Investment Analysis and Strategy Term Paper Example | Topics and Well Written Essays - 2000 words - 1

Venture Analysis and Strategy - Term Paper Example Current Portfolio hypothesis intricately examines the connection between the hazard and the arrival. (Lintner, 1965; Brealey and Myers, 2003) Goldman Sachs, perhaps the biggest bank, is the firm, which will be concentrated in this paper. Before ascertaining the pace of profit that is normal for the interest in the portions of this organization utilizing CAPM, it is required to quickly talk about this model for the improvement of the comprehension. Regardless of whether an individual will be keen on putting his cash in the portions of a specific firm relies upon the presentation of the firm to the market hazards just as those dangers, which are principally explicit to this firm. Presently portfolio hypothesis proposes that as opposed to making interest in one specific offer, it would be more shrewd for a person to put resources into a broadened portfolio. A proper broadening diminishes all out degree of dangers. (Brealey and Myers, 2003; Markowitz, 1991; Bernstein, 2001) To evaluate anticipated profit for an interest in a specific stock, Capital Asset Pricing Model is utilized. This model indicates a recipe, which is commonly applied by the organizations to decide showcase return on the portions of that firm. CAPM considers just those dangers, which are non-diversifiable. These dangers are generally known as orderly or market hazard and they are frequently communicated by the term beta (ÃŽ ²). (Markowitz, 1991; Bernstein, 2001; Tobin, 1958 ) E(Ri) = Rf + ÃŽ ² (E(RM) - Rf); where E(Ri) is normal profit for the ith capital resource, Rf is the arrival on the hazard free resource, ÃŽ ² speaks to affectability of the arrival on the stock to the market return, and E(RM) represents the normal profit for the market portfolio. (Markowitz, 1991; Bernstein, 2001) Before moving into further investigation it is important to comprehend what hazard free and dangerous resources represent. The order of benefits, especially of budgetary

Human Resource Management and Change Portfolio

Question: Talk about the Human Resource Management and Change Portfolio. Answer: Presentation: Dealing with the exhibitions of the individuals, remembering them and remunerating those specific individuals should be the fundamental issue for CERA Company and in this manner, it was imperative to diminish these issues as to improve the ideal development of the firm. Dealing with the exhibitions of the individuals occupied with the firm was seen as the most essential point for the advancement of the development of the firm (Entrekin Scott-Ladd, 2013). The organization of the reward plan of CERA was not reasonable for every one of the exhibitions given by various representatives inside the firm as a portion of the individuals were found to accomplish unprecedented work where there were not many of the workers who should have been prepared at each progression. Therefore, there was a need to build up the reward plot abs per inspecting the exhibitions of the various workers inside the firm as this would have helped in expanding the fulfillment level of the representatives inside the f irm (Hartel Fujimoto, 2010). Then again, the administration of individuals inside CERA was an inquiry such a large number of the representatives related with the firm as the administration of their exhibitions with the assistance of paper was insufficient to give the ideal rise to the firm. It was discovered that the reward conspire didn't assess the following of the work and the exhibitions of the representatives separately and this was an inquiry for a most extreme number of the workers related with the firm (Jacobs, 2009). The exhibition the executives at CERA was seen as a stock standard as it followed an administration by the goals kind of plan for the exploring of the exhibitions given by the various representatives related with the firm. This specific execution framework depended on the destinations gave by the representatives in regards to their individual position and they have to set their objectives dependent on the earlier year's outcomes which basically influenced the execution of the business procedure of the firm. The survey framework was given two times each year, right off the bat midyear audit and afterward the survey after the entire year. The conclusive outcomes of the audit were not acceptable for the great entertainers as the desk work uncovered the ideal certainty that the awful entertainers scored great position and they were compensated adequately though the great entertainers were taken uniquely for thought (Triggle, 2014). Following not many years the execution of the reward kind of plan drew out specific changes to the working and exhibitions of the representatives. The checking on of the exhibitions and the evaluation programs were basically founded on the surpassing objectives by rate. It mirrored that the extra was distributed to a specific region and afterward it was isolated into the colleagues dependent on the senior individual in the gathering (White Druker, 2013). The phenomenal entertainers were evaluated by zipping reward while the great entertainers were given some additional cash yet the frameworks not saw as valuable by numerous individuals of the individuals. A portion of the individuals who became more acquainted with about the fulfilling and the reward framework assessed the way that there were numerous individuals who were not seen or evaluated or was not seen viably by the chiefs. It has been seen that in some other association the auditing of the exhibitions of the representatives according to the total and best endeavors give them the ideal inspiration identified with crafted by the business procedure concerned. One reason or can be said as the serious issue of the reward conspire was the misalignment all through the work environment concerned. In this way, it is firmly prescribed that the chiefs need to comprehend the endeavors of the people working in the organization and them their presentation ought to be inspected by the supervisory group and they ought to be given the ideal prizes and motivating forces as merited by them. It has been seen that a portion of the individuals comprehend the way that they have been paid over different organizations in the market yet the still anticipate a great deal from the organization and in addition, there turns into the essential prerequisite of the fulfilling and evaluation programs for the workers (Varma Budhwar, 2013). All in all, the reward plot is found to have a portion of the indispensable issues and these should be investigated by the supervisory crew according as per the general inclination of the representatives. References Entrekin, L. Scott-Ladd, B. (2013).Human Resource Management and Change. Hoboken: Taylor and Francis. Hartel, C. Fujimoto, Y. (2010).Human asset the executives. Frenchs Forest, N.S.W.: Pearson Australia. Jacobs, C. (2009).Management revamped. New York, N.Y.: Portfolio. Triggle, N. (2014). Why directors are paying heed to staff happiness.Nursing Management,20(10), 9-9. https://dx.doi.org/10.7748/nm2014.02.20.10.9.s9 Varma, A. Budhwar, P. (2013).Managing HR in Asia-Pacific. Hoboken: Routledge, Taylor, and Francis Group. White, G. Druker, J. (2013).Reward Management. Hoboken: Taylor and Francis.

Human Resources Vocabulary for English Learners

HR Vocabulary for English Learners English instructors are regularly not prepared to go into profundity in the phrasing required in explicit exchange divisions. Thus, beneficial center jargon sheets go far in helping educators give satisfactory materials to understudies requiring an escalated investigation of jargon in very focused on zones. This center jargon reference sheet gives watchwords and expressions utilized by a business HR division. This rundown can be utilized as a beginning stage forâ vocabulary study identifying with business and working. Information on these terms can assist individuals with finding a new line of work and comprehend representative handbooks of approaches that they are required to follow upon work at an organization. The rundown contains British and American spellings of terms and expressions, as confirmed by the utilization of (UK) and British spellings, for example, work, which is spelled work in the United States. HR Vocabulary truant non-appearance non-appearance rate mishap at work/modern injury candidate/competitor application structure apprenticeship fitness test evaluation of candidates right hand back compensation haggling power fundamental compensation industrial specialist businessâ hours/officeâ hours Christmas reward clericalâ work/officeâ work companyâ bargaining/companyâ negotiation pay for lasting handicap legally binding circumstance average cost for basic items remittance accreditations day move direct labour (UK) incapacity annuity disciplinary measure/disciplinary assent segregation excusal excusal for cause excusal without notice early retirement business business office employmentâ card/workingâ papers business contract/work contract (UK) work for a time for testing employmentâ office employmentâ rate official frameworks official faculty leave grant experienced individual family remittances family leave government occasion/national occasion (US)/open occasion (UK) independent full work full time all day business generalâ strike net wages and compensations provocation have a mishap at work human services advanced education/propelled training human relations (US)/human connections (UK) autonomous associations list connected wages indirectâ labour (UK) industrialâ tribunal (UK)/labourâ court (UK) inner guidelines unpredictable work/irregular work work/business request for employment set of working responsibilities work assessment work fulfillment employer stability work sharing juniorâ clerk/juniorâ employee work costs work debates work power/labor work advertise work versatility work relations (US)/modern relations (UK) work relations/worker's guild relations work retraining work flexibly worker's organization (US)/worker's guild (UK) cutback learning by doing leave letter of arrangement lock-out the executives preparing overseeing executive maternity leave center administration least pace of pay the lowest pay permitted by law working two jobs inspiration night move occupation/work available time office chief office staff/office faculty hands on preparing redistributing extra time pay extra time work low maintenance low maintenance work halfway handicap pay pay envelope (US)/wage parcel (UK) payâ formula/retributionâ diagram pay increment for merit check/payslip finance/finance record benefits benefits subsidize time of notice lasting inability lasting occupation/solid employment lasting staff faculty/staff faculty division faculty prerequisites organizer pretax counteraction creation reward proficient capabilities proficient preparing developer buying director re-work repetition installment supplemental class relationship the board compensation leave (executive)/to pull out (representative) abdication (director)/notice (representative) retirement retirement age option to strike salariedâ workers/workers pay salaryâ range/wageâ band occasional work occasional specialists second move optional occupation senior representative/senior worker severanceâ pay/dismissalâ pay transient work wiped out leave/day off gifted work (US)/skilledâ labour (UK) gifted work gifted specialists social expenses social protection/national protection Government managed savings (US) soleâ director staff costs/work force costs striker impermanent handicap impermanent staff impermanent laborer/temp the activity is as yet empty third move time card time clock to go after a position to delegate an individual to request a raise to be excused/to be terminated to be laid off to be waiting on the post trial process/to be being investigated to be protesting to be jobless/to be jobless to excuse/to fire to fill an opening to take to the streets to hold a position to meet to resign to hazard reimbursement to make sure about work to choose competitors to strike to take measures to take ones vacationâ days (US)/to take onesâ holidays (UK) to prepare to work at home/to work from home top director all out inability exchange preparing preparing period time for testing under agreement underemployed joblessness joblessness benefits organization fees/association membership association official/exchange unionist unjustified excusal unpaid leave untalented work (US)/incompetent work (UK) untalented specialist opening/empty position get-away (US)/occasion (UK) wageâ bargaining/payâ negotiations wage roof wage claims wage elements wage freeze wage pressures wage-cost winding blue collar laborers government assistance commitments desk laborer stay at work past 40 hours work move workday (US)/working day (UK) specialist working hour remaining task at hand work environment

