+44 203 318 3300 +61 2 9052 0853

Corporate Finance And Investments Assignment Sample

Pages Pages: 33

Words Words: 8326

Introduction Of Corporate Finance And Investments Assignment

Get free samples written by our Top-Notch subject experts for taking assignment helper services.

The report prepared here highlights the respective performances related to the portfolios that are generated by various shares and Gilts. The basic purpose behind the formulation of this financial research report is to identify various techniques that are used to calculate the returns related to taxation during a certain span of investment period. Different sections within this financial research report ideologies numerous aspects related to portfolio investment in relation to shares and the Gilts. The report also categorically represents various types of risks that are related to returns within the portfolios or the investments made upon various stock exchanges like the FTSE 100. Another important part of the discussion behind the preparation of this financial research task is to elaborate on the ways by which portfolio investment could be hedged between a certain period and related difficulties that are faced during the times of hedging of the portfolios. All the calculations regarding the investment of the portfolios have been done within this report by considering the initial sum invested, approximately £ 10,00,000. Every portfolio that was invested during the times of completion of the assignment task were found to be liquidated after the completion of approximately one year.

Importance related to Risks and Returns

It is very important to understand the risk and the returns before involving in any investment because there are lots of risks which can be overcome just by analysing the investment before investing. So before doing it, it is important to understand the risk of investment. In any investment, the risk is to get less than what we invested, which means the returns will come less than the expected return. There why so many risk factors in the investment markets, just like the market volatility, the determination of the business fundamentals, the inflation of the business fundamentals.” This kind of inflation is leading towards the Loss of the buying power for the next investments and higher expenses. These business fundamentals can suffer from the increasing competitive pressure” (Barajas et al., 2018). The weak fundamentals can also lead to the decline of profit, and even it can cause the Loss. Where on the other hand, the return means the amount, which is going to be achieved by the investor after a period of time of investing. There is always an expected return depending on which the investor invested in a market. Though it is not possible to investigate 100% before investing in any market because 100% prediction cannot be made by anybody, there are some processes to cut down the risk factor to some extent. Maybe, for example, the stock component of the portfolio can be hired when somebody is starting their first job because, at that time,they can take more risk for the growing purpose of their investment. The market movement should be noticed carefully before the investment because the nature of the market can predict the future return values of that investment properly. Risk cannot be eliminated by using this diversified portfolio of stocks and bonds, and other assets. This kind of portfolio composition should be consistent enough with the investor’s financial objective and the level of tolerance of the investor for the risk. The investment returns are always hired for the risky assets. There is always some mental pressure which has to be faced by the investor before investing in these places. Just like in the savings account, the deposit certificates, the treasury bonds cause more returns because of all the safe investment, but in the case of risk in investment, The returns are always higher than the safe Investments just like investing in the stock market are riskier than investing in the savings accounts, but in that case, the return amount is always higher than the saving amount the loss amount is also higher than the safe accounts.

Detailed Analysis

“A detailed analysis has been performed between two of the most reputed shares that hold their position within the FTSE 100 list of share companies “(Barker, 2017). The detailed comparisons have been performed on the basis of various data that have been obtained within a time span of 52 weeks, and the graphical analysis of both the types of share companies have been done efficiently so that the users of this report can gain detailed information regarding the functioning of both the companies.

Analysis of Aviva Plc

The graph related to Aviva plc is extracting a download slope. Upon a time span of 52 weeks, it can be seen that the company has gone through ups and downs related to the expected returns from the market, and the graph represents exactly the same thing. A detailed performance has been made between both the companies regarding the performance of the investment and the returns that the shares of the companies provide to its customers during a time period of 52 weeks. Starting from the month of February 2020, it can be seen that the returns that are extracted by the company were extracted in negative figures, which shows that the company was not running properly and the investing techniques that are used by the company are very poor, thus fetching negative returns in the market.” Till the month of February to June 20 20, the company extracted negative returns from the market; however, during the month of July, the company was able to extract positive returns in the market of approximately 0.033438 and 0.033725, respectively (Berrick et al. 2017)”. Again, in the month of September, the company was able to extract positive returns of approximately 0.027138 and 0.027775 accordingly. The month of February also turned out to be positive during the year 2021, and during that year, the company was able to extract a positive return of absolutely 0.019498 and 0.044601, respectively. The graphical representations that are extracted denote that during the initial weeks in the company was able to gain momentum, and the investment related to the portfolios that are done by the company gave the company positive returns.” After the month of June, the company again failed to deliver quality returns from the market, and therefore, the graph can be seen to be going down the word” (Boyne, 2018). Representation on the basis of graphs and bar charts will highlight the prospects discussed here more efficiently to the users of this research report.

