Derivative products
Essay - 5 pages - Finance
It is an indisputable fact that the present financial and economical tsunami is one of the worst slowdowns just close to the previous one, being the economic collapse in 1929. Indeed each semester previsions a particular percentage of growth. However, this foresight is depleting in terms of the...
Advanced corporate finance II: modern Portfolio theories
Essay - 8 pages - Finance
Harry Markowitz is a Nobel Prize winning economist who worked on the modern portfolio theory. His work has changed the ways of investing for many traders, keeping in mind that his work gave scientific features to risk versus return. The modern portfolio theory is made of different tools to...
The sub-prime loans crisis and the recent turbulences in the credit markets (2008) - published: 12/05/2009
Essay - 6 pages - Finance
The Russian economist Kondratiev has shown, in his theory of the cycles that in the economical life periods of economical recession followed periods of growth, and then followed by another period of growth, in an infinite cycle. The start point of these periods of recession is usually a great...
Analysis of a recent financial/economic event of your choice to illustrate and substantiate the knowledge you have acquired over the last three months
Essay - 1 pages - Finance
The French banking industry has been in the restructuring phase for about five years now. The year 2006 gave the markets another example of this trend. The banking industry will have to deal with a new corporate and investment bank, which is being created by joining units from the Banque...
The evolution and implications of Hedge Fund institutionalization
Essay - 12 pages - Finance
Hedge funds and their managers, once obscure enigmas of the investment community, have become in the last decade household names due to their overwhelming publicity as money-hungry madmen. Part of the reason why these loosely regulated funds have drawn so much attention is because their explosive...
Les conséquences des opérations du secteur bancaire sur l'offre de monnaie
Essay - 9 pages - Finance
Le secteur bancaire joue un rôle crucial au Royaume-Uni parce qu'il détermine non seulement la quantité de monnaie en circulation, mais aussi la forme qu'elle prend (monnaie fiduciaire ou possession de comptes courants / d'épargne disponibles pour être utilisés par les banques pour des prêts)....
Critical analysis of the arguments surrounding the morality of engaging in "insider trading" in securities markets: although it is illegal in most stock markets, could the practice ever be eradicated totally and would this be desirable?
Essay - 5 pages - Finance
As the securities markets were expanding rapidly in the second part of the 20th century, a widespread assumption maintaining that insider trading must be prohibited on moral grounds took root in the collective consciousness. These economic transactions are illegal in most stock markets and the...
Is multi-management the future of the investment industry (2009)?
Essay - 17 pages - Finance
This report was written after the events of summer 2008 heightened the need to detail the financial environment and the new tools that one could use to improve investments returns in the long term. One of the tools examined is that of multi-management. The report shows that this is a new way of...
The Truth behind Stock Options: The Reasons Why They Don't Work
Essay - 14 pages - Finance
This report provides several theories about the dysfunction of stock options and the reasons why they do not work. Our study is focused on the 90's, especially in the USA, a country where stock options are the most generalized. This paper examines the evolution of stock options in three...
The sub-prime loans crisis and the recent turbulences in the credit markets (2008)
Essay - 6 pages - Finance
The Russian economist Kondratiev has shown, in his theory of the cycles that in the economical life periods of economical recession followed periods of growth, and then followed by another period of growth, in an infinite cycle. The start point of these periods of recession is usually a great...
The Chinese banking system
Essay - 5 pages - Finance
The Central Bank is the only monetary policy-making and policy-executing entity in the Republic of China. Its organization structure is split into two independent entities: The decision-making body and the decision-executing body. The decision-making body, which is more important, is composed of...
Dividend policy irrelevance
Essay - 7 pages - Finance
Depending on its life cycle and strategy, a firm has different financial needs. These financial needs could be fulfilled by internal or external resources. The sources of internal financing is cash flows. External financing could be debt and/or equity. When a firm uses debt, the interest rate it...
Limitations of using Beta as a standard measure to assess risks
Essay - 2 pages - Finance
Risk reduction is needed to obtain security on expected returns. On the one hand some risks can be diversified, like unsystematic risk, and on the other hand systematic risk can not be diversified because they are inherent in the company's activity. There is only one exception, systematic...
The subprime crisis: Definitions, causes and consequences
Essay - 8 pages - Finance
Subprimes are mortgages granted in the United States to customers who are not very solvent, on the basis of an increase in the interest rate. One applies a kind of premium to a borrower when his solvency is below a certain threshold. This operation is supposed to compensate for the risks taken by...
The impact of bank failures on the money stock during the inter-war period in the United States
Essay - 11 pages - Finance
In the following study the researcher attempt to analyze whether the monetary policy adopted by the Federal Reserve during the interwar period led to the Great Depression. The study would investigate through an extensive literature review by studying the perspectives of renowned economists in...
