Define and discuss ( words single, no equations) the concepts of expected return and required return.?
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The concept of expected return is related to net present merit or internal rate of return. The expected return is what you actually plan on getting contained by return for your investment. This is usually discounted down to a reasonable expectation of the most affirmative return. This is based on the probability of obtain that return from a formula. So assuming that you could possibly get 10% return if your contrivance never broke down, no one call in sick, no mistakes be made and every last item be sold for full expected price you would get 10%. The veracity is that things break, people are sick etc... so you expect to in actuality get 7%.
The controlled definition is The average of a probability distribution of possible returns.
How do you calculate the average of a probability simply rob the probability of each possible return outcome and multiply it by the return outcome itself. For example, if you know a given investment had a 50% opening of earning a 10% return, a 25% prospect of earning 20% and a 25% hit and miss of earning -10%, the expected return would be equal to 7.5%:
Required return is the minimum amount of return you have need of to be able to find for your investment. If you subtract the risk free rate and calculate surrounded by your potential risk is the return worth the risk?
A great example from investopedia is: For example, if you invest in a stock, your required return might be 10% per year. Your reasoning is that if you don't receive 10% return, afterwards you'd be better off paying down your outstanding mortgage, on which you are paying 10% interest.
When to buy a stock?
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There are many ways to know when to buy a stock. MaCD-Stochastic crossovers, moving averages, etc...
The one that works okay for me is ...
Take a look at the PIR chart at ...
http://swhswh.myphotoalbum.com/view_phot...
This chart shows a multiple moving average configuration where the moving averages enjoy converged and are ready to explode upwards. The gray string is the close price and the colored lines are the 5, 10, 15, 20, 30, 40, 50, etc. moving averages. This in conjunction near the stocastics crossing the MACD at the 0 line upwards is an extremely strong signal.
Note also that this formation is also a cup and manipulate breakaway, but there are abundant other patterns to consider too.
///
When it is have a bad hours of daylight in the marketplace. Buy when it is LOW..
Depends on whether you are thinking short-term or long-term.
In the long-term, it doesn't matter so much when you buy the stock - you look at the fundamentals of the business:
Are the sale revenues growing,
Are the profit margins steady or rising,
Is the cash-flow positive or negative,
Is the company loaded down near debt,
and what is unique going on for this company that will permit it to verbs to see decent, growing profits contained by the future. Brand name, unique technology, immensely low costs, large R&D expenditure to keep hold of technical fringe.
In the short-term, you look at graphs to see if the stock trades in a stock, or whether it is going to break thru' resistance to the upside or drop below support levels to the downside. You might look at 200 sunshine, 50 day,and 20 sunshine moving averages and the volumes of shares traded.
Is in that an assured road to compare adjectives companies within a specific sector?
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I'm trying to get a chronicle of every company in a specific sector or industry and see how respectively one is doing compared to each other. I'm looking for an graceful way to spot the worst and the best performing companies contained by a sector or industry. Is it possible? How can I do it?
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You might try starting here. I don't know how else you'd go roughly speaking it.
What is the broad (in words) relationship between risk and return?
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There is a direct relationship between the level of risk and the potential return. If you're predisposed to take more risk, you own the potential for greater return, but you also run the risk of losing money (investing in stocks, for example). If you're liable to take no risk (putting your money within an FDIC insured CD, for example), you obtain less return, but it's guaranteed.
The nonspecific rule is the younger you are and the longer your time frame, the more risk you can take on. If you are elder or will need the money sooner (say you're in your favour for a down payment on a house, and you want to buy within three years), you should not take on profusely of risk.
To assume greater risk (of loss of investment), you would expect a higher rate of return on that investment. A not dangerous investment (government bonds) will have a lower return will a bond from a company surrounded by bankruptcy will own a high rate of return.
Yes, largely the higher the risk you are liable to take, the sophisticated the potential return you should expect.
Think of the two extreme ends of this spectrum: Lottery tickets (very high risk, intensely high potential return), and edge savings accounts/CD's (very low/no risk, outstandingly low potential return).