AVIVA PLC

Date

Open

High

Low

Close

Adj Close

Volume

Returns

24-02-2020

352.4

364.7

343.8

350.8

296.1111

27319074

 

02-03-2020

355

430.404

333.9

343

289.5272

116213625

-0.02249

09-03-2020

335

335

267.4

271.6

229.2583

140211575

-0.2334

16-03-2020

258.6

264.6

205.7

231.6

195.4942

162366540

-0.15932

23-03-2020

217.4

277

210.1

268.5

226.6415

140206077

0.147839

30-03-2020

268.2

278.1

230.2

233.6

197.1824

96726731

-0.13924

06-04-2020

240.6

284.2

239.005

264.6

223.3495

100634330

0.124609

13-04-2020

264.6

269.3

234.755

247.8

209.1686

77399533

-0.0656

20-04-2020

247.2

251.2

227.401

230.4

194.4812

102776377

-0.07281

27-04-2020

236.4

265.391

234

237.5

220.327

100126008

0.124777

04-05-2020

235

247.7

226.998

247.3

229.4184

85907720

0.040435

11-05-2020

250.2

251.7

220.8

229.2

212.6271

71627632

-0.07601

18-05-2020

233.8

248.5

229.6

236.1

219.0282

68155401

0.029661

25-05-2020

236.1

271.8

236.1

247.7

229.7894

89270350

0.047963

01-06-2020

251.9

298.82

249.9

296.3

274.8753

86475071

0.179154

08-06-2020

294.3

303.198

269.969

276.5

256.507

98919963

-0.06916

15-06-2020

267.4

293.9

268.9

278.7

258.5479

109007976

0.007925

22-06-2020

276.5

283.226

262

269

249.5493

64287157

-0.03542

29-06-2020

266.8

281.928

265.2

273.5

253.7239

49749379

0.01659

06-07-2020

279.7

287.951

275.4

282.8

262.3514

55147294

0.033438

13-07-2020

285

298

282.2

292.5

271.35

41335955

0.033725

20-07-2020

290.2

294.8

279.8

281

260.6816

47763388

-0.04011

27-07-2020

280.1

281.6

261.5

263.7

244.6325

38535541

-0.06354

03-08-2020

264.8

305.8

260.9

293.6

272.3705

75785988

0.107406

10-08-2020

296

306.5

282.7

288.8

267.9176

46131451

-0.01648

17-08-2020

288.5

291.9

276.6

281.1

266.0301

35817834

-0.00707

24-08-2020

282.9

290.6

276.651

282.7

267.5444

33572106

0.005676

31-08-2020

282.7

282.7

270.043

273.6

258.9322

27547034

-0.03272

07-09-2020

277.4

310

274.5

303.2

286.9453

50016465

0.102725

14-09-2020

305

308.7

292.3

292.3

276.6297

61832254

-0.03661

21-09-2020

288.1

292.2

276.9

279.9

264.8944

79812743

-0.04335

28-09-2020

284.5

296.5

280.7

287.6

272.1816

49844784

0.027138

05-10-2020

293

381.066

288.2

295.7

279.8474

56530231

0.027775

12-10-2020

295.6

299.801

276.1

281.9

266.7872

44916976

-0.04779

19-10-2020

281.4

285.979

270

278.1

263.1909

41142732

-0.01357

26-10-2020

272.7

287

253.8

257.5

243.6953

59579352

-0.07696

02-11-2020

258.4

284.545

255.5

277.6

