Modern Portfolio Theory (MPT) is a theory originally developed by Harry Markowitz which help risk-averse investors to construct a portfolio by maximizing expected return with a given level of market risk by constructing an efficient frontier (Investopedia, n.d.). This theory focus on effect of investment in the overall portfolio risk and return instead of looking at individual assets risk and return alone. A portfolio of various assets that can maximize the return at a given risk level can be constructed. Every investor hopes to see high possible long-term return with the minimum short-term market risk. MPT theory promote that an investor can hold an individual risky asset such as mutual fund but the risk will be reduced and the portfolio will
National saving includes public and private saving. Household saving typically constitutes a major part of private saving compared to private corporations (Gersovitz, 1988; Rehman, Bashir, & Faridi, 2011). Saving is an important way to improve the well-being of household. It allows households to smooth consumption in case of high income volatility and increase the opportunity to invest in physical and human capital (Ashraf et al., 2003). For households, the tradeoff between current and future consumption results in saving (Sturm, 1983).
These studies find that monetary policies play a significant role in controlling house prices or house price bubbles. Maclennan et al. (2000) find that monetary policy may be transmitted through the housing market. The main direct effect is an income or cash flow effect: when the interest rate rises, the interest burden of any outstanding debt rises and after-housing-costs disposable income falls. Xu and Chen (2012) find that China monetary policy actions are the key driving forces behind the change of real estate price growth in China.
Including a proxy for the return on human capital enhances the predictive ability of the model Jagannathan and Wang (1996) and allowing beta to vary over time reduces the explanatory power of size and book-to-market variables. Clare and Priestley (1998) find a positive and significant relationship between beta and average stock returns. A thesis by Gillette (2005), states that the presence of anomalies may point out to market inefficiency since it should not be possible to earn excessive returns based on observable firm characteristics such as size and book to market
This is the very notion that dictates budgetary control practices via the medium of Capital Markets. Asset prices have become so sensitive to information and inferences based off policies and budgets that companies who took part in leveraged growth have to choose between honest growth where budgetary control is being used as intended and face the probability that their market capitalization will decimate, or keep the dream alive a little longer and use budgetary control as a communicative tool to paint a rosy facade. Sadly, the latter is the case
Indeed, hedge funds managers claim that they pay attention to absolute returns, generating a positive outcome to igorne the market returns. Generally, there are four useful key characteristics which could help people distinguish hedge funds form other type of money management fund (Gad 2013). Initially, investors in hedge funds are required to meet a certain net wealth so that they could invest in hedge funds. For example, an investor should have net wealth exceeding one million in hedge funds. Secondly, according to Gad (2013), he said ‘a hedge fund's investment universe is only limited by its mandate.
The most efficient and effective method of forecasting is a mix of the above two, thereby know as Electic/Mix Approach (Morgan, 1981). Under this technique, the forecaster determines the value of currency using interest and inflation rates and then compares these rates with the prevailing spot rate. According to Graham (1973), mixed forecasting approach is the natural result of predicting exchange rates due to the lack of superior and single method of forecasting exchange rates. This method assigns “weighted values” to the results that are derived from other forecasting approaches. Due to its subjective nature, the success of the method depends on its interpretation by the forecaster.
They contend that in order for a host to take advantage of the positive externalities, thereby translating into higher growth, it must possess a minimum stock of human capital. At the same time, Durham (2004) suggests that hosts require developed financial markets for experiencing higher growth rates due to FDI. On the whole, the effects of FDI on economic growth appear ambiguous. But before further exploration, there is need to establish the causality between FDI and GDP growth. Causality: Does FDI affect growth?
However, in this study can conclude that cash conversion cycle is essential as a measure of liquidity than current ratio that affects profitability. At the industry level, it is found that the size variable also have impact on profitability. (Eljelly,
Furthermore, this research also needed to get more knowledge about the factors that are significantly contributing the house price changes in Malaysia. The researcher recognized that Gross Domestic Product Growth; Inflation; and Base Lending Rate were contributed to the changes in house price. By using the house price index as the main indicator it is helpful in completing as the index gathered review through the changes in house