This website uses cookies to ensure you have the best experience. Learn more

End Of World Essay

2999 words - 12 pages

WORDS 2,532

When an investor invests in market, he expects high returns with high risk. As an investor it is very difficult to get rid of all the risk, if he expands his investments. They deserve a rate of return that satisfies them for taking on risk. Risk and return are connected to each other. Investors use a model to calculate how much return he will get and how high would be the risk. The model is called CAPM.
CAPM refers to as capital asset pricing model which can be ...view middle of the document...

The report also gives a review of the existing literature on the application of CAPM in various markets. It also identifies the factors that determine the beta and the limitations of applying the CAPM. Moreover the report consists of methodology of how the data is collected. It also gives the calculation of returns on monthly data and as well as beta coefficient. Furthermore, an appropriate analysis is given on the basis of the calculation of returns and beta. Finally the report concludes with a brief summary.
According to Pettit, R.R. and Westerfield, R., (1974) the appeal of CAPM is it gives strong predictions on how risk can be measured as well as the relationship between risk and return. As we know risk and return are interconnected and both are very significant variable changing investment alternatives. There is a possibility that an investment’s certain results will not conflict with the expected results.
Beta is a measure of systematic risk. It is a standardized measure between two variables which is market return and individual security return. Beta is the most important concept of CAPM. In other words beta is a direct relationship of volatility between any one of the asset which have high beta will increase in price greater than the market.
Unknown, (2012) has argued that the relationship between risk and return is a direct relationship. If investors invest more in their investments the return will be more and it will be more risky. It has been perceived if the risk is high the return on investment will also be high. It means that if one element (return) increases automatically other element will also increase (risk). Investors are even pleased with the second option if they invest less they would not expect much of return so the level of risk will also decrease. Although the degree of risk is affected from return on investment, investors should be able to fix the proper return for the level of risk.
Bollerslev, T. Engle,R. F. and Wooldridge, J.M., (1988) stated that an investment involves two main principles for entire investors: the amount of return predicted on their investments and the risk that comes with investment. An investor mostly desires to have less risk and more returned from their investments, but in real it is not possible. The higher will be the return, more risky it will be. Thus Perold,A.,(2004) states that the relationship between risk and return is a financial relationship, because on investment it affects the expected return.
Tsopoglou, S., Michailidis, G., Papanastasiou, D. and Mariola, E., (2006) have examined the Capital Asset Pricing Model for some companies in Greek to find out the relationship between risk and return. The authors found out that it doesn’t supports to the theory’s statement that higher risk is linked with higher levels of return. The relationship between beta and return is not linear. The results they’ve obtained were indicating that higher risk that didn’t give high...

Other Essays Like End of World

The End of Men Essay

726 words - 3 pages . This is due above all its title “The End of Men”. It is easier provocative as it changes the very world vision, but it is sometimes also humorous when there are reproduced some of Ericsson´s statements. Since the article is provocative for its time, you can also see it as instructive, and as an inspiration for women to follow their goals. Hanna Rosin has thus achieved his goal with both writing and configuration of the article.

Is the End Coming? Essay

2003 words - 9 pages attacking Israel like the bible predicts are there in a strong way. Think about what would happen if Iran invaded Israel: America would intervene and then Russia would aid Iran and at that point the stage is set for the final world war. When looking closer at Ahmadinejad’s professed beliefs during his reign as president of Iran, it is shocking to see how radical his thinking truly is concerning the end of the world. It seems that the Iranian

Capitals and End Punctuation

1385 words - 6 pages CAPITALS AND END PUNCTUATION o Begin every sentence with a capital latter. o Use a period (.) at the end of a declarative sentence or an imperative sentence. o Use a question mark (?) at the end of an interrogative sentence. o Use an exclamatory mark (!) at the end of an exclamatory sentence. Anita and Julia are members of an astronomy club. Anita just received this note from Julia. My new telescope arrived yesterday. Do you want to

Katrina's Deep End

780 words - 4 pages Katrina’s Deep End Zeitoun is a non-fiction novel about a remarkable man named Abdulrahman Zeitoun and his family. This novel is based on their experiences through Hurricane Katrina, one of the most destructive natural disasters in the history of the United States. Before reading this novel I did know a few things about Hurricane Katrina. I watched CNN for a while during this traumatic event and saw scenes that were very shocking to me

