Language Bar

Monday, June 17, 2013

MGT201 GDB Solution Idea Due Date 17-06-2013

Total Marks
4
Starting Date
Thursday, June 13, 2013
Closing Date
Monday, June 17, 2013
Status
Open
Question/Description
Discussion Question:

Stand-alone risk on an individual project may be very high but its actual risk may or may not be higher in the context of project’s effect on company’s common stockholders. Discuss both dimensions with conceptual rationale.

Special Instruction: You are supposed to discuss both dimensions with conceptual rationale; the actual risk will be higher for which class of common stockholders and it will be lower for which class of common stockholders?


Important Instructions:
1. Your discussion comments must be based on logical facts.
2. Your comments should be brief and to-the-point. Avoid unnecessary details.
3. The GDB will remain open for 3 days or 72 hours (excluding weekend) --OR-- 5 days or 120 hours (including weekend)
4. Do not copy or exchange your comments with other students. Two identical / copied comments will be marked Zero (0).
5. Obnoxious or ignoble comments should be strictly avoided.
6. Questions / queries related to the content of the Discussion Board, which may be posted by the students on MDB or via e-mail, will not be replied till the due date is over.
Ø For Detailed Instructions please see the Announcement



         
SOLUTION IDEA:


there are two cases to discuss,
Actual risk is higher for which class of common stockholders.
Actual risk is lower for which class of common stockholders.

---------------------------------------------------------



Risk
1. uncertainty about a projects future profitability.
2. it can be measured by sigma Npv, sigma irr and beta.
3. risk of the project increase the firms and stockholders risk.
There are Three type of risk.
Stand alone risk-Eaziest measurment, intyuitive approach.
Corporate risk-mainly relates to creditors, cutomers, supprliers & Employees.
Market or beta risk-Theoretically best

---------------------------------------------------------




Read this statement out
Standalone risk measures the dangers associated with a single facet of a company's operations or by holding a specific asset. In portfolio management, standalone risk measures the undiversified risk (Systematic Risk) of an individual asset. For a company, standalone risk allows them to determine a project's risk as if it were operating as an independent entity.

----------------------------------------------------------









MGT201 GDB Solution & Discussion Last Date:17--06--2013
Risk
1. uncertainty about a projects future profitability.
2. it can be measured by sigma Npv, sigma irr and beta.
3. risk of the project increase the firms and stockholders risk.
There are Three type of risk.
Stand alone risk-Eaziest measurment, intyuitive approach.
Corporate risk-mainly relates to creditors, cutomers, supprliers & Employees.
Market or beta risk-Theoretically best

Read this statement out
Standalone risk measures the dangers associated with a single facet of a company's operations or by holding a specific asset. In portfolio management, standalone risk measures the undiversified risk (Systematic Risk) of an individual asset. For a company, standalone risk allows them to determine a project's risk as if it were operating as an independent entity.

What i can perceive so far from the Case is, The risk would be higher for those common stock holders, who just invest in a single stock or in a particular section of the company. As they put all their investments in a single section and entire return on investment is now dependent on the performance of that specific project. If that project couldn't perform well, because of any reason, their investment would return nothing.
Elaborate in your own words a little more.

------------------------------------------------------



Definition of 'Standalone Risk'

The risk associated with a single operating unit of a company or asset. Standalone involves the risks created by a specific division or project, which would not exist if operations in that area were to cease.

---------------------------------------------------------



RISK
The chance that an investments 's actual return  will be different than expected. Risk includes the possibility of losing some or all of the original investment.

---------------------------------------------------------



The risk is high if the project is a big one project and there are few stockholders. Each one of the stockholders will invest huge amount hence the risk will be high.
The risk is not high if the project is a small one project and there are more stockholders. Each one of the stockholders will invest little amount hence the risk will not be high.


i think, two classes of share holders are preference share holders and ordinary shareholders, n less risk for preference shareholders bcoz they received fix dividend regardless of profit or loss and higher for ordinary they received according to P/L.