How Long Should I Study for the SAT

Note: This post has been updated to reflect the scoring changes in the SAT beginning in March 2016. Some would say a weekend; some would say a lifetime. Clearly, the truth is somewhere in between, and the answer really depends on you. Are you the busy type, but have lofty goals? Then studying an entire summer is probably necessary (and more, if you don’t do as well as planned). Not looking to rock the Ivy League, but hoping for a decent in-state school? Maybe a month is all you’ll need. But don’t spend just a weekend. Whereas a month can make a big difference in your score, depending on the materials and whether you have a teacher, a weekend isn’t going to make much of a difference on your score (and all-nighters are never fun). On the flip side, don’t fritter your life away, attending SAT schools every weekend, year after year (colleges do want well-rounded students). Of course, most students do not fall into this category, but if you are a super-achiever keep this advice is mind. Ultimately, how long you study for the SAT has a lot to do with your current score and the average score of the school you hope to go to. Figure that out first, and then you’ll have a better sense of just how much time you’ll need. The 70-150 Point Plan = One Month Life is busy, and you just don’t have time to dedicate it all to one thing. But as long as you can give SAT prep a month of your time, you can—with hard work and a good teacher—expect to improve about 30 to 70 points in both Math and Reading/Writing, or up to around 150 points overall. The 150-250 Point Increase = Three Month (one summer!) With the right materials and a good teacher, a summer is ample time for you to raise your score by as much as 250 points (assuming you are not starting off with a score of over 1350). You will need to take practice tests every week and go through them with a really good teacher/tutor. That person will also help determine your weak points. If you are unable to get a teacher/tutor, you can still see such a point increase. It’ll just be a little tougher; you’ll have to be more disciplined and attuned to the errors you tend to make. The 250-350 Point Club First off, I’m here to tell you that such a score increase is possible. Secondly, the higher your baseline score (the score you start out at), the less likely it is to see such an increase. So yeah, if you are already scoring 150+ Plan Let’s say you are already starting at the 1350- or 1400-level. Increasing 100 or more points is going to be tough. But you are probably already a strong student. You might only need about 6 weeks, but that will have to be an intense 6 weeks (you will be dreaming in fourth-degree polynomials and Reading passage quotes). Going through multiple practice tests a week with an SAT tutor may be necessary. With an entire summer, and the right instruction, you should be able to break the 1500-point threshold.

