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... reason is that, if a firm is making poor profits and has low profitability, the reason will probably lie in areas such as its operating methods, and this will show up in ratios such as the turnover ratios defined above. Thus, profitability ratios give the overall performance of the firm. But the oth ...
Predicting Mutual Fund Performance: The Win
Predicting Mutual Fund Performance: The Win

... Note that we obtain similar results with different estimation periods. When the estimation period is longer, alpha becomes more accurate, but there can be considerable overlapping between the alpha estimation period and the prediction period. We also estimate alphas using monthly returns, but due to ...
Familiarity Breeds Investment
Familiarity Breeds Investment

... include outright capital controls, taxes and higher transactions costs associated with international investments. But these seem to pose no material challenge to cross border investments among the developed countries. Indeed, Tesar and Werner (1995) write: “the high transactions rate on foreign inve ...
INTERPRETING AGGREGATE STOCK MARKET BEHAVIOR: HOW
INTERPRETING AGGREGATE STOCK MARKET BEHAVIOR: HOW

... Our objective is to gain a better understanding of major movements in aggregate stock prices. In contrast to previous literature, we explain the aforementioned asset pricing anomalies using standard expected utility theory and CRRA preferences with reasonable levels of risk aversion. We do so by spe ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research

... or countries. Second, although shocks to demand or cost, as well as changes in risk measures, do have implications for the dynamics of investment, there are serious problems of aggregation that make it difficult to construct and test models at the industry or country level. Some of these problems ha ...
Quarterly Portfolio Report The Science of Capital Markets. The Art of
Quarterly Portfolio Report The Science of Capital Markets. The Art of

... Data is in Canadian dollars. MSCI EAFE Small index return is price only prior to January 1999 data inception. MSCI Emerging index return is gross dividends prior to January 1999 data inception. S&P Global REIT index return is gross dividends prior to January 2001 data inception. S&P/TSX data provide ...
The owners of Geodrill Limited and the Organisational Structure
The owners of Geodrill Limited and the Organisational Structure

... everything. This gives Geodrill the advantage to follow the market more closely and adopt quickly. For its competitors, there might be a general manager heading a particular region who will lack final authority on decision making. 3. Geodrill adheres to a strict healthy, safety and environment polic ...
Some preliminary proposals for re-regulating financial systems
Some preliminary proposals for re-regulating financial systems

... supervisor for the application of international standards and codes was reasserted and stressed. 2 As for regulation, the adoption of Basel II must be hastened, although introducing some changes to cope with opacity and distorted incentives responsible for moral hazard and conflict of interests. Mo ...
Weekend Effect of Stock Returns in the Indian Market
Weekend Effect of Stock Returns in the Indian Market

... series (April 2003- April 2008). The analysis carried on henceforth will assume a T+2 settlement cycle unless mentioned otherwise. In an ordinary week that does not contain any holidays, stocks purchased on a particular day will have to be paid by the end of next two trading days. So stocks purchase ...
Return on Equity
Return on Equity

... Not have a spectacular ROE because there is so much equity in the company (e.g., well-established DOW 30 stocks) A highly leveraged company that might have a spectacular ROE because the owners have put so little of their own resources into the company (e.g., high-tech industries) ...
Value versus Growth - Krannert School of Management
Value versus Growth - Krannert School of Management

... We use as testing assets the excess returns of the book-to-market deciles. Excess returns are defined in excess of the one-month Treasury bill rate. The data for the decile returns and Treasury bill rates are from Kenneth French’s Web site. The sample period is from January 1954 to December 2007 wit ...
SUNTRUST BANKS INC (Form: 10-Q, Received: 08
SUNTRUST BANKS INC (Form: 10-Q, Received: 08

... The above mentioned financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X, and accordingly do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. H ...
karamoja investment profile - Uganda Investment Authority
karamoja investment profile - Uganda Investment Authority

... • Given the single rainy season in the area which cannot sufficiently sustain agriculture, the need to develop small scale irrigation schemes around Manyattas using windmill/solar driven boreholes is insurmountable. Installation and maintenance of windmill, solar and or gravity flow driven irrigati ...
Expected Commodity Futures Returns
Expected Commodity Futures Returns

... expected returns into variation due to betas and variation from expected factor values. This clarifies whether varying exposure to the risk factors or changing factor expectations produces predictability. Because a model can still have value even if it cannot completely explain predictable variation ...
NBER WORKING PAPER SERIES NEW FRAMEWORK FOR MEASURING AND MANAGING MACROFINANCIAL
NBER WORKING PAPER SERIES NEW FRAMEWORK FOR MEASURING AND MANAGING MACROFINANCIAL