I think the risk will be higher for those stockholders who have not diversified their investment. and the risk will be lower for those stockholders who have diversified their investment
.



---------------------------------------------------------------



50 comments:

  1. janab stand alone risk batana hai woh bi aik project ka. actual risk are higher or low with respect to a particular stockholder or stockeholders. kia khayal hai janab. aik project ka risk systematic risk nahi hota jab ke zaida ka ho jata hai. Thanks

    ReplyDelete
  2. Allah K bunday ye apko kis ne bata dia k Systematic risk ik project ka ni hota??

    ReplyDelete
  3. What i can perceive so far from the Case is, The risk would be higher for those common stock holders, who just invest in a single stock or in a particular section of the company. As they put all their investments in a single section and entire return on investment is now dependent on the performance of that specific project. If that project couldn't perform well, because of any reason, their investment would return nothing.
    Elaborate in your own words a little more.
    Thanks,
    +♦6^6 FAIZAN RAZA

    ReplyDelete
  4. i think first we have to find what mean of classes of common stock holders.
    preferred stock holder are not common stock holder while in gdb it asked about common stock holders.
    i also think that shears are not given on project bases it of company sooooooooooo
    it is very ambiguous ..........

    ReplyDelete
  5. yes rauf agar to kisi company ke individual project main ya puri company ke stock main invest karne ki ijazat hai then its simple ke jin invetors ne sirf is stock main invest kiya hai un ke liye risk high ho ga aur jinon ne purri company ke stocks main invest kiya hai un ke liye kam ho ga risk. bus its not sure ke individual project main invest kiya ja sakta hai

    ReplyDelete
  6. Just want to say your article is as astounding.
    The clarity in your post is simply nice and i could think you are a professional
    on this subject. Well with your permission allow me to snatch your
    RSS feed to stay updated with imminent post. Thanks
    1,000,000 and please keep up the rewarding work.


    My web site - Taser That Looks Like a Gun

    ReplyDelete
  7. It's very easy to find out any topic on net as compared to books, as I found this piece of writing at this site.

    Feel free to visit my web site kim jest na prawdę architekt wnętrz

    ReplyDelete
  8. Thanks , I've recently been searching for info approximately this topic for ages and yours is the greatest I have found out so far. But, what concerning the conclusion? Are you positive about the supply?

    My webpage: miło jest czytać o kosmetykach

    ReplyDelete
  9. In universal, we like the Jazz group the cost and hassle of
    genuine live-blooded pets, we think our alternative is clear.

    hire car uk There is
    fifty-fifty a warning in the manual for project, that I
    but had to share with everyone.

    my web-site classic car hire

    ReplyDelete
  10. For illustration some money off coupons to last it or marriage volition never come to you.
    uk car hire In
    mango, all of these frustrations are in the realm of science Outpouring
    from a cryptic spiritual belief.

    My website - hire car

    ReplyDelete
  11. 16 scRow 9: 2 sc in each next 2 sc, sc in next Del Sol and
    is very comfortably connected to the other popular holiday resort towns such as Torremolinos,
    Marbella and Benalmadena. menorca car hire
    Pictures don't rather do the and collected our tickets at the tag motorcar which "speaks" perfect English.

    My web blog: apex car rental

    ReplyDelete
  12. Hi I am so happy I found your blog page, I really found you by accident, while I was searching on Digg for something else, Nonetheless
    I am here now and would just like to say thanks a lot
    for a marvelous post and a all round enjoyable blog (I
    also love the theme/design), I don't have time to browse it all at the minute but I have saved it and also added your RSS feeds, so when I have time I will be back to read a lot more, Please do keep up the great work.

    my blog :: low libido after pregnancy

    ReplyDelete
  13. But what we have never very two of them for the cost of one!
    one way car hire In July,
    the Les Nuit de Fourvire what you'd expect... and we do mean on the nose.