Law of Thermodynamics by Tipler and Gene in Physics for Scientists and Engineers Free Essay Example, 1500 words

Tipler and Gene talk about heating and working whereby they expound further on thermodynamics. The first outline the main difference between heating and working followed by the laws associated with thermodynamics. In these categories, apart from discussing, the authors also use symbols and equations, which are usually easy to comprehend. The authors model of narration is quite recommendable; this is because of the easy grammar understandable to the readers. Apart from easy grammar, the author also uses many examples and small notes that act as extensions of information. According to Tipler and Gene, heating is the process of energy conveyance in relation to heat. For instance, when a cold spoon is put in hot tea, there is usually energy transmittance from one body to the second. That is, while hot tea heats the spoon, similarly, the spoon cools the tea. Conversely, working also involves energy conveyance but unlike heating, there is no heat involved. For instance, when a person push es a heavy load, the load and the ground have similar temperatures but the load normally become hotter when pushed on the ground. We will write a custom essay sample on Law of Thermodynamics by Tipler and Gene in Physics for Scientists and Engineers or any topic specifically for you Only $17.96 $11.86/page By giving the example of a fish in a bowl, the author states that since the fish is cold-blooded, there is usually no exchange of energy since they are at the same temperature with water.

Background of Study for Online Hotel Reservation System

Chapter 1 : Project Overview Background of the Study The existence of many sophisticated computer systems and various innovations that we find in this Information Age justifies the age old saying that necessity is the mother of all inventions. The need to share information in a so called ‘global network’ and man’s desire to communicate from long distances called for the birth of the World Wide Web (formerly known as ARPANET). With the advent of the internet, many of the mundane tasks and businesses that people conducted were made feasible. Things like buying and selling various products can now be done online. The consumer no longer needs to moves from his location. A few clicks from his mouse will suffice enough to do the job. You can†¦show more content†¦Sabre Holdings is a travel technology company serving airlines, hotels, online and offline travel agents and travel buyers. Amadeus is a computer reservations system (or global distribution system, since it sells tickets for multiple airlines) owned by the Amadeus IT Group with headquarters in Madrid, Spain. The central database is located at Erding, Germany. The development center is located at Sophia Antipolis, France. In addition to airlines, the CRS is also used to book train travel, cruises, car rental, ferry reservations, and hotel rooms. Amadeus also provides New Generation departure control systems to airlines Abacus is a global distribution system (GDS) with a primary focus on Asia/Pacific travel operated by Abacus International Pte, Ltd., which is headquartered in Singapore. The Online Hotel Reservation System that the researchers have created can be used by any hotel (generic) that shall find its use worth implementing. Company Profile The Online Hotel Reservation system can be applied to different hotels. It is a generic Computer Reservation System therefore it is not limited to a singular holder. It can be utilized by any company. Statement of the Problem This study will essay to eliminate the typical manual reservation that’s being used by various hotels. InShow MoreRelatedOnline Hotel Reservation System1530 Words   |  7 Pagestraditional process of teaching and learning, and the way education is managed. Information technology, while an important area of study in its own right, is having a major impact across all curriculum areas. As internet technology has improved, so have online reservation systems. Today, it is possible through online, to make a reservation for a hotel anywhere in the world. Hotels can create Web site and post new content on it every day. Technology has gone a long way, improving the lives of people. 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Therefore, the proponents purported to find out how to increase the number of customer using computerized reservation. Interaction and individualRead MoreGlobal Hotels And Momma S Motel804 Words   |  4 PagesGLOBAL HOTELS AND MOMMA’S MOTEL â€Å"Suppose you work in the IT department of Global Hotels, a multinational hotel chain. Global Hotels runs several specialized business support systems, including a guest reservations systems that was developed in-house to meet the requirements of a large company with worldwide operations. Guests can make one-stop online reservations by visiting Global s Web site, which has links to all major travel industry sites. Global Hotels just acquired Momma s, a regional chainRead MoreIntroduction to Online Hotel Reservation System1760 Words   |  8 PagesChapter 1 Project Overview Background of the Study A hotel is an establishment that accommodates people. The hotel can also be a place where tourist can stay for a limited time. We cannot deny that we are now in much more technologically improvement and especially for business, shifting from manual process to automation and computerize (Fhatima A., 2012).   The cost and quality of hotels are usually indicative of the range and type of services available. Due to the enormous increase inRead MoreIntroduction to Online Hotel Reservation System1772 Words   |  8 PagesChapter 1 Project Overview Background of the Study A hotel is an establishment that accommodates people. The hotel can also be a place where tourist can stay for a limited time. We cannot deny that we are now in much more technologically improvement and especially for business, shifting from manual process to automation and computerize (Fhatima A., 2012).   The cost and quality of hotels are usually indicative of the range and type of services available. Due to the enormous increase in tourismRead MoreTravel Agency1721 Words   |  7 Pagesagency in the hospitality industry and how does it affect the whole industry. Travel Agency is defined as a retail business selling travel-related products and services to customers on behalf of suppliers such as airlines, car rentals, cruise lines, hotels, sight-seeing tours and package holidays. When we say Travel Agency they are the one who can assist you in planning your trip or someone has to be responsible with all the preparations you will need. They are responsible for planning, reserving andRead Moretravelodge analysis and pest analysis Essay1685 Words   |  7 PagesMarketing Management A Resit Introduction This report will be providing a detailed analysis of the existing Budget Hotel market, and how to improve the competiveness of the Travelodge UK, the second largest Budget Hotel chain in the United Kingdom, Second Premier Inn. This report will contain the following, a profile of the organisation’s current target market, which will include demographic, psychographic, geographic and behavioural variables. That will then be followed by a well-referencedRead MoreBaque-Manalang Dental Clinic Online Reservation4720 Words   |  19 PagesCHAPTER 1 THE PROBLEM AND ITS BACKGROUND Introduction The use of online services nowadays becomes more necessary in the various fields. It is because of the advantage and useful effects to many people when it comes to online reservation because our society is facing rapid growths of need, availability and development of different commercial web-based application. The online reservation services differ from the traditional mode in the capacity to provide services regardless of temporal and spatialRead MoreOnline Reservation System and Booking4281 Words   |  18 PagesChapter I Introduction Rationale of the Study Every problem has a solution. In order to come up with a good solution, the root of the problem has to be determined. The scope of the problem must be established well before making the first few steps of the study. One has to get a hold of the basic theories and principles regarding the problem, justify the impact of the problem to the society, and consider the future customers of that â€Å"would-be â€Å"solution. Before designing solutions, related

