Reference no: EM133388570
Learning Outcome 1: Recognize the characteristics and risks of stocks, bonds, money market, and property investments.
Learning Outcome 2: Describe hedging activities, stock options, and currency derivatives.
Learning Outcome 3: Recognize the purpose and function of stock markets, interest rates, and international regulation.
Learning Outcome 4: Evaluate portfolio performance and risk.
(Case Study& Problem solving)
Question 1. Abdullah follows the automotive industry, including XYZ Motor Company. Based on XYZ's 2021 annual report, Abdullah writes the following summary: XYZ Motor Company has businesses in several countries around the world. XYZ frequently has expenditures and receipts denominated in non-U.S. currencies, including purchases and sales of finished vehicles and production parts, subsidiary dividends, investments in non-U.S. operations, etc. XYZ uses a variety of commodities in the production of motor vehicles, such as nonferrous metals, precious metals, ferrous alloys, energy, and plastics/resins. XYZ typically purchases these commodities from outside suppliers. To finance its operations, XYZ uses a variety of funding sources, such as commercial paper, term debt, and lines of credit from major commercial banks. The company invests any surplus cash in securities of various types and maturities, the value of which are subject to fluctuations in interest rates. XYZ has a credit division, which provides financing to customers wanting to purchase XYZ's vehicles on credit. Overall, XYZ faces several risks. To manage some of its risks, XYZ invests in fixed-income instruments and derivative contracts. Some of these investments do not rely on a clearing house and instead effect settlement through the execution of bilateral agreements.
Based on the above summary, recommend and justify the risk exposures that should be reported as part of an Enterprise Risk Management System for XYZ Motor Company.
Question 2 An investment manager placed a limit order to buy 500,000 shares of Ahmad Corporation at SAR 21.35 limit at the opening of trading on February 8. The closing market price of Ahmad Corporation on February 7 was also SAR 21.35. The limit order filled 40,000 shares, and the remaining 460,000 shares were never filled. Some good news came out about Ahmad Corporation on February 8, and its price increased to SAR 23.60 by the end of that day. However, by the close of trading on February 14, the price had declined to SAR 21.74. The investment manager is analyzing the missed trade opportunity cost using the closing price on February 8 as the benchmark price.
A. What is the estimate of the missed trade opportunity cost if it is measured at a one-day interval after the decision to trade?
B. What is the estimate of the missed trade opportunity cost if it is measured at a one-week interval after the decision to trade?
Question 3. 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.
Question 4. Zaid retired from his firm. He has continued to hold his private retirement investments in a portfolio of common stocks and bonds. At the beginning of 2019, when he retired, his account was valued at SAR 453,000.By the end of 2019, the value of his account was SAR 523,500. Zaid made no contributions to or withdrawals from the portfolio during 2019. What rate of return did Zaid earn on his portfolio during 2019?
Account electronically rather than manually
: Analyze how the outcome or opinion might have changed if Wulf had managed his account electronically rather than manually.
|
What might a functionalist say about the overall purpose
: Conflict theory is largely prevalent among feminist theorists. Why do you think this might be the case? What might a functionalist say about the overall purpose
|
Do you feel that social justice concerns
: Do you feel that social justice concerns (i.e., understanding the consequences of technology, improving society, etc.) have become less important to you over
|
Explain the roots and history of race and conflict
: Explain the roots and history of race and conflict, how it manifests in different spheres of life , the psychological and social impact of race and conflict.
|
Enterprise risk management system for xyz motor company
: Recommend and justify the risk exposures that should be reported as part of an Enterprise Risk Management System for XYZ Motor Company
|
Creating your employment document package
: You have added to your resume piece by piece. A cover letter is the next step in creating your employment document package,
|
What procedures could you use to obtain such a sample
: What type of sample would be appropriate for your outcome evaluation study on the use of housing first agency to increase housing stability among homeless
|
What actors within the community, local, provincial
: Why does North Wilson believe the Inquiry has been unsuccessful and what solutions are suggested in the MacLean's article? How should we as a country addresses
|
Prohibits tech workers from working for competotors
: Can ABC, a technology information company in Hawaii, prohibits its tech workers from working for its competotors after they have employment with ABC?
|