BAFI3258 Managerial Finance - Assessment 1: Essay

Get Expert's Help on Individual Essay

Overview

You are required to construct an essay of 800 words expressing your personal views as to the effectiveness of the market in setting prices.

The essay is aimed at providing you with the opportunity to create an intellectually constructed essay that is well-written. Marks will therefore be awarded for “style” as well as for structure and content.

Course Learning outcomes

This assessment is aligned with:

  • CLO1: Appraise the nature and key components of financial systems both domestically and globally.
  • CLO2: Evaluate the concepts of time value of money to various valuation models including debts and equities.
  • CLO3: Interpret the concept of diversification and examine the impact on the risk and return relationship.
  • CLO4: Analyse the characteristics and functions of arbitrage and derivatives and how they are applied to risk management strategies.

Assessment details

The discussion topic for the first assessment is Sir Isaac Newton’s quote:

I can calculate the motion of heavenly bodies, but not the madness of people.

This quote was his response to the collapse of South Sea Bubble in 1720, in which he lost £20,000 (equivalent to approximately £5milion in 2022). His remarks suggest that investors be irrational during the bubble period when they are more likely to follow each other (‘herding’). But over the time, a few months to possibly many years, the psychology factors are subtracted out and stock prices come to reflect the value of the company in relation to economic fundamentals.

You are required to compose an essay of 800 words expressing your personal views as to the stock market bubble. Specifically, your views should be developed based on the review of Week 1 and 2 learning materials including related readings, discussions, and activities.

In week 1 and 2, we discuss a short history of stock markets, including the unfolding of bubble-crisis (‘boom-bust’) cycle in the recent time. In your essay, our expectation is that you discuss the investors’ experience and behaviour prior to, during and post a bubble. You may select a bubble period in the past three decades to demonstrate your viewpoints.

The essay is aimed at providing you with the opportunity to create an intellectually constructed essay that is well-written. Marks will therefore be awarded for “style” as well as for structure and content.

Referencing guidelines

You must acknowledge all the sources of information you have used in your assessments.

Refer to the RMIT Easy Cite referencing tool to see examples and tips on how to reference in the appropriate style. You can also refer to the library referencing page for more tools such as EndNote, referencing tutorials and referencing guides for printing.

Use the RMIT Harvard referencing method for this assessment.

Expert's Answer

help

Hire Expert 

Get a Professional Help


200
Select FileChangeRemove

TOP