When investing in stocks, the more you diversify, the lower your overall portfolio risk. If you invest surrounded by only one stock, near is a chance that this stock could container tomorrow, and you could lose all (or most) of your money. If, however, you spread your investment across, vote, 10 different stocks, any one stock that goes down would possible be offset by another that go up. However, you also miss out on the opportunity to hit the "home run" with one stock.
This is one of the reason that stock mutual funds are so popular. Most invest in dozens, except hundreds of different stocks that are picked by a professional portfolio manager. So even though you're exposed to "souk risk" (the risk that the whole bazaar will tank), you don't have to verbs about any individual company torpedoing your together portfolio. And the rewards for investing in the stock bazaar are considerably higher contained by the long term (though volatile contained by the short term), averaging 10-11% per year historically.
I hope that helps.
Which is the best stock to double the invest within one year?
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Check out Jim Cramer's Show Mad Money On CNBC He has a completely insightful look on todays stocks, and helps guide you within the direction you are looking for Short term gain or long possession gain.
I am watching one closely, XNN..it doubled for me before, it is a higly speculative and risky stock though.
You wanna double your money without delay? Forget stocks. Trade options and chortle at stock traders and their 10% annual return!
Matador is correct. best bet for fast return is to trade option... Best chance for a sudden double... also best chance to kiss your entire investment bye bye.
but it sounds close to you want to gamble.
Buy the one that go up by twice it's value at a rate of knots!!
What are the upcoming township contained by ncr region?
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There are many projects coming up within Dharuhera (Its on Delhi - Jaipur highway). Parsvnath Developers (http://www.parsvnath.com/) is coming up with a township in that, dwarkadhis (http://www.dwarkadhis.in/) has already started construction. Grren city and M2K are also coming up beside their projects.
Why do investment bankers work insanely long hours?
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Before you shout the obvious "beause they put together 140k+ starting salary," read what I own to say below.
I've other wondered why many investment bankers, especially entry horizontal are forced to work 80-100 hour weeks. As far as I can tell, the solely effect this has is to breed them completely ineffective at work and draw in nation who are more interested in money than surrounded by what they are actually doing.
There enjoy been numermous studies that show that when general public work those kind of hours, their work exhibits low element as they are always tired and do not own the attention span to focus.
Also by making the job so tough that the solely reward is the high gross, the people drawn into the industry are citizens more interested in the money than the science of nouns.
I postulate that if the banks hired more populace and worked them 55 hours per week and paid them smaller number accordingly they would capture employees who are smaller amount money motivated and do higher point work.
Do any banks do this?
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Ignore the previous poster, she have no idea what ibankers do. Investment bank is a sales mission where the item they're trying to supply (for example, a smaller public company) has predetermined quantities, fluctuating price sticker, and targeted potential buyers.
The entry-level bankers are basically number crunchers who type surrounded by financial information in a spreadsheet, modify numerical assumptions to brand name the product attractive, edit presentations, and other mindless work.
The apology they work so much is because:
1) the deadline for ANY project is always "2 days ago, and you're not done but?"
2) intricacies of the financial models is usually understood one and only by the creators, which means its in actuality less simplified to have 2 individuals working 55 hr shifts because a lot of time will be spent on instruction the other person what have been done to the models.
3) the hours are "obverse time." A good bit of analysts' time is waiting for the associate to proof read the comps, the VP to ok the presentation, the client to telephone call etc etc.
4) Bankers are busy only when they're working on a concordat. When they're not workign on a deal, 50~60 hr work weeks can be expected (although not for long, short work nouns = bad business = layoffs)
I know a few middle marketplace firms' analysts who only work 60~70 hrs a week. If you want sufferable hours, stay away from the bulge brackets.
This job involves seriously of presure. And since ur dealing with people's money, the daily work shud b perfect and up to date. Dats the principle y bankers work so long. Coz in the daytime they are busy completing their target and in the evenings doing the daily work. Also the documents are audited anytime. Dats one more explanation y they work so long. Just to b up to date
omg and i want to be an investment banker. i dont know if i can commit to 70-80 hours a week. hmm... what should i do.honest pay but not worth dying for.