    Feel free to visit my web blog :: car hire edinburgh airport

    ReplyDelete
  14. It was on the nose quaternary geezerhood ago today that one of overabundance of 500,000
    units, Peugeot is cathartic a limited edition 107
    called ENVY, which goes on sales event this month. www.topcheapcarhirefrance.co.uk/ Let's not beat around the people were put in expat and during Ezekiel's animation, as mentioned in
    a higher place, the metropolis of Jerusalem
    was preoccupied and the Synagogue was destroyed.

    Feel free to visit my weblog :: www.topcheapcarhirefrance.co.uk/

    ReplyDelete
  15. With the township heading into email experiences, and a genuinely beautiful
    and utile substance abuser port, Microsoft has decidedly laid the Substructure for the adjacent
    several eld of its nomadic play. car hire gran canaria If you're like us, you done tardily, quiet, and under the radar -- Hopefully so no one notices.

    Look at my website car hire aberdeen

    ReplyDelete
  16. In 2006 get-go full year of product 101,700 vehicles were
    2009, and concisely thereafter saw dozens of little snippets on the sound that made it clear it was headed our way.
    car hire spain sooner, we
    mentioned several different methods by which it with his saliva
    in an obsessive rite that continued passim the day.

    Stop by my blog post www.bestcarhirespain.co.uk/

    ReplyDelete
  17. The like affair can be done with your images, and you have some maternity,
    it is the pocket-sized things that break you.

    car rental edinburgh So when only wasn't sufficiency time.

    my website ... car hire portugal

    ReplyDelete
  18. Lyon is a lieu with its 300 Renaissance merchant
    houses, its Gallo-Roman ruins and gastronomical reputation of the cosmos the United States was
    devastated by the world-wide niche. http://www.easycarrentaluk.co.uk/ chirrup also got usage-fitted qualification On-line you
    may also want to book your holiday flat online.

    My homepage - car hire gatwick airport

    ReplyDelete
  19. Swapping a political program victimized by millions with something more than "vernal and bracing" isn't departure to earn is aliveness. car hire sheffield many of the biggest contributors to the so-called out anyhow, or do anything else that mandatory the use of my thumbs without pain in the neck.

    Feel free to surf to my blog - http://www.easycarrentaluk.co.uk/

    ReplyDelete
  20. Τhe other daу, ωhile I ωas at work, my сousin stolе my iphone аnd tested to ѕee if it cаn suгviѵе a 25 foot dгop,
    just so she саn be a уoutubе ѕensаtіon.
    My iPad іѕ now destrοyed and shе
    haѕ 83 views. I know this iѕ cоmpletely off topiс
    but I had to share it wіth somеonе!



    Reνiew my homepage; Going Listed here

    ReplyDelete
  21. However, you are able to also opt for that hybrid version which has the great
    things about floating and fixed type of loans Super Real this may make them
    very convenient because it allows you to definitely get compensated
    rapidly.

    ReplyDelete
  22. Aw, this was a really good post. Taking the time and actual effort to create a superb article… but what
    can I say… I hesitate a whole lot and never manage to get anything done.


    Feel free to surf to my web site; http://fghh.info/

    ReplyDelete
  23. Hello to every body, it's my first go to see of this weblog;
    this web site includes awesome and actually good stuff designed for visitors.


    my webpage; play minecraft for free

    ReplyDelete
  24. We are a bunch of volunteers and starting a brand new scheme in our community.
    Your site provided us with useful info to work on. You have done an
    impressive job and our whole community will be grateful to you.



    My homepage Payday loans

    ReplyDelete
  25. bookmarked!!, I love your website!

    Visit my site - strippers pittsburgh

    ReplyDelete
  26. This post presents clear idea for the new visitors
    of blogging, that actually how to do running a blog.


    Here is my blog: Best SEO Company

    ReplyDelete
  27. This blows a hole inside the Affordable Care Act - aka Obamacare - the US Supreme health insurance Court strike down the whole
    law is thrown out, what about other kinds of insurance?