262.7178

65552534

0.075161

09-11-2020

281.3

316.8

280.639

309.1

292.5291

90561378

0.107484

16-11-2020

312.2

321.1

311.5

318

300.9519

98061297

0.028386

23-11-2020

321.3

338.7

319.5

324.1

306.7249

98710209

0.019001

30-11-2020

321.5

340.3

319.6

338.2

320.069

75264191

0.042585

07-12-2020

340.1

340.638

312.195

316

299.0591

59302127

-0.0679

14-12-2020

317.9

334.9

317.8

326.1

315.2404

79924537

0.052694

21-12-2020

317

333.822

307.898

328

317.0771

31659781

0.00581

28-12-2020

328

335.8

321.4

325.2

314.3703

13378871

-0.00857

04-01-2021

332.3

352.9

322.1

348.6

336.9911

61966165

0.069485

11-01-2021

345.6

357

247.4

348.5

336.8944

73531827

-0.00029

18-01-2021

348.1

353.5

342.7

349.1

337.4744

39913602

0.00172

25-01-2021

351.7

352.5

332.6

335.2

324.0373

66694523

-0.04063

01-02-2021

337.1

359.8

334.1

341.8

330.4175

67504264

0.019498

08-02-2021

344.8

350.15

339.7

348.6

336.9911

40048319

0.019699

15-02-2021

352

367.3

351.4

364.5

352.3616

51539525

0.044601

22-02-2021

364.5

382.8

360.8

361.9

349.8481

63453699

-0.00716

Analysis of BAE Plc

“The condition of this share company is good in comparison to the previous company, and it can be seen that BAE Plc was able to extract positive returns from the market on various occasions” (Bulger et al., 2017). The company, during the month of February 2020, expected positive returns of approximately 0.006416 and 0.146722 approximately as a result of total investments down on behalf of the portfolios within the share market. The companies of March and April and I proved adverse results on behalf of the company, and again during the month of June, the company was able to gain positive returns from the market of approximately 0.029946 and 0.007529, respectively.” During the months of August, the company had a bill to extract positive returns of approximately 0.0060 and 0.040334 respectively from the market, which seems that the company was more efficient and capable in comparison to the previous company and the share values of this company or more in demand to the investors or the shareholders, so wish to invest in this particular company” (Bywaterset al. 2018). Although both the companies have been trying hard to extract a higher amount of returns from the market, it can be seen that BAE Plc is in a better form to extract revenues from the market at a larger scale in comparison to the previous share company.

BAE PLC

Date

Open

High

Low

Close

Adj Close

Volume

Returns

24-02-2020

32.29

32.78

30.84

31.27

29.04971

1446100

 