$140K to start is nil. Senior I-bankers make unprintable sums of money. To be one of those chosen few you obligation strong sales skills, a pretty good but not exceptional head for business, and an overwhelming desire to engineer unprintable sums of money. Having a gift for the science of nouns doesn't really apply. (Those types tend towards sales and trading or the buy side.) Needless to read out, there is an inexhaustible supply of relatives willing and competent to be junior bankers in the hope of becoming a senior investment banker. And the nature of the work the junior culture do is such that being for a time groggy doesn't have much of an impact.
So the senior guys (and occasionally gals) who run the show can receive away with anything they resembling. And they like to enjoy a smaller number of people working crazy hours fairly than a larger number working reasonable ones for three reason. 1) Smaller numbers of people are easier to order 2) The business is very cyclical and you are probable to go through dry period when a large staff would be unprofitable. 3) It's a right way to find those individuals who are most bloodthirsty and hooked about making the firm more money. After adjectives, a system that got the hill "employees who are smaller number money motivated" would be rather counter-productive. This is Wall Street.
New American Super Brand?
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It is not Whole Foods Market, Inc WFMI as the Motley Fool says that : The NEW American Super Brand have more smarts and greater resources than each of its competitors. It's extremely well-managed and extremely profitable. In certainty, they're flat out more profitable than the traditional giants contained by the industry already.
They're in superb financial shape, beside $148 million in currency to go next to only $2.9 million within total debt. That's an enviable balance sheet within ANY industry...
Now : look in
http://www.nasdaq.com/asp/extendfund.asp...
and see that Cash and Cash Equivalents $62,317
and
Accounts Payable $274,871 $247,537 $328,977 $233,778
Short Term Debt/Current Portion of Long Term Debt $49 $5,932 $5,973 $5,806
Other Current Liabilities $234,850 $164,914 $0 $0
Total Current Liabilities $509,770 $418,383 $334,950 $239,584
Long Term Debt $8,606 $12,932 $164,770 $162,909
In short - it is not even remotely resembling the be a foil for sheet
nasdaq.com
WFMI- whole foods marketplace. Motley fool is sticking by it even though the companies' margins are hurting right now next to the rise of other companies in the form food industry.
Well, let's see in Fools message, public relations for Stock Advisor>
"with $148 million surrounded by cash to be in motion with just $2.9 million in total debt."
WFMI have 2.9m in debt, though at hand cash is contained by the 94M range. It may be that they own infusion of cash or Yahoo Finance background is dated compared to Fool's message.
"this company against three competitors with $7 billion of debt... $5.9 billion of debt... and $605 million debt"
WFMI's 3 competitors are KR, SWY, and SVU, beside 7B, 6.17B, and 9.48B of debt.
It is not an exact match and conceivably some other competitor is being compared. The certainty that Kroger, Safeway are clearly their competitors - it seems to game.
In this recent PR, http://www.fool.com/investing/small-cap/...
the bottom says "Chipotle is both a Motley Fool Hidden Gems and a Rule Breakers counsel. Starbucks and Whole Foods are both Stock Advisor selections. Wal-Mart is an Inside Value pick. "
Now, it can't be Starbucks since those numbers don't game. It can only be Whole Foods.
Where can I find the volume of the stocks that have be traded after the regular NASAQ hours?
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One of these should help.
http://dynamic.nasdaq.com/dynamic/afterh...
http://money.cnn.com/data/afterhours/nas...
http://www.marketwatch.com/tools/stockre...
Stock brokers?
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How can I tell for sure that someone is a stock broker, I contacted the NASAA, and he be not on their list but they told me not adjectives brokers are, I then call the SEC and reffered back to the NASAA. Any thinking?
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Stock brokers are required to hold a Series 7 (registered rep) license from the NASD, and usually a Series 63 (state registration) as well.
You can search out on the NASD website for any complaints or disciplinary action file against the broker.
Ask their license
All brokers are registered representatives, and are registered with the NASD. They the NASD, can look up any broker who have passed their series 7 exam. If someone is not on this list, you better not do business near them or you are asking for trouble.
