Factors that Influence Buyer Decision for Property

Factors that Influence Buyer Decision for Property CHAPTER 1: INTRODUCTION 1.0 Introduction of Study Nowadays, the demands for houses increase every year. In Malaysia, housing demands include all sorts of houses which are low cost houses, medium cost houses and also high cost houses. All the demands for the houses come from all kind of income groups based on their income. The supply of the houses sometimes over than demands that makes the houses abundant. More challenges of competitive market in these decades because the developers entering the housing market increasing. At the same time, the local and national economic makes the developers to aware and pay attention to the buyers for their needs, satisfaction and preferences. When the developers meet the buyers needs, satisfaction and preferences in delivering the product, this will avoid in abundant of the property. The thesis is about the findings of the research that determines the factors that influence the buyers towards buying the residential property. The buyers that involved in this thesis are chosen from the people that attend new launched project and also the buyer that already bought a house. The findings also come from the observation of the study area and also the market. All the factors that influence buyers in decision-making will be defined and the preferences and satisfaction of the buyers also taking into account. The outcome of this study will help to increase the quality of the property towards the development of new residential property in the market. 1.1 Background of Study The study covers the buyers and also the residential property in Kuching, Sarawak. The demand for houses increased in Kuching caused by the increment of the population in this town. The study can also be the guide towards preparing the residential property based on the preferences and the satisfaction of the buyers. If the residential property build based on the preferences and satisfaction of the buyer, the market will be active and the supply of the houses will meet the requirements of the buyers through this study. The factors that maybe included that influence the buyers in decision making are design, location, developers reputation, facilities within neighborhood, safety and security and the price. The factors that influence the buyer in decision making toward the residential property of each respective buyer is different, so through this study, the factors can be defined. 1.3 Problem Statement This dissertation is to know what are the factors that influence buyer in decision-making for residential property. It is to assure that the preferences and satisfaction of the buyers could be determined. 1.4 Objectives There are two main objectives for this research. They are as follows: To define the factors that influence buyers in decision making for residential property To measure the level of importance of factors that influence buyers in decision-making process. 1.5 Scope of Study The scope of this study is mainly in Kuching which is located in Sarawak. The study will focus on residential property in Kuching Sarawak. The residential properties which are the landed property that involve in this study include the medium cost housing and high cost housing. The landed property that being focused are single storey terrace house, double storey terrace house, single storey semi-detached house, double storey semi-detached house, single storey detached house and double storey detached house. It also concentrated on the buyers in three groups of age between 25 years old to 30 years old, 30 years old to 35 years old and 35 years and above. The three groups are chosen because of the age of 25 years to 30 years is the best age to own the house and the age of 35years and above is the age which they must own the house for living. Besides that, this study also focuses on the group of income in order to determine the level of affordability in buying the property. In this study, the residential property that involves is medium cost housing and high cost housing. So, the income group should be determined. 1.6 Significance of Study The significance of this study is to know the factors that influence the buyers in decision making of residential property in order to make sure that the supply of the property will fulfill the requirement of the buyers in buying the property. It also important to know the preferences of the buyers so that no housing units in the area would be abundant caused by not fulfill their satisfaction. In addition, this study also can be the guidelines and also preparation for the developers in order to build and supply the property to the market and at the same time, the government can take action to avoid the housing development from being abundant. The factors that influence buyers in decision making are also important because it can help to determine the design, the location, the price and also the facilities that needed in the development. 1.7 Methodology of Study In this study, two methods used in order to find the information to lead through the completion of this thesis. The methods are divided into two which is primary data and secondary data. For primary data, the method is by distributing the questionnaires. In distributing the questionnaires, the person to answer the survey are the new buyers, the recent residents and also the visitors at the new launched project and housing exhibition. For secondary data, the method are by manual which come from reading the reference books, journals, papers and also the magazines , by statistics data which can be look at the Department of Statistics of Jabatan Perangkaan Malaysia and Economic Planning Unit and also the data collection from online through websites related to the topic and also the research papers. Through reading, much information can be gathered together for a good and successful outcome in this study. All the materials to be read will be find at main library of Universiti Malaya, library Faculty of Built Environment, National Library, Pustaka Negeri Sarawak and also Perpustakaan Sultanah Zanariah Universiti Teknologi Malaysia. 