Discuss the actions that you would take to assess the risk

Assignment Help Accounting Basics
Reference no: EM132956412

Question - You have cash, RM100,000 and would like to invest on either a long-, medium-, or short-term basis in the Malaysian stock market. You are required to answer all the following questions based on this module content outline:

(a) Assume that you have an investment plan that consists of different investment vehicles. You intend to assess the risk and return of the vehicles. Discuss the actions that you would take to assess the risk and return of the investment vehicles.

(b) Many investors, including yourself, believe that there is no efficient market in a company's shares. Therefore, the share price may not provide investors a reliable indication of value. You know clearly about your investment objective of aiming at capital gains. Given the above statements, provide your holistic views on the measures that you would undertake before investing so that you could profit from price movement.

(c) Assume that you are successful in making investment selections and so constructed a diversified portfolio. You are with high expectation that the portfolio will generate positive income or its value could at least be preserved. Discuss how you manage your portfolio in order to realize your expectation.

Reference no: EM132956412

Questions Cloud

What is the NET PRESENT VALUE of the planter project : The firm's annual weighted average cost of capital for a project of this type is 8.9%. What is the NET PRESENT VALUE (NPV) of the planter project
Discuss four steps that managers can take : Identify and briefly discuss four steps that managers can take to change a culture that is out of step with the company's strategy.
Compute the estimated inventory at May : Indigo Company uses the gross profit method to estimate inventory for monthly reporting purposes. Compute the estimated inventory at May
Calculate Tina wages in lieu of notice : Tina has worked for Digger Industries for five years and earns $18.48 per hour. Calculate Tina wages in lieu of notice
Discuss the actions that you would take to assess the risk : You intend to assess the risk and return of the vehicles. Discuss the actions that you would take to assess the risk and return of the investment vehicles
Find which value of any given stock theoretically determined : Find which he value of any given stock is theoretically determined by? The present value of its expected future free cash flows discounted by its risk free.
Create a statement of profit or loss and other comprehensive : Create a statement of profit or loss and other comprehensive income. The income tax expense of $150 000 is calculated after considering a tax deduction.
What is the market value of debt and equity : Based on the information provided, what is the market value of debt and equity in efficient capital markets
Explain any good business model or strategies : Explain any good business model(s) or strategies that you think a Malaysian company in the same industry could learn from the multinational corporations

Reviews

Write a Review

Accounting Basics Questions & Answers

  Balance sheet preparation

Problem: Balance Sheet preparation: The following is a December 31, 2016, post-closing trial balance for Almway Corporation.

  What is the internal rate of return for the project

What is the Internal Rate of Return for this Project? Would you accept or reject the project? Explain why or why not.

  ACC00724 Accounting for Managers Assignment

ACC00724 Accounting for Managers Assignment Help and Solution, Southern Cross University - Assessment Writing Service - Calculate the six ratios

  Prepare a forecasted contribution margin income statement

astro co. sold 19700 units of its only product and incurred a 59290 loss ignoring taxes for the current year as shown

  How many business class and economy class seats

How many business class and economy class seats would be sold at the break-even point

  Calculate the annual depreciation expense

Calculate the annual depreciation expense for each year of the machine's life (estimated at 5 years or 20,000 hours, with a salvage value of $75,000). During the machine's 5-year life its hourly usage was: 3,000; 4,000; 5,000; 5,000; and 3,000 hou..

  Give the entries to reflect the transactions

Under the accrual method, give the entries to reflect the above transactions for 2019 and 2020. Which method is more appropriate? Explain

  How much paid in capital from the treasury stock

Emu Inc. reissued 8,000 shares of treasury stock at $ 44 per share. How much paid in capital from the treasury stock

  The primary difference between the eva and economic profit

the primary difference between the eva and economic profit measures is the increased focus on cash flow by eva. for

  Rollie company is launching a new cleaning product for

rollie company is launching a new cleaning product for ceramic vases. the company invests 1200000 in operating assets

  The mid-quarter convention applies to personal property

The mid-quarter convention applies to personal property

  Determine the joint production cost to be allocated

Determine the joint production cost to be allocated to the low- and high-density wood using the net realizable value method

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd