Security and Portfolio Analysis Case Study Example | Topics and Well Written Essays - 1000 words

Security and Portfolio Analysis - Case Study Example He has suggested a limitation of 20 high-yielding stocks in the portfolio, instead of 40 stocks, of which only 10-12 gave considerable returns. While, on the face of it, if Hennessy accepts Jones' suggestion and invests the corpus in only 20 "good" issues, it might translate into lesser work, easier fund management and higher returns for the client and Hennessey himself. However, if there is any shift in the micro economy of the region, this might translate into lower profitability for the portfolio. Diversification spreads the risk involved and makes sure that if one sector is not doing favourably, stocks from another sector provide considerable gains. Broadly speaking, the sectors could be divided into infrastructure, banking, power, natural resources, energy, consumer goods, hospitality, healthcare, transport, automobiles, food, sugar, metals, shipping, finance, construction, oil, pharma, alternate energy, Information Technology, etc. Based on the size of the capital, the stocks could be classified as large caps, mid caps or small caps. By investing an amount in a majority of the sectors and each of the large, mid or sma ll cap companies, the risk of the portfolio is reduced. ... Depending on the stage in which the economy is in, exposure to such sectors could either be increased or decreased to increase the overall profitability. There are certain stocks of well managed companies, which give consistent returns to the stockholder, irrespective of the phase the market is in: whether bull phase or bear phase. Thus, I would rather prefer Hennessey's strategy of investing in 40 stocks than increasing the risk by investing in 20 stocks. b. Is there any way Hennessy could reduce the number of issues from 40 to 20 without significantly affecting risk Explain. The reason Hennessy seemed to do well most years was because the firm was able to identify each year 10 or 12 issues, which registered particularly large gains. So, picking out these 10-12 issues and doubling the amount invested in these companies would logically lead to the same profits. The only way Hennessy could reduce the number of issues from 40 to 20 without significantly affecting risk, would be to invest in companies having a record of consistent returns over a significant period of time. This might however mean a lowering of returns in a bear market. No pains, no gains, being the thumb rule in the capital markets, this might just eat into the profitability of the portfolio. 2. One committee member was particularly enthusiastic concerning Jone's proposal. He suggested that Hennessy's performance might benefit further from reduction in the number of issues to 10. If the reduction to 20 could be expected to be advantageous, explain why reduction to 10 might be less likely to be advantageous. (Assume that Wilstead will evaluate the Hennessy portfolio independently of the other portfolios in the fund.)2. A bottom-up investor believes that superior companies will do well even if

How to Develop an Evangelistic Lifestyle Essay Example | Topics and Well Written Essays - 2250 words

How to Develop an Evangelistic Lifestyle - Essay Example In this book, the author reveals how one may keep the belief that Gospel can clearly and effectively communicate the message without any legalism that turns grace confusing. Moreover, with the help of this book, one can learn more about his ultimate faith in Christ as a Savior. As it is believed and gospel message that all the believers in Christ are the representatives and the ambassadors for Jesus having responsibility to declare His message to the entire world, in fact the fallen word. Apostle Paul is an enormous example of a loving and bold representative for Jesus. He came forward with the message of cooperation and reconciliation to all those who come in contact with him. He was the person who really did faithful evangelism throughout his life. Conversely, most of us cannot prove to be Apostle Paul. For many believers of Jesus Christ, the job of evangelism is something this may turn them into guilt and fear. For most of the believers, it is not a joyful experience than what it should be. Although many believers put in great efforts to develop evangelistic lifestyle and declaring the magnificent gospel’s messages but at the same time some fail to understand the urgency of this spiritual nourishment. So, Dr. Moyer points out what can be done to develop more faithful evangelistic efforts. In the first chapter, How to Develop an Evangelistic Lifestyle, Dr. ... Christ commands to his representatives â€Å"Go into the world and preach the gospel to every creature.† This verse simply tells that evangelism requires true dedication and the obedience of God. On the other hand, according to Dr. Moyer, some people excuse while spreading the message of gospel to their surroundings which is absolutely contradictory in achieving evangelistic lifestyle. It is also presented in the book that those individuals who present themselves entirely to evangelism also offer themselves to prayers. They also request God to offer them with courage to speak about Gospel. This gave them strength to understand that God can do this or He will surely do that. Personal contact is also essential in developing evangelism. We may have contact with non- Christians in a get together or in an informal discussion regarding spiritual things. Moreover, we should not let fright and panic set in our way. With the help of this initial information put forward by Dr. Moyer, it is obvious that evangelistic lifestyle always deals with true commitment and obedience. It also demands sincere efforts and involvements rather than just developing a mere intention. It is a great way to bring lost individuals to the right path of God. Next to these initial details presented by Dr. Moyer, the second chapter of the book under title How to Turn a Conversation to Spiritual Things is far more interesting. According to Dr. Moyer, talking about spiritual things is nothing difficult but only to those who are already interested. So, the question is that what to do with those non- Christians who are not interested in such topics. How we can bring up the subject of Spiritual things to discussion. How we can turn the topic of discussion from Golf to God, from secular to