Investment and portfolio analysis Essay Example | Topics and Well Written Essays - 1500 words

Investment and portfolio analysis - Essay Example On the contrary, Sharpe ratio refers to a measure of risk adjustment measure that utilizes standard deviation when computing portfolio returns and inherent risk associated with a particular portfolio (Ctaff, 2012). Empirical research asserts that if Sharpe ratio is higher it implies returns are better. Therefore, by utilizing standard deviation, Sharp ratio assumes that the relevant risk is total risk unlike Treynor ratio which assumes that the relevant risk is systematic (Ctaff, 2012). Both Treyon and Sharpe ratios are similar; however, the two measures differ in terms of how they determine of risk volatility. Whereby, Treyon ration utilizes beta while Sharp ratio tend to utilize standard deviation (Anric, 2013). Information ratio measures the ability of corporate managers to utilize skills/ luck to generate excess returns beyond the established benchmark. This ratio utilizes alpha elements as well as standard deviation to measure volatilities associated with a particular portfolio (Reilly and Brown, 2012). Therefore, information ratio assumes that the relevant risk is total where both systematic and unsystematic risks are combined (Harkins, 2012). Jensen alpha refers to a measure of portfolio returns predicted using capital asset pricing model. In addition, Jensen’s alpha assumes that relevant risk is systematic (Bacon, 2013). On the other hand, Sortino ratio refers to a ratio that helps to determine the difference between good and bad risk in sharp ratio. This ratio tends to be similar with Sharp ratio. However, it utilizes downward deviation making it slight different from sharp ratio. This ratio measures return that can be derived during volatility whereby, standard deviation may be utilized. Therefore, Sortino ratio assumes that relevant risk it total (Feibel and Vincent, 2011). 2. Discuss whether the present value of cash flow approach and the relative valuation approach to security valuation can be considered to be competitive or complementary. T he present value approach may utilize discount rate to discount cash flows generated by a particular project to determine their value. Additionally, the present value approach may be utilized in making valuations of different assets such as shares, real estate properties and even bonds (Feibel & Vincent, 2011). Whereby, a negative net present value indicates that a project may not be profitable. In addition, a positive net present value implies that a project may be profitable and therefore, such project should not be undertaken because it will expose the company at a greater risk. On the other hand, relative valuation approach focuses at valuing company stocks with those of company own historical method of valuation. In addition, relative valuation tends to compare company’s stocks with the market value of other similar assets to determine whether they can be suitable for investments (Feibel and Vincent, 2011). This means that similar stocks of a particular company should be compared with those stocks of companies operating in the same market. However, relative valuation approaches have some limitations. For example, all companies may not utilize the same corporate strategies and hence, great discrepancies may exist between companies (Feibel and Vince

Nutrition 3 Essay Example | Topics and Well Written Essays - 1000 words

Nutrition 3 - Essay Example In comparison to breakfast, the dinner consists of the 240 calories, 144 fat calories, 72 fat calories, 4 units of the protein. The total addition of the snacks contributed numerous more calories (716.5) 246 fat calorie 110.4 calorie of the sat fat 17.6 gram of protein compared to the sum of the dinner calorific intake. It is notable that control of the feeding habits especially for the consumption of snacks. The gaining of the excess weight is likely to result from the snack consumption as compared to the general consumption in breakfast and dinner times. On day two of the analysis , the lunch consisted of the coffee , brewed water tap which is 8 Oz 2.4 calorie, 0.4 fat calorie, 0n sat fat and null protein. In the same mode, I consumed muffin , lemon poppy seed which transpires into 390 calorie , 180 fat calorie and 18 sat fat. The second day had total consumption of 2040.7 calories, 882.6 fat calorie, 308.2 sat fat and 113.2 grams of protein. As compared to the other days the second day had a lot of calorie intake as compared to the other food intakes. On third day the total consumption of the day was 1831.3 of calorie, 614.7 fat calorie and 362.7 sat fat calorie and the total protein intake amounted to 37.3 grams. On fourth day, consumption of calories amounted to 1911.6, 711 fat calorie, 317.7 sat fat calorie and consumption of 61.3 grams of proteins. The analysis of the total four day food consumption indicates relatively high amount of intake of the calories averaging close to 2000 but relatively low amount intake of fat calorie and sat fat calorie, however the consumption of the snack is the greatest contributor of the calorie intake. The actual calorie intake is 1911.63 while the recommended calorie intake is 2713.14. This falls nearly to the 70% of the recommended calorie intake. The consumption of the calorie from intake is virtually sufficient reading close to