Managing Risk and Return

Post contains three assignments

1:THE CAPITAL ASSET PRICING MODEL

Assignment Overview

a Explain whether or not it represents a diversifiable or an undiversifiable risk. Please consider the issues from the viewpoint of investors. Explain your reasoning.

a. There’s a substantial unexpected increase in inflation.

b. There’s a major recession in the U.S.

c. A major lawsuit is filed against one large publicly traded corporation.

2. Use the CAPM to answer the following questions:

a. Find the Expected Rate of Return on the Market Portfolio given that the Expected Rate of Return on Asset “i” is 12%, the Risk-Free Rate is 4%, and the Beta (b) for Asset “i” is 1.2.

b. Find the Risk-Free Rate given that the Expected Rate of Return on Asset “j” is 9%, the Expected Return on the Market Portfolio is 10%, and the Beta (b) for Asset “j” is 0.8.

c. What do you think the Beta (ß) of your portfolio would be if you owned half of all the stocks traded on the major exchanges? Explain.

3. In one page explain what you think is the main ‘message’ of the Capital Asset Pricing Model to corporations and what is the main message of the CAPM to investors?

Investopedia (n.d.). Capital Asset Pricing Model, retrieved from: http://www.investopedia.com/terms/c/capm.asp

MoneyChimp, (n.d.) CAPM calculator, retrieved from: http://www.moneychimp.com/articles/valuation/capm.htm

QFinance, (n.d.) Capital Asset Pricing Model, retrieved from: http://www.financepractitioner.com/asset-management-calculations/capital-asset-pricing-model

Value Based Management, (n.d.) Capital Asset Pricing Model, retrieved from: http://www.valuebasedmanagement.net/methods_capm.html

To gain a deeper understanding of the CAPM and associated concepts beyond just the formula, read:

Damodaran, A. (n.d). Picking the right projects: Investment analysis. Retrieved from:
http://pages.stern.nyu.edu/~adamodar/pdfiles/cfovhds/inv.pdf

Risk and Return (1991). The Economist, 318, 72-73

This Article on Investment Analysis is a highly comprehensive overview on measuring risk and the use of the CAPM. This article is a good place to start because it will give you an idea of how the CAPM is used in the “real world” as well as demonstrate the basic concepts of this Module.

Financial Markets (2015) Pearson Learning Solution, New York

Managing Risk and Return (2015) Pearson Learning Solution, New York

2:Teaching Standards

Order Description

Training&DevelopmentAgency -Set of standards by which teachers were required to evidence and fulfill in order to gain QTS – professional skills, professional attributes, professional knowledge.

i went into a specialist school setting for severe disabled children.
i would like 5 slides.
each slide would be one specific standard- i would like all these standards to be related back in to a specialist school setting for disabled children. there needs to be strong literature to back up everything you say.

Standard 1 – My Professional Development – have knowledge and understanding of the awareness of the professional duties of Physical Educators and have an understanding of the statutory framework which governs their work place.
Standard 7 – Teaching and Learning Strategies – explain how you Integrated a range of teaching and learning strategies in to practice and adapt activities appropriately to maximise an individual’s full potential.
Standard 10 – Planning for progression – Be able to plan for progression across ages and abilities, enabling the design of effective learning sequences within lessons.
Standard 11 – Equality and Diversity within the Workplace – Promote equality and diversity by utilising appropriate teaching and learning strategies.
Standard 12 – Provide timely, accurate and constructive feedback on learners attainment, progress and areas for development. – Provide timely, accurate and constructive feedback on learner’s attainment, progress and areas for development.

3:Strategic Purchasing Management

Order Description

Write an evaluation that critiques the use of Kraljic’s Portfolio Purchasing Model as a tool for developing sourcing strategy. Focus your critique on the two dimensions (supply risk and profit impact) of Kraljic’s model, concentrating on how appropriate each dimension is for use in the development of sourcing strategies. As part of your evaluation, also explain the limitations of the model and any information gaps that may result from using only the two dimensions. Justify your conclusions (500 words).

asset pricing