivalent, and decision tree approaches to capital budgeting under uncertainty.

Portfolio management ppt

This document contains information about 6 students including their names and roll numbers. It also discusses concepts related to portfolio management such as determining strengths, weaknesses, opportunities, and threats to maximize returns given a risk appetite. Some benefits of project portfolio management are also listed such as higher returns, lower risks, and increased throughput. Key questions and steps for diversification and project management are outlined. Modern portfolio theory and the capital asset pricing model are also summarized.

Risk analysis in investment

This document discusses risk analysis in investment. It defines risk as the potential for losing value and discusses different types of risk like financial risk and project-specific risk. It also outlines various techniques used for risk analysis like sensitivity analysis, probability distribution approach, and payback period. As an example, it shows how adjusting the discount rate for risk can impact a project's net present value. Overall, the document provides an overview of risk analysis in investments, outlining key concepts like different risk types and techniques used to evaluate risk.

Risk in capital budgeting

Discusses various risks involved in capital budgeting - useful to the students of under graduate, post graduate and professional course students in finance and management

Return and risks ppt @ bec doms on finance

The document discusses key concepts related to investment returns and risks. It defines return as the level of profit from an investment, including current income and capital gains or losses. Key factors that influence returns are the type of investment, risks, and external economic and political forces. The time value of money is important in measuring returns, as is calculating required, real, and risk-free returns. Risks to investments include business, interest rate, currency exchange, tax, market, and event risks. Risk is evaluated at both the single asset and portfolio levels.

Risk analysis in capital budgeting

This document discusses risk analysis in capital budgeting. It defines risk and uncertainty, noting that risk can be quantified while uncertainty cannot. It explains that risk arises in investment evaluation because the future is unpredictable. There are two main categories of risk: systematic and unsystematic. Systematic risk relates to overall market trends that affect all securities, while unsystematic risk is specific to individual firms or industries and can be reduced through diversification. The document also outlines reasons for different types of risks and describes investors' possible attitudes toward risk.

Measuring risk

This document discusses various methods of measuring risk, including variance, standard deviation, skewness, kurtosis, and the components of risk such as project-specific risk, competitive risk, industry risk, market risk, and international risk. It then discusses the capital asset pricing model (CAPM) and how it uses beta to measure non-diversifiable risk and translate that into an expected return. The document provides an example of estimating beta for Disney stock.

Risk, return, and portfolio theory

The document discusses risk and return in investments. It defines key concepts such as realized and expected return, ex-ante and ex-post returns, sources and measurements of risk including standard deviation and coefficient of variation. It also discusses the risk-return tradeoff and how higher risk investments require higher potential returns to compensate for additional risk.

Risk and return analysis

The document discusses key statistical terms used in analyzing portfolio performance including mean, standard deviation, variance, correlation coefficient, and normal distribution. It explains how mean measures average returns, variance and standard deviation measure risk/volatility, and correlation measures the relationship between two investments. The document also covers portfolio theory, the efficient frontier, and risk/return analysis tools like the Sharpe Ratio and Value at Risk (VAR) that are used to evaluate portfolio performance based on expected return and risk.

Risk and return

This document discusses sources of investment returns and how to measure risk and returns. It provides the following key points:
- Investments provide two basic types of returns: income returns from cash flows and returns from changes in the investment's price or value over time.
- Total return on an investment considers both income received and capital gains/losses. Various measures can quantify returns, including arithmetic mean, geometric mean, and expected rates of return.
- Risk refers to the uncertainty of investment returns and is measured by the variability of possible outcomes. The total risk of an investment includes systematic and unsystematic components. Systematic risk cannot be eliminated by diversification, while unsystematic risk can be reduced through diversification

Chap 18 risk management & capital budgeting

The document discusses key concepts related to risk and capital budgeting. It defines risk as the range of possible outcomes of a decision where the probabilities are known. Strategies are plans to achieve goals, while states of nature are future conditions that impact strategy success. Outcomes are gains/losses from strategy-state combinations. Capital budgeting refers to planning, raising funds, and allocating capital to projects expected to generate returns over multiple years. Projects are evaluated using techniques like payback period, IRR, and NPV to determine if they increase firm value.

