Portfolio Management Master Essay Example | Topics and Well Written Essays - 1000 words

Portfolio Management Master - Essay Example Thereafter the effects on smaller securities will be masked by those of larger portfolio. (Gruber 26). This is not to imply that returns will increase with sensitivity to the said factors. Because some factor that are prices cannot be diversified yet are persuasive, they will definitely affect the price returns as opposed to those that are unpriced yet can be diversified. Therefore the distinction of priced and unpriced factors defines the first role of APT in portfolio management. An example of this role in deciding to buy steels that are not persuasive to current prices, is for the APT manager to decide how to buy knowing they will not get extra returns. (Gruber 26), (Anonymous 337 - 352) Secondly, the manager must ensure that there is enough knowledge of choosing steel stocks to cover the extended risks and must also ensures that this risk is spread across several securities. Thus, the APT process must guarantee trade offs as prices make returns sensitive. This means that there is neither a good or bad decision, rather, risk return aim are the most guiding factors. (Gruber 26). Thirdly, APT will influence choice of portfolio depending on income. ... (Gruber 26) Therefore by use of Arbitrage Pricing Theory, the management will lay out a portfolio that considers several factors of influence under the prevailing market conditions. Thereafter priced risks will persuade the investor to take the greatest risk similar to CAPM. Risk will vary with sensitivity of the influences. However the market portfolio has no significance role in the decision of market performance. (Gruber 27). Hypothesis: Whenever the CEO of a company retires, an excess return can be made by buying the company's stock. This hypothesis can be tested by research into the retirement of famous CEO of companies that are listed in the stock exchange markets. Examples of key CEOs who have retired are Lee Raymond from Exxon Mobil (XOM), John Kanas from North Folk Bancorp, Robert Nardelli from Home Depot, Stan O'Neal from Merrill Lynch. A list of up to 50 CEOs who have retired from listed companies will need to be made to make up study of individual retirement and stock sale cases. (Oduma 1) Next research will need to be done to establish which which stocks sales went up or down as soon as the CEO of the respective companies retired from the listed companies. The assumptions to be held are that the stock quantities are stable as well as there price fluctuations. If more than 50% of these results reflect this statement, then the hypothesis can be said to hold. If not then the hypothesis in null. (Oduma 1) A long side this research, there will be need to identify factors that have previously led to increased buying of company stock. In this case, the issue of CEO's retirement will need to

Tablets and Business Essay Example | Topics and Well Written Essays - 500 words - 1

Tablets and Business - Essay Example Businesses are using tablets in many different ways. One of the ways in which tablets are being used as a tool for business, is as a companion device. A tablet offers a strong computing platform for employees who are need a device that is lightweight but has amazing processing speed. As a matter of fact, many new generation tablets have high processing speeds that match the computing power of laptops. Moreover, these tablets are robust and lightweight. Companies in construction prefer these devices because it allows them to work in an environment where carrying 10lbs of equipment is not feasible. Without a doubt, tablets facilitate this process. In the hot world of commerce, tablets are taking place of traditional mainframe point of sales. Many companies are using tablets as points-of-sale, and as an increasing group of start-up. Also, established technological firms are in competition in providing point-of-sale services that are mobile. This is convenient especially for those businesses that are customer centric. Not only tablets allow ease of access, but they also allow privacy for customers. This is monumental for many organizations as they are trying to connect with clients. Undoubtedly, tablets are the future for companies. Another key feature of tablets is that it is dynamically caching data at a rapid pace. Employees are also in a position to help clients doing business at their branches by either hastening transactions at the teller or by minimizing over-the-counter transactions (Schmidt 214). For instance, restaurants use tablets at their point-of-sale simultaneously as the order is given by the customers. Tablets are amazing because they interconnect customers, managers, cashiers, and waiters in a seamless manner. Restaurant managers are also in a position to manage scanners, reservations. All these tasks are being automated to better serve organizations, while increasing profit. A