What is the name of the fund, what is its trading abbreviation, and what type of securities does the fund invest in? Speculate on the risks an investor would face from buying this fund. How is the fund attempting to minimize the impacts of these risks?

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 Topic 1: Web Field Trip

Go to the Fidelity website, the home page of the Fidelity family of mutual funds. Click on the “Investment Products” tab and then click on “Mutual Funds” on the menu that appears. On the next page, find the area on the left column entitled “Stock funds, bond funds, international funds, sector funds.” This will take you to bond funds. Listed here is a wide spectrum of mutual funds that invest in bonds and other fixed income securities. Continue clicking until you find a bond fund that interests you. Look at the detail of the fund, and post your responses to the following questions to the appropriate Discussion Board.

Summarize your fund for the benefit of your classmates:
• What is the name of the fund, what is its trading abbreviation, and what type of securities does the fund invest in?

• Speculate on the risks an investor would face from buying this fund. How is the fund attempting to minimize the impacts of these risks?

What is the name of the fund, what is its trading abbreviation, and what type of securities does the fund invest in? Speculate on the risks an investor would face from buying this fund. How is the fund attempting to minimize the impacts of these risks?

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Topic 1: Web Field Trip

Go to the Fidelity website, the home page of the Fidelity family of mutual funds. Click on the “Investment Products” tab and then click on “Mutual Funds” on the menu that appears. On the next page, find the area on the left column entitled “Stock funds, bond funds, international funds, sector funds.” This will take you to bond funds. Listed here is a wide spectrum of mutual funds that invest in bonds and other fixed income securities. Continue clicking until you find a bond fund that interests you. Look at the detail of the fund, and post your responses to the following questions to the appropriate Discussion Board.

Summarize your fund for the benefit of your classmates:
• What is the name of the fund, what is its trading abbreviation, and what type of securities does the fund invest in?

• Speculate on the risks an investor would face from buying this fund. How is the fund attempting to minimize the impacts of these risks?

Determine whether dealers in NASDAQ shares and dealers in NYSE shares in the particular market being discussed provided price improvements. Contrast the relative performance of dealers in the two markets with regard to any price improvements.

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Q.1. In a report dated December 15, 2004, the Office of Economic Analysis of the U.S. Securities and Exchange Commission (SEC) compared trade execution quality on the NYSE and NASDAQ using a matched sample of 113 pairs of firms. The comparison is based on six months of data from January to June 2004. The results regarding which market has the better execution quality (NYSE or NASDAQ) vary across order size, firm size, and order type. The results below are for small market orders (100–499 shares) in shares of large market capitalization firms.

Spread (cents) NASDAQ NYSE
Quoted spread 2.737 2.791
Effective spread 2.650 2.490

On the basis of the above results, address the following:

  • Determine whether dealers in NASDAQ shares and dealers (‘‘specialists’’) in NYSE shares in the particular market being discussed provided price improvements.
  • Contrast the relative performance of dealers in the two markets with regard to any price improvements.

Q.2. Consider some stocks that trade in two markets, with a trader being able to trade in these stocks in either market. Suppose that the two markets are identical in all respects except that bid–ask spreads are lower and depths (the number of shares being offered at the bid and ask prices) are greater in one of the two markets. State in which market liquidity-motivated and information-motivated traders would prefer to transact. Justify your answer.

Q.3. Evaluate the most likely effects of the following events on the investor’s investment objectives, constraints, and financial plan.

  • A childless working married couple in their late 20s adopts an infant for whom they hope to provide a college education.
  • An individual decides to buy a house in one year. He estimates that he will need $102,000 at that time for the down payment and closing costs on the house. The portfolio from which those costs will be paid has a current value of $100,000 and no additions to it are anticipated.
  • A foundation with a €150,000,000 portfolio invested 60 percent in equities, 25 percent in long-term bonds, and 15 percent in absolute return strategies has approved a grant totaling €15,000,000 for the construction of a radio telescope observatory. The foundation anticipates a new contribution from a director in the amount of €1,000,000 toward the funding of the grant.

Q.4. Duane Rogers, as chief investment officer (CIO) for the Summit PLC defined-benefit pension scheme, has developed an economic forecast for presentation to the plan’s board of trustees. Rogers projects that U.K. inflation will be substantially higher over the next three years than the board’s current forecast.

