PDF-Diversification does not protect an investor from market risk and does

The economic and market forecasts presented herein are for informational purposes as of the date of this presentation There can be no assurance that the forecasts will be achieved Please see addi. Kyle Hersey, Stefan . Dimitrov. , Kasey Darling,. Lauren D’Amato & . Khaleel. . Jhungeer. Growth. Growth strategies are used to increase and expand a company’s operations. Growth is often necessary for the long-term survival of thriving companies. Speaker: Phil Jenkins. Partner. . Centrus. Advisors. Chair: Paul Jackson. Treasury Independent. Housing Treasury – Financing Risk. B5: Key developments in the bank lending & private placements markets. (chapter 8). Investment. returns. The rate of return on an investment can be calculated as follows:. . (Amount received – Amount invested). . Return =. . ________________________. . Bodie, Kane and Marcus. Essentials of Investments . 9. th. Global Edition. . 6. 6.1 Diversification and Portfolio Risk. Market/Systematic/Non diversifiable Risk. Risk factors common to whole economy. W. F. . Maloney, World Bank. Knowledge Economy Forum. Berlin, May . 7. th. , 2010. Three Issues. Diversification vs. innovation and growth. Doing what we do better. Natural Resources. Export Quality. 6. Bodie, Kane, and Marcus. Essentials of Investments, . 9. th. Edition. 6.1 Diversification and Portfolio Risk. Market/Systematic/Nondiversifiable Risk. Risk factors common to whole economy. Unique/Firm-Specific/Nonsystematic/ Diversifiable Risk. Diversification. Diversification is a technique that reduces risk by allocating investments among various financial instruments, industries and other categories. It aims to maximize return by investing in different areas that would each react differently to the same event. Most investment professionals agree that, although it does not guarantee against loss, diversification is the most important component of reaching long-range financial goals while minimizing risk. Here, we look at why this is true, and how to accomplish diversification in your portfolio.. Don’t put all of your eggs in one basket. Because it is very difficult to accurately predict how any one company will perform over time, you may want to diversify your portfolio.. Diversification. is a strategy that helps to protect your portfolio over time.. November 16, 2011. FACILITATORS. Robert L. . Olcott. , CIMA. Managing Partner and . Senior Institutional Consultant. Olcott. Consulting Group. FAR Investment Community Resource Members. Large Group Discussion. LEARNING OBJECTIVES. THIS CHAPTER WILL HELP YOU UNDERSTAND:. When and how business diversification can enhance shareholder value. How related diversification strategies can produce cross-business strategic fit capable of delivering competitive advantage. Lecture 2. Risk /Return. Return = r = Discount rate = Cost of Capital (COC). r is determined by risk. Two Extremes. Treasury Notes are risk free = Return is low. Junk Bonds are high risk = Return is high. 1his economic notewas prepared for JeffreyHarris Director and Chief Economist ofthe Division Adam Division of Economic and Risk Analysis2Introduction147Investor confidence148 has been a longstanding , Integration and Merger. 6. .1 . Diversification. The typical unit of analysis in microeconomic theory is a single-product, single-plant firm serving a single market. . In . practice, however, many firms produce a range of products and serve a number of markets. Such companies are described as diversified. . The Securities and Exchange Board of India (SEBI) is the regulatory authority responsible for overseeing and regulating the securities market in India. It was established in 1988 as a non-statutory body and was subsequently given statutory powers...