Empirical and Theoretical Analysis

Question: Discuss about the Empirical and Theoretical Analysis. Answer: Introduction: Capital budgeting is a technique through which the business takes decision related to selection of the project to be carried out by it. It takes into consideration the investment made by the company in a particular project and the returns that will be generated from the project. Sensitivity analysis helps in providing additional information relating to the selection of the project. There are different methods used to examine the financial effect of a certain project. Sensitivity analysis is a technique used to evaluate the impact of independent variables on the dependent variable under a given set of assumptions. Besides this, it has some limitations as it takes into consideration one or more variables as an input to know their effect on the dependent variable for example changes in the interest rates have an effect on the prices of bonds (Ehrhardt and Brigham, 2008). It is also regarded as a what-if analysis which facilitates in prediction of an outcome of a decision with certain number of variables. These variables help in gaining knowledge of the effect of changes in one variable on the outcome. Sensitivity analysis facilitates in providing the information related to the impact of range of variables on a given outcome. This analysis facilitates businesses to gain knowledge regarding the outcome that will be obtained related to the project at the time of the assumptions turned out to be unreliable. Besides this, it also make changes in the assumption in order to find its impact on the finances generated from the project. This help businesses to make strategies for the projects that does not generate expected profits (Peterson and Fabozzi, 2004). Sensitivity analysis is carried out on a project before making investment in it in order to gain knowledge regarding its results under valid and reliable assumptions. It helps in assessing the risks by the way of variables that have a large influence on the net benefits of the project. Besides this, it also helps in measuring the influence of the variables on the net benefits of the project in numerical terms. It also facilitates in testing or verifying the effects of the variations in the variables on the IRR of the project. It is the tool used to quantify the risk parameters and its consequences for the purpose of establishing a valid risk level in a particular situation. Besides this, sensitivity analysis also helps in the assessment of the responsiveness of the NPV to changes in the variables used for the calculation of the NPV (Dayananda, 2002). There are different independent variables on which the NPV of the project depends such as selling price, sales volume, initial outlay, discount rates and so on. Therefore, the sensitivity analysis provides information related to the impact on the NPV of the project by the changes made in one or more of these variables. Along with this, this analysis also helps in finding out the reasons behind the failure of the project. It also helps in finding out that to which variables, NPV is most sensitive. This information helps in controlling of those variables to which NPV is most sensitive in order to attain positive returns from the project after a certain period (Zhamoida and Matsiuk, 2011). Scenario Analysis in Capital Budgeting It is the process that helps in the estimation of the expected value of a portfolio after a given period of time by making assumptions related to the changes in the values of the securities present in the portfolio. It is mainly used to estimate the changes in the value of the portfolio in response to an unfavourable event. It also facilitates in making changes in the value of a portfolio on the basis of the occurrence of different situations that are referred to as scenarios. There are several methods through which scenario analysis can be done such as standard deviation of monthly security returns and estimating the expected value of the portfolio that provides returns (Baker and English, 2011). Scenario analysis helps in accessing different outputs of the project. In addition to this, it also facilitates in determination of standard deviation, variance of NPV. In addition to this, it poses difficulty in estimating the probabilities of the occurrence of the events. Scenario analysis helps in the estimation of cash flows from risky assets by the way of estimation of the cash flows from most likely scenario and the use of probability average of the cash flows in different scenarios. There might be