Rogers recommends that the board immediately take the following actions based on his forecast:

  • Revise the pension scheme’s investment policy statement to account for a change in the U.K. inflation forecast.
  • Reallocate pension assets from domestic (U.K.) to international equities because he also expects inflation in the U.K. to be higher than in other countries.
  • Initiate a program to protect the pension scheme’s financial strength from the effects of U.K. inflation by indexing benefits paid by the scheme.

State whether each recommended action is correct or incorrect. Justify each of your responses with one reason

 

Demonstrate an awareness of the variety of financial instruments. Examine the role of the financial system in the economy and the rationale for financial intermediation.

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THE ROLE OF MONETARY POLICY IN FINANCIAL STABILITY

  • Demonstrate an awareness of the variety of financial instruments.
  • Examine the role of the financial system in the economy and the rationale for financial intermediation.

Assignment Question:   (10 Marks)

Students must use proper references to justify their assignment work.  

Assignment 2 is a Mini Project.

There is a topic “THE ROLE OF MONETARY POLICY IN FINANCIAL STABILITY” You have to select any country to explain how monetary policy helped country to stabilize financial system after a financial crisis.

 

Write your answer by following these headings:

  1. The functions of monetary policy (In general)(2marks)
  2. Role of monetary policy in financial stability (In general)(2marks)
  3. Describe the reasons for its financial crisis (about your selected country)(2marks)
  4. Impact of financial crisis on economy (about your selected country)(2marks)

How monetary policy contributed in stabilizing economy (about your selected country)

 

If you want to accumulate $500,000 in 20 years, how much do you need to deposit today that pays an interest rate of 15%? What is the future value if you plan to invest $200,000 for 5 years and the interest rate is 5%?

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The purpose of this assignment is to allow the student to calculate the project cash flow using net present value (NPV), internal rate of return (IRR), and the payback methods.

Assignment Steps

Resources: Corporate Finance

Create a 350-word memo to management including the following:

  • Describe the use of internal rate of return (IRR), net present value (NPV), and the payback method in evaluating project cash flows.
  • Describe the advantages and disadvantages of each method.

Calculate the following time value of money problems:

  1. If you want to accumulate $500,000 in 20 years, how much do you need to deposit today that pays an interest rate of 15%?
  2. What is the future value if you plan to invest $200,000 for 5 years and the interest rate is 5%?
  3. What is the interest rate for an initial investment of $100,000 to grow to $300,000 in 10 years?
  4. If your company purchases an annuity that will pay $50,000/year for 10 years at a 11% discount rate, what is the value of the annuity on the purchase date if the first annuity payment is made on the date of purchase?
  5. What is the rate of return required to accumulate $400,000 if you invest $10,000 per year for 20 years. Assume all payments are made at the end of the period.

Calculate the project cash flow generated for Project A and Project B using the NPV method.

  • Which project would you select, and why?
  • Which project would you select under the payback method? The discount rate is 10% for both projects.
  • Use Microsoft® Excel® to prepare your answer.
  • Note that a similar problem is in the textbook in Section 5.1.

Sample Template for Project A and Project B:

 

Why is stock valuation more difficult than bond valuation? Explain why ethics is an appropriate topic in the study of corporate finance.

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Business organization in the Saudi Arabia

Why is stock valuation more difficult than bond valuation? (2.5 marks)

Explain why ethics is an appropriate topic in the study of corporate finance. (3 marks)

Identify the basic forms of business organization in the Saudi Arabia and their respective strengths and weaknesses. (3 marks)

If a Volkswagen Passat costs $26,350 in Baltimore and €21,675 in Frankfurt, what is the implied exchange rate between the U.S. dollar and the euro? (1.5 marks)

 

Create your own personal 3-month budget in an Excel workbook. Using real numbers is not necessary. Generate this workbook from scratch by using a standard layout and structure for the budget workbook.

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Excel

Create your own personal 3-month budget in an Excel workbook. Using real numbers is not necessary (nor is it encouraged for privacy reasons). Generate this workbook from scratch by using a standard layout and structure for the budget workbook. Do not use an Excel template; however, you are welcome to refer to a template for guidance in creating your workbook.

  1. Start with a relevant title and put your name in the subtitle
  2. Add column headers for the months.
  3. In column A, add a label for Income. Under Income, list the job (or jobs) that you will be using).
  4. Add numbers in column B.
  5. Next, use a formula to add your income for the job or jobs that you hold. Use Total Income for the label. (Note: add this line even if you have only one job).
  6. Leave a couple of blank rows, then in column A, add a label (Expenses) before listing the cost of housing (rent or mortgage) and appropriate utilities (cable, Internet, phone, electricity, etc., and all other expenses you may wish to incorporate) for the three months.
  7. In column B, add numbers for each of your expenses.
  8. In column A, add a label for Total Expense.
  9. Total your expenses for each month.
  10. In column A, add a label for Net Income.
  11. Calculate your Net Income (Total Income minus Total Expenses) for each month.
  12. Add sparklines to column E for all rows with data.

