Introduction to Financial Accounting Assignment

Introduction to Financial Accounting - Assignment Example Investors adopt this trading strategy because they would want to make big profits in as less time as possible, particularly when they perceive stocks as being overpriced. To short sell, an investor must have a margin account with the broker, for which the investor has to meet the initial margin requirement which is a proportion of the total investment that has to be paid in cash. For e.g., if an initial margin requirement is 50% on the total investment of  £10, 000 then an investor has to pay  £5000 in cash which is initial margin deposit and can borrow the rest of the amount. 1(f) Margin trading is purchasing stocks by borrowing money from the broker. For margin trading, an investor would need a margin account which has a specific initial and maintenance margin requirement (Reilly and Brown, 2003, p. 128). Investors opt for margin trading because it provides them with financial leverage or in other words, increases their buying power. If the margin in the account falls below the maintenance margin, the broker calls the investor to put in more cash in the account so that the margin can be maintained. This is known as a margin call (Reilly and Brown, 2003, p. 128) Therefore the range of maintenance margin values within which I will not get a margin call is values lesser than  £184652.9 and equal to or greater than  £163052.75 during the entire investment period. 2 (d) In order to find out if diversification would reduce the risk of the portfolio, the correlation of assets must be studied (Reilly and Brown, 2003, p. 245). The greater the number of negatively correlated assets in a portfolio, the lesser will be the risk. RSS and BLT correlation coefficient is 0.3637 which shows that the two stocks are moderately correlated, that might not help much in diversifying the risk of the portfolio.

To what extent did the invasion of Iraq in March 2003 signify a change Essay

To what extent did the invasion of Iraq in March 2003 signify a change in the way that force is used in international relations - Essay Example An urge to conduct an investigation in Iraq emerged when the Iraq government attacked US in the year in 2001. The US government felt vulnerable, especially after this attack that is believed to have been an operation of Al-Qaeda, one of the rogue groups in Iraq. The US government felt vulnerable and feared that the Iraq government would use the weapons of mass destruction against the US government. Another fear was that with these weapons available in Iraq, the Al-Qaeda group would access them and conduct a more severe attack than one of 2001. Thus, the US felt the need to launch an effective operation to inspect and disarm the Iraq government of any weapons of mass destruction that they could be holding. Although many felt that the rumour on the presence of weapons of mass destruction in Iraq was a mere speculation, the UN team engaged a powerful gear to unravel the truth of the matter. In 2002, the plan of inspection was underway and there was light that the Iraq government would comply with the inspection plan. On the other hand, the US government felt that this process was slow and that there was a need to hasten the process to avoid the looming threat that the weapons would be used against the US. In essence, they felt that the UN and the international bodies were slow in neutralizing a threat that would have dire consequences on US. However, the international body insisted that it was important to give Iraq sometime to comply with the demands of the inspection as there was still hope that the process would succeed. Even a number of the US allies accepted that this was not a time of war as there was no any evidence that there was any destructive weapon. Despite the efforts of many countries and international bodies to stop US from engaging Iraq in a war, the US government declared a war in the country and organized their troops