Global Investments- Portfolio Building Essay Example | Topics and Well Written Essays - 2000 words

Global Investments- Portfolio Building - Essay Example Modern Portfolio Theory developed by Nobel Prize winner Professor Harry Markowitz demonstrates how the risk-adjusted returns of a portfolio can be improved by diversification of investments across assets with varied correlations. This paper takes this theory philosophy, and it will be the foundation in which portfolios will be constructed (Riley, 21-38). Considering that investment management involves much of art as science, qualitative considerations will play a critical role in this portfolio development (Reilly, 47). Precise distinctions among asset classes is subjective, therefore no clear distinctions exists. Returns and correlations are difficult to forecast, though historical data may provide a guide, which will be modified to incorporate structural changes and compensate for anomalous periods. Taking into account the prevailing market conditions, this paper makes the below judgment on market returns and their associated risks. Mixing the above assets will produce a real return of 11.5%, with an expected growth of 6.3% annually, and a standard deviation (risk) of 10.2%. Available resources for current operations will utter the purchase power of assets, and this pushes this impacts investment policy. The above mix of assets is defined by their differences expected in their response to economic conditions, among them price inflation, interests rates and economic growth. Over the past few decades, most of the University’s endowment funds invested highly on US marketable securities, and were there core factors in their investments. Taking into account the prevailing economic times, this paper finds that it will be wiser to commit some of it assets to developed markets outside the United State with a percentage of 6.5% and a standard deviation of 14.3%. These markets are given preference taking into account the globalization of trade, where these markets operate

Good for Society vs. Individual Freedom Essay Example | Topics and Well Written Essays - 2000 words

Good for Society vs. Individual Freedom - Essay Example The main health-care problem that the government is obliged to tackle is a proliferation of diseases (namely pandemics and viruses). In contrast with traditional viruses such as smallpox and poliomyelitis, new viruses of fearful scope have now appeared. HIV/AIDS and avian influenza are the main threats to safety and existence of mankind. The threat can be explained by the fact that the alterations of mutation, resentment, and recombination, viruses could have evolved their own genetic structure. According to statistical results, 448,871 people living with AIDS in America. Annually, 17,047 cases of Hepatitis A are notified by the Health Department; and about 3.9 million people in the United States live with Hepatitis C (National Center of Health Statistics 2009). The agencies responsible for tacking relevant issues pertaining to safety are the US Department of Health and the Human Services and Immunology and Virology Agencies. These agencies are responsible for control over the proliferation of diseases and preventive measures against these diseases. Vaccination is the medical strategy for stimulating the immune system to protect against a specific disease agent prior to exposure. Provoking an immune response before a natural viral infection occurs acts to "blueprint" immunologic memory so that cells involved in making the potential antiviral immune response are primed and held alert. When confronted with the full strength infectious virus, these primed cells react quickly and with greater intensity than unprimed cells, thus enhancing the host's ability to successfully combat and control the infection. The recent appearance of the hemorrhagic fever viruses and HIV provide current challenges to a new generation of microbial hunters. Smallpox, poliomyelitis, measles virus, and yellow fever likewise challenged medical researchers in the past (Willis and Adelowo 1997).