2.1.2. Implication on Relationship Among Firm Size, Return, and β
We believe that the reason for higher return of small sized firm is that there are not enough information for the investor. For example, if the price of the stocks are the same and one company is well known, and the other is not known to the public, most of the people will prefer to buy the one that is known. To motivate people
market, we, 美ME+ also is looking to expand our business.
This report is divided into two parts, the first half; we will talk about the Japanese market as a whole cultural risk, country risk, and currency risk. And in the later half; we will analysis the cosmetics market in Japan, and describe our company’s market strategy. After that, we will predict future prospects of our company.
즉, 1.25의 Beta를 가진 주식의 가격은 국채 보다 12.5%이상일 것이라고 기대된다.
Firm’s historical or predicted βe
Excess return(초과수익률)
개별자산 또는 포트폴리오 수익률 중에서 무위험 이자율을 초과하는 부분을 말한다.
market portfolio
시장 내에 있는 모든 자산으로 구성된 평균자산
firm conducts transactions in different currencies, it exposes itself to risk. The risk arises because currencies may move in relation to each other. If a firm is buying and selling in different currencies, then revenue and costs can move upwards or downwards as exchange rates between currencies change. If a firm has borrowed funds in a different currency, the repayments on the debt could change
risk factors are below.
Company
Customer
Competitor
ETC
1. Supply of diamonds
2. Online distribution
3. Supply chain management
4. Demand of
diamonds
5. Excessive Competition
6. Changing rule
(Accounting & Law)
(1) Supply of diamonds
- Risk : A majority of the world’s supply of rough diamonds is controlled by a small number of diamond mining firms. As a result, any