Investment Risk Research Paper Example | Topics and Well Written Essays - 1000 words

Investment Risk - Research Paper Example These might include people who either have very small investments or can not afford to diversify; or people who have very strong belief that the stock in which they have concentrated their investments into, will perform as good as they desire. There are many risks to an investment in stocks that an ordinary shareholder has to experience and has to deal with, in order to ensure that his or her investment does not result into a loss. One easiest way to minimize risks is to invest into only those stocks that belong to the companies that are generally called 'blue chips'. These are the most stable in the market and have little risk of the investment going bad. But, these are also accompanied by a lower rate of return. As a general rule, the higher the risk, the higher the gain, and vice versa. Hence, it is critical for the investor to understand the nature of company he or she is investing into. The risks are required to be kept low but at the same time, the purpose of the investment is to earn profits. This takes us to the discussion around the efficient frontier, which is explained as the optimum portfolio that gives the highest returns while ensuring the security and risk appetite of the investor. This is called as the optimal portfolio or operating at the efficient frontier. Whenever an investor invests into any stock, he or she takes on two broad kinds of risks, known as systematic risk and non-systematic risk. The systematic risk is due to market conditions like interest rate movements, recession in the economy and other factors that are not in the control of the investors. The non-systematic risk, however, is the one that can be reduced to lower levels using various strategies for risk management including diversification. Diversification is defined as keeping one's investments into different securities instead of keeping all money in one stock. This is important since different market conditions affect the stock market differently and this affect does not appear on all stocks in the same fashion. Hence, it is possible that an investor faces huge losses by keeping all the investments in specific stocks. Diversification allows the standard deviation around the desired average investment returns to be minimum which is what is desired from the stock inv estments. Any portfolio that lies on the efficient frontier has least risk and the most optimal return on the investment. Investors should aim to achieve this efficient frontier in order to reap the maximum benefits with least loss expectancy. Hence, the concepts of portfolio risk, portfolio investment theory and efficient frontier are closely tied together. This framework is called Modern Portfolio

Managing The Artist Assignment Essay Example | Topics and Well Written Essays - 1500 words

Managing The Artist Assignment - Essay Example However, dissatisfaction by artistes led to filing of suits, which later formed precedent by altering the laws governing music practices. Artist management has to be effective for all the stakeholders in music to benefit. Therefore, there has to be an artist manager who takes the responsibilities to ensure business takes place mutually (Allen, 2011). The person will take charge in planning and other managerial responsibilities. This paper looks at how the report cases influenced the music artist management in the United Kingdom. The cases in this study have caused a shift from the traditional practices in music management for over the last twenty-five years. The judgments of those cases have lead to the establishment of laws guiding relations in the music industry, specifically artist management. All the cases emphasized on the need to shift away from split management, which was common in the UK in the past. In the case of Mills Company as an example, Sullivan received 50% for the co pyright, which later became a precedent in the customs and practices of artist management. Legal authorities nowadays have influence on artist management activities compared to the past (Allen, 2011). In the case above the judge ordered an inquiry into profits made by Mills Company. There are compensations to artists as opposed to the past, from the above case mills is fighting for his empire, which is suffering because of engaging in malpractice. The judgment and laws in place forces him to adhere to requirements when managing artists. According to the case reports music has become a source of livelihood to many individuals in United Kingdom. Allen (2011) states that the music industry has experienced growth over the past years commercially thus promoting professionalism in artist management. The present day artists understand their basic patent rights regarding music and the relations with their managers (Marcone, 2003, p.145). Awareness has made the artists challenge status quo f rom the traditional style of artist management. In the case reports, financial agreements takes place in accordance to the acts stipulated thus alteration to custom and practices, which took place in the past. The case reports clearly highlight management roles in ensuring success to the music industry. All the cases prove that some management duties are more critical like marketing and selling artistry works. The report cases have influenced the present practices by managers whereby signing contracts have become a basic legal requirement before managing an artist (Allen, 2011, p.2). This ensures justice and fairness to all the parties who engage in music in case where a dispute arises. In the report cases, copyright is a sensitive element considered as the major contributor of disputes in music. Financial disagreements are subjective to patent rights when solving cases affecting artist managers (Beeching, 2005). The artists and other individuals in the music industry have the manda tory obligation of recognizing copyright laws as stipulated in the United Kingdom. The copyright law has provision that allows for fair utilization of literature material by all citizens, whereby they have a right to conduct personal research on a piece of music works. The law gives artists managers the right use music from other artists but reciprocate with payment (Allen, 2011, p.186). The United Kingdom lined their copyright law with the international