Fixed income analysis and risk management - publié le 16/01/2009
Essay - 9 pages - Finance
As the ten OAT have the same anniversary dates, in other words the different cash-flows are paid at the same dates (25-Apr-08, 25-Apr-09, 25-Apr-10,), then we used a direct method of calculation of the spot rates, through two steps. Using a polynomial interpolation, we can recover the yield...
Nissan - published: 16/01/2009
Essay - 5 pages - Finance
The name NISSAN Motor Co. appeared for the first time in 1934 from a company called Jidosha-Seizo Kabushiki-Kaisha, a combination of several automotive ventures and the Brand DATSUN. Nissan was the pioneer of the development of new automobile technology in the 1970s. It knew a very fast growth...
Collect foreign exchange spot and forward rate data and interest rate data for two currencies: examine whether CIRP holds: Analyze and discuss the results - publié le 16/01/2009
Essay - 4 pages - Finance
The purpose of this assignment is to analyse whether the Covered Interest Rate Parity (CIRP) holds in the relationship between two actual currencies. I decided to focus on the euro and the dollar because it is the financial instrument the most active and the most used in the world. Since the euro...
Reporting analysis: Daimler-Chrysler (1998-2006) - publié le 16/01/2009
Essay - 21 pages - Finance
We assume for the analysis of the group that the impact of IFRS in year 2004 is insignificant given that IFRS and US GAAP are closed. Moreover a complete analysis was impossible given that we didn't have all the figures before 2004. From 1998 to 2006 we can see that inventories increased from...
The financing of joint ventures - publié le 16/01/2009
Essay - 7 pages - Finance
A joint-venture is an agreement between two partners from different countries and which consists of the creation or the joint acquisition of a joint venture on the market of the foreign partner. This co-operation is considered on the long-term. In other words, a joint venture is a group in which...
When a famous bank ( Société Générale ) is plunged into the world's largest financial fraud ever known by a simple junior trader - published: 16/01/2009
Essay - 8 pages - Finance
In January 2008, the financial world was disrupted by the world's largest financial fraud case known to date. The famous French bank, Société Générale, recorded a loss of 5 billion euros due to false positions taken by a junior trader, Jérôme Kerviel. To fully appreciate how he did this, it's...
Empirical evidence on Seasonalities - Inspecting the market anomalies - publié le 16/01/2009
Essay - 20 pages - Finance
Anomalies, such as calendar effects, could be defined as phenomena where systematic returns patterns are observed. Partisans to informational market efficiency suggest that calendar effects are prone to disappear, as investors in the market could implement strategies in order to take advantage of...
Competition in the banking industry
Essay - 4 pages - Finance
Nowadays, the banking industry has become significantly more competitive than in the past and competition is likely to increase further. New competitive pressures are emerging from abroad, owing to the liberalization of international banking and capital flows, and as a result of the adoption of...
Michelin : financial case study - publié le 16/01/2009
Essay - 12 pages - Finance
The world tire market was equal to 80 billion dollars in 2005. That is to say that each year more than 1 billion tires are sold for cars and light trucks. 75% of the sales are for European, North American and Asian countries. Michelin is the leader of this market in those areas because it deals...
Options, futures and other derivatives - publié le 16/01/2009
Essay - 9 pages - Finance
The binomial model is used to describe stock price movements through consecutive periods of time over the life of the option and to determine the actual price of this derivative. Each period is an independent trial. The binomial formula describes a process in which stock return volatility is...
The Sarbanes-Oxley Act - published: 16/01/2009
Essay - 4 pages - Finance
On July 30, 2002, President Bush signed into law a revolutionary Act: the Sarbanes-Oxley Act, also known as the Public Company Accounting Reform and Investor Protection Act. In the wake of many financial scandals, this law establishes new accounting and control requirements on U.S. publicly owned...
Trading volatility - publié le 16/01/2009
Essay - 13 pages - Finance
Traditionally, to make a profit, most individual investors and fund managers are forced to take a view on the direction of the price of something. The traditional or fundamental strategy is to study all the aspects of the market-place, all the factors affecting the price or that might affect the...
The effectiveness of legal restrictions on distributions to shareholders in achieving "Creditor Protection"
Essay - 2 pages - Finance
In this essay, I will critically evaluate the effectiveness of legal restrictions on distributions to shareholders in achieving “creditor protection”. It consists of showing the good and the bad points of these restrictions. Firstly, I will define the terms used previously. Then, I will...
The London Stock Exchange - publié le 15/01/2009
Essay - 5 pages - Finance
Financial globalization has grown since the nineties. In 2004, the portfolios of British institutional investors contained 26% of foreign assets. In comparison, this rate was of 11% in the United States and 23% in Japan, which makes the LSE the biggest international Stock Exchange. Moreover, as...
The Capital asset Pricing Model (CAPM) isn't wrong. It just doesn't go far enough
Essay - 4 pages - Finance
The capital asset pricing model (CAPM) is a mathematical model that explains the relationship between risk and return in a rational equilibrium market. The model is used in finance to determine a theoretically appropriate required rate of return asset, if that asset is to be added to an existing...
