Student Assessment Essay Example for Free

Student Assessment Essay A current policy issue that is plaguing our educational system is the emphasis put on student assessments. Teachers are at odds in their classrooms on whether to teach the necessities that students will need to be productive in our society, to simply teach what will be tested on state and federally mandated assessments, or both. Teachers are forced to find a balance within their instructions due to the time restraints that stand in their way. When teachers are able to find this balance and present all the concepts that are included in assessment, plus all other concepts, the results from the assessments can be very beneficial to their classrooms. Assessment results have important implications for instruction. The primary aim of assessment is to foster learning of worthwhile academic content for all students (Wolf, Bixby, Glenn, Gardner, 1991). School communities use assessment results in a formative way to determine how well they are meeting instructional goals and how to alter curriculum and instruction so that goals can be better met. But if what schools assess and how schools assess do not match what is taught and how it is taught, then the results are meaningless, if not potentially harmful. Theres also potential for harm when decisions affecting students futures are being made based on results of assessments made with tools that are not appropriate for the purpose. Some schools are attempting to change assessment to match the content and format of instruction, and are therefore relying more upon alternative assessment. Alternative assessments include performance-based assessment, portfolios, student-designed assessments, etc. , and are considered by many educators to be more reflective of new curricular goals and methods of instruction. Some educators view alternative assessment as a better way to determine how well students are learning traditional forms of assessment like multiple choice tests. Alternative forms of assessment might best serve some of these purposes while more traditional forms could still serve others. Regardless of the purpose, however, the form of assessment used must reflect a teacher’s instructional goals and must be of high technical quality. (White Fredericksen, 1994) Alternative forms of assessment require knowledge and skills that most teachers have not had the opportunity to learn, which in fact poses another issue with these types of classroom assessments. Without the knowledge and skills, teachers will be doing their students a disservice by conducting faulty assessments. Providing teachers with the time that is essential for learning is necessary to making changes in assessment practices. Teachers need time to produce and implement the assessments. Teachers also need time to work with one another to share ideas and reach consensus because integrating instruction and assessment requires coordination. Alternative assessment will not be effective if it is added to the list of responsibilities for teachers. (North Central Regional Educational Laboratory, 1991) When assessment results are used to make important decisions, there is a danger that instruction will narrowly focus on what is assessed while other important curricular goals and content are neglected (Romberg, Zarinnia, Williams, 1989). All assessments include only a sample of the total content contained within a curriculum. Critics of multiple-choice tests, for example, suggest that the skills usually assessed by multiple-choice testing become the focus of instruction at the expense of more substantial content. Alternative assessment presents a solution to this situation by ensuring that the content of the assessment matches the most important content in the curriculum. However, regardless of how much the content of an assessment is improved, when teachers narrowly focus on what is tested, the assessment results will only reveal the students learning of the test content, not whether they could perform a related task in a different environment. For example, if instruction is focused on a skill that is a test requirement, the results of the test will reflect only the students performance in a testing environment, not his/her general ability to perform that skill in everyday settings. This limitation is primarily a concern in large-scale districts or state testing situations where important decisions are based on a limited sample of student performances. The most important factors in determining the technical quality of assessments are the assessments’ reliability, validity, and fairness. If the quality of an assessment is not ensured, grouping practices, and coverage and pacing decisions may be based on invalid estimates of students capabilities. Sometimes grouping decisions can reflect or reinforce racial and socioeconomic inequities, or the decisions might be based on prior achievement that was artificially low due to past limited opportunities to learn. If all students have not had an equal opportunity to learn, then grouping and pacing decisions based on test results are unfair. (North Central Regional Educational Laboratory, 1991) Good assessment requires minimizing factors that could lead to misinterpretation of results. The criteria for meeting this requirement are reliability, validity, and fairness. Reliability is defined as an indication of the consistency of scores across evaluators or over time. An assessment is considered reliable when the same results occur regardless of when the assessment occurs or who does the scoring. There should be compelling evidence to show that results are consistent across raters and across scoring occasions. (Elliott, 1994) Validity is defined as an indication of how well an assessment actually measures what it is supposed to measure. Three aspects of an assessment that must be evaluated for validity are tasks, extraneous interference, and consequences. Every assessment requires students to complete some task or activity. A valid task should reflect actual knowledge or performance, engage and motivate students to perform to the best of their ability, be consistent with current educational theory and practice, be reviewed by experts to judge content quality and authenticity. Extraneous interference occurs when there is something in the assessment that might get in the way of students being able to demonstrate what they know and can do. A valid assessment does not require knowledge or skills that are irrelevant to what is actually being assessed. Some examples of these might include students’ ability to read, write, role-play, or understand the context, personality, physical limitations, or knowledge of irrelevant background information. Valid assessments also minimize unintended negative consequences. Negative effects of assessments might include restricting curricula to what can be easily assessed, communicating unintended messages about power, control, or social status, and fostering narrow images of the nature of a particular discipline. (Elliott, 1994) Fairness means that an assessment should allow for students of both genders and all backgrounds to do equally well. All students should have equal opportunity to demonstrate the skills and knowledge being assessed. The fairness of the assessment is jeopardized if bias exists either in the task or in the rater. (Elliott, 1994) In this atmosphere of reform, student assessment is the centerpiece of many educational improvement efforts. Policymakers hope that changes in assessment will cause teachers and schools to do things differently. Assessment reform is viewed as a means of setting more appropriate targets for students, focusing staff development efforts for teachers, encouraging curriculum reform, and improving instruction and instructional materials. (Fuchs, 1994) Many educators and policymakers believe that what gets assessed is what gets taught and that the format of assessment influences the format of instruction. Contrary to our understanding of how students learn, many assessments test facts and skills in isolation, seldom requiring students to apply what they know and can do in real-life situations. Standardized tests do not match the emerging content standards, and over-reliance on this type of assessment often leads to instruction that stresses basic knowledge and skills. Rather than encouraging changes in instruction toward the engaged learning that will prepare students for the 21st century, these tests encourage instruction of less important skills and passive learning. (Fuchs, 1994) Since the National Assessment of Educational Progress (NAEP) is the only national representative and continuing assessment of what Americas students know and can do in various subject areas, it seemed to be the most obvious choice for exploration. In exploration of this policy, research will be conducted to find out how affective it is within our country. The terms of this policy requires that assessments be conducted periodically in mathematics, reading, science, writing, the arts, civics, economics, geography, and U. S. history. Because of the issues of assessment, NAEP’s assessment will be probed to find if they are reliable, valid, and fair being that it serves as a type models for all other assessment practices. Under the current structure, the Commissioner of Education Statistics, who heads the National Center for Education Statistics in the U. S. Department of Education, is responsible by law for carrying out the NAEP project. The National Assessment Governing Board (NAGB), appointed by the Secretary of Education but independent of the Department, sets policy for NAEP and is responsible for developing the framework and test specifications that serve as the blueprint for the assessments. The National Assessment Governing Board develops the frameworks that provide the theoretical basis for the assessment and specific direction for what kinds of knowledge and skills should be assessed, how the exercises should be designed, and how student responses should be scored. These frameworks are the result of comprehensive efforts in which teachers, curriculum experts, policymakers, and members of the general public worked to create a unified vision of how a particular subject ought to be assessed. This vision is based on current educational research on achievement and its measurement, and good educational practices. (National Center for Education Statistics) References Berk, R. A. (1993). National Trends in Student and Teacher Assessment: Issues in Performance Assessment. Retrieved January 17, 2008 from http://nesonline. com/PDFs/1993_05Berk. pdf Elliott, S. N. (1994). Creating meaningful performance assessments: Fundamental concepts. Reston, VA: The Council for Exceptional Children. Fuchs, L. S. (1994). Connecting performance assessment to instruction. Reston, VA: The Council for Exceptional Children. National Center for Education Statistics. NEAP Overview. Retrieved on January 20, 2008 from http://www. nces. ed. gov/nationsreportcard/about/ North Central Regional Educational Laboratory, PBS Elementary/Secondary Service, in partnership with the National Center for Research on Evaluation, Standards, and Student Testing (UCLA/CRESST) (1991). Schools That Work: The Research Advantage. Part IV: Alternatives for Measuring Performance. Oak Brook, IL: Authors. Romberg, T. , Zarinnia, A. Williams, S. (1989). The Influence of Mandated Testing on Mathematics Instruction: Grade Eight Teachers Perceptions. In Romberg, T. Wilson, L. (1992, September), Alignment of Tests with the Standards, Arithmetic Teacher, 40 (1), 18-22. White, B. Y. Fredericksen, J. R. (1994, Fall). Using Assessment to Foster a Classroom Research Community. Educator, 19-24. Wolf, D. , Bixby, J. , Glenn, J. , III, Gardner, H. (1991). To use their minds well: Investigating new forms of student assessment. Review of Research in Education, 17, 31-74.