Risk and return measurement

Risk and return measurement

Financial Management: Risk and Rates of Return

Financial Management: Risk and Rates of Return

Ch 12

Ch 12

Ch 04

Ch 04

A Simplified Approach To Calculating Volatility

A Simplified Approach To Calculating Volatility

Fundamental analysis

Fundamental analysis

Financial Management- Risk & Uncertainty

Financial Management- Risk & Uncertainty

Portfolio management ppt

Portfolio management ppt

Risk analysis in investment

Risk analysis in investment

Risk in capital budgeting

Risk in capital budgeting

Return and risks ppt @ bec doms on finance

Return and risks ppt @ bec doms on finance

Risk analysis in capital budgeting

Risk analysis in capital budgeting

Measuring risk

Measuring risk

Risk, return, and portfolio theory

Risk, return, and portfolio theory

Risk and return analysis

Risk and return analysis

Risk and return

Risk and return

Chap 18 risk management & capital budgeting

Chap 18 risk management & capital budgeting

L 11 the forecasting function

Forecasting is the process of making predictions of the future based on past and present data and most commonly by analysis of trends. A commonplace example might be estimation of some variable of interest at some specified future date.

CCP_SEC6_Economic Analysis Statistics and Probability and Risk

A CCP is an experienced practitioner with advanced knowledge and technical expertise to apply the broad principles and best practices of Total Cost Management (TCM) in the planning, execution and management of any organizational project or program. CCPs also demonstrate the ability to research and communicate aspects of TCM principles and practices to all levels of project or program stakeholders, both internally and externally.

Invt Chapter 2 ppt.pptx best presentation

This document discusses concepts of risk and return in investment. It defines return as the basic motivating force and principal reward in investment. There are two types of return - realized return which has been earned, and expected return which is anticipated to be earned in the future. Risk refers to the possibility that the actual return may differ from the expected return. There are two main types of risk - systematic/non-diversifiable risk due to overall market factors, and unsystematic/diversifiable risk that is firm-specific. Required return from an investment is determined by the risk-free rate, expected inflation rate, and risk premium. Various measures like variance and standard deviation are used to quantify investment risk.

All inone financial mgt

This document provides an introduction to a course on financial management. It outlines the syllabus which will cover topics such as financial statements, ratio analysis, working capital management, time value of money, capital budgeting, and cost of capital. The document explains what will be included in each section of the syllabus. It also presents some introductory information on key financial concepts like the balance sheet, income statement, assets, liabilities, and cash flow statements. Rules for the course emphasize the importance of group work and that the lecturer acts as a facilitator rather than teacher.

Fm unit-2-part-1 (1)

This document discusses various types of risk that impact investments, including systematic risk and unsystematic risk. Systematic risk, also called market risk, cannot be avoided and includes interest rate risk, inflation risk, political risk, and natural disasters. Unsystematic risk is specific to a company or industry and is diversifiable. The document also provides examples of how inflation and interest rate changes can impact bond returns. It defines beta as a measure of a stock's volatility compared to the overall market and discusses how beta is used to assess risk. Finally, it summarizes the steps of fundamental analysis, including economic, industry, and company analysis.

Risk and return analysis.pptx

This document discusses concepts related to risk and return analysis in finance. It defines key terms like return, expected return, risk measures including beta, standard deviation, and alpha. It also categorizes different types of risk and explores the relationship between risk and return. Methods for computing rates of return from market data and calculating variance and standard deviation of returns are presented.

Fundamental Analysis.pptx

This document provides an overview of fundamental analysis techniques used in security analysis and portfolio management. It outlines 5 course outcomes related to macro/industry analysis, equity valuation, financial statement analysis, bond/fixed income strategies, and options/futures. It then discusses various fundamental analysis approaches including economic analysis, industry analysis, and company analysis. Several analysis models and techniques are described such as DuPont analysis, P/E ratios, and portfolio construction approaches. Technical analysis indicators like support/resistance levels, point and figure charts, and gaps are also introduced.

Risk returns analysis

The document discusses the relationship between risk and return, known as the risk-return nexus. It defines key concepts like risk, return, systematic and unsystematic risk. It explains that total risk is comprised of systematic and unsystematic risk, but that unsystematic risk can be diversified away. The Capital Asset Pricing Model (CAPM) asserts that the expected return of an asset depends only on its systematic risk. Empirical analysis of CAPM shows strong correlation between market returns and the returns of various bonds, supporting the model.