02-03-2020

31.2

31.83

30.82

31.07

28.86391

1247300

0.006416

09-03-2020

28.98

29.51

25.05

26.83

24.92497

1437700

0.146722

16-03-2020

23.74

24.55

20.64

20.65

19.18377

1522100

0.261805

23-03-2020

20.79

26.33

19.89

24.85

23.08556

1578600

-0.18514

30-03-2020

25.14

25.91

23.62

24.45

22.71396

913200

0.016227

06-04-2020

24.98

27.07

24.97

26.83

24.92497

833800

-0.09289

13-04-2020

26.06

28.02

25.49

27.87

25.89113

1422300

-0.03803

20-04-2020

27.03

27.28

24.72

24.97

23.19704

1876400

0.109876

27-04-2020

25.25

26.85

24.99

25.04

23.26207

1544600

-0.0028

04-05-2020

24.62

25.67

24.04

25.64

23.81946

1982800

-0.02368

11-05-2020

24.89

25.75

23.8

24.1

22.38881

1648400

0.061942

18-05-2020

24.39

24.56

23.87

24.07

22.36094

1394900

0.001246

25-05-2020

25.29

25.44

24.32

24.58

22.83473

1664000

-0.02097

01-06-2020

24.59

26.35

24.58

26.1

24.2468

3410000

-0.06

08-06-2020

26.24

27.49

24.87

25.33

23.53147

1619600

0.029946

15-06-2020

25.28

25.81

24.85

25.14

23.35496

1832200

0.007529

22-06-2020

25.39

25.85

23.92

24.06

22.35165

1940500

0.043909

29-06-2020

24.26

24.4

23.76

24.08

22.37023

448200

-0.00083

06-07-2020

24.67

24.78

23.98

24.09

22.37952

1532800

-0.00042

13-07-2020

24

25.05

23.44

24.58

22.83473

1382800

-0.02014

20-07-2020

25.21

25.72

24.39

24.46

22.72325

2442200

0.004894

27-07-2020

24.72

26.64

24.59

25.74

23.91236

401700

-0.05101

03-08-2020

25.39

27.76

25.19

26.61

24.72059

1582900

-0.03324

10-08-2020

27

28.22

27

28.12

26.82899

1363500

-0.05519

17-08-2020

28.29

28.87

27.62

28.15

26.85761

1024800

-0.00107

24-08-2020

28.51

28.69

27.83

27.98

26.69542

386000

0.006057

31-08-2020

27.42

28.07

26.8

27.32

26.06572

852800

0.023871

07-09-2020

26.75

27.3

26.01

26.24

25.0353

745600

0.040334

14-09-2020

27.12

27.85

26.82

27.5

26.23745

432700

-0.0469

21-09-2020

26.31

26.31

25.03

25.46

24.29111

697900

0.077077

28-09-2020

25.58

25.97

24.99

25.95

24.75862

1102400

-0.01906

05-10-2020

25.95

26.37

25.61

26.17

24.96852

563600

-0.00844

12-10-2020

25.8

25.95

24.46

25.05

23.89994

492100

0.04374

19-10-2020

25.33

25.64

23.24

24.25

23.13667

763500

0.032457

26-10-2020

24.19

24.22

20.67

20.88

20.32156

1085600

0.149625

02-11-2020

21.32

23.86

21.18

22.98

22.36539

2982300

-0.09583

09-11-2020

23.98

25.57

23.52

25.22

24.54548

2681700

-0.09301

16-11-2020

25.51

28.11

25.46

28.1

27.34846

2123500

-0.10813

23-11-2020

28.61

28.74

27.22

27.38

26.64771

354300

0.025957

30-11-2020

27.41

29.17

27.12

28.64

27.87401

785300

-0.04499

07-12-2020

28.28

28.4

26.71

27.03

26.30707

739600

0.057857

14-12-2020

27.46

27.75

26.84

27.13

26.4044

616900

-0.00369

21-12-2020

26

27.94

26

27.55

26.81316

377300

-0.01536

28-12-2020

27.96

28.54

26.82

27.15

26.42386

372800

0.014625

04-01-2021

27.8

28.18

27

27.46

26.72557

1585100

-0.01135

11-01-2021

26.98

27.71

26.81

27.12

26.39467

3554200

0.012459

18-01-2021

26.89

27.15

26.27

26.49

25.78152

1821300

0.023504

25-01-2021

26.02

26.72

25.4

25.63

24.94452

767300

0.033004

01-02-2021

25.88

26.47

25.65

26.24

25.5382

1041400

-0.02352

08-02-2021

26.32

26.88

26.07

26.87

26.15135

936900

-0.02373

15-02-2021

27.24

27.32

26

26.08

25.38248

2858900

0.029842

22-02-2021

26.14

28.81

26.14

27.3

26.56985

825500

-0.04572

Evaluation of the performance

A detailed evaluation regarding the performance of both the companies that are listed within the shares and the FTSE share market has been made under this section of the assignment. It can be found that the expected returns that have been earned by Aviva plc are approximately 0.00320701 and the variance noted is 0.00573213, accompanied by a standard deviation of approximately 0.07571086.