A Passage to India Essay -- Literary Analysis

E.M. Forster, born into a middle-class family in London, was a humanist and an English writer famous for his literary works which called attention to the hypocrisy (present in the time in which he lived). In his novel A Passage To India, Forster explores the relationship between and within the Anglo-Indian and Native-Indian communities under British Imperialism and expounds on the sins which its members commit against the humanistic values of sympathy and understanding. Additionally, in A Passage to India Forster reflects the relationship phases which occur between his characters through the use of the three main divisions -- Mosque, Caves, and Temple. The First division Mosque, a Muslim place of worship, is set in the fictional city of Chandrapore and brings about the first stage of human confrontation --Introduction. One of the first introductions Forster makes to the reader is the division of the Indian and British cultures. He does this by describing Indian Chandrapore to be a place where the â€Å"streets are mean, the temples ineffective, and though a few fine houses exist they are hidden away in gardens or down alleys whose filth deters all but the invited guest.† (Forster 3) while describing British Chandrapore â€Å"to be a totally different place. It is a city of gardens. It is no city, but a forest sparsely scattered with huts. It is a tropical pleasaunce washed by a noble river† (Forster 4). The idea of ‘introductions’ is further explored in Dr. Aziz’s visit to the mosque which lets â€Å"loose his imagination..where his body and thoughts have found their home† (Forster 16), whe re the â€Å"many small sounds [of the] English...amateur orchestra...Hindus drumming...owls† (Forster 17), all diverse in nature, echoed through a similar space... ...d apart; the earth didn’t want it, sending up rocks through which riders must pass single file; the temples, the tanks the jail, the place, the birds, the carrion, the Guest House...didn’t want it, they said...’no, not yet,’ and the sky said, ‘No, not there’†(Forster 362). Works Cited Forster, E. M. A Passage To India. New York: Harcourt, Brace and, 1924. Print. "Mosque, Cave, Temple, and a Few Comments on the Weather." Shmoop. Web. 11 Apr. 2012. . "The Structure of E. M. Forster's "A Passage to India"" Your Knowledge Has Value. Web. 11 Apr. 2012. . "A Passage to India." SparkNotes. SparkNotes. Web. 11 Apr. 2012. .

Patriot Act Pro

Pro Patriot Act There are many advantages for expanding governmental surveillance and investigative powers. For instance, there’s the possibility of gaining invaluable information for future attacks, and also the potential for targeting terrorists who may be responsible for such attacks. According to the American Civil Liberties Union (ACLU), â€Å"The FBI does not have to demonstrate probable cause, only declare it has â€Å"reasonable grounds† to suspect that library records may be relevant to an investigation. Supporters of such extreme measures believe in national security over privacy. They would much rather see a terrorist behind bars than protect their personalphone calls or bank accounts. Another claim is that the government wouldn’t investigate ordinary citizens, meaning that the law is exclusive to suspected criminals. Question: Do these claims qualify as being morally right? From the supporter’s perspective the answer is yes. The governmentâ₠¬â„¢s involvement is warranted in order to establish justice and ensure domestic tranquility (Department of Justice).The Act also provides increased funding for victims of terrorist attacks and their families, as well as for the rebuilding of business and infrastructure that are damaged by terrorism. The Patriot Act is divided into 10 separate sections known as â€Å"titles. † Each title contains numerous Sections that further clarify the provisions of the title. The emphasis was on being sure that should another attack be planned, the government would have the power to prevent it from being completed.Section 213 Sneak and Peek Warrants: this provision allows â€Å"sneak and peek† search warrants, which grants authorities authorization to search a home or business without immediately notifying the target of a probe. Investigators still have to explain why they want to delay the search notification and must eventually notify the target about the search (Abramson and God oy 2006). Under this provision the FBI is permitted to enter a home or an office in the absence of the occupant.During this secret investigation, FBI agents are authorized to take photographs, examine computer hard drives, and install a device known as the Magic Lantern. Once installed, the Magic Lantern, records all computer activity not just those transmitted over the internet. > This means FBI is not just searching anyone without a search warrant, the act states that they can search suspects of terror if and only if they have a reasonable reason and it is a terror, different from a crime.

Barbourofelis - Facts and Figures

Name: Barbourofelis (Greek for Barbours cat); pronounced BAR-bore-oh-FEE-liss Habitat: Plains of North America Historical Epoch: Late Miocene (10-8 million years ago) Size and Weight: Up to six feet long and 250 pounds Diet: Meat Distinguishing Characteristics: Large size; long canine teeth; plantigrade posture About Barbourofelis The most notable of the barbourofelids--a family of prehistoric cats perched midway between the nimravids, or false saber-toothed cats, and the true saber-tooths of the felidae family--Barbourofelis was the only member of its breed to colonize late Miocene North America. This sleek, muscular predator possessed some of the largest canines of any saber-toothed cat, true or false, and it was correspondingly hefty, the largest species weighing in at about the size of a modern lion (though more heavily muscled). Intriguingly, Barbourofelis seems to have walked in a plantigrade fashion (that is, with its feet flat on the ground) rather than in a digitigrade fashion (on its toes), in this respect making it seem more like a bear than a cat! (Oddly enough, one of the contemporary animals that competed with Barbourofelis for prey was Amphicyon, the bear dog). Given its odd gait and enormous canines, how did Barbourofelis hunt? As far as we can tell, its strategy was similar to that of its later, heavier cousin Smilodon, aka the Saber-Toothed Tiger, which lived in Pleistocene North America. Like Smilodon, Barbourofelis whiled away its time in the low branches of trees, pouncing suddenly when a tasty bit of prey (like the prehistoric rhino Teleoceras and the prehistoric elephant Gomphotherium) approached. As it landed, it dug its sabers deep into the hide of its unfortunate victim, which (if it didnt die immediately) gradually bled to death as its assassin stalked close behind. (As with Smilodon, the sabers of Barbourfelis may occasionally have broken off in combat, which would have deadly consequences for both predator and prey.) Although there are four separate species of Barbourofelis, two are better known than the others. The slightly smaller B. loveorum (about 150 pounds) has been discovered as far afield as California, Oklahoma and especially Florida, while B. fricki, discovered in Nebraska and Nevada, was about 100 pounds heavier. One odd thing about B. loveorum, which is especially well represented in the fossil record, is that the juveniles apparently lacked fully functional saber teeth, which may (or may not) imply that newborns received a few years of tender parental care before venturing out alone into the wild. Telling against this parental-care hypothesis, though, is that Barbourofelis had a much smaller brain, relative to its body size, than modern big cats, and so may not have been capable of this kind of sophisticated social behavior.

