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Risk, efficiency and expected returns.
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∙ 12y ago
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Explain how the market system allocates scarce resources?
Scarce resources are usually allocated to a given market system based on the demand. In most cases the resources are usually assigned to markets that have a great demand.
What is Risk adjusted return on economic capital?
RAROC is a risk based profitability measurement for analyzing the risk-adjusted financial performance of the company and for providing a consistent view of the profitability across businesses. RAROC is usually used in banking parlance where companies have to handle the risk of losses.In business enterprises, risk is traded off against benefits. RAROC is defined as the ratio of risk adjusted return to economic capital. The economic capital is the amount of money which is required to secure the survival of the organization in a worst case scenario; it is a buffer against expected shocks in the market values. Economic capital is a function of credit risk, market risk and operational risk and is often calculated by VaR (Value at Risk). This use of capital based on risk improves the capital allocation across the different functional areas of banks, insurance companies or any other business in which capital is placed at risk for an expected return above the risk-free rate.Formula:RAROC = Expected Return / Economic Capital orRAROC = Expected Return / Value at Risk
What is a market economy based on?
A market economy is an economy in which decisions regarding investment, production and distribution are based on market determined supply and demand. Prices of goods and services are determined in a free priced system
How do you use Capitalism in sentence for kids?
Companies in a market economy make decisions based on supply and demand. An example of a sentence using the term "market economy" is "The opposite of a market economy is a planned economy, wherein decisions are made based on a preconceived plan without regard to supply and demand. "
What are the main advantages of using prices as a way of distributing resources in a free market economy?
Because a fart is better than a turd. As smelly, less dirty
Explain how the market system allocates scarce resources?
Scarce resources are usually allocated to a given market system based on the demand. In most cases the resources are usually assigned to markets that have a great demand.
How do you envisage the use of principle based reporting for the six types of capital companies have to report on?
Nerd
What services does RedCloud offer?
RedCloud Capital is based in Denver, Colorado. RedCloud is a company which invests in lower, middle-market companies. According to RedCloud's website, the company is currently seeking partners and is in the middle of a rebranding effort.
Who commissions computer based market research?
Computer based market research is usually commissioned by the computer companies themselves to find out what the consumer wants out of their computer and how to better deliver it.
Is Pacific Capital Companies LLC a reputable company?
Pacific Capital Companies LLC is a business that develops customized financial solutions for businesses. The company is now known as PCC Prime. They are based in California.
What are advantages of capital market?
The capital market offers several advantages. It provides access to long-term funding for businesses, allowing them to undertake investment projects. It also facilitates liquidity for investors, allowing them to buy and sell securities. Additionally, the capital market encourages efficient allocation of resources by pricing securities based on supply and demand.
What are the disadvantages of traditional costing?
Main disadvantage of tradional costing system is that it allocates the overheads based on formula which is not accurate because it allocates the cost to department which even not performed any work. It is also a disadvantage is that, it allocates the cost of idle capacity to units as well instead of charging it to income statement.
Who are the top rating agencies in South Africa for the utility industry?
* EVA Capital (www.evaluengineering.co.za) * Fitch & Moody's * S&P Problem with the Fitch & S&P is that the data they tend to use is calibrated towards international trends whereas EVA's is more based on local South African companies. They have a better local market understanding * EVA Capital (www.evaluengineering.co.za) * Fitch & Moody's * S&P Problem with the Fitch & S&P is that the data they tend to use is calibrated towards international trends whereas EVA's is more based on local South African companies. They have a better local market understanding
What index is used in Singapore stock market?
Straits Times IndexSTI is a market value-weighted stock market index based on the stocks of the top 30 companies listed on the Singapore Exchange.
Is it true of false that socialism and captialism are market based economies?
It is true that capitalism is a market-based economy. Socialism can be either market-based or based on economic planning. However, even in socialist planned economies, there would still be markets in consumer goods and some markets for capital goods, so socialism would still include a role for markets. On the other hand, fully-developed communism would NOT be a market-based economy.
Who Can Use Asset Based Loans?
Asset based loans are used by companies that need capital for the development purposes. Often, businesses that apply for an ABLhave cash flow problems.
Why not just eliminate the stock market?
There is no reason. We need to eliminate the stock market. There are other alternatives for businesses to raise capital like bonds, loans from various entities, crowd-funding, etc. The stock market is just legalized gambling, based on speculative trading, which causes cyclical bubbles to burst. It incentivizes public companies to disregard the needs and best interests of their employees and customers all in the motive of boosting their companies' stock value by maximizing corporate profits in an unhealthy balance.
