Group Discussion Overview Wallmart is a successful company which exist in our community. It is estimated that million people shop at Walmart each week. However, the issue is Walmart offering low price for items but they has a bad quality employee management. Question 1 How would you describe the managerial philosophy of Walmart?
All investments carry some degree of risk. Stocks, bonds, mutual funds and exchange-traded funds can lose value, even all their value, if market conditions sour.
Even conservative, insured investments, such as certificates of deposit CDs issued by a bank or credit union, come with inflation risk.
They may not earn enough over time to keep pace with the increasing cost of living. When you invest, you make choices about what to do with your financial assets.
Risk is any uncertainty with respect to your investments that has the potential to negatively affect your financial welfare. For example, your investment value might rise or fall because of market conditions market risk.
Corporate decisions, such as whether to expand into a new area of business or merge with another company, can affect the value of your investments business risk. If you own an international investment, events within that country can affect your investment political risk and currency risk, to name two.
There are other types of risk. How easy or hard it is to cash out of an investment when you need to is called liquidity risk. Another risk factor is tied to how many or how few investments you hold. Generally speaking, the more financial eggs you have in one basket, say all your money in a single stock, the greater risk you take concentration risk.
In short, risk is the possibility that a negative financial outcome that matters to you might occur. There are several key concepts you should understand when it comes to investment risk. The level of risk associated with a particular investment or asset class typically correlates with the level of return the investment might achieve.
The rationale behind this relationship is that investors willing to take on risky investments and potentially lose money should be rewarded for their risk. In the context of investing, reward is the possibility of higher returns.
Historically, stocks have enjoyed the most robust average annual returns over the long term just over 10 percent per yearfollowed by corporate bonds around 6 percent annuallyTreasury bonds 5.
The tradeoff is that with this higher return comes greater risk: Exceptions Abound Although stocks have historically provided a higher return than bonds and cash investments albeit, at a higher level of riskit is not always the case that stocks outperform bonds or that bonds are lower risk than stocks.
Both stocks and bonds involve risk, and their returns and risk levels can vary depending on the prevailing market and economic conditions and the manner in which they are used.
So, even though target-date funds are generally designed to become more conservative as the target date approaches, investment risk exists throughout the lifespan of the fund.
While historic averages over long periods can guide decision-making about risk, it can be difficult to predict and impossible to know whether, given your specific circumstances and with your particular goals and needs, the historical averages will play in your favor.
The timing of both the purchase and sale of an investment are key determinants of your investment return along with fees. If you buy a stock or stock mutual fund when the market is hot and prices are high, you will have greater losses if the price drops for any reason compared with an investor who bought at a lower price.
That means your average annualized returns will be less than theirs, and it will take you longer to recover. Investors should also understand that holding a portfolio of stocks even for an extended period of time can result in negative returns.
It has only been recently that the closing price has approached this record level, and for well over a decade the NASDAQ Composite was well off its historic high.
Investors holding individual stocks for an extended period of time also face the risk that the company they are invested in could enter a state of permanent decline or go bankrupt.
However, the historical data should not mislead investors into thinking that there is no risk in investing in stocks over a long period of time.
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-Should business management always seek the lowest prices for its customers and the highest rate of return on investment? What reasons might there be for seeking something less for customers and stockholders? MKTG Management Chapter 14 (FINAL) Dr. Gonzalez, Trinity University, Fall STUDY.
a company has chosen to price its product in such a way that it gains the highest rate of return on its investment. The company is looking to _____. A) maximize its market share Instead of cutting its price, the company can offer customers low.
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(Photo by Kim Roe Kester)Summer tourism season bodes well for lodging establishmentsBy BECKY KARKEditor and general manager Michigan experienced a rainy summer this year.
With their higher return rate over the three they also hold the highest standard deviation of %, which in turn infers that they may hold the highest beta out of the three.
2. 2. Portfolio Risk Suppose Sharpe’s position had been 99 percent of equity funds invested in the S&P and either one per cent in Reynolds over one percent in Hasbro.