This Financial Audit Report Finance Essay - Free Essay Example

Sample details Pages: 9 Words: 2717 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? The first section of this financial audit report is to briefly explain the company background of the companies of Bonia Corporation Berhad and Parkson Holdings Berhad. Following by the first section, the second section is to examine the market share price movement of the companies from correlation coefficient and regression line of the best fit, to measure that risky and prediction when invests in market share prices. Through the market share prices movements, efficient market hypothesis and random walk theory have to explain in this report. Don’t waste time! Our writers will create an original "This Financial Audit Report Finance Essay" essay for you Create order Lastly, this report also identifies the methods of security valuation methods which are needed to mention when the author wants to value the share prices of the companies. Besides that, this report also presents important of capital budgeting in decision ruling when appraises investment in projects. With the framework, author has determine the different of security valuation and capital budgeting. Bonia Corporation Berhad Company Background Bonia Corporation Berhad is mainly focuses in fashion retailing, marketing and manufacturing, which has provided high quality and fashion of leather goods. There have 883 sales outlets and 103 boutiques in around the world. The Bonias history was started in 1977 year, which Mr. Chiang Sang Sem, the Bonias founder, and now was Executive Chairman in Bonia Group, had apply Bonia of brand name because of inspired from the artwork of Giambologna, Italy. In 1980, the Bonia Group had succeed became market leader in Malaysia and Singapore and was listed on the Bursa Malaysia, Kuala Lumpur Stock Exchange (KLSE). Then Bonia Group had succeeded expanded and had its subsidiaries company. Now the Bonia Group has succeed added more international brands, which are Pierre Cardin, Braun Bruno, Magli, Buffel, and Renoma to its collection of brands with the gaining of 70% equity in Jeco (Pte) Limited. Corporate Goal The main corporate goal of Bonia Corporation Behad is to be the recognized international brand with lists in the public listed companies in the region. According to Bonia Groups vision, Bonia Group will establish more 30 countries and will focus in 5 countries in 2015 year. Furthermore, Bonia Group forecasts to have 1billion earnings and at least have 12% before the tax in yearly. Financial Reporting and Performance According to the annual report 2011, Bonia Groups profits have increased 28% to RM461.4million with RM54.8 million from contribution of Jeco (Pte) Limited and RM24.0 million in consignment sales Malaysia. Then Bonia Group has earned RM56.5 million before tax with 24% and RM14.8 million before tax in Jeco (Pte) Limiteds contribution. However, there still have losses of RM5.4 million from joint venture business in Vietnam. Future Forecast Apart on Bonia Groups forecasting, Renoma Cafeacute; Gallery has chosen as the master Franchisee from Licensor, Renoma S.T.A.R. for Singapore, Indonesia and Malaysia and launchs 1st concept in 2012 year. Besides, Bonia Group has rebuilt the retail in Vietnam because of arguing with partner. It forecasts will be the temporary because of supporting by Vietnams departmental stores. Bonia Group forecasts to launch first boutique at Grand Indonesia Shopping Town in Jakarta. Parkson Holdings Berhad Company Background Parkson Holdings Berhad is a Malaysia investment holding company which was under Companies Act in 1965 year and has named as Amalgamated Cement Mills Sdn Bhd in 1982 year. When 1992 year, it had changed to a public company with Pakson name and had listed to Bursa Malaysia in 1993 year. It had joint venture in Parkson Retail Group Limited and Parkson Retail Asia. It has 89 department stores in China, Indonesia, Vietnam, and Malaysia, which 7 stores in Indonesia are under the brand name of a Kem Chicks Supermarket and Centro Lifestyle Department Store, and 8 stores in Vietnam, 37 stores in Malaysia are under brand name of Parkson. Corporate Goal Parkson Group has the corporate goal which offers more international brands to join venture in consignment of department stores. Parkson Group is using the strategy of consistent market positioning, localization and focusing Fashion, Cosmetics, Household and Electrical to achieve objectives with target of young and contemporary market segments. Financial Reporting and Performance In 2011, Parkson Group has earned gross sales of RM9.49 billion, which had increased 10% and earned operating profit of RM971 million which had increased 11%. Besides, Parkson Group also had earned the net profit RM348 million, which had increased 22%. Moreover, Balance sheet of Parkson Group maintains healthy in 2011 with funds of more than RM2 billion to shareholders. Future Forecast Parkson Group has planning to focus in expanded new retail markets to more countries. Then it has to maintain partnership with the Indonesia which has following the listing of shares of SGX-ST for future forecast. Parkson Loyalty Card programme, which is emphasized, also is the future forecast of the company to gain more consumers. Market Share Price Movement of PARKSON and BONIA Share price movement is determined to estimate the future cash flows and share price in the company. This report has done to determine the share prices movement of Parkson and Bonia. Market Share Price Month PARKSON HOLDINGS BHD Market Share Price Bonia Corporation Berhad Market Share Price Jan 5.95 1.81 Feb 5.66 1.8 Mar 5.73 1.8 Apr 5.87 1.85 May 5.92 1.85 June 7.73 1.81 July 6.12 1.81 Aug 5.89 1.73 Sep 5.82 1.65 Oct 5.69 1.72 Nov 5.81 1.96 Dec 5.84 2.07 Scatter Diagram Graph Scatter Diagram is a technique that uses to determine relationship between two months and to determine how the financial market works and the risk of company. Below is the table of monthly share price Parkson, which uses to plot scatter diagram graph market share prices. PARKSON HOLDINGS BHD Month x y Month JAN 5.95 5.66 FEB FEB 5.66 5.73 MAR MAR 5.73 5.87 APR APR 5.87 5.93 MAY MAY 5.92 7.73 JUN JUN 7.73 6.12 JUL JUL 6.12 5.89 AUG AUG 5.89 5.82 SEP SEP 5.82 5.69 OCT OCT 5.69 5.81 NOV NOV 5.81 5.84 DEC DEC 5.84 2.2.1 Scatter Diagram Graph of PARKSON HOLDINGS BHD The graph above has showed that the correlation between 2 months of the share price of Parkson, which the highest is on June RM7.73 and the lowest, is on February RM5.66. BONIA CORPORATION BHD MONTH x y MONTH JAN 1.81 1.8 FEB FEB 1.8 1.8 MAR MAR 1.8 1.85 APR APR 1.85 1.85 MAY MAY 1.85 1.81 JUN JUN 1.81 1.81 JUL JUL 1.81 1.73 AUG AUG 1.73 1.65 SEP SEP 1.65 1.72 OCT OCT 1.72 1.96 NOV NOV 1.96 2.07 DEC DEC 2.07 2.2.2 Scatter Diagram Graph of BONIA CORPORATION BHD The graph above is scatter diagram of Bonia, which the highest is on December RM2.07, and the lowest, is on October RM5.66. Based on the scatter diagram graph, it also has showed Parksons correlation between 2 months is strong than Bonia. Calculation of Correlation Coefficient However, it needs to use calculation of correlation coefficient to measure more accurately that weak and strong of correlation between 2 months are interpreting. It takes on values ranging between +1 and -1. PARKSON x y xy x ² y ² 5.95 5.66 33.68 35.40 32.04 5.66 5.73 32.43 32.04 32.83 5.73 5.87 33.64 32.83 34.46 5.87 5.92 34.75 34.46 35.05 5.92 7.73 45.76 35.05 59.75 7.73 6.12 47.31 59.75 37.45 6.12 5.89 36.05 37.45 34.69 5.89 5.82 34.28 34.69 33.87 5.82 5.69 33.12 33.87 32.38 5.69 5.81 33.06 32.38 33.76 5.81 5.84 33.93 33.76 34.11 5.84 5.95 34.75 34.11 35.40 72.03 72.03 432.74 435.78 435.78 The formula of Correlation Coefficient The answer shows that the correlation coefficient of Parkson following by the 2 months is 0.11. It means that the correlation efficient of between 2 months of the share price are weak. BONIA x y xy x ² y ² 1.81 1.80 3.26 3.28 3.24 1.80 1.80 3.24 3.24 3.24 1.80 1.85 3.33 3.24 3.42 1.85 1.85 3.42 3.42 3.42 1.85 1.81 3.35 3.42 3.28 1.81 1.81 3.28 3.28 3.28 1.81 1.73 3.13 3.28 2.99 1.73 1.65 2.85 2.99 2.72 1.65 1.72 2.84 2.72 2.96 1.72 1.96 3.37 2.96 3.84 1.96 2.07 4.06 3.84 4.28 2.07 1.81 3.75 4.28 3.28 21.86 21.86 39.87 39.95 39.95 The answer shows that the correlation coefficient of Bonia following by the 2 months is 0.38. It means that the correlation efficient of between 2 months of the share price are weak. However, it still better if compares with Parkson. Calculation Regression line of Best Fit According to Sir Francis Galton (1822-1911), which had developed scatter diagram and correlation coefficient, also had identified regression line that used to do prediction. Equation of x (current share price) and y (predicted share prices) Formula Regression Line of Best Fit PARKSON Therefore, 2.2.2.1 Regression Line Best Fit of PARKSON HOLDINGS BHD is the equation line of Parkson. Therefore, it can use to predict the share prices for future. For example, if this month the share price (x) is RM6.0, And the next months share price also will be RM6. Based on the graph, it also has showed Parksons share prices are more stable. BONIA 0.38 1.8217-0.692 Therefore, 2.2.2.2 Regression Line Best Fit of BONIA CORPORATION BHD is the equation line of Bonia. There also can use to predict the share prices for future. For example, if this month the share price (x) is RM2.0, And the next months share price also will be RM2.64. Based on the graph, it also has showed Parksons share prices are more risky, if compares with Parksons regression line of best fit. Time Series Graph Time series is a collection of market share