CORPORATE FINANCE Essay Example | Topics and Well Written Essays - 2000 words

CORPORATE FINANCE - Essay Example The beauty of capital asset pricing model (CAPM) is that it not only helps the investors to calculate investment risk but also gives them a fair expected idea about the return on their investment (Fabozzi Frank, 1998). In the following paragraphs we will discuss the CAPM, its general theory, limitations and the reason of its adoption in the market The CAPM was initially presented and developed by John Lintner, William Sharpe and Jan Mossin autonomously (Bernstein, 1992). During the period of 1964-66, the idea of CAPM was presented by them in three different and exceedingly valued journals. CAPM was considered as a misleading model at its early stage because the business community thought that professional investment management was mainly a misuse of time. This misconception about CAPM remained dynamic for next ten years. After a decade, investment experts came to know the CAPM and recognized it as a significant mean to assess the expected risk in the investment. Capital asset pricing model (CAPM) is actually financial and economic related model which determines the rate of return of an asset in a well-diversified portfolio and thus subsequently determines its value. Capital asset pricing model (CAPM), determines the price of an asset in association with reward-to-risk ratio. Here 2. Risk is the assets non-diversifiable risk (ÃŽ ²), also referred to as systematic risk, or market risk. The ÃŽ ² (beta) here is the measure of the risks involved in a particular stock or portfolio in relation to the overall market risk. A share’s beta factor is the measures of measure of its volatility in terms of market risk. The beta factor of the market as a whole is 1.0. Market risk makes market returns volatile and the beta factor is simply a yardstick against which the risk of other investments can be measured. Risk or uncertainty describes a situation where there is not first one possible outcome but array of potential returns. Risk is measured as the beta factor

Innovation in Construction Research Paper Example | Topics and Well Written Essays - 750 words

Innovation in Construction - Research Paper Example In enhancing the value brought in by this process, a lot of modifications have been made on it time after time. These improvements have consequently come along with some advantages together with shortcomings. It is therefore logical that, as these changing procedures are implemented in the industry; proper steps are taken in dealing with areas where gaps exist. Recycling in construction In construction, recycling basically denotes the taking apart and reprocessing of recoverable waste resources produced at the time of construction and modification. Bits and pieces of unused materials, packaging, old resources and remains collectively comprise of the latent recoverable materials. All these can be used, together with other new materials in the erection of new structures. Aside from the use of the recycled matters in constructing new structures, this process can also be applied in the aspect of renovation where structures like windows and doors, masonry resources and appliances are also recycled (CMRA, 2011). In many cases, wastes accrued from construction sites are directed into landfills which consequently are burdened with increased loading and functions. At the same time, some waste construction materials carry chemicals which if not well handled would only help in enhancing the perennially increasing levels of pollution. An example of this is the kinds of chemical substances which emanate from treated wood. Preventing these scenarios has made recycling the most logical precautions in handling wastes obtained from construction sites. In achieving these goals, personnel in the construction industry either recycle the materials directly into similar products for use again while other are converted into other functional products. Recycling of wastes in the construction industry follows a rather general procedure. The process begins with onsite separation where recyclable materials are separated from other wastes. This is basically the most important aspect of the process and though initially posed challenges, has today witnessed massive improvements thanks to the technological advancement that the world of construction has at its disposal (CMRA, 2011). Here, construction officers, highly conversant with material sorting strategy set up containers for recycling, containers which they clearly label as per the requirements. Ones the reusable wastes are obtained, they are either reprocessed for reuse in the same form they were initially of modified to be used in newer forms. Technology is rapidly advancing in construction recycling. This is despite the limited available technologies at the local levels. One of the technologies synonymous with recycling in the construction industry in modern times includes the â€Å"Recore technology† known for the construction of walls by use of recovered waste materials. This technology is known for the generation of eco friendly wall coverings which carry which also extend some other advantages to the industry and the consumers. The wall coverings produced by this technology are generally durable an added advantage to the fundamental levels of energy saved in the production of these walls. Aside from the recycled walls technology, there also exists the advanced concrete technology which focuses on the production of recycled concrete. The advanced concrete technology applies the heating and rubbing procedures in producing the end