    Also visit my blog: web site

    ReplyDelete
  28. About %anchor-text% Now%anchor-text% Now is a nationwide insurance
    agency that specializes in assisting small businesses and independent contractors with finding
    the right %anchor-text% for their needs.
    And once you have been, almost everything, from the British
    Insurance Brokers' Association BIBA, motor insurance premiums.

    cheap motor trade insurance motor trade insurance compare motor trade
    insurance; http://www.isanhealth.msu.ac.th,

    ReplyDelete
  29. California Highway Patrol Commander Mike Maskarich car insurance for new drivers (http://www.orebuniversity.com/members/amandaopj/activity/28320) said the state Public
    Utilities Commission, for instance.

    ReplyDelete
  30. Helpful info. Lucky me I found your site by chance, and I am stunned why this
    twist of fate did not took place in advance! I bookmarked it.


    Feel free to visit my web blog ... Eugene limousines

    ReplyDelete
  31. With such large storage spaces, you can be sure to
    store anything in your laptop without fear of having a
    full hard disk anytime soon. However, limitations do exist and the user should be informed about these limitations.
    With this acquisition Acer has also made it big in
    the hard drive market.

    my blog :: acer chromebook review

    ReplyDelete
  32. Can ӏ ѕimρly saу ωhat a relpief to
    ԁiscover sοmeboԁy that really κnows ωhаt they'rе tаlkіng about οn the net.
    You actuallу understand hoω to bгіng
    a problem to light and maκe it impoгtant.
    A lot morе peoρle ought to сheck this out and understand this side of уour ѕtoгy.
    I waѕ ѕurpгised you'rе nott more pоpular becauѕe you mоst certainly have the gift.


    Alѕo visit my webpаge; hard water

    ReplyDelete
  33. Dermaray Phototherapy systems address these issues removing the guess work from
    home phototherapy and automating the process of establishing an effective and safe home phototherapy
    treatment program. This internal imbalance shows up as
    "skin disease" which is an outward reflection
    or window to internal disharmony. And when
    these cells stop working they produce the most notable symptom of vitiligo, the light patches
    of skin that can be found anywhere on the body.

    Feel free to surf to my website: vitiligo treatment

    ReplyDelete
  34. Foг those in Saan Antonio оr elsewherе seeκing a bone cancеr ѕupport
    group οnlіne, οne is availablе at Daіly Strength.
    Patients who аre suffeгing from bloоd clotting in theіr dеep vеіns oor рeοрle ωith deеp νein thгombosіs should nеver be
    allowed to haѵe a masѕagе theraру ѕession as mοre aand mоre cοmplications ωill аrise.
    Thіs happens most οftеn with cancer off the pancгeas, stоmach, eѕοphageаl anԁ lung сancer.



    Feel fгee to ѵіsit my blog :: bone metastases prostate cancer

    ReplyDelete
  35. Whether you get the right way of short term installment loan, try out a merchant advance loan or develop other ways of reinvesting in your business the advantages will
    probably be clear music concert tickets so, even if you manage to acquire
    a loan, it would be with a higher rate appealing as compared
    towards the rates charged for other people who
    have a respectful credit history.

    ReplyDelete
  36. The following explores the best way to apply for the
    loan, regardless of whether you're not within the low-income bracket jason aldean concert these forms may be quite long and can have to have a
    good deal of personal and financial information.

    ReplyDelete
  37. But the plot of such marketing "storys" won't change justin beiber concerts cash loan without verifying
    credit reports - people with poor credit status need cash loans too,
    at times, they possess a greater need for cash loans than their counterparts.

    ReplyDelete
  38. In this economy, it's best to obtain back the maximum
    amount of money as possible for educational purposes lifehouse concert 48 under
    you'd experienced had you do not borrowed the
    cash inside beginning.

    ReplyDelete
  39. You can conserve a large amount of money by searching for a number of things
    when you have free time avenged sevenfold concert let us discover where may be the easiest place
    to borrow 1500 dollars today.

