Investment in Value trust
What is your recommendation concerning investment with/in the Value Trust? a. Why do you recommend? b. Why don’t you recommend?
What is your recommendation concerning investment with/in the Value Trust?
a. Why do you recommend? b. Why don’t you recommend?
Expert
One should be very careful while investing in mutual funds especially if the economies over the world are not faring well enough. One can see that the Miller fund outperformed the markets for almost 15 years and not just outperformed, did significantly better which is a contrarian result to what the efficient market hypothesis states. Now investment into a fund by Miller should be taken care of from one aspect and that is risk. The risk quotient of companies change over a certain period of time even if one has invested from the long term perspective because there might changes in the market which will bring about massive changes in the way a particular company or industry functions. If we take the current example of Facebook IPO, it is a company that showed a huge P/E ratio and is supposedly going to grow faster than any other newbie in the social networking arena but the point remains that it is a company not driven by strong fundamentals and the basic concept of a social networking website will fail when it reaches a saturation that is absorbs the entire population of the world to its website. The Facebook IPO was a huge boost for the Wall Street maybe but a sad story from the next day of its launch.
My recommendation would be to go for this fund because of the experience in the market it has of defeating the benchmark index and also of the various economic changes it might have sailed through. Bill Miller uses those funds which eliminate expense ratio into the calculation of net asset value. Why I do not recommend the fund is due to the over confidence of the managers towards their skills and abilities and their past performance. Their over confidence should not lead to irrational behaviour leading to a downhill for the investors as well as the fund. Another reason is that Miller’s fund would keep growing and in that growth phase, Miller would like to use the success strategies that he has been using all this while but the point of worry is that he already has too much of those strategies and might need to come up with some new ones to continue good performance in the future.
In contrast to the U.S., Japan has observed constant current account surpluses. What would be the major reasons for such surpluses? Is it advantageous to have constant current account surpluses?
Give a short introduction of the term ‘Budget Manual’?
State the difference between the swap broker and the swap dealer.
What are the basic differences between Finance and Accounts?
State some of the problems which may enter into capital budgeting analysis in case project debt is computed rather than borrowing capacity made by the project?
Exhibit 3.3 states that in year 1991, the U.S. had current account deficit and consecutively a capital account deficit. Explain about how this may occur?
In Modigliani-Miller equation, why is market value of the levered firm is more than the market value of an equivalent unlevered firm?
State what is meant by Subsidiary bank.
Presently, spot exchange rate is $1.50/£ and three-month forward exchange rate is $1.52/£. Three-month interest rate is 8.0% per annum within the U.S. and 5.8% per annum within the U.K. Suppose that you can borrow as much as $1,500,000 or £1,000,000.
Specify some of the methods taxing authorities utilize to remove or diminish evil of double taxation?
18,76,764
1943144 Asked
3,689
Active Tutors
1419186
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!