QFFM WRITTEN COURSEWORK ASSIGNMENT

QFFM Written Coursework Assignment

QFFM Written Coursework Assignment

Introduction

The following assignment will enable us to understand the use of different Quantative and qualitative tools that are used in the financial markets to help us understand different theories and practices of the financial analysts. The assignment will help us understand how these tools can be used in order to make different decisions and analysis of different situations in the financial environment. The financial theories, measures and tools will help us find the answer of the following questions. These answers will help us in understanding different financial scenarios all over the world.

Discussion

Part A

In recent times investors and financial experts have given their view that economic growth opportunities and increase in globalization has enabled the decision makers to invest in countries or sectors that is able to provide huge amounts of returns. It has been observed that there is volatility in the amount of portfolio investments in different parts of the countries. The rate of volatility in portfolio investment is increasing among the developing and developed countries due to different reasons. The major factors for the surge of the portfolio investment includes: globalization, regulation of the capital and foreign markets, increase in the information technology, increase in diversification and investors or the financial experts have become more aware of different business environments operating in the world. Increase in globalization has enabled the investors to find new and developed markets which have become a threat to developed countries of the world. Like India, China, Brazil, Malaysia, UAE and etc. in recent times have the largest amount of capital inflows in their countries because these countries are seeking economic progress. Investors today are shifting their portfolio investments towards these emerging economies. The second factor due to which there is a surge in the portfolio investment is that many countries have made a liberal and deregulated system for the investors so that they do not face too many barriers in making their portfolio investments in a country. Investors feel comfortable to invest in an environment where there very few regulations and it is easy for the investors to operate, so today many countries have deregulated there systems and have opted for a simple system. Due to advancement in the information technology sector it has reduced the amount of transaction cost which was involved while making a portfolio investment. Information technology has reduced the people that were involved in the intermediaries and now investors can directly contact the person where he or she wants to make the portfolio no matter in any part of the world. Today the concept of diversification has been well understood by the investors and investors are fully aware of the benefits they can get from investing internationally or in different sectors of the economy. Thus due to some of these factors we can observe surge in the portfolio investment.

Every country has a different business scenario and this is the reason the risks faced by each country are ...