Advanced Investment Theory and Practice Assignment

Advanced Investment Theory and Practice - Assignment Example The question to ask is, â€Å"what are the several implications of a market that is efficient for portfolio management?† As far as security analysis is in question, the efficient market hypothesis plainly put forward that neither fundamental analysis nor technical analysis is meaningful, unless, as Lorie and Hamilton explain, the scale of investable funds is sufficient in the process of analysis (Lorie & Hamilton 1973). The process of portfolio management is simple to explain. The whole process is adequately basic to allow the writing of a computer program to replicate nearly precisely the portfolio, which a manager chose. For example, Black presents an intense but convincing case for a passive portfolio management strategy. He explains that in case an investor does this, that investor will not try to outguess changes in the market. He continues saying the investor will not try to pick stocks that are thought not to do better than other stocks. The investor will usually sell o nly to establish losses in tax, or when the investor requires money. The investor may borrow against portfolio when money is required, rather than selling, in order to avoid realizing gains in capital.   Furthermore, the investor will try to minimize investment expenses, taxes, and costs. As correctly pointed out above by Black, a portfolio strategy that is passive does not mean randomly purchasing securities, but choosing a portfolio that is well diversified in harmony with the utility of investor towards risk.  

Workers and the Economy Essay Example | Topics and Well Written Essays - 500 words

Workers and the Economy - Essay Example Leaders of trade unions bargain with the employers and negotiate on the labor contracts on behalf of the members. For Trade unions to be strong and effective, they must attain certain modes of equality, democracy, and even ecological sustainability to ensure fair shares of resources (Coulter, 2014). Trade unions should enhance democracy through union democracy. Union democracy is the governance of any trade unions. Union democracy should ensure equality during elections and also quality and fair elections. Union democracy should also ensure that the executives of that union are representing the interests of the members accurately. Trade unions should, therefore, aspire to create a democratic society because it helps build an independent civil society. An independent society helps the people and members of the union make decisions on the leaders they want (Coulter, 2014). Democracy also helps the leaders to represent the members’ interests, needs and wants. Union democracy is also very important since it aids and trains people on how they should speak for themselves and also express confidence in their communities. A democratic union makes its members free to talk to their leaders about their needs and interests. It helps the members to have a voice in the leadership of t heir unions because they can challenge any authority. Since democracy is a system of ruling that is based on a government of the people, by the people and for the people, it protects the people’s freedom and interests. Democracy is also very crucial as it helps to control the leaders of the trade unions. Democracy prevents the leaders from abusing the power that is bestowed on them and using the leadership positions for their gains. Trade unions should embrace democracy as it avoids autocratic leadership and encourages popular participation (Coulter, 2014). All the members of the union, therefore, have equal opportunities to become informed and are