Ppt of security analysis 2

This document provides an overview of fundamental analysis and technical analysis for evaluating securities. Fundamental analysis examines underlying company and economic factors that may influence a security's price, such as revenues, profits, growth rates, risks. It analyzes these factors at an economy, industry and company level. Technical analysis focuses on historical price movements and trading volume through chart patterns and indicators to predict future price movements and identify trading opportunities. Charts like line charts, bar charts and candlestick charts are used to visualize price trends and trading patterns over time.

4th chapter

The document provides an overview of fundamental analysis with a focus on economy analysis. It discusses [1] analyzing key macroeconomic indicators like GDP, inflation, interest rates to evaluate the overall economic environment; [2] assessing specific industries based on factors like demand, competition and government policy; and [3] examining individual companies considering internal issues like management and operations. It also outlines several techniques for economic forecasting, including anticipatory surveys, indicator approaches, econometric modeling and opportunistic modeling.

dokumen.tips_1-finc4101-investment-analysis-instructor-dr-leng-ling-topic-por...

This document discusses key concepts in portfolio theory, including how to calculate investment returns over single and multiple periods. It defines holding period return (HPR) to measure single period returns and arithmetic average, geometric average, and dollar-weighted return to measure returns over many periods. It also explains how to calculate the expected return, variance, and standard deviation of investments to quantify the expected reward and risk.

portfolio management PPT

The document discusses portfolio management and asset allocation strategies. It defines a portfolio as a collection of investments that can include stocks, mutual funds, bonds, and cash. It then describes different types of portfolios including a market portfolio and a zero investment portfolio. The main phases of portfolio management are outlined as security analysis, portfolio analysis, portfolio selection, portfolio revision, and portfolio evaluation. Asset allocation strategies focus on establishing an appropriate mix of asset classes in a portfolio to optimize risk and return based on an investor's goals.

417Chapter 02

1) The chapter discusses sources of investment returns including income returns from cash flows and returns from changes in the value of investments.
2) It describes how to measure returns such as dollar returns, holding period returns, and annualized returns which allow comparisons over different time periods.
3) Risk is defined as the uncertainty of investment returns and can be measured by the variability of returns using metrics like variance and standard deviation. The higher the risk, the higher the expected return required by investors.

Topic 4[1] finance

Risk and return are key concepts in finance. Return represents the total gain or loss on an investment. Risk is the potential variability in future cash flows and the possibility that actual returns will differ from expected returns. Expected return is the return an investor expects to earn on an asset, while required return is the return an investor requires given an asset's risk. Standard deviation and coefficient of variation are common measures of risk. A portfolio combines multiple assets to reduce overall risk through diversification. The two main types of risk are unsystematic (company-specific) risk, which can be diversified away, and systematic (market) risk, which cannot. Beta is used to measure an asset's systematic risk relative to the market.

capital asset pricing model

In finance, the capital asset pricing model (CAPM) is used to determine a theoretically appropriate required rate of return of an asset.

Trading Strategies Based on Market Impact of Macroeconomic Announcementsby A...

1) The document discusses trading strategies based on the market impact of macroeconomic announcements. It analyzes 18 major US macroeconomic indicators from 2009-2013 and their impact on equity ETF returns on announcement days.
2) Key findings include several indicators having statistically significant impact on returns, including ISM Manufacturing Index, Non-Farm Payrolls, International Trade Balance, and Housing Starts. Trading strategies based on announcements of significant indicators achieved higher risk-adjusted returns than buy-and-hold.
3) The study also analyzes the impact of economic announcement surprises, actual changes, and expected changes. It found that strategies based on actual changes generally had the lowest volatility and performed well even before and after the

Risk Analysis

This document discusses risk analysis and measurement of risk for securities. It defines risk as the probability that expected returns will not materialize. There are two main types of risk: systematic risk, due to overall market factors, and unsystematic risk, unique to a specific security. Risk is measured using concepts like standard deviation, variance and coefficient of variation. Investors can have different risk attitudes like risk aversion, risk indifference or risk preference. Diversification across uncorrelated securities can help reduce overall risk.