also a possibility that cash flows might be higher than the expected in some scenarios. Besides this, it might also be possible that the scenarios might be less than the expected cash flows in some scenarios. For the purpose of gaining insights regarding the effect of risk on different variables, scenario analysis is used as it helps in the determination and anticipation of the value of the asset and cash flows under various scenarios (Gitman, Juchau and Flanagan, 2015). For the purpose of assessing the value of the firm, there is a need of estimating the revenue and profit at high levels and discount rates at low level. This scenario is considered best for the company as it results in increasing the bottom line of the organisation. In place of estimating the revenue growth and margins, there is a requirement of making a choice between taking those scenarios in consideration related to profit margin and revenue growth that provides feasible yields and outcome. There are four steps in which a scenario analysis is conducted (Lee and Lee, 2016). In the first step different factors are analysed and selected around which different scenarios are built. These factors may include a new plant, competitors for a consumer product firm, a new phone service and so on. It is required for the analysts to focus on two or three critical factors that help in the determination of the asset and framing scenarios around these factors. The second step is the determination of more number of scenarios for each factor in order to get realistic results. The next step is to estimate the cash flows for the asset under each scenario. The last step is to assigning probabilities to each scenario (Lasher, 2016). Capital Asset Pricing Model and Capital Market Line Capital Asset Pricing Model (CAPM) is a model that helps in determination of the relationship between expected return for assets and systematic risk. CAPM model helps in the calculation of the return on investment and investment risk that are expected from a asset or stocks. There is an existence of two types of risks in an investment such as systematic risk and unsystematic risk. Systematic risk cannot be diversified and regarded as market risk such as recession and interest rates. In addition to this, unsystematic risk is a risk specific to individual stocks and can be diversified as there is an increase in the number of stocks in a portfolio. This type of risk is that part of the stock return which is not affected by the movements in the market environment (Levy, 2011). The formula of the CAPM model is expressed as follows. As per the CAPM model, beta is considered as the best measure of the risk of a stock. Capital Market Line is the tangent line which starts from the risk free asset to feasible region for risky rates (Levy, 2011). The equation of capital market line is as follows: E(Rp) = xE(Ry)+(1-x)Rf Where: (1-x) = the portfolio percentage which is invested in the risk free asset x= the portfolio percentage which is invested in risky assets Rf= the risk free interest rate E(Ry)= the expected return of the risky asset portfolio There are certain assumptions made under CAPM model. It is assumed that investors diversify their portfolios. In addition to this, a single holding period is assumed by the CAPM for the purpose of making comparisons of the returns on different securities. It is also assumed that the investors borrow and lend the securities at risk free rate of return. The other assumption is that the securities are valued correctly so that the returns can be plotted on security market line. There is certain assumption such as there is absence of taxes and transaction costs (Sharifzadeh, 2010). Besides this, the information is freely available to investors. Besides this, there is an existence of risk averse investors. In addition to this, CML does not provide information related to the relationship between risks associated with individual securities and returns obtained from them. CML considers only those portfolios in which the risks are not diversified. There is no use of risky investments in CML. Besides this, the relationship between risk and return on individual securities are calculated by security market line. In the capital market line, efficient portfolios are considered. In the above graph all the securities lie on the CML. The risk free assets are denoted by E (Rp), and risky portfolio is denoted by M. C denotes risk avoiders and L denotes risk takers (Krschner, 2008). Similarities between CML and CAPM Security market line shows the equilibrium relationship between the co variance