AVIVA PLC PERFORMANCE STATS

Particulars

Amount

EXPECTED RETURNS

0.00320701

Particulars

Amount

VARIANCE

0.00573213

Particulars

Amount

STD DEVIATION

0.07571086

In comparison, it can be seen that BAE Plc has expected returns of approximately 0.00261101, and the variance that is recorded by the company is approximately 0.00476823 in accordance with a standard deviation of nearly 0.06905239. Does it can be concluded that although both the companies have the potential to extract a higher number of returns as their portfolio investments that are done in a time span of approximately 52 weeks, it can be seen that the previous company named Aviva plc has better capacity in comparison to the former company to extract a higher number of returns from the market.

BAE PLC

Particulars

Amount

EXPECTED RETURNS

0.00261101

Particulars

Amount

VARIANCE

0.00476823

Particulars

Amount

STD DEVIATION

0.06905239

Ways to Hedge the Portfolios and Disadvantages related to them

The term hedging actually belongs to the stock market. The people who are familiar with the stock market can easily understand this term because this is one of the most discussed topics in the financial market. “The People who are the new commerce in the stock market can understand this term from the old investors. This heading is not directly associated with earning money, but it is actually listening to The Loss potential “ (Weithorn, 2017). It means it helps to decrease the loss amount or, more correctly, it decreases the risk factor. There are some advantages of hedging as well as some disadvantages also those are:

 Advantages of hedging:

  • The primary advantage of hedging is it limits the loss amount for the individual person. That is why they can overcome the fear of investing in the stock market. Just like if any person is just going to buy a new car or car insurance, in that case, it is actually a kind of hedging which decreases the risk of the car damage amount. The insurance company has to pay the damage amount because the insurance company bears the Loss. That is why there is no fear in the customer to invest in a car.
  • It also protects the profit amount for the investor who is doing the hedging. If an investor is not able to make the decision that the stock has to be sold on hold, then it has to take the future decisions for the investor.
  • It Liquifies the financial market like in the case of the stock market, the derivatives market, the commodity market and the hedging help to trade their stocks in different markets so that the investor can reduce the loss amount and discover better price.

 Disadvantages of Hedging:

  • Hedging is not a free process; it has a certain amount of costs associated with hedging. There is also an insurance premium in the case of insurance case. The risk factor is even law than the normal insurance that so that is also a kind of ageing, and the customer has to pay for their insurance premium that is the cost of the hedging. Sometimes the hedging expenses can be unnecessary.
  • It also has some limitation in the hatching that it also limits the toffee side of the Loss because when there is hedging in the market, the investment is going to be safe. So, the profit amount has also become low in this case.
  • “There is another kind of limitations in this heading that all kinds of these cannot be held. There are some kinds of risk which have to be faced by the investors fully because there is no investment insurance or loss management in all the risks”(Olivetti and Petrongolo, 2017).

So, from the above paragraph, it is clear that there are some advantages as well as disadvantages which are present in the hedging process, and this process should be applied to the portfolio and the requirements The heading is actually beneficial for the investors who are going to invest huge amounts of money in the stock market because, in that case, they are enjoying the facility of hedging. But in the case of the investors who are not even frequently investing in the markets as well as who are investing a small amount of money in the market for them, hedging is actually an unnecessary cost because, in this case, they have to pay a little amount for this hedging process and that is going to be completely in vain because the amount used in fact higher than their investment.

Conclusion

Investing in the portfolios requires a higher amount of talent and skills on behalf of the investors who are wishing to invest in these types of investment appraisal techniques. This report highlights two of the most reputed share companies that are listed within the FTSE hundred companies or the stock exchanges and the performance that these two companies are generating to its customers as the form of returns from the market investments in terms of the portfolio have also been efficiently analysed as a part of this research topic.

Reference list

Journal

Barajas?Gonzalez, R.G., Ayón, C. and Torres, F., 2018. Applying a community violence framework to understand the impact of immigration enforcement threat on Latino children. Social Policy Report31(3), pp.1-24.

Barker, V., 2017. Nordic vagabonds: The Roma and the logic of benevolent violence in the Swedish welfare state. European Journal of Criminology14(1), pp.120-139.

Berrick, J., Dickens, J., Pösö, T. and Skivenes, M., 2017. A cross?country comparison of child welfare systems and workers' responses to children appearing to be at risk or in need of help. Child abuse review26(4), pp.305-319.