INVESTMENT_M.FADERANGA.pdf

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Rbi catalyst in the economic growth in india - hard copy

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- 3. Name Roll No. Priyank Darji 07 Hardik Nathwani 25 Shashank Pai 26 Sagar Panchal 27 Dharmik Patel 30 Kush Shah 38 Siddarth Tawde 45
- 5. STATISTICAL ANAYASIS Statistical analysis refers to a collection of methods used to process large amounts of data and report overall trends. Statistical analysis provides ways to objectively report on how unusual an event is based on historical data. Statistical analysis to examine the tremendous amount of data produced every day by the stock market.
- 6. MEASUREMENT OF RETURN The rate of return is the total return the investor receives during the holding period ( the period when the security is owned or held by the investor) stated as percentage of the purchase price of the investment at the beginning of the holding period. The general equation for calculating the total rate of return is show below: K = D + S.P- P.P P.P
- 7. Probabilities are governed by five rules and range from 0 to 1 A probability can never be larger than 1 The sum total of probabilities must be equal to 1 If outcome is certain occure, it is assigned a probability of 1, and impossible outcome are assigned a probability of 0. The possible outcomes must be mutually exclusive and collectively exhaustive. The future return are characterized by uncertain.
- 8. EXCEPTED RATE OF RETURN The return on an investment as estimated by an asset pricing model. Formula :- E(r) = probability * rate of return For example:- If a security has a 20% probability of providing a 10% rate of return, a 50% probability of providing a 12% rate of return, and a 25% probability of providing a 14% rate of return. • expected rate of return:- = (.20)(10%) + (.50)(12%) + (.25)(14%) =11.5%.
- 9. AVERAGE RATE OF RETURN (ARR) Definition Method of investment appraisal which determines return on investment by totaling the cash flows (over the years for which the money was invested) and dividing that amount by the number of years. Example: Ramesh spent $800,000 to buy an apartment building. After deducting all operating expenses, real estate taxes, and insurance, he receives $65,000 in the first year, $71,000 in the second year, $69,000 in the third year, and $70,000 in the fourth year. Solution:- Total net earning = 65,000 + 71,000 + 69,000 + 70,000 = 2,75,000 Now divided by 4 275000/4 =68750 ARR = 68750/800000*100 = 8.59%
- 10. Standard deviation is a statistical term that measures the amount of variability or dispersion around an average. Definition of 'Standard Deviation‘ In finance, standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected volatility.
- 13. FUNDAMENTAL ANALYSIS Meaning:- Fundamental analysis refers to the study of basic fundamental economic indicators which affect the country’s economy. An investor using Fundamental Analysis to make investment decisions will rely heavily on the following sources of information: Company Balance Sheet Income (Profit and Loss) Statement Annual report Company announcements
- 14. Phase 1 :Analysis of Economy wide factor Economic fundamental provide the most significant information to traders. The impact of economic data tends to be long term oriented. Economic indicators are reports published at a fixed time intervals by government and private organizations. Here are some lists of economic report that have most significant impacts on the market: Gross Domestic Product (GDP) Gross National Product (GNP) Inflation report Interest rate
- 15. Phase 2 :Analysis of Industry wide factor Study of industry life cycle The industry life cycle is made up of the following stages: 1. Pioneering Phase 2. Growth Phase 3. Mature Growth Phase 4. Stabilization/Maturity Phase 5. Deceleration/Decline Phase
- 16. CONTD… Study of qualitative and quantitative factor:- 1. Economies of scale 2. Capital Requirements 3. Government Regulation 4. Business Model 5. Management Team
- 17. Phase 2 :Analysis of Company wide factor This is usually done by studying the company's financial statements. From these statements a number of useful ratios can be calculated. P/E Ratio Book Value Per Share Current Ratio Debt Ratio
- 18. TECHNICAL ANALYSIS • Meaning Technical analysis is a method of evaluating securities by analyzing the statistics generated by market activity, such as past prices and volume. • The field of technical analysis is based on three assumptions: 1.The market discounts everything. 2. Price moves in trends. 3. History tends to repeat itself.
- 19. TYPES OF CHARTS 1) Bar Charts
- 20. 2) Line Charts
- 23. BIBLIOGRAPHY www.investopedia.com www.trade-ideas.com www.ikofx.com Risk management book