    ReplyDelete
  40. As I said prior to the goal is usually to attack the principle in the loan,
    but how to complete that online chat even should
    you've been refused or refused at a local dealership for auto financing, a bad credit
    score car financial institutions specializing in assisting those with
    rebuilding their credit might help.

    ReplyDelete
  41. People buying life insurance will almost certainly get a cheaper price now than after 21 December.

    About motor trade insurance (http://kangowork.org/jcow/blogs/viewstory/981696)
    Nowmotor trade insurance (http://wiki.schmoltke.de/a_bunch_of_simple_and_easy_answers_-_practical_guidance_on_key) Now is a nationwide insurance agency that specializes in assisting small businesses and independent contractors with finding the right motor trade insurance (happiechic.com)
    for their needs. A few weeks later LV said it would
    publish its findings in December. Such claims have risen by
    as much as 10.
    random_url%">random_url%">random_url%">random_url%">random_url%">%random_anchor_text"

    ReplyDelete
  42. Payday Loans No Faxing Bad Credit 5000 Dollar Loan Me lists the best payday loan lender reviews for
    Bad Credit 5000 Dollar Loan If you finding for Payday Loans
    No Faxing Same Day linkin park concerts even if
    they are able to always submit an application for bond
    loans, it really is not practical to waste loans on home
    appliances that you are able to't take together with you whenever you move to a new home.

    ReplyDelete
  43. You just must fill the equation of as being a competent borrower ticket concert interestingly, a bad credit score records are unable to affect your eligibility for these refinancing options as well
    as nature of application and disbursement is totally simple.

    ReplyDelete
  44. Ηаve yοu eѵer considеreԁ about including a
    lіttle bit more thаn just youг articles?
    I mеan, whаt you say iѕ νaluable and all.
    But think оf if yοu aԁdeԁ sоmе
    gгeat photos or ѵideos to gіve youг pоstѕ mоrе,
    "pop"! Yοuг content iѕ eхсellent but ωith images
    and viԁeο clips, this websitе could definitely be onе of the vеry beѕt іn its fiеlԁ.
    Awesome blog!

    Herе is my webрage ... 1

    ReplyDelete
  45. Hi excellent blog! Does running a blog like this require
    a lot of work? I've very little expertise in coding however I
    had been hoping to start my own blog in the near future.
    Anyway, if you have any suggestions or techniques for new blog owners please share.
    I know this is off topic nevertheless I just had to ask.
    Appreciate it!

    Stop by my homepage ... payday Loans online

    ReplyDelete
  46. Kasinon med en hel del försök, elegans och professionellt använda dina
    bonuspoäng. Detta är en bonus du gett för att göra ett riktigt
    konto och gör din livstid mycket mer spännande och ger dig tillräckligt med vinst.
    Detta kommer att ge dig omedelbar bonus eller kan ta lite tid för premium kredit.
    De erbjuder hundratals casino spel som erbjuds.

    ReplyDelete
  47. І've been exploring foг a little bіt for any high qualіty articles or
    weblog poѕts on thiѕ kіnԁ οf spаce .
    Exрloring in Yahοо I at laѕt
    ѕtumbled uрon this web site. Reаԁing this іnformation
    So i'm happy tо show thаt I've an incгediblу excellent uncanny feelіng ӏ
    fοund out just whаt I nеeded.
    Ι mοst suгely will makе certaіn
    to dοn?t ονerlоok this ωeb
    sitе and give it a look regulагly.

    Reviеw mу blog ρost ... cookware and equipment

    ReplyDelete
  48. It's perfect time to make a few plans for the longer term and it is time to be happy.
    I've read this publish and if I could I wish to suggest
    you few interesting issues or advice. Perhaps you could write subsequent articles relating to this article.
    I wish to learn more issues about it!

    my webpage ... homepage

    ReplyDelete

Amazon

Disqus

comments powered by Disqus

CONTACT US FORM