prices then shows that which month is the highest and lowest, and the upward or down turn in the market. PARKSON HOLDINGS BHD 2.3.1 Time Series Graph of PARKSON HOLDINGS BHD Based on the graph above, the share prices of Parkson has moved down on January to February and moved up again on March. The most transmutation in Parkson is on May which moved up to June then moved down again to July. BONIA CORPORATION BHD 2.3.2 Time Series Graph of BONIA CORPORATION BHD Based on the graph above, the share prices of Bonia has moved moderate in early of the year 2011. Then the share prices start move down on August to September and move up again on October. Calculation of Correlation Coefficient Same with 2.2.1 calculation for scatter diagram, now is calculate correlation coefficient of time series of Parkson and Bonia to determine the relation between month and share prices. PARKSON x y xy X ² Y ² 1.00 5.95 5.95 1.00 35.40 2.00 5.66 11.32 4.00 32.04 3.00 5.73 17.19 9.00 32.83 4.00 5.87 23.48 16.00 34.46 5.00 5.92 29.60 25.00 35.05 6.00 7.73 46.38 36.00 59.75 7.00 6.12 42.84 49.00 37.45 8.00 5.89 47.12 64.00 34.69 9.00 5.82 52.38 81.00 33.87 10.00 5.69 56.90 100.00 32.38 11.00 5.81 63.91 121.00 33.76 12.00 5.84 70.08 144.00 34.11 78.00 72.03 467.15 650.00 400.38 0.0154 0.00024 The answer shows that the correlation coefficient of Parkson following by the months and share price is 0.0154. It means that the correlation efficient of between months and share price are very weak. BONIA x y xy X ² Y ² 1.00 1.81 1.81 1.00 3.28 2.00 1.80 3.60 4.00 3.24 3.00 1.80 5.40 9.00 3.24 4.00 1.85 7.40 16.00 3.42 5.00 1.85 9.25 25.00 3.42 6.00 1.81 10.86 36.00 3.28 7.00 1.81 12.67 49.00 3.28 8.00 1.73 13.84 64.00 2.99 9.00 1.65 14.85 81.00 2.72 10.00 1.72 17.20 100.00 2.96 11.00 1.96 21.56 121.00 3.84 12.00 2.07 24.84 144.00 4.28 78.00 21.86 143.28 650.00 39.95 On the other hand, coefficient of Bonia between months and share price is. Although the correlations efficient are very weak, but it still better if compares with Parkson. Calculation Regression line of Best Fit Same with 2.2, regression line of best fit also has used to determine in time series. PARKSON Therefore, is the equation line of Parkson. BONIA 0.002 1.8217-0.013 Therefore, is the equation line of Bonia. Market efficiency hypothesis Efficient capital market, which security prices change rapidly following by new information and, therefore, the current prices of securities reflect all information about the security. It is important to analyze capital markets efficiency and understand the efficient market hypothesis because its results of researches have significant real-world implications for investors and portfolio managers. An efficient market is requires a large number of profit maximizing participants analyze and value securities. Random Walk Theory Random walk theory is defines by the fact that price changes are independent of each other (Brealey et al, 2005). Actually random walks is connected to efficient market hypothesis, which if more efficient the market, the more random of share prices will change. Investors cannot accurately predict the share prices no matter with the correlation coefficient and regression line of best fit. Thus, share prices always fully reflect the information available and no profit can be made from information based trading (Lo and MacKinley, 1999). Different Forms of Market Efficientcy According to FAMA, there have three sub hypotheses in efficient market hypotheses which are weak efficiency, semi-strong efficiency and strong efficiency. 2.4.2.1 Weak Efficiency The weak forms of the efficient market hypothesis states that share price fully reflect all historical information. It means that past rates of return and other historical share prices do not have relationship with future rates of return, which is rates of return should be independent. 2.4.2.2 Semi-strong efficiency The semi-strong form of the efficient market hypothesis states that share prices will adjust immediately and in an unbiased manner to reflect new information, which is made publicly available. This does not mean that everybody has to have the same opinions about the significance of the new information. Prices will reflect the view of the market, which will automatically be the best interpretation of the mechanism. The implication of this is that a share can never be over or under prices according to the information, which is publicly available. 2.4.2.3 Strong efficiency The strong form of the efficient market hypothesis states share prices reflect all information. This means that no investors have monopolistic access to information related to the prices. The strong form efficient encompasses both weak form efficient and semi strong form efficient. Further, the strong form efficient will get more assumption of efficient markets, to assume perfect markets, in which prices adjust to the release of new news. Technical and Fundamental Analysis Based on the study of past share prices, many financial analysis seems to be view because of capital market are inefficient. A technical analysis or chartist has occurred to predict future price movements from prices. Besides, fundamental analysis is study publicly available information such as published accounts in order to try to identify the real worth or intrinsic value of shares, which may be more or less than the share price. Anomalies in the behavior of share price Many such anomalies have been reported and investigated in the quest to understand the behavior of share prices (Fama 1998). Calendar effects There has some calendar effects have been examined, which trading at particular times of the day can lead to negative or positive returns. One study found a significant monthly effect wherein all the markets cumulative advance occurred during the first half of trading months. An analysis of the weekend effect found that the mean return for Monday was significantly negative during 5 year sub periods and a total period. In contrast, the average return for the other 4 days was positive. The size anomalies The returns from investing in smaller companies have been shown, in the long run, to be greater than the average return from all companies. One study, for example, found that small firms outperformed large firms by 6% per year (Dimson and Marsh 1986). It has been suggested that above-average returns from small companies may compensate for the greater risk associated with them, such as the risk of financial distress. Concepts Security Valuation and Capital Budgeting Security Valuation Security Valuation is the valuation on the net assets of company which willing or able to let investors invest to the company. With the analysis of valuation, investors can determine which companys share prices are under or over valued, and make the decisions in investment. 3.1.1 Asset Valuation Net asset Backing is more appropriately referred to as net tangible assent backing because it excludes intangible assents such as goodwill. And it is sometimes used as a measure of the underlying value of a companys shares in the grounds that it represents what shareholders are entitled to in the event that a company is wound up, it can then be compared with the current price of a companys shares. Parkson 1. Net Assets Method Of Share Valuation Total Assets 7,270,943,000 Intangible Assets 1,235,534,000 Total Liabilities 3,887,578,000 Net Assets Value of Equity 2,147,831,000 No. of Ordinary Shares = 1,093,673,000 Value Per Share = Net Assets Value of Equity divide; No. of Ordinary Shares = 1.964 Income Based Price Earnings Ratio (P/E) Earning Yield (EY) Bonia Asset Valuation Net Assets Method Of Share Valuation Total Assets 373,250,000 Intanglible Assets ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã¢â€ž ¢ 68,848,000 Total Liabilities ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã¢â€ž ¢ 126,263,000 Net Assets Value of Equity 178,139,000 No. of Ordinary Shares = 201,572,000 Value Per Share = Net Assets Value of Equity divide; No. of Ordinary Shares = 0.88 Income Based Price Earnings Ratio (P/E) Earning Yield (EY) Asset Valuation PARKSON BONIA Net Assets 1.96 0.88 P/E 4.46 2.30 EY 8.77 2.38 Market Value 5.84 2.07 Market Value Capitalization EY Capitalization As a result, Parksons market value has over valued, which market capitalization is RM, but had growth in. It means that Parkson has gained more profit. On the other hand, market capitalization of Bonia also has over valued which RM417, 254,040 but has growth the profit to 478,965,884. It means that the Bonia also has earned more profit. If compared with Parkson, investors are able to invest in Parkson because of Parkson has earned more profit than Bonia according to the valuation above. Capital Budgeting A capital budgeting decision is one that involves the allocation of funds to projects that will have a life of at least one year and usually much longer. Basic capital budgeting decisions determine whether there is under or over capacity in a given firm or within an industry. Whether the marketing manager gets a new product approved for production and distribution may be a function of how well he or she provides data into the capital budgeting process and understand the analysis. 3.2 Importance of Capital Budgeting A proper making decision on capital budgeting is important in increasing a companys value as well as maximize shareholders wealth. It also has involved in long-term implication for the company and might get risk in complexion. If investment projects have failed in the future, the company will have to bear the burden of fixed cost. Besides, capital budgeting is not easy to reversible because it is difficult to search market assets.