Boyne, S.M., 2018. Data protection in the United States. The American Journal of Comparative Law66(suppl_1), pp.299-343.

Bulger, M., Burton, P., O’Neill, B. and Staksrud, E., 2017. Where policy and practise colliding: Comparing United States, South African and European Union approaches to protecting children online. New media & society19(5), pp.750-764.

Bunting, L., McCartan, C., McGhee, J., Bywaters, P., Daniel, B., Featherstone, B. and Slater, T., 2018. Trends in child protection across the U.K.: A comparative analysis. British Journal of Social Work48(5), pp.1154-1175.

Bywaters, P., Brady, G., Bunting, L., Daniel, B., Featherstone, B., Jones, C., Morris, K., Scourfield, J., Sparks, T. and Webb, C., 2018. Inequalities in English child protection practise under austerity: A universal challenge. Child & Family Social Work23(1), pp.53-61.

Bywaters, P., Scourfield, J., Jones, C., Sparks, T., Elliott, M., Hooper, J., McCartan, C., Shapira, M., Bunting, L. and Daniel, B., 2020. Child welfare inequalities in the four nations of the U.K. Journal of Social Work20(2), pp.193-215.

Cervantes, W., Ullrich, R. and Matthews, H., 2018. Our Children's Fear: Immigration Policy's Effects on Young Children. Center for Law and Social Policy, Inc.(CLASP).

Crawford, A. and L’Hoiry, X., 2019. Boundary crossing: networked policing and emergent ‘communities of practice in safeguarding children. In Policing Across Organisational Boundaries. Taylor & Francis.

Dailey, A.C. and Rosenbury, L.A., 2017. The New Law of the Child. Yale LJ127, p.1448.

Featherstone, B., Morris, K., Daniel, B., Bywaters, P., Brady, G., Bunting, L., Mason, W. and Mirza, N., 2019. Poverty, inequality, child abuse and neglect: Changing the conversation across the U.K. in child protection. Children and Youth Services Review97, pp.127-133.

Humphreys, K.L., Myint, M.T. and Zeanah, C.H., 2020. Increased risk for family violence during the COVID-19 pandemic. Paediatrics146(1).

Humphris, R. and Sigona, N., 2019. Outsourcing the 'best interests of unaccompanied asylum-seeking children in the era of austerity. Journal of ethnic and migration studies45(2), pp.312-330.

Keddell, E., 2018. The vulnerable child in neoliberal contexts: the construction of children in the Aotearoa New Zealand child protection reforms. Childhood25(1), pp.93-108.

Lievens, E., Livingstone, S., McLaughlin, S., O’Neill, B. and Verdoodt, V., 2018. Children’s rights and digital technologies. International children’s rights law, pp.487-513.

Livingstone, S., 2018. Children: a special case for privacy Intermedia46(2), pp.18-23.

Marcon, A.R., Bieber, M. and Azad, M.B., 2019. Protecting, promoting, and supporting breastfeeding on Instagram. Maternal & child nutrition15(1), p.e12658.

McCafferty, P., 2017. Implementing Article 12 of the United Nations Convention on the rights of the child in child protection decision-making: A critical analysis of the challenges and opportunities for social work. Child Care in Practice23(4), pp.327-341.

Meyer, T. and Kelly, L., 2018. Child protection systems between professional cooperation and trustful relationships: A comparison of professional practical and ethical dilemmas in England/Wales, Germany, Portugal, and Slovenia. Child & Family Social Work23(2), pp.222-229.

Olivetti, C. and Petrongolo, B., 2017. The economic consequences of family policies: lessons from a century of legislation in high-income countries. Journal of Economic Perspectives31(1), pp.205-30.

Weithorn, L.A., 2017. A Constitutional Jurisprudence of Children's Vulnerability. Hastings LJ69, p.179.

Free Download Full Sample
Recently Download Samples by Customers
Our Exceptional Advantages
Complete your order here
16000+ Project Delivered
Get best price for your work

Ph.D. Writers For Best Assistance

Plagiarism Free

offer valid for limited time only*