In addition to checking the NASD network site, you should also call the state securities department of the state surrounded by which you live. A broker must be have his/her license registered near every state in which he/she does business.
How and when best should i invest surrounded by stocks?
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i wish to invest surrounded by stocks but needs a guide.
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The answer depends on WHY you are investing.
If you are investing for retirement, your strategy is a bit different than if you are investing to store up money for a house.
I will assume you are investing for retirement.
The simplest answer to your question is:
Save regularly.
You should set a stash budget of a certain amount of money/cash, deposit that money into an investment vindication and invest it in a lump every 6 months no thing what the market is doing, up or down.
You will obligation to open an sketch, preferably an Individual Retirement Account (IRA) with a stock broker similar to Charles Schwab. IRA's give charge breaks, but if you put money into an IRA, but need it past you retire, you will pay penalty. A good advisor will explain the risks/benefits of IRAs to you.
You should after read, read, and when you are done with that, read some more. See the links below for a honourable starting place. Investing without some research and wisdom is little more than a fancy way to lay a wager.
Two basics that they drum into everybody who take advanced finance courses contained by college:
Diversify
and
Risk=Reward
Your best bet as a beginning investor is to invest within mutual funds or Exchange Traded Funds (ETFs) that let you get hold of a lot of diversity for a bit cost.
Another good origin investor trick is to find a large grown-up company like Coca-Cola that offer dividends (money payments per share) and buy those. This is the best way to procure some steady cash out of stocks. You can also set up an automatic re-investment of the dividends vertebrae into those stocks, another good course to "auto-pilot" your investments without worrying something like ups or downs in the bazaar. This actually let you do better when the market is DOWN because your semi-constant dividends are buying stocks when they are cheap.
If you are planning on abiding for your retirement, you should seriously consider a certified Financial Planner for advice. They can draw from you set up not only beside a plan and strategy, but help beside the specifics.
If you are going to invest over a long period, a few hundred dollars at the launch in virtuous advice will pay envelope off near MUCH better long run results.
From one who knows and have seen the ups and downs, the best course is to start slowly.
If you have a clad job, and your employer offer a 401K plan, use it to the max. Invest first with a solid plan offered by various top notch employer, and if you can manage to invest next to a discount broker as well, do it leisurely.
Start with give or take a few $50.00 a week, if you can.
Buy some stocks of companies you feel are really appropriate and have a adjectives. Watch them, and if they should fall, you may want to buy more. That is call averaging for the long term.
Nobody get rich quick within the short term. Rarely will a stock do what you want it to do within a certain amount of time.
It take years for a stock to appreciate a lot.
Take small steps when you start, and remember that Chinese proverb that say every long journey begin with the first step.
Make that first step the right step.
you should come to the sites:
http://www.nyse-stock.free-site-host.com...
http://www.nasd-stock.free-site-host.com...
plenty information in that
We can invest in adjectives time but should be careful satisfactory
For beginners (and even experienced investors), mutual funds are the best all-around way to invest contained by stocks. A great book that will explain these for you is Mutual Funds for Dummies, by Eric Tyson.
Some great tutorials are found at sites such as:
http://www.investopedia.com
http://www.invest-for-retirement.com...
http://www.moneychimp.com
When investing, you will want to focus on your asset allocation (how you divvy up your money among the various types of stocks and bonds) and your costs. This will determine most of the risk and return of your portfolio within the long run.
Please read some basic info on stocks and mutual funds back you buy. You can save yourself thousands of dollars within unnecessary fees in the long run if you know what to avoid.
The stock open market can be risky at the best of times, even for experienced investors. However, everyone has to start somewhere, and if you do not start presently then when will you acquire the obligatory experience?
Do read some books on the subject. Visit your local book store and find a book that you like and get the impression comfortable with.
Some of the titles I own on my bookshelf include:
One Up on Wall Street by Peter Lynch
How to make money contained by Stocks by William J. O’Neil (Founder of Investor’s Business Daily)
The Millionaire Next Door by Thomas J Stanley and William D Danco
Check out web sites similar to fool.com and yahoo finance.
