Investment analysis Assignment Example | Topics and Well Written Essays - 1250 words

Investment analysis - Assignment Example Efficient portfolio calls for an optimal investor to adopt an efficient combination of investment that minimizes the level of risk subject to returns on that investment. A major limitation is that the decisions on capital expenditure are based on the expectation, and no facts are available at the time of decision-making. Although information is the basis for decision-making, efficient portfolio creates another element of risk because it is not always true that the expected returns will actualize (Reilly 52). The investor, therefore, may undertake an investment with a higher expected return but in the end it yield unfavorable outcome. The concept of optimal portfolio does not take into account transaction cost and investors may not yearn to change their portfolio as often as the model suggests. Derivatives are instruments in finance whose characteristic and value depends upon the value and characteristic of an underlie such as a commodity, equity, bond or currency. These financial instruments include security derived from a debt instrument share, risk instrument, loan or contract for differences of any other type of security (Reilly 131). Derivative derives its value from the index of price of underlying securities. If the value of the underlying changes, the price of the derivative also changes. In nature, derivatives are not a product or commodity. The price of gold futures contract is obtained from the price of the underlying asset such as gold. The future outcome of all investable assets including derivatives is at stake and is based on so many uncertainties. The expected value of derivatives is faced with the risk and therefore there is a need to adjust these returns for risk giving rise to risk-neutral probabilities. The concept of risk neutrality pricing of derivatives generally means taking both long and short position in the derivatives market (Weaver 89). It does not depend on risk disposition of the investor. It takes into account the

Book Bunker Social Networking Essay Example | Topics and Well Written Essays - 1250 words

Book Bunker Social Networking - Essay Example The books that will be made available will be in categorical order ranging from fiction, non-fiction, hobbies, collections and classics among others. Besides, Book Bunker apart from providing a huge assortment of books will also entail provision for wide range of music collections. Being a start-up company, its prime goal is to attain a greater proportion of local market share. The provisions being included within this business set up include low price, differentiated services and a friendly comfortable environment. With these considerations, the key objective of this report is to outline a set of ideas along with strategies in order to create a social networking program for Book Bunker. In order to endure success and survival in the midst of competitive market scenario, it is necessary for a company to strategize its marketing and advertising plans or programs for increasing the customer base. Correspondingly, Book Bunker plans to endure a relaxed ‘reading room’ like ambience through its provided dà ©cor for the readers which can be a key differentiator for its sustained success. Furthermore, the company’s management also plans to provide an application for smartphones with the inclusion of fun activities and games for the children in order to attract them. In fact, it has been ascertained that planning involves provision of electronic books to the audiences. In the similar context, in order to increase the visibility option of the customers, the company plans to apply media bites on local news and billboards among others. These depict few strategies being undertaken by the company in order to stand in the midst of its competitors. In terms of setting target market, Book Bunker focuses to attract the entire book loving demographic segment comprised within geographical area being operated. However, the key focus will be on consumers desiring to purchase books/music at discount prices Furthermore, school children can be given priority by