Business Essay Example | Topics and Well Written Essays - 500 words - 8

Business - Essay Example Due diligence is a term commonly associated with such evaluation process. It refers to the care a reasonable person should take before entering into an agreement or a transaction with another party. It is an investigation or audit of a potential investment. Due diligence is a way of preventing unnecessary harm to either party involved in a transaction (Due Diligence – DD, 2009) Most of the investors will evaluate the past and present financial records of the company before taking decisions about the investment. So the entrepreneur must prepare such financial records of the company for the verification by the investors. An investor needs to be convinced about the financial capabilities of the company before taking decisions about investing. For that purpose the entrepreneur must present the financial history of the company in simple terms understandable to even a layman. An executive summary of the business plan is also required by the founders of the venture to convince the investors. It is only through this business plans the investor will know about how the company is going to utilize the money collected from them. The investors also must be convinced about the scope of the business and the market opportunities and hence the business plan must be well written in simple words to attract the investors. Some investors are keen in knowing more details about the company like the assets of the company, customers, environmental issues, foreign operations, legal matters, product issue, suppliers, tax issues, and matters relating to ownership change (Due Diligence Checklists, 2009) The current Investors are extremely careful in investing in shares and hence they will investigate about all the activities of the company before investing. They will analyze the future prospects of the company based on the parameters mentioned above. They know that if the

Portfolio Asset Allocation on LEE Pension Fund Research Paper - 1

Portfolio Asset Allocation on LEE Pension Fund - Research Paper Example ate bonds had the lowest correlation (-0.011827), implying it would be a desired asset for risk reduction, among the portfolios, by means of increased diversification. Standard deviations (SD) and means were also calculated in order to give a relative comparison between the different asset classes with regard to return and risk. Before 1970s, real estate never existed as a recognizable and established investment â€Å"asset class.† As an alternative, the portfolios of organizational investors like pension funds entailed almost exclusively of bonds, stocks, and cash. However, this situation was changed as inflation and modern portfolio theory caused the establishment of real estate one institutional investment asset class. The current undesirable performance in equity market implies real estate is progressively registering mixed-asset portfolio. Nevertheless, determining whether the desired return in real estate is one long-term phenomenon or a temporary thing is a concern that remains hugely unanswered. In simple terms, little or no even evidence exist to prove whether real estate ought to play an unswerving function in mixed-asset portfolio across long-term and short-term investment horizons. We intend to explore and give more light with regard to the uncertainty surrounding mixed-asset portfolio. T his was our primary concern as far as this paper is concerned. So as to protect the portfolios from any short-term or long-term fluctuation in the market, the pension systems spread assets across a wide range of asset classes. This allowed each portfolio to uphold stability through the turbulent market cycles. Every systems asset was invested in bonds, stocks, real estate, and global asset allocation strategies, with a small asset allocation to associate partnerships. The assets incorporated in the analysis were given as follows: These investment categories exhibited imperfect correlations since when one category was wavering, another was doing exceedingly well or