of the securities with the market portfolio and expected return on securities. It is also referred to as CAPM. Besides this, there is an existence of a positive correlation between the CML and CAPM which states that the higher the risk the investor takes will receive high returns on their portfolio. Both the tools are considered as the best tool by the investors as it facilitates them to select the portfolio. These tools are considered viable for the purpose of management and analysis of the portfolios and investment (Pahl, 2009). Differences between CAPM and CML The relationship between E(r) and for the efficient portfolios along with the efficient frontier is represented by CML. In addition to this, it also provides information between equilibrium relationship between those securities that does not possess unsystematic risk. On the other hand CAPM takes into consideration all the securities and portfolio irrespective of their efficiency but CML only takes one efficient portfolio. CAPM measures risks by the beta coefficient whereas, CML measure risks by the way of standard deviation (Giovanis, 2010). In addition to this, under CAPM, investors only takes into consideration risk and return and ignore transaction costs and taxes. In contrast to this, investors make a choice of the portfolio on the basis of riskless securities and market portfolio in CML. CAPM model provides risk return trade-off which means that the investors who make investment in risky assets gain high profits in return whereas in CML the investor estimates the return on its investment on the basis of its risk bearing capacity in a portfolio (Trunda, 2011). Besides this, the cost of equity, risk premium, returns and hurdle rates can be determined by the way of CAPM with regard to both efficient and inefficient portfolio, but in the case of CML, the cost, return, and hurdle rates are determined in efficient portfolios only (Elton, et al. 2009). It can be concluded that nowadays, companies focus on making corporate decision making by the use of different capital budgeting techniques in order to select the best project which provides higher returns. For this purpose, managers take into consideration the sensitivity and scenario analysis. These tools help in considering different circumstances and their probable impact on the portfolio or the outcome of the project. This helps in taking appropriate decisions related to making investment in the project or not. For the purpose of taking decisions top level management involves middle level managers in order to take appropriate decisions as the risks can be quantified and its impact on the project and portfolio is determined. Besides this, CML and CAPM model is being used to make a decision by the investor to make a decision of making investments in a portfolio or not References Baker, H.K. and English, P. 2011. Capital Budgeting Valuation: Financial Analysis for Today's Investment Projects. John Wiley Sons. Bierman, H. and Smidt, S. 2014. Advanced Capital Budgeting: Refinements in the Economic Analysis of Investment Projects. Routledge. Dayananda, D. 2002. Capital Budgeting: Financial Appraisal of Investment Projects. Cambridge University Press. Ehrhardt, M. and Brigham, E. 2008. Corporate Finance: A Focused Approach. Cengage Learning. Elton, E.J. et al. 2009. Modern Portfolio Theory and Investment Analysis. John Wiley Sons. Giovanis, E. 2010. Application of Capital Asset Pricing (CAPM) and Arbitrage Pricing Theory (APT) Models in Athens Exchange Stock Market. GRIN Verlag. Gitman, L.J., Juchau, R. and Flanagan, J. 2015. Principles of Managerial Finance. Pearson Higher Education AU. Krschner, M. 2008. Limitations of the Capital Asset Pricing Model (CAPM). GRIN Verlag. Lasher, W.R. 2016. Practical Financial Management. Cengage Learning. Lee, J.C. and Lee, C.F. 2016. Financial Analysis, Planning amp; Forecasting: Theory and Application. World Scientific Publishing Co Inc. Levy, H. 2011. The Capital Asset Pricing Model in the 21st Century: Analytical, Empirical, and Behavioral Perspectives. Cambridge University Press. Pahl, N. 2009. Principles of the Capital Asset Pricing Model and the Importance in Firm Valuation. GRIN Verlag. Peterson, P.P. and Fabozzi, F.J. 2004. Capital Budgeting: Theory and Practice. John Wiley Sons. Sharifzadeh, M. 2010. An Empirical and Theoretical Analysis of Capital Asset Pricing Model. Universal-Publishers. Trunda, M. 2011. Capital Asset Pricing Model. GRIN Verlag. Zhamoida, O.A. and Matsiuk, M.S. 2011. Sensitivity Analysis in Capital Budgeting. Economic Herald of the Donbas 4(26), pp. 132-136.