Marketing Definition Essay - 962 Words

Marketing definition Every company depends on an efficient marketing program to fulfill customers needs. Marketing is a process of finding out what the customer wants and meeting those requirements. Within the company, the marketing group has to consider customer values and customer satisfaction before considering offering a product. Marketing is part of our everyday world, and can be perceived everywhere and every time. At any time, everyone has been exposed to different kinds of marketing or advertising depending upon personal necessities such as T.V commercials, radio, internet, etc. Another definition of marketing is the selling of products or services: the business activity of presenting products or services in such a way as to†¦show more content†¦This entire process is known as marketing management the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value (Kotler Keller, p.5). To be successful in business, a consumer does not buy a whole of physical components of the product but it is usefulness, function, satisfaction of consumers needs, solving the problem, etc (Dubrouski, , p.1). That is why the product is a whole of tangible and intangible components which means satisfaction of consumers needs and desires, solving the problem(Dubrouski, p.1). 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Comparison of Reliance Mutual Fund with Others Free Essays

string(80) " and Derivatives segments of the NSE as well as the | |Cash segment of the BSE\." A PROJECT REPORT ON â€Å"COMPARISON OF RELIANCE MUTUAL FUND WITH OTHERS† UNDERTAKEN AT INDIA INFOLINE LTD. BARDOLI [pic] SUBMITTED BY: DIMPLE M. SHARMA (10BBA52) GUIDED BY: Mr. We will write a custom essay sample on Comparison of Reliance Mutual Fund with Others or any similar topic only for you Order Now NAVIN H. SAPARIYA BBA PROGRAMME (Year 2012-13) [pic] VIDYABHARTI TRUST COLLEGE OF BBA BCA, UMRAKH I DIMPLE SHARMA from Vidyabharti Trust College of BBA BCA, Umrakh hereby declare that the project report work entitled â€Å"Comparison of Reliance Mutual Fund With Others† submitted by Ms. DIMPLE M. SHARMA Id no. 0BBA52 during December 2012 to February 2013 has been undertaken as a part of 6th Semester of BBA syllabus of Veer Narmad South Gujarat University, Surat. I declare that this report has not been submitted to any other university or institute for any other purposes. DIMPLE M. SHARMA (10BBA52) This Project work is written in accordance with the Bachelor of Business Administration course prescribed by Veer Narmad South Gujarat University for two month project work. I am greatly thankful to India Infoline Ltd. , Bardoli for giving me an opportunity to work on this project at their company. I wish to express my sincere thanks to Mr. Viral Chauhan, I/c Principal of BBA College who gave me the chance to do this project report under India Infoline Ltd. , Bardoli. I wish to express my deep sense gratitude to my guide Mr. Navin H. Sapariya; whose constant help and support at all stages of this project has enable me to complete it. I am thankful to my company guide Mr. Parag Khatri, for providing his valuable suggestion and guidance which has given final touch to the report and also for sharing his rich experience for the contents of this report without whom this project would not have been completed successfully. Last but not least, I am also grateful to my parents, colleagues whose continuous support has always boosted my moral towards working on this report. DIMPLE M. SHARMA (10BBA52) As a partial fulfillment of BBA Programmed all students are required to undergo training for 2 months with respected to this I have prepared a project report on Comparison of Reliance Mutual Fund with Others. The project is based under the assumption that, As Mutual Fund being a new investment avenue in the market people likes to get some information about Reliance Mutual Fund. I want to measure the performance of Reliance Mutual Fund Schemes compared to others. In the duration of 8 weeks, I studied various Mutual Fund Schemes of Reliance Open – Ended Fund like Equity Fund. In order to compare the schemes of Reliance Mutual Fund Others, I collected weekly net asset values of Reliance Mutual Fund Schemes Open – Ended Fund Schemes for the period of 2007 to 2012. I compare schemes by calculating risk return thereby to measure the performance of different schemes of Reliance Mutual Fund Open – Ended Fund in equity schemes. In the Equity Fund Schemes, the years from 2009, 2010 2012 Reliance Mutual Fund is well performing among others. |Ch. No. |Topic | |Page No. |1. |Introduction | | | | |About Company Profile | | | | |About Topic | | | | |About Reliance Mutual Fund | | | |2. Research Methodology | | | |3. |Data Analysis and Interpretation | | | |4. |Findings | | | |5. |Conclusions | | | |6. |Recommendations | | | |7. References | | | | |Bibliography | | | CHAPTER: – 1 [pic]Introduction [pic] COMPANY PROFILE INTRODUCTION OF INDIA INFO LINE PVT. LTD. |VISION OF THE COMPANY | |â€Å"Vision is to be the most respected company i n the financial services space. | | | | | | | | | |INTRODUCTION | |5 paisa is the trade name of the India Infoline Securities private limited, a wholly owned subsidiary of India Infoline ltd. paisa | |holds membership of both the leading stock exchange of India viz. the Bombay stock exchange (BSE) and National Stock Exchange and is | |also a Depository Participant with NSDL and CDSL. It has tied up with the leading banks for funds transfer facilities Viz. City Bank, | |Centurion Bank, ICICI Bank and UTI bank the group has a membership of a Multi Commodities Exchange (MCX), National Commodities and | |Derivative Exchange of India (NCDEX) and the Dubai Gold and Commodities Exchange (DGCX). |India Infoline Ltd was founded in 1995 by a group of professionals with impeccable educational qualification and professional | |credentials. India Infoline is listed on BSE and NSE with a market capitalization of over $ 150 million. | |The India Infoline group, comprising the holding company, the India Infoline Ltd. And its wholly owned subsidiaries offers the entire | |gamut of investment products ranging from Equities and Insurance ,Fixed deposits ,GOI bonds , Loan products and other small saving | |instruments. It also owns and operates web sites, www. indiainfoline. om and www. 5paisa. com. | | | |India Infoline is a forerunner in the field of equity research. India Infoline’s research is acknowledged by none other than Forbes as | |â€Å"The best of the web† and â€Å"a must read for investor in Asia†. India Infoline’s research is available not just over the internet but | |also on international wire services like Bloomberg (code: ILL), Thomson first call and internet securities where it is amongst the most| |read Indian brokers. The India Infoline group has a significance presence across the country with over 500 branches in over 300 cities | |across India. All these offices are networked and connected with the corporate office in Mumbai. The group has invested significantly | |in technology and research, the result of which are there for everyone to see. The 5 paisa trading interface is one of the most | |advanced platforms available to retail investor in India. The group has membership on BSE and NSE for equities trading. It has a SEBI | |license for Portfolio Management under which, various schemes are offered, which have been continentally beating the benchmark indices | |since inception. | |THE INDIA INFOLINE LTD. |India Infoline Ltd, being a listed entity, is regulated by SEBI (Securities and Exchange Board of India). It undertakes equities | |research which is acknowledged by none other than Forbes as Best of the web must read for investors in Asia’. Its various | |subsidiaries are in different lines of business and hence are governed by different regulators. The subsidiaries of India Infoline Ltd | |are: | |India Infolin e Securities Private Ltd. |India Infoline Securities Pvt. Ltd. is a 100% subsidiary of India Infoline Ltd, which is engaged in the businesses of Equities broking | |and Portfolio Management Services. It holds memberships of both the leading stock exchanges of India viz. the Stock Exchange, Mumbai | |(BSE) and the National Stock Exchange (NSE). It offers broking services in the Cash and Derivatives segments of the NSE as well as the | |Cash segment of the BSE. You read "Comparison of Reliance Mutual Fund with Others" in category "Essay examples" | |India Infoline Commodities Private Ltd. | |India Infoline Commodities Pvt. Ltd is a 100% subsidiary of India Infoline Ltd, which is engaged in the business of commodities | |broking. Our experience in securities broking empowered us with the requisite skills and technologies to allow us offer commodities | |broking as a contra- | |Cyclical alternative to equities broking. We enjoy memberships with the MCX and NCDEX, two leading Indian commodities exchanges, and | |recently acquired membership of DGCX. We have a multi-channel delivery model, making it among the select few to online as well as | |offline trading