The Finance Assessment Of The Merchant Of Venice - 1388 Words

Applied Finance Assessment I. Introduction â€Å"My ventures are not in one bottom trusted, Nor to one place; nor is my whole estate† (Shakespeare et al., 2007, Scene 1 Act 1) This quote discussing the diversification of Antonio’s investments in the first act of Shakespeare’s play â€Å"The Merchant of Venice† was written in the 16th century. But it wasn’t until 1952 that Harry Markowitz wrote his paper â€Å"Portfolio Selection† that made him â€Å"the father of modern portfolio theory†(Markowitz, 1999). Since then, the use of statistical tools by financial professionals has become very common. In this report, the performance of Microsoft Corp. (hereinafter called MSFT) and Apple Inc. (hereinafter called Apple) will be analysed, by looking at both monthly and yearly, simple and excess returns. First, the descriptive statistics of each individual stock will be examined, and the â€Å"Efficient Frontier† and â€Å"Capital Market Line† will be drawn, then the performances of the two shares against each other will be compared, and finally an examination of the performances of both companies using CAPM. A ll the calculations are found on an excel file that will be referenced throughout this report. II. Analysis 1. Descriptive statistics Looking at the Buy and Hold Return (MSFT 37833.33%, Apple 17480.65%) and Compounded Annual Returns (MSFT 23.63%, Apple 20.28%) of both stocks over the whole sample period, it is noticed that MSFT generates a higher return. In addition, MSFT had higher simple yearly returnsShow MoreRelatedThe Merchant of Venice by William Shakespeare Essay example1553 Words   |  7 PagesThe Merchant of Venice by William Shakespeare The Merchant of Venice is a play full of different relationships ranging from love and friendships to hate. These relationships are affected by gossips and rumours, which due to the close community are flying around all the time. Money is involved in everything in the play; it is at the centre of work, relationships and rumours. It also holds together and makes the main tension of the play. There are many relationshipsRead MoreOrigin of Accounting3836 Words   |  16 Pagesthe legal codes that evolved penalized the failure to memorialize transactions. The renowned Code of Hammurabi, handed down during the first dynasty of Babylonia (2285 - 2242 B.C.), for example, required that an agent selling goods for a merchant give the merchant a price quotation under seal or face invalidation of a questioned agreement. Thus it is believed that most transactions were recorded and subscribed by the parties during this period. The Mesopotamian equivalent of todays accountant wasRead MoreImpact of Environmental Accounting on Management Accounting7424 Words   |  30 Pages1.0 Introduction According to The Environment Agency in the United Kingdom (2006), Environmental Accounting can be defined as: â€Å"The collection, analysis and assessment of environmental and financial performance data obtained from business management information systems, environmental management and financial accounting systems. The taking of corrective management action to reduce environmental impacts and costs plus, where appropriate, the external reporting of the environmental and financialRead MoreEvolution of Accounting Thought6174 Words   |  25 PagesEurope (Renaissance, 14th to the 17th century), and the burgeoning of trade between the Middle East and Europe, things changed. Accounting, as we know it today, began to take shape. The Italian cities were at the cross-roads of the new trade, and merchants and mathematicians in these cities were instrumental in the development of the ‘new accounting’. Other events in world history which had a major influence in shaping accounting were the Industrial Revolution (1600s) and the Great Depression (1930s)Read MoreFoundation Course26234 Words   |  105 Pages Revolving Loans_______________________________________________________ _60 Term Loans ___________________________________________________________6 1 Syndicated Loans/Club Loans _____________________________________________62 Export-Import Finance ___________________________________________________63 Factoring ____________________________________________________________ _64 Bill Discounting_________________________________________________ ________64 Structuring of Loans ___________________________________________________66Read MoreIntern Report on Credit Risk Management of Ncc Bank Limited8134 Words   |  33 Pagesthan expected. This includes the possibility of losing some or all of the original investment. It is usually measured by calculating the standard deviation of the historical returns or average returns of a specific investment. A fundamental idea in finance is the relationship between risk and return. The greater the amount of risk that an investor is willing to take on, the greater the potential return. The reason for this is that investors need to be compensated for taking on additional risk. All creditRead MoreCareer Opportunities for B.S. Accountancy Students6080 Words   |  25 PagesLuca Pacioli develop the modern bookkeeping system â€Å"modern of venice† which earned him the title of Father of Accounting. Even at this time Fr. Luca Paciolo is considered as the Father of Accounting (Manuel, 2009). While in 15th century the Italian merchants usually entrust their properties to their servants who were required to keep track of their daily activities which composed of the properties or assets, owned by merchants and the debts or the liabilities owed to others are all beingRead MoreThe Ottoman Empire ( 1299 ) Essay6958 Words   |  28 Pagestwentieth century. It explores the changing relationship between the Ottoman state and Europe as European commerce rose ascendant and an emphasis on the balance of power exerted an influence on European political culture. This essay concludes with an assessment of the partition of Ottoman territories in the wake of Ottoman decline. OTTOMAN STAGNATION AND THE RISE OF EUROPE Ottoman Stagnation and the Rise of Europe By the beginning of the seventeenth century, the Ottoman Empire, a diverse and expansiveRead MoreThesis on Capital Structure26836 Words   |  108 Pagespower. It would be worthy and productive if such amount is collected from various people and utilized in proper way. Banks are essential financial institutions. They are the principal source of credit that provide short term working capital finance. They contribute to the economy in different manner. They collect money from savers and invest in lucrative sectors. They make profit by paying less for savings than what they charge to the borrowers. Therefore, banks could play a key role in reducingRead MoreThesis on Capital Structure26846 Words   |  108 Pagespower. It would be worthy and productive if such amount is collected from various people and utilized in proper way. Banks are essential financial institutions. They are the principal source of credit that provide short term working capital finance. They contribute to the economy in different manner. They collect money from savers and invest in lucrative sectors. They make profit by paying less for savings than what they charge to the borrowers. Therefore, banks could play a key role in reducing