Saturday, November 23, 2019

Investment and Normal Economy Essay Example

Investment and Normal Economy Essay Example Investment and Normal Economy Essay Investment and Normal Economy Essay Portfolio Risk| | | | | | | | | | | | | | Scenario Analysis. The common stock of Leaning Tower of Pita, Inc. , a restaurant chain, will generate the following payoffs to investors next year:| | | | | | | | | | | | | | | | | | | Dividend| Stock price| | | | | | | | | | | | Boom| | 5| 195| | 150. 00%| | | | | | | | | | Normal economy| 2| 100| | 27. 50%| | | | | | | | | | Recession| | 0| 0| | -100. 00%| | | | | | | | | | | | | | | | | | | | | | | | | The company goes out of business if a recession hits. Calculate the expected rate of return and standard deviation of return to Learning Tower of Pita shareholders. Assume for simplicity that the three possible states of the economy are equally likely. The stock is selling today for $80. | | | | | | | | | | | | | | | | | Current stock price=| $80| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Â  | Dividend| Stock price| Capital gains| Â  | Total gain (dividend + capital gain)| Â  | Return| Â  | Â  | | | | | Boom| | $5| $195| $115| =$195 $80. | $120| =$5 + $115. | 150. 00%| =$120 / $80. | 25. 83%| | | | Normal economy| $2| $100| $20| =$100 $80. | $22| =$2 + $20. | 27. 50%| =$22 / $80. | | | | | Recession| Â  | $0| $0| -$80| =$ $80. -$80| =$ -$80. | -100. 00%| =-$80 / $80. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Scenario| Probability| return| return x Probability| Difference from mean, i. e. 0. 2583| Difference 2 | Probability x Difference 2| | | 25. 83%| | | | | | Boom| 33. 33%| 150%| 50. 00%| 124. 17%| 1. 541819| 0. 513888| | | | | | | | | Â  | Â  | Â  | =150. %x0. 3333| =150. %-25. 83%| =1. 24 17^2| =0. 33331. 541819| | | | | | | | | Normal economy| 33. 33%| 27. 5%| 9. 17%| 1. 67%| 0. 000279| 0. 000093| | | | | | | | | Recession| 33. 33%| -100%| -33. 3%| -125. 83%| 1. 583319| 0. 527720| | | | | | | | | Total| | | 25. 83%| | | 1. 041701| | | | | | | | | | | | | | | | | | | | | | | | Probability = 1/3 as all the three states are equally likely| | | | | | | | | | | | | | | | | | | | | | | | | | Expected return=| 0. 2583| or| 25. 83%| | | | | | | | | | | Variance=| | 1. 041701| | | | | | | | | | | | | Standard deviation=vVariance=| 1. 0206| or| 102. 06%| =v1. 041701| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Question:| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Portfolio Risk. Who would view the stock of Learning Tower of Pita as a risk reducing investment – the owner of a gambling casino or a successful bankruptcy lawyer? Explain. | | | | | | | | | | | | | | | | | A successful bankruptcy lawy er would view stock of leaning Tower Of Pta a risk reducing investment because in recession his business would do well and Leaning Tower of Pita would not whereas, in boom times his business would not do well but Leaning Tower of Pita would do well. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

Thursday, November 21, 2019

Hip hop Essay Example | Topics and Well Written Essays - 500 words

Hip hop - Essay Example Some of its political elements include mockery of the worst aspect of slavery such as the dozens (slave auctions) and battling (putting someone else down through poetry). In hip hop, African Americans found a medium to express their message, similar to the jazz music of the earlier decades to vent their frustrations against widespread racial discrimination and their marginalization in American society which only lately has been rectified by laws. In a sense, hip hop music and its accompanying culture is closely related to another and unique newly-invented black American form of expression which is slam poetry. Many people are not familiar with this new art form of spoken poetry but blacks were the first to popularize a more vibrant form of poetry reading, where it assumes the form of a performance act done on the stage and in full view of the public. Poets not only read out aloud their compositions but also act out their poems messages in a convincing and entertaining manner. Both hip hop and def poetry (as slam poetry is oftentimes alternatively called) share a common characteristic of free verse. It had a similar provenance from another black American musical art form which is reggae. Both forms of artistic expressions employ a rhythmic cadence that is pleasing to the ear and the mind; these forms exhibit creativity, originality and imaginative composition. In a sense, both are also considered as performance arts (Aptowics, 2008, 213) in which the singer or poet, as the case may be, has to dress for the part and employ a variety of props such as an appropriate dress, composure, tone of voice, manner of delivery, posture and non-verbal body language such as hand gestures or facial expressions. What I like most about hip hop and its culture is an ability to compose lyrics not constrained by meter, indentation or format; this is