facilities. |India Infoline Distribution Co. Ltd. | |India Infoline. com Distribution Co Ltd is a 100% subsidiary of India Infoline Ltd. and is engaged in the business of distribution of | |Mutual Funds, IPO’s, Fixed Deposits and other small savings products. It is one of the largest ‘vendor-independent’ distribution houses| |and has a wide pan-India footprint of over 232 branches coupled with a huge number of ‘feet-on-street ’, which helps source and service | |customers across the length and breadth of India. Its unique value proposition of free doorstep expert advice coupled with free pick-up| |and delivery of cheques has been met with an enthusiastic response from customers and fund houses alike. Our business has expanded to | |include the online distribution of mutual funds, wherein users can view and compare different product offerings and download | |application forms which they can later submit to the product provider. | | | | | | |India Infoline Insurance Services Ltd. | |India Infoline Insurance Services Ltd is also a 100% subsidiary of India Infoline Ltd and is a registered Corporate Agent with the | |Insurance Regulatory and Development Authority (IRDA). It is the largest Corporate Agent for ICICI Prudential Life Insurance Co Ltd, | which is India’s largest private Life Insurance Company. | |India Infoline Investment Services Ltd. | |India Infoline Investment Service Ltd is also a 100% subsidiary of India Infoline Ltd. It has an NBFC license from the Reserve Bank of | |India (RBI) and offers margin-funding facility to the broking customers. | |India Infoline Insurance Broker Ltd. | |India Infoline Insurance Brokers Ltd. is a 100% subsidiary of India Infoline Ltd and is a newly formed subsidiary which will carry out | |the business of Insurance broking. We have applied to IRDA for the insurance broking license and the clearance for the same is awaited. | | | | | | | | | | | | | | | | |OPERATIONS | |This is where the 5paisa subsidiary of the India Infoline group, comes in. They operate their functions through their domain knowledge | |and database on in depth research of complex paradigms of commodity kinetics, offers their customers a unique insight into behavioral | |patterns of these markets. Their customers are ideally positioned to make informed investment decisions with a high probability of | |success | |India Infoline commodities private ltd. offers the investors the opportunity to participate in this market by facilitating tradin g in | |commodities futures. They are the members of Multi commodity Exchange of India (MCX) and National Commodity Exchange of India | |(NCDEX). Their main function is to provide the investor with the complete range of commodities for trading, in both the morning as well | |as evening sessions. | |Trading can be online, over the phone or at their branches. Highly qualified, well trained relationship managers are available at their| |investor points across the country, to help the investor make the best of commodities trading! | |Besides all the above functions, they also leverage their skills in research, investments in cutting edge technology and understanding | |of investor’s requirements to ensure that their needs are taken care of. Thus, they perform the function of adding value to the | |investor’s money. | | | | | | | HISTORY MILESTONES |Year | | |2011 |Launched IIFL Mutual Fund. | |2010 |Received in-principle approval for membership of the Singapore Stock Exchange | | |Received membership of the Colombo Stock Exchange. | | | |2009 |Acquired registration for Housing Finance | | |SEBI in-principle approval for Mutual Fund | | |Obtained Venture Capital license | | | | |2008 |Launched IIFL Wealth | | |Transitioned to insurance broking model | |2007 |Commenced institutional equities business under IIFL | |Formed Singapore subsidiary, IIFL (Asia) Pte Ltd | | | | |2006 |Acquired membership of DGCX | | |Commenced the lending business | | | | |2005 |Maiden IPO and listed on NSE, BSE | | | | |2004 |Acquired commodities broking license | | |Launched Portfolio Management Service | | | | |2003 |Launched proprietary trading platform Trader Terminal for retail customers | | | | |2000 |Launched onlin e trading through www. 5paisa. com Started distribution of life insurance and mutual fund | | | | |1999 |Launched www. indiainfoline. om | | | | |1997 |Launched research products of leading Indian companies, key sectors and the economy Client included | | |leading FIIs, banks and companies. | | | | |1995 |Commenced operations as an Equity Research firm | | | | PRODUCT SERVICES Equities our core offering, gives us a leading market share in both retail and institutional segments. Over a million retail customers rely on our research, as do leading FIIs and MFs that invest billions. IIFL has rapidly emerged as one of the premier institutional equities houses in India with a team of over 25 research analysts, a full-fledged sales and trading team coupled with an experienced investment banking team. Private Wealth Management services cater to over 2500 families who have trusted us with close to Rs 25,000 crores ($ 5bn) of assets for advice. Investment Banking services are for corporates looking to raise capital. Our forte is Equity Capital Markets, where we have executed several marquee transactions. |IIFL’s investment banking division was launched in 2006. The business leverages upon its strength of research and placement | |capabilities of the institutional and retail sales teams. Our experienced investment banking team possesses the skill-set to | |manage all kinds of investment banking transactions. Our close interaction with investors as well as corporates helps us | |understand and offer tailor-made solutions to fulfill requirements. | | | |IIFL Mutual Fund made an impressive beginning in FY12, with lowest charge Nifty ETF. Other products include Fixed Maturity | |Plans. | | | | | | | | | | | | | | Credit Finance focuses on secured mortgages and consumer loans. Our high quality loan book of over Rs. 6,200 crores ($ 1. 2bn) is backed by strong capital adequacy of approximately 20%. IIFL offers a wide array of secured loan products. Currently, secured loans (mortgage loans, margin funding, loans against shares) comprise 94% of the loan book. The Company has discontinued its unsecured products. It has robust credit processes and collections mechanism resulting in overall NPAs of less than 1%. The Company has deployed proprietary loan-processing software to enable stringent credit checks while ensuring fast application processing. Recently the company has also launched Loans against Gold. Life Insurance, Pension and other Financial Products, on open architecture complete our product suite to help customers build a balanced portfolio. IIFL entered the insurance distribution business in 2000 as ICICI Prudential Life Insurance Co. Ltd’s corporate agent. Later, it became an Insurance broker in October 2008 in line with its strategy to have an ‘open architecture’ model. The Company now distributes products of major insurance companies through its subsidiary India Infoline Insurance Brokers Ltd. Customers can choose from a wide bouquet of products from several insurance companies including Max New York Life Insurance, MetLife, Reliance Life Insurance, Bajaj Allianz Life, Birla Sunlife, Life Insurance Corporation, Kotak Life Insurance and others. |Commodities | |IIFL offers commodities trading to its customers vide its membership of the MCX and the NCDEX. Our domain knowledge and data | |based on in depth research of complex paradigms of commodity kinetics, offers our customers a unique insight into behavioral | |patterns of these markets. Our customers are ideally positioned to make informed investment decisions with a high probability of| |success. | IIFL (India Info Line Ltd) – Corporate Structure [pic] [pic] ABOUT THE TOPIC COMPARISON OF RELIANCE MUTUAL FUND WITH OTHERS† What are Mutual Funds? |A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus | |collected is then invested in capital mar ket instruments such as shares, debentures and other securities. The income earned | |through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of | |units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest | |in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly | |the working of a mutual fund: | |[pic] | | Mutual Fund Operation Flow Chart | | | | | | | | | | | |ORGANIZATION OF A MUTUAL FUND | |There are many entities involved and the diagram below illustrates the organizational set up of a mutual fund: | | [pic] | | Organization of a Mutual Fund | | | |ADVANTAGES OF MUTUAL FUNDS | |The advantages of investing in a Mutual Fund are: | |Professional Management | |Diversification | |Convenient Administration | |Return Potential | |Low Costs | |Liquidity | |Transparency | |Flexibility | |Choice of schemes | |Tax benefits | |Well regulated | | | | | | | | | |TYPES OF MUTUAL FUND SCHEMES | |Wide varieties of Mutual Fund Schemes exist to cater to the needs such as financial position, risk tolerance and return | |expectations etc. The table