... A contingent claim is any financial asset whose future payoff depends on the value of another asset. The prototypical contingent claim is an option – the right to buy or sell the underlying asset at a specified exercise price by a certain expiration date. A call is an option to buy; a put is an opti ...
Submission: Discussion Paper - Handling and use of
Submission: Discussion Paper - Handling and use of

... DMA model to adopt the market making model on retail clients. This will see the majority of licensees profit directly from client losses and these licensees will be exposed to market risk. Currently DMA providers are not exposed to market risk. In our opinion, market making has been the main reason ...
Financing Real Estate through Capital Markets Real Estate
Financing Real Estate through Capital Markets Real Estate

... Collective Investment Scheme - Real Estates Investment Trust Rules of 2011 – these rules are published in the capital market and securities authority (CMSA)) to enable capital raising and financing real estates projects through REITs. This legal framework, among other aspects provides rules relating ...
Risk Measures and Risk Capital Allocation
Risk Measures and Risk Capital Allocation

... the position and the cost of this instrument (minimum cash) measures the risk of the position. Alternatively risk measures can be obtained from acceptance sets. An acceptance set A Lp(P) is a set of all ‘acceptable’ risks. This set is determined by regulators or investment managers of a company. For ...
non-rated municipal bonds—understanding the risks
non-rated municipal bonds—understanding the risks

... Because most non-rated municipal bond issues are smaller in size and/or possess non-investment grade characteristics, there generally is less liquidity for these bonds than for rated bond issues. One reason for this is because investors in this type of bond often buy and hold, and do not try to sell ...
New Framework for Measuring and Managing Macrofinancial Risk and Financial Stability
New Framework for Measuring and Managing Macrofinancial Risk and Financial Stability

... and others implicit. Traditional approaches have difficulty analyzing how risks can accumulate gradually and then suddenly erupt in a full-blown crisis. The CCA approach is well-suited to capturing such “non-linearities” and to quantifying the effects of assetliability mismatches within and across i ...
Financial  Supply Chain  Dynamics Risk Operational
Financial Supply Chain Dynamics Risk Operational

... having a sufficient amount of assets in the bank. ...
the design of successful rural financial intermediaries: evidence from
the design of successful rural financial intermediaries: evidence from

... intermediaries in Indonesia, in terms both of self-sustainability and outreach. These systems have provided credit and deposit services, profitably and at low transaction costs, to large numbers of very small individual clients. This generalized success reflects both a hospitable environment for fin ...
Contagion and competitive intra-industry effects of
Contagion and competitive intra-industry effects of

... provides information to investors that the firm is less profitable than anticipated. This second effect should be felt by all firms with cash flow characteristics similar to those of the bankrupt firm. so we call it the contagion effect of bankruptcy announcements. In addition, however, a bankruptcy ...
The Association between Various Earnings and Cash Flow
The Association between Various Earnings and Cash Flow

Question:What will be the price of a 5 year
Question:What will be the price of a 5 year

... Question:Sriram seeks your assistance in providing him some illustrations for a one day workshop on time value of money. You select the following questions and verify their arithmetical accuracy. Assume 9 % as the hurdle rate. (i) A client wants to know what is the future value of Rs.15,000 invested ...
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Investment management

Investment management is the professional asset management of various securities (shares, bonds and other securities) and other assets (e.g., real estate) in order to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations, charities, educational establishments etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes e.g. mutual funds or exchange-traded funds).The term asset management is often used to refer to the investment management of collective investments, while the more generic fund management may refer to all forms of institutional investment as well as investment management for private investors. Investment managers who specialize in advisory or discretionary management on behalf of (normally wealthy) private investors may often refer to their services as money management or portfolio management often within the context of so-called ""private banking"".The provision of investment management services includes elements of financial statement analysis, asset selection, stock selection, plan implementation and ongoing monitoring of investments. Coming under the remit of financial services many of the world's largest companies are at least in part investment managers and employ millions of staff.Fund manager (or investment advisor in the United States) refers to both a firm that provides investment management services and an individual who directs fund management decisions.According to a Boston Consulting Group study, the assets managed professionally for fees reached an all-time high of US$62.4 trillion in 2012, after remaining flat-lined since 2007. Furthermore, these industry assets under management were expected to reach US$70.2 trillion at the end of 2013 as per a Cerulli Associates estimate.The global investment management industry is highly concentrated in nature, in a universe of about 70,000 funds roughly 99.7% of the US fund flows in 2012 went into just 185 funds. Additionally, a majority of fund managers report that more than 50% of their inflows go to just three funds.
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