Analysis of Investment and Risk Assignment Example | Topics and Well Written Essays - 1000 words

Analysis of Investment and Risk - Assignment Example In applying the methods of mitigating risk, making a portfolio is one of them which is, in fact, the most suitable and widely used methods in the entire investment industry (Cinnamon & Larsen, 2006). 1) Making of Efficient Portfolios comprising of 10 stocks in total. The companies which have been chosen for this purpose are BG Group, BHP Billion, BP, Barclays, British American Tobacco, HSBC, Glaxo Smith, Glencore, Unilever, Tesco. a) Short selling is one of the noteworthy activities of investment, which means to sell the assets without having its physical possession. The first part of assignment requires making a portfolio with including short selling allowed. For this purpose, following tabular data has been covered: From the tabular formation given above, it can be seen that lots of fluctuation are there among the mean return and standard deviation. The portfolio made with this particular stance would yield a return of 0.72% and a risk level of 3.53%. In this table, it can be found that short selling is not allowed; hence, an investor cannot take any position for a stock which has negative return. The portfolio return is 0.958% with standard deviation with the same 3.53% level. c) In this part, the return would be the same as in the section â€Å"b† because short selling is not allowed and 25% can be allotted to a single share. From this particular analysis, it can be said that the portfolio, which has been made without short selling, would yield the higher proportion of return in lesser risk adoption as compared to the portfolio in which short selling is allowed. In this scenario, in which portfolio has been diversified between 8 stocks and 2 stocks Coca-Cola and Google have been given 0 proportions. The average return of this portfolio is 0.822% with the same level of risk as illustrated above. From the analysis, it can be easily found that there are four stocks, which are above the level of CML; while other 6 stocks are located below the CML; hence there are only four stocks that can fill the gap of capital of an investor, while all other asset or shares would come below the level of average return.

Business Plan For A Company In The Food Industry. Ricer Essay

Business Plan For A Company In The Food Industry. Ricer - Essay Example The services will be based cash on delivery and cash with order. Ricer’s services will be commonly known as Ricer Vending Units. The original trial was conducted in October 25th, 2012 which was highly applauded by most residents within the city and projected to be a success once it will be launched. The business intends to expand gradually through franchises to other cities and states in the next ten years. Market Analysis The business is projected to be worth  £ 250,000 which will serve the local markets that are vast and well segmented. The population consists of 50.6% of female and 49.4% of men while the median age is around 34.8 years and the entire working population is 311,300 and the residential population goes at 506,800 according to statistics done in mid 2009. The City has a higher young age profile which will form an essential market for the Ricer’s products. This profile of the population reveals that the target consumers will most likely be the young and vibrant students and the working group. Thus the products will be distributed near colleges and University campuses, weekend markets and other convenient places such as leisure parks (Daniels, 2002, p. 53). Strategy and Implementation Ricer aims to create a brand recognition using its Ricer vending Units through positioning strategically in the entire business district within the city. Upon achieving the brand recognition, the services will be provided and eventually they will be available in major superstores and supermarkets (Stokes and Wilson, 2010, p. 3). Moreover, Ricer will then provide franchises to foster further expansion. 1.5 Management The Ricer will be owned by two ladies with massive experience in the business management, product promotion and hospitality industry. The pioneers are based from two different diversities which include; Chinese culture and the English culture. They were previous staff of a renowned restaurant in the world having worked for about ten years. They intend to employ other staff to help them in the preparation and distribution of food to the target market in the streets. 1.6 Financial Plan Ricer is projected to have a formidable starting financial base even though it will need extra funding to accomplish its goals and objectives. According to the analysis of the forecasts the revenue from the business is expected to grow to ? 7.5 million by year 5 and subsequently to ? 15.75 million by year 10 with an EBITDA amounting to ? 5 million by year 5. An initial survey from the streets it was determined that the firm would need to sell 75 meals to breakeven. The profound financial strategy ascertains that the firm will be more favorable as an acquirement for exit (Bhide?, 2000, p. 5). 1.7 Start-up funds and expenses This business plan will attract the following start up funds and start-up expenses. Start-up Expenses Legal ? 250 Marketing consultants ? 750 Design costs ? 2,500 Payroll expenses ? 12,000 Fuel costs ? 2,500 Business and Liability cover policy ? 5000 Total Expenses ? 23000 Start-up Assets Cash needs ? 250,000 Start-up Inventory ? 50,000 Other Short term assets ? 25,000 Total Short Term Assets ? 25,000 Non-current Assets ? 50,000 Total Assets ? 400,000 Start-up Funding for the fast food firm Investment for the business Rickrosly ? 150,000