Order ready-to-submit essays - 100% plagiarism-free guaranteed!
Note: Our papers are 100% human-written.
Need Help Writing an Essay?
Tell us about your assignment and we will find the best writer for your project
Write My Essay For Me
BUS FPX 2062 Assessment 2
BUS FPX 2062 Assessment 2
Student Name
Capella University
BUS-FPX2062 Finance Fundamentals
Prof. Name:
Date
Assessment Overview
By successfully completing this assessment, you will demonstrate proficiency in the following course competencies and related scoring guide criteria.
Competency 1: Explain Financial Environments and Concepts
Explain why forecasting and budgeting are essential practices for businesses, governmental agencies, and individuals.
Forecasting and budgeting are essential because they enable effective financial planning and control. For businesses, they help anticipate future revenues and expenses, ensuring sufficient resources for operations and growth. Governmental agencies use these tools to allocate public funds efficiently and to achieve policy goals without overspending. Individuals benefit from budgeting and forecasting by managing their personal finances, setting savings goals, and avoiding debt. Overall, these practices lead to greater stability, efficiency, and financial success.
Explain the relationship between microeconomics and macroeconomics.
Microeconomics and macroeconomics are interconnected fields that analyze different levels of economic activity. Microeconomics focuses on the behaviors and decisions of individual households, firms, and industries, while macroeconomics examines the economy as a whole, including national income, inflation, and unemployment.
| Aspect | Microeconomics | Macroeconomics |
|---|---|---|
| Focus | Individual consumers and businesses | National or global economy |
| Key Concepts | Supply and demand, pricing, production, and competition | Economic growth, fiscal and monetary policy, inflation, and unemployment |
| Relationship | Micro decisions (e.g., consumer spending and business investment) influence macroeconomic indicators such as GDP. | Macroeconomic factors (e.g., interest rates and inflation) affect micro-level decisions about saving, investment, and consumption. |
Thus, while microeconomics examines specific market mechanisms, macroeconomics studies the overall outcomes and policies that shape those mechanisms.
Explain how the standard deviation of returns in a portfolio changes as the number of stocks within the portfolio increases.
As the number of stocks in a portfolio increases, the standard deviation of returns generally decreases. This occurs due to diversification, which reduces the overall portfolio risk by spreading investment exposure across different securities. While individual stock movements may still fluctuate, their combined effect on the portfolio becomes less volatile because losses in some investments may be offset by gains in others.
| Number of Stocks | Effect on Standard Deviation | Explanation |
|---|---|---|
| Few (e.g., 1–5) | High | Portfolio performance is heavily influenced by each stock’s movement. |
| Moderate (e.g., 10–20) | Medium | Risk begins to decrease as diversification increases. |
| Many (e.g., 30+) | Low | Portfolio risk is minimized as unsystematic risk is diversified away. |
Explain which group of stocks makes up the more diversified portfolio.
A portfolio is considered more diversified when it includes a variety of investments across multiple asset categories and regions. A well-diversified portfolio may contain stocks from different industries (technology, healthcare, finance, manufacturing), company sizes (large-cap, mid-cap, small-cap), and geographical locations (domestic and international). Additionally, it may incorporate other asset classes such as bonds, real estate, commodities, cash, or alternative investments. This diversification helps reduce exposure to market-specific or sector-specific risks, enhancing portfolio stability and long-term returns.
Competency 2: Apply Financial Computations and Processes
This competency focuses on performing key financial calculations accurately.
| Financial Task | Description |
|---|---|
| Calculate the amount of a monthly mortgage payment. | Use the loan amount, interest rate, and loan term to determine equal monthly payments using the amortization formula. |
| Calculate the approximate price at which a preferred stock will most likely sell. | Apply the dividend and required rate of return to estimate the stock’s price. |
| Calculate a bond’s value given a specific yield to maturity. | Determine the present value of the bond’s future coupon payments and face value, discounted at the yield to maturity rate. |
| Calculate the yield or return on a preferred stock. | Divide the annual dividend by the current market price of the preferred stock. |
| Calculate the total dollar return on an investment, including both capital gains and dividend income. | Add the capital gain (or loss) to dividend income received during the holding period. |
| Calculate the Net Present Value (NPV) of an investment and decide whether to proceed with the project. | Compare the present value of future cash flows with the initial investment cost. A positive NPV indicates a profitable project. |
References
Brigham, E. F., & Ehrhardt, M. C. (2022). Financial Management: Theory & Practice (17th ed.). Cengage Learning.