Journeys End Importance

734 words - 3 pages Journey's End, a play based on the author, R.C Sherriff, experiences, portrays the condition of the First World War. The characters in the play each symbolized different aspects or ideas different people had when facing the same situation in the trenches. In the play, Osborne's role is very important because he showed the feeling of calmness despite any conflicts that were going on. His reaction to the war, his relationship with Stanhope, and

Where Doe Suffering End

871 words - 4 pages Where is the End of Suffering? The latest social uproar occurred after the Republican Party tweeted remembrance of “Rosa Parks bold stand and her role in ending racism.” People all over America were puzzled as to how the Republican party could possibly believe that racism is over and accused the party of trying too hard to appeal to African American voters. The message the Republicans distributed only shows how the government continues to

End of Education Is Character

675 words - 3 pages End of education is character The end of education is character. Without a proper character, education is of no value. Nowadays, under the pretext of separating the religion and the state, the schools don’t teach anything but subjects. Morals that used to be taught earlier are abandoned by the public schools. If one lacks character, values and principles in life, however educated a person is, what can he accomplish in life? Even if he achieves

Journey's End by R.C Sherriff

820 words - 4 pages ‘Journey’s End’ is a play written by R.C Sherriff, which looks at the noble and ignoble points about being at war and looks in detail, at the qualities and personalities of five officers in the British Army during World War I. I am going to decide which of these officers I believe would be the best leader of the platoon. ‘Journey’s End’ is made up of a series of scenes in three acts. There is one scene in the first act, two scenes in the

The End of the Cold War

1920 words - 8 pages Term Paper 16A13A Xu Peiyao To what extent does the period 1989-2000 bear out the assertion that the end of the Cold War represented a victory for the United States? The fall of iron curtain in 1989 and the disintegration of the Soviet Union in 1991, in a sense, indeed represented a victory for the U.S. given its overwhelming political, ideological, cultural and economic dominance in an unipolar, unbalanced world. However, such power

The Beginning of the Invisible Man’s End

1343 words - 6 pages There are two quotes in this Ellison novel Invisible Man, “I am an invisible man”, “the end is in the beginning”, and they begin and end the journey of the narrator’s. To start, in question is what does each quote represent? They’re meaning? How did the narrator come to this conclusion? As I examine these questions at hand I will state my hypothesis and create new questions as the process of these quotes as well as the novel is evaluated. The

End of Race-Is It Possible

1365 words - 6 pages mitochondria, migration from one continent to another and racially mixed populations where the target is the mostly American state of Hawaii. Should the world be concerned about the end of singular genetic ethnicity of each race? And is it going to happen? Race most likely will disappear as we now know. It seems to have been defined as two general groups-white and black, distinct from one another by only color of complexion. The white race will not be

Related Papers

The End Of The World Essay

562 words - 3 pages The End of the World      Have you ever wondered when the world is going to come to a stop?. Have you ever stopped to think about all of those physic predictions that so many have made? I hope to provide an insight to the world of Armageddon. It is almost inevitable that the world and the human race end someday, but just how soon? Millennialists, people who believe that the world is going to end on a set date saying

"The Peace Treaties At The End Of World War One Sought Revenge Not Reconciliation." How Accurate Is This Statement?

1325 words - 6 pages home front as there was a sudden need for more trained nurses and larger, more advanced medical facilities. However at the end of the war the home front was rewarded with modern medical facilities and technologies. It was also difficult for the home front to organize sufficient evacuations for the soldiers affected by the gasses.During war there are countless types of injuries that can occur, however the most common injury in World War One was

To What Extent Do You Agree That A Revolution Happened In Germany At The End Of World War I

671 words - 3 pages To what extent do you agree that a revolution happened in Germany at the end of World War I In Germany between 1918 and 1919 there were major political changes. They went from being an autocracy to a democracy. A revolution is defined as a forcible overthrow of a government or social order for a new system. It was called a revolution for numerous reasons. On October 29th 1919, a mutiny started to spread near Kiel because sailors refused

In The World Of "Animal Farm" There Is No Change In The Lives Of The Animals From The Beginning Right Till The End? Critically Discuss This Statement

1575 words - 7 pages Mr Jones is Orwell's chief villain in the world of "Animal Farm". Of course, Napoleon is also the major villain. However, much more indirectly. Orwell suggests that Jones was losing his, "edge." In fact, he and his men had taken up the habit of drinking. Old Major reveals his feelings about Jones and his administration when he says, "Man is the only creature that consumes without producing. He does not give milk, he does not lay eggs, he is too