 

What are the alternative maturity strategies for managing Investment Portfolios? What are the key banking services under lifeline banking for low-income individuals?

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Banking products

What are the alternative maturity strategies for managing Investment Portfolios?[2Marks]

What are the key banking services under lifeline banking for low-income individuals? [2Marks]

Explain non-deposit sources of funds. [3Marks]

Suppose a banking company decides to add insurance services to its existing products menu It expects to earn a 15 percent average return from sales of its traditional banking products and a 25 percent return from selling or underwriting insurance services. These two service lines are equally risky in the variance of their cash flows (with a standard deviation of about 5 percent each). The banking firm expects to receive 40 percent of its revenues from insurance sales and 60 percent from sales of traditional banking products. Calculate the bank’s overall return from sales of traditional and non-traditional products in this case.      [3Marks]

 

 

 

What assumptions do you have about change? Why might an organization see change as undesirable? Is change something an organization can plan for? How might an organization benefit from failure? Should organization members actually be encouraged to “fail?”

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Summarize three scholarly articles about learning organizations and use the information in the articles to describe different aspects of learning organizations.Like people, healthy organizations “learn.” An organization becomes a “learning organization” when it develops processes, systems, and human resources that are capable of sharing knowledge, continuously innovating, and benefitting from mistakes and failures as well as successes. This process leads to a corporate mindset of continuous improvement – always striving for perfection along the way, understanding that perfection is a state which will never be fully achieved.SHOW LESSBy successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

      • Competency 1: Analyze the historical perspectives of the study of organizational structure and design and its applications in today’s world.
        • Explain the meaning of “learning organization.”
      • Competency 2: Analyze the impact of learning and performance in organizational structures.
        • Describe the ways an organization can learn.
        • Describe the benefits of being a learning organization.
        • Describe disadvantages of being a learning organization.
      • Competency Map
        CHECK YOUR PROGRESSUse this online tool to track your performance and progress through your course.

Toggle Drawer Questions to Consider
To deepen your understanding, you are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of the business community.

  • What assumptions do you have about change? Why might an organization see change as undesirable? Is change something an organization can plan for?
  • How might an organization benefit from failure? Should organization members actually be encouraged to “fail?”
  • What are some tools and methods organizations use to share knowledge both internally and externally?

Toggle Drawer Resources
Suggested Resources
The following optional resources are provided to support you in completing the assessment or to provide a helpful context. For additional resources, refer to the Research Resources and Supplemental Resources in the left navigation menu of your courseroom.Capella Resources
Click the links provided to view the following resources:

Assessment Instructions
To prepare for this assessment, use the Capella library to search for articles using the exact term “learning organizations.” Select at least three scholarly articles to use in this assessment.For this assessment, complete the following:

      • Briefly summarize each of the three articles you selected and explain why you selected each article.
      • Use the information presented in the articles to address the following:
  • Explain what a “learning organization” is.
  • Describe at least three ways that an organization might “learn.”
  • Describe the benefits of an organization being a learning organization.
  • Describe any disadvantages to an organization being a learning organization.

 

Why do most investors prefer to hold a diversified portfolio of securities as opposed to placing all of their wealth in a single asset? Explain the benefits derived from investing in deep discount bonds.

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Assignment Questions

Q1: Why do most investors prefer to hold a diversified portfolio of securities as opposed to placing all of their wealth in a single asset?

Q2: Given the following financial data, compute:

  1. Return on equity.
  2. Quick ratio.
  3. Long-term debt to equity.
  4. Fixed-charge coverage.
Assets:
Cash $ 2,500
Accounts receivable 3,000
Inventory 6,500
Fixed assets 8,000
Total assets $20,000
Liabilities and stockholders’ equity:
Short-term debt $ 3,000
Long-term debt 2,000
Stockholders’ equity 15,000
Total liabilities and stockholders’ equity $20,000
Income before fixed charges and taxes $ 4,400
Interest payments 800
Lease payment 400
Taxes (35 percent tax rate) 1,120
Net income (after-taxes) $ 2,080

Q3: Explain the benefits derived from investing in deep discount bonds.

Q4: Explain how to manage bond portfolios and what are the portfolio management strategies.