below gives an overview into the existing types of schemes in the Industry. | | | TYPES OF MUTUAL FUND SCHEMES BY STRUCTURE †¢ Open – Ended Schemes †¢ Close – Ended Schemes †¢ Interval Schemes BY INVESTMENT OBJECTIVE †¢ Growth Schemes †¢ Income Schemes †¢ Balanced Schemes †¢ Money Market Schemes OTHER SCHEMES †¢ Tax Saving Schemes †¢ Special Schemes – Index Schemes – Sector Specific Schemes | | | | | | | | | | | | | |FREQUENTLY USED TERMS | |   | |Net Asset Value (NAV) | | | |Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of | |the scheme divided by the number of units outstanding on the Valuation Date. |   | |Sale Price | | | |Is the price you pay when you invest in a scheme? Also called Offer Price. It may include a sales load. | |   | |Repurchase Price | | | |Is the price at which units under open-ended schemes are repurchased by the Mutual Fund? Such prices are NAV related. |   | |Redemption Price | | | |Is the price at which close-ended schemes redeem their units on maturity. Such prices are NAV related. | |   | |Sales Load | | | |Is a charge collected by a scheme when it sells the units? Also called, ‘Front-end’ load. Schemes that do not charge a load are | |called ‘No Load’ schemes. | |   | | | | | High Risk, High Return Many investors purchase a particular stock with the intention of making a big profit over a short period of time. However, this action is not investing, but a pure gambling. The reason for this is that you are never guaranteed that you will get the high returns you hope for over such a short period of time. There may be times in which stocks have put a record on short-term growth, but these occurrences are very rare. On average stocks have returned from 10% to 12%. However, this doesn’t mean that all stocks return at these rates. The stock market is characterized by the trade-off between risk and return. The higher the risk the investor is willing and able to take, the higher the potential rewards from the investment. Therefore, if a particular investment offers you high returns, it is an indication that it will come with a high risk burden. As part of the selection process, you should determine the risk level of the stock as well as your risk tolerance. If you are looking for high returns you should be able to meet high potential losses as well. Many investors prefer young technology-oriented companies over blue chip companies, because the first provide higher returns than the latter. However, the latter provides its shareholders with regular dividends to compensate for the modest growth. So, the next time you are offered a stock that is expected to triple in value over a short time period, think carefully whether to invest in it, because the chances of it failing to reach this level of return is extremely high. Risk : Return (finance) the financial term for profit or loss derived from an investment. Return is the benefit distributed to the owner. A person making an investment expects to get some return from the investment in the future. But as the future is uncertain, so is the future expected return. It is the uncertainty associated with the returns from an investment that introduces risk in to an investment. Standard Deviation: For the more technically-minded, Standard Deviation is â€Å"the basic statistical measure of the dispersion of a population of data observations around a mean†. In trading language it’s an indication of price fluctuation; it measures how far the closing price is from the average closing price over a set period. The greater the difference between the closing prices and the average price, the higher the standard deviation will be. The closer the closing prices are to the average price, the lower the standard deviation . he relative rate at which the price of security moves up and down. Risk is found by calculating the annualized standard deviation or daily changes in the price. Risk = standard deviation of closing price [for n periods] / average closing price [for n periods] [pic] The variance and standard deviation measure the extent of vari ability of possible returns from the expected return. Several other measures such as a range, semi-variance and mean absolute deviation have been used to indicate measure risk but standard deviation has been the most popularly accepted measure. The standard deviation or variance however provides a measurement of total risk associated with security. Total risk comprises of two components namely systematic risk and unsystematic risk. Variance: The variance of a random variable is a measure of its statistical dispersion, indicating how far from the expected value the variance is the average of squared deviation about the arithmetic mean for a set of numbers It describes how far values lie from the mean. In particular, the variance is one of the moments of a distribution. [pic] Risk and Beta: As far as an investor is concerned, the systematic risk is no very important as it can be reduced or eliminated through diversification. It is an irrelevant risk. The risk that is relevant in decision making is the systematic risk because it is undiversifiable. Hence the investor seeks to measure the systematic risk of security. Systematic risk is the variability in security returns caused by changes in the economy or the market. All securities are affected by such changes to some extent, but some securities exhibit greater variability in response to market changes. Such securities are said to have higher systematic risk. A higher variability would indicate higher systematic risk and vice versa. The systematic risk of security is measured by a statistical measure called â€Å"Beta† the input data required for the calculation for beta are the historical data of returns of the individual security as well as the returns of a representative stock market index. For the calculation of beta, the return of individual security is taken as dependent variable, and the return of the market index is taken as the independent variable. Beta is a score that measures a market stock’ volatility or risk against the rest of the market. It is calculating using regression analysis. â€Å"The Beta of an asset, ? , is a measure of the variability of that asset relative to the variability of the market as a whole . Beta is an index of the systematic risk of an asset†. Risk also implies return. Stocks with a high beta should have a higher return than the market. If you are accepting more risk you should accept more reward as beta measures the Risk of a securities return relative to the market the larger the beta, the security is more risky. A beta of 1. indicates a security of average risk a stock with beta greater than 1. 0 has above average risk. Its returns would be more risky than the market returns. A stock with less than 1. 0 would have belo w average risk. A security can have betas that are positive, negative or zero. It is a historical measure of systematic risk of systematic risk. In using this beta for investment decision making, the investor is assuming that the relationship between the security variability and market variability will continue to remain the same in future also. Investor can find the best use of beta ratio in short term decision making, where price volatility is important. Beta shows sensitivity of Stock market with that of index. If positive than moves with market. And if beta is negative it has inverse relationship. † Correlation: The correlation is one of the most useful statistics. A correlation is single number that describes degree of relationship between two variables. Correlation is a statistical technique that can show weather that how strongly pairs of variables are related. For example height and weight are related taller people tend to be heavier than shorter people. The relationsh ip isn’t perfect. People of the same height vary in weight and you can think of two people. You know where the shorter one is heavier than the other taller one. Correlation can tell you just how much of the variation in people’s weight is elated to their heights. Compute the correlation value, the formula for correlation are: [pic] Covariance: Intuitively, covariance is the measure of how much two variables vary together. That is to say, the covariance becomes more positive for each pair of values which differ from their mean in the same direction, and becomes more negative with each pair of values which differ from their mean in opposite directions. In this way, the more often they differ in the same direction, the more positive the covariance, and the more often they differ in opposite directions, the more negative the covariance. The covariance between two real-valued random variables X and Y, with expected values E(X) = ? and E(Y) = ? is defined as: [pic] [pic] About Reliance Mutual Fund Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts Act, 1882 with Reliance Capital Limited (RCL), as the Settler/Sponsor and Reliance Capital Trustee Co. Limited (RCTCL), as the Trustee. RMF has been registered with the Securities Exchange Board of India (SEBI) vide registration number MF/022/95/1 