Assignment:
1. Financial markets are the forums in which buyers and sellers of financial assets such as stocks and bonds, and commodities such as grains, oil and gold, meet. Because there are uncertainties of outcome, organizations must develop strategies to manage the risk associated with it.
Write a paper of 8 to 10 pages on business and financial risk, as follows:
- Identify the major business and financial risks such as interest rate risk, foreign exchange risk, credit, commodity, and operational risks.
- How do organizations measures risk and what global initiatives exist in financial risk management?
2. Collaboration leverages the collective knowledge of a team. Peer evaluation and support, provided in the spirit of continuous improvement and organizational success, result in higher quality deliverables than generally possible by the efforts of an individual. Please describe the process you plan to use to conduct research, identify findings, and develop the Comprehensive Project due in Unit 5 and present a brief outline indicating how you intend to organize the project deliverable. Please review the process and outlines of other students, providing objective feedback that will help strengthen the effectiveness of their efforts and the quality of the finished product.
In your own words, please post a response to the Discussion Board
3. You are a financial analyst for the CMC Corporation. This corporation predicts changes in the economy, such as interest rates, retail trends, and unemployment. Your job is to educate incoming analyst on the terminology, definitions, and uses of interest rate theories, yield curves, and predictions. In your next training session, you will cover major theories that have been developed to explain resulting yield curves and the term structure of interest rates. Prepare a training guide with the following:
- Define and compare the following theories: expectations theory, liquidity theory, market segmentation theory, and preferred habitat hypothesis theory.
- In 2 to 3 pages, explain how each of the above theories explain changes in the economy.
- Provide examples for each, and be sure to use and properly cite scholarly sources.