Investigate trading strategies near a proven track record over 3, 5, 10, and 15 years.
Pick something that you read, find easy to use, will give support to you realise your goals, and where on earth you can take responsibility for your investments and be within full control of your capital.
Systems close to the Stocks Monthly system are definitely worth investigating once you are up to speed next to the nuts and bolts of investing.
Why Indian share souk is so fluctuating ...is it due to so call boom surrounded by India or newly souk mechanisam?
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Fluctuations otherwise known as volatility are a adjectives element within all financial market. If you look at anything from the Dow to the FTSE, from Oil to Euro/Dollar all market are prone to fluctuations.
Volatility is caused by family buying and selling (opening and closing positions) at different points in the open market. Extreme volatility often represents indecision. Traders/Investors are not sure of the flea market direction. You often attain this around big benchmark numbers. I trade oil futures and you will find extreme volatility around the $70 butt mark.
If you look at the extreme gain that have be had on the Indian stock flea market it is natural you are going to find pullbacks/corrections.
You will find profoundly of investors who have more than doubled their money, may be reducing position size, closing out positions and the volume of unusual buyers might not be enough to replace lost volume.
You are also going to find that "experienced" traders/investors/speculators are going to be looking buy expediency. Value isn't neccesarily the top of the market. They are going to be waiting for pullbacks. That is why you will find take two steps forward and then one rear legs.
You could right a whole book on volatility of the market, all I am trying to do is pass you top line.
Simply fluck 2 asians! A quip!
The booming economy is angelic for stocks but the Indian Government is worried about an overheating reduction that is driving wholesale prcies highly developed - particularly for food. The inside bank have raised interest rates to slow down the growth of credit lend for real estate etc. but have had fixed success. The bank's proficiency to slow down inflation is that foreigners are pouring money into India that offsets the bank's travels.
So the stocks are fluctuating because the Government is "stamping on the brakes" to slow the economy and this might bring the nippy growth to an abrupt stop. If inflation fears facility, then the stocks will restore your health. If the prices continue to rise faster, afterwards the risk is for more downward pressure from the Government to slow down the economy.
How to buy DLF share's i am intresting to buy this share's may i know this procedure can any body relate me?
Question:
hi this is ramana reddy i am intresting to buy this share 's please tell me how to forward of buing this shares
Answers:
They are contained by the process of making a public offering. On the companies website the following person is programmed as a contact for more information.
You could also contact any local brokerage house, set up and fund a trading account, and consequently purchase shares.
Ravi Sinha (9810146941)
Concept PR,
Tel: 011-2370 1253 56
Hello Mr. Thanks for asking easeist question its remarkably simple man just unfold ur Dmat A/C in any guard or with broker or securities u can purchase adjectives shares wot u want but ur choice is super best of luck or else please check near india bulls 5paise.com icicidirect.com better cosmicsoftwares.com type ur msg in turn upside down box there u ll capture plenty of informations try buy soon.
hello mr. reddy, its better to invest in mutual funds. pls contact me i ll guide where on earth to invest. marc_pran@yahoo.com , 9873820493 i m an investment advisor
How do I invest surrounded by modern restaurants/clubs?
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I would like to invest within new startup entertainment venture in my nouns (dance clubs, bars, restaurants, etc.).
How do you find out who is looking for startup means for such ventures? I've hear of agencies that handle this - marry potential investors with startup entrepeneurs. Anyone own any details?
Thx...
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how about investing contained by helping the homeless instead? why not put some of your ill gotten money to do god work instead of wasting it on strip clubs?
Too bad you where on earth just looking within your area. I am looking to start a restaurant.
Cost Of Premium Coffee?
Question:
I need the cost of premium coffee, per pound or kilo on the commodity exchange, does anybody enjoy the answer for me? Also, over a year how much does it go up or down?
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It's call premium because that is what the marketplace will bear.
Each coffee roaster sets their own price. Have you looked into Fair Trade Coffee? This is where on earth the grower and farm worker is compensated a proper amount for his beans. In most cases the grower is paid deeply little and they do most of the work