dated June 30, 1995. The name of Reliance Capital Mutual Fund was changed to Reliance Mutual Fund effective 11th March 2004 vide SEBI’s letter no. IMD/PSP/4958/2004 date 11th March 2004. Reliance Mutual Fund was formed to launch various schemes under which units are issued to the Public with a view to contribute to the capital market and to provide investors the opportunities to make investments in diversified securities. The main objectives of the Reliance Mutual Fund are: †¢ To carry on the activity of a Mutual Fund as may be permitted at law and formulate and devise various collective Schemes of savings and investments for people in India and abroad and also ensure liquidity of investments for the Unit holders; †¢ To deploy Funds thus raised so as to help the Unit holders earn reasonable returns on their savings and †¢ To take such steps as may be necessary from time to time to realise the effects without any limitation. Our Schemes Equity The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time. Diversified Large Cap |Diversified Theme Based | |Diversified Multi Cap |Sector | |Diversified Mid Cap Small Cap |Tax Saver | |Index |Arbitrage | |Banking |Balanced | Debt The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations. Ultra Short Term |Money Market Funds (Liquid Funds) | |Short Term Funds |Long Term Funds | |Monthly Income Plans | | Gold Gold is seen as a symbol of security and a sign of prosperity. Indian consumers consider gold jewellery as an investment and are well aware of gold’s benefits as a store of value . Gold is also recognized as a form of money in India, a tradable liquid asset. It is one of the foundation assets for Indian households and a means to accumulate wealth from a long term perspective. Gold investment has been in the culture of Indian tradition and has been on rise amongst the modern investors as well due to the financial uncertainty and inflationary pressures. Gold Exchange Traded Fund |Gold Savings Fund | [pic]Chapter – 2 research methodology RESEARCH METHODOLOGY Problem Statement: â€Å"Comparison of Reliance Mutual Fund with others. † Scope of Study: The scope of the project is mainly concentrated on the different categories of the mutual funds such as equity schemes, debt funds, balanced funds and equity linked savings schemes etc. Research Objectives: Primary Objective: †¢ To know the best scheme of Mutual Fund by different parameters. Secondary Objectives: †¢ Understanding the attitude behavior of the distributors towards Reliance Mutu al Fund (RMF). Understanding the competition for the schemes provided by different Mutual Funds Company. †¢ Finding out ways means to improve on the services by RMF. †¢ To evaluate investment performance of selected mutual funds in terms of risk and return. †¢ Also to analyze the performance of mutual fund schemes on the basis of various parameters. Importance of The Study: This study provides the good comparison to Reliance Mutual Fund for improving in their services and takes a sound decision regarding it. Reference Period: Reference period is 1st January 2007 to 30th December 2012. Research Design: I have selected Descriptive Research Design. Data Collection: Collect data with the help of distributor (INDIA INFOLINE) and Internet. Sample Size 5 schemes of Reliance Mutual Fund 5 schemes of Open – Ended Funds. Plan for Data Analysis: By stepwise like: †¢ Checking †¢ Editing †¢ Tabulating through Table, Charts Graphs. LIMITATION OF STUDY: †¢ Data is collected from secondary sources which may not be as reliable as primary data so sometimes it may be lead wrong prediction about future. †¢ Data giving a prediction of market condition but other factors also affect to it so perfect suggestion may not be predicted. DIRECTION FOR FURTHER RESEARCH: The study is held for direct Company and research department head. [pic]Chapter: – 3 Data Analysis Interpretations DATA INTERPRETATION The study is based on the weekly scheme returns of Mutual Fund as well as the weekly return of NIFTY INDEX. The series of scheme returns computed from weekly scheme prices of the nifty index for the period of 5 years from 1st Jan 2007 to 31st Dec 2012 and take top 5 Open – Ended Schemes to measure risk and return. Risk is measured by standard deviation, beta, etc. Performance of Reliance Banking Fund Other: [pic] |Funds Name | Beta |Standard Deviation |Correlation |Covariance |Return | |ICICI Prudential Discovery Fund- |1. 03% |4. 7% |0. 86 |0. 0018 |110. 8% | |Growth | | | | | | |UTI Pharma Health Care Fund- |0. 78% |4. 7% |0. 65 |0. 0014 |98. 41% | |Growth | | | | | | |TATA Balanced Fund- Growth |0. 77% |3. 9% |0. 93 |0. 0014 |82. 92% | |ICICI Prudential Discovery |1. 03% |4. 7% |0. 86 |0. 0018 |110. 8% | |Fund- Growth | | | | | | |UTI Pharma Health Care Fund- |0. 78% |4. 7% |0. 65 |0. 0014 |98. 41% | |Growth | | | | | | |TATA Balanced Fund- Growth |0. 77% |3. 9% |0. 93 | 0. 0014 |82. 92% | |ICICI Prudential Discovery Fund- |1. 03% |4. 7% |0. 86 |0. 0018 |110. 8% | |Growth | | | | | | |UTI Pharma Health Care Fund- |0. 78% |4. 7% |0. 65 |0. 0014 |98. 41% | |Growth | | | | | | |TATA Balanced Fund- Growth |0. 77% |3. 9% |0. 93 |0. 0014 |82. 92% | |ICICI Prudential Discovery Fund-|1. 03% |4. 7% |0. 6 |0. 0018 |110. 78% | |Growth | | | | | | |UTI Pharma Health Care Fund- |0. 78% |4. 7% |0. 65 |0. 0014 |98. 41% | |Growth | | | | | | |TATA Balanced Fund- Growth |0. 77% |3. 9% |0. 93 |0. 0014 |82. 2% | |ICICI Prudential Discovery Fund-|1. 03% |4. 7% |0. 86 |0. 0018 |110. 78% | |Growth | | | | | | |UTI Pharma Health Care Fund- |0. 78% |4. 7% |0. 65 |0. 0014 |98. 41% | |Growth | | | | | | |TATA Balanced Fund- Growth |0. 7% | |ICICI Prudential Discovery Fund- Growth |1. 03% | |Reliance Banking Fund- Growth |0. 98% | |Reliance Diversified Power Sector Fund- Growth |0. 90% | |Reliance Equity Opportunities Fund- Growth |0. 86% | |UTI Pharma Health Care Fund- G rowth |0. 78% | Standard Deviation: Here, are the top 5 schemes that has moderate low deviation which is somewhat good. Funds Name |Standard Deviation | |Reliance MIP (Monthly Income Plan) Fund- Growth |3. 10% | |Reliance Pharma Fund- Growth |3. 30% | |Reliance Equity Opportunities Fund- Growth |3. 50% | |SBI Magnum Balanced Fund- Growth |3. 80% | |TATA Balanced Fund- Growth |3. 90% | Correlation: Here, are the top 5 schemes whose Correlation is High Highly Moderate. |Funds Name |Correlation | |SBI Magnum Balanced Fund- Growth |0. 95 | |TATA Balanced Fund- Growth |0. 93 | |Reliance Equity Opportunities Fund- Growth |0. 92 | |Reliance Diversified Power Sector Fund- Growth |0. 91 | |ICICI Prudential Discovery Fund- Growth |0. 6 | Covariance: Here, are top 5 schemes who has moderate to low variation compared to others. |Funds Name |Covariance | |Reliance MIP (Monthly Income Plan) Fund- Growth |0. 0004 | |Reliance Pharma Fund- Growth |0. 0008 | |Reliance Equity Opportunities Fund- Growth |0. 0011 | |ICICI Prudential FMCG Fund- Growth |0. 012 | |SBI Magnum Balanced Fund- Growth |0. 0013 | [pic] Chapter: – 5 Conclusions Conclusion Every investor wants to maximize his returns at the lowest possible risk or he tries to minimize his risk keeping his returns equivalent, both gives him higher profits. In evaluating mutual funds, investors usually consider only the past returns g enerated by the fund without considering the risk associated with it. From the project, I conclude that, After analysis of all the schemes of reliance mutual fund open – ended funds, there are 5 schemes that as high risk involved but there is also high return accumulated with it. These schemes are Reliance Banking Fund, Reliance Diversified Power Sector Fund, Reliance Equity Opportunities Fund, ICICI Prudential Discovery Fund UTI Pharma Health Care Fund. Theory says that risk and return go hand in hand. And we can see that in these 5 schemes. Considering all the factors, the best scheme is Reliance Pharma Fund Reliance MIP (Monthly Income Plan) Fund compare to all other schemes. [pic] CHAPTER – Recommendation †¢ After analyze the Risk and Return of all the schemes of Reliance Mutual Fund Open – Ended Funds, I recommend that the Reliance Pharma Fund Reliance MIP (Monthly Income Plan) Fund for the low risk takers and Reliance Banking Fund ICICI Prudential Discovery Fund for the high risk takers. These schemes gives the highest return but there is also high risk compare to other schemes included in Reliance Mutual Fund Open – Ended Funds. Those people invest in this schemes who believes that â€Å"High Risk, High Gain†. †¢ I also recommend that the SBI Magnum Balanced Fund and TATA Balanced Fund schemes are providing less return having high risk so; there is highest risk to invest in these two schemes. [pic] Chapter: – 7 Bibliography ? www. mutualfundsindia. com/rankfund. rpt. asp ? http://www. personalfn. com/tools-and-resources/mutual-funds/nav-history. aspx ? http://www. indiainfoline. com/Aboutus/ ? http://www. reliancemutual. com/NAV/NAVDownload. aspx [pic] ———————– DECLARATION ACKNOWLEDGEMENT EXECUTIVE SUMMARY TABLE OF CONTENTS How to cite Comparison of Reliance Mutual Fund with Others, Essay examples