Mankiw, N. G. (2021). Principles of Economics (9th ed.). Cengage Learning.
BUS FPX 2062 Assessment 2
Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2022). Fundamentals of Corporate Finance (14th ed.). McGraw Hill.
Search
Post Categories
- BHA (35)
- Blog (13)
- BS Business (248)
- BS PSYC (119)
- BSN (91)
- Capella NURS FPX (40)
- Chamberlain DNP (71)
- CU BSN (311)
- CU MSN (128)
- DBA (75)
- DNP (153)
- MBA (175)
- MHA (49)
- MS PSYC (193)
- MSN (203)
Tags
- Annotated Bibliography (2)
- Bioinformatics (1)
- Budget Negotiations (1)
- Capital Budget (1)
- Capstone Video Reflection (1)
- Care Coordination (6)
- Community Health Care (1)
- Community Health Needs (1)
- Community Resources (2)
- Complaint Analysis (4)
- Concept Map (2)
- Curriculum Evaluation (1)
- Curriculum Overview (1)
- Dashboard Metrics Evaluation (1)
- Descriptive Statistics (1)
- Disaster Plan (1)
- Educational Technology (4)
- Enhancing Quality and Safety (1)
- Environmental Analysis (1)
- Evaluating Technology Usage (1)
- Evaluation Plan Design (1)
- Evidence and Resources (1)
- Evidence Based Approach (1)
- Evidence Based Care (1)
- Evidence-Based Change (1)
- Evidence-based Practice (1)
- Evidenced-Based Literature (2)
- Executive Summary (1)
- Exploration of Regulations (1)
- Final Project Submission (1)
- Global Issue (1)
- Health Care (3)
- Health Care Professional (1)
- Health Improvement Plan (1)
- Health Policy Proposal (1)
- Health Promotion Plan (3)
- Healthcare Improvement (2)
- Implementation Plan (2)
- Interdisciplinary Issue Identification (1)
- Interdisciplinary Plan Proposal (1)
- Intervention Strategy (1)
- Leadership and Group Collaboration (2)
- Leadership Reflection Video (1)
- Legal and Ethical Issues (1)
- Literature Review (1)
- Literature Search (1)
- Literature Synthesis (1)
- Managing the Toxic Leader (1)
- Manuscript for Publication (1)
- Media Submission (1)
- Meeting with Stakeholders (1)
- Mentor Interview (1)
- MSN Reflection (1)
- Near-Miss Analysis (1)
- Nurse Educator (1)
- Obesity (2)
- Ontological Humility (1)
- Organizational Change (1)
- Outcome Measures (1)
- Outcomes of the Intervention (1)
- Patient Care Plan (1)
- Patient Care Technology (1)
- Personal Leadership Portrait (2)
- PICOT (3)
- Policy Proposal (1)
- Political Landscape Analysis (1)
- Practicum and Social Justice (1)
- Professional Development (1)
- Professional Development Plan (1)
- Project Charter (4)
- Quality Improvement Proposal (4)
- Quality Performance Improvement (1)
- Research Skills (1)
- Risk Mitigation (1)
- Rubric Development (1)
- Safety Gap Analysis (1)
- Safety Improvement Plan (1)
- Scholarly Article (1)
- Scholarly Sources (2)
- Staff Training Session (1)
- Stakeholder Meeting (1)
- Stakeholder Presentation (1)
- Strategic Plan Appraisal (1)
- Strategic Plan Development (1)
- Strategic Planning (1)
- Technological Changes (1)
- Transitional Care Plan (1)
- Tripartite Model (1)
The post BUS FPX 2062 Assessment 2 appeared first on TakeMyClassOnline.net.
Save your valuable time by using our professional essay writing service. We assure you of exceptional quality, punctual delivery, and utmost confidentiality. Every paper we provide is meticulously crafted from scratch, precisely tailored to your instructions, and completely free of plagiarism. Trust us to deliver excellence in academic writing.
Together we can improve your grades. Our team of competent online assignment writers provides professional writing help to students in all academic levels. Whether you need a narrative essay, 5-paragraph essay, persuasive essay, descriptive essay, or expository essay, we will provide you with quality papers at student friendly price.
Ask for Instant Assignment Writing Help. No Plagiarism Guarantee!