1.8 Organization of Study CHAPTER 1 Introduction In chapter 1, the introduction includes the background of the study that will be discussed in this thesis. It also shows the problem statement that also can be the hypothesis of this study. The objectives of this study also include in this chapter. Besides that, the introduction also discussed the scope of the study, the significance of study and also the methodology of the study. CHAPTER 2 Literature Review Literature review consists of the strategy of the thesis in order to gain and gather the data of information that are needed in this study. All the data from the articles in the property magazines and books, the journals related to the housing demands and property buyers, the research papers about the related topics, books that include all the information about buying a property and also residential property, magazines that shows the factors influence the buyers in decision making of residential property. CHAPTER 3 Overview the Study Area For this chapter, the overview of the study area will consists of the socio-economy in Kuching which is the location of this study. The socio-economy depends on the population of people in Kuching, the household income, the group of age, the changes in physical environment and others socioeconomic issues. CHAPTER 4 Research Analysis and Findings The research analysis is the analysis of this study from all the information and data that gathered together in order to get the outcome. All the analysis and the findings from this study determines into graphs, charts, tables and also pictures to make this study clear. CHAPTER 5 Research Outcomes and Conclusion In this chapter, all the finding and research analysis will be summarized and the conclusion of this study will be presented. Either than that, the implication of this study are also discussed and the availability of the problem statement whether it can be used or not. CHAPTER 2: LITERATURE REVIEW CHAPTER 2 LITERATURE REVIEW 2.1 Introduction In decision making for residential property, there are several factors that influence the buyers. The factors are divided into categories. The categories are buyers taste and preferences, demographic factors, economic factors and marketing strategy. This thesis will focus on residential property which is the landed property. The landed property consists of property for high income group and middle income group which are terrace house, semi-detached house and detached house. The property categorized according to the supply and demand in the market and also the prices. The location for this housing study will focus in Kuching, Sarawak that have a large population due to Sarawak, the biggest state in Malaysia which have the multiracial including Malay, Chinese, Indian and others. The reason to have this location as the case study is because of the big location with multiracial and can explore the demand and the preferences of the consumers in buying the residential property. 2.2 Definition 2.2.1 Decision- Making Decision-making is an outcome of mental processes. Every decision making process produces a finalchoice wherebythe output can be an action or an opinion of choice which is a continuous process integrated in the interaction with the environment concerned with the logic of decision making and rationality with the invariant choice. Decision making made by the buyer, depends on individuals need, preferences, satisfaction and also their requirement in order to choose the perfect and right choice in buying the property. The decision making influence by various factors. In this study, the objective is to determine the factors that influence buyers in decision making of residential properties. The decision making of every people related to the factors and the way of the people think in order to fulfill the need and satisfaction through the requirement of the property. 2.2.2 Consumer (Buyer) The product which is goods and services that consumes by a person and has the ability to choose between the different suppliers and products. In the other hand, consumer or buyer is a party that requires or agrees to own, acquire and have the benefit in usage for the services that in exchange for money or other consideration under a contract or agreement of sale. The consumer or buyer in this study just focuses on high group income and middle group income. It is because to look towards the choices or need of this income group in their decision making for buying residential property. For lower income group, it just only lead to the affordability in their decision making, so they are not chosen as the respondent in context of buyer for this study. 2.2.3 Consumer Behavior ‘Consumer behavior examines not only consumers action, but also the reasons for those behaviors. On a macro level, marketers are interested in demographic shifts as well as societys values, beliefs and practices that affect how consumers interact with the marketplace. Thus, concepts are drawn from sociology and psychology figure prominently in the study of consumer behavior. (Karen M Gibler and Susan L Nelson, 2003, p.63-64) Consumer behavior is the study of how people behave when obtaining, using, and disposing of products and services or when, why, how, where and what people do or do not to buyproducts.It mixes ofpsychology, social,personal andcultural. It is attempting to understand the buyer decision-making process for both, individually and in groups. The characteristic of individual consumers such asdemographicsand behavioral variables which is in an attempt to understand peoples wants. It also assesses influences on theconsumerfrom groups such as family, friends, reference groups, and society in general. Customer behavior study is based on consumer buying behavior, with the customer playing the three distinct roles of user, payer and buyer. The relationship marketing is being the influential of asset for customer behavior analysis as it become a keen interest in the rediscovery of the true meaning of marketing through the re-affirmation of the importance to the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalization, customization and one-to-one marketing. Social functions can be categorized into social choice and welfare functions. Consumer behavior also can be define as the process and activities which the people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services to satisfy their needs and desires. For cultural, the people will act based on the cultural that usually be the influence in certain places and surrounding. For social, the people will think and act more to socially action that also can be positive and negative. In physiological aspect, it is more to thinking and the personal behavior leads to the decision making. People maybe influence by the way they thinking of. 2.2.4 Marketing Definition of marketing by Institute of Marketing is the management function which organizes and directs all those business activities involved in assessing and converting customer purchasing power into effective demand for a specific production or service to the final customer or user so as to achieve the profit target or other objective set by the company. ‘Marketing is a combination of marketing concept of marketing concept, marketing function and the operational implementation of these functions in the context of the concept. The marketing concept can be most simply explained as a belief that the organization can function in the best interests of its customer and its self where a balance is achieved between the need of both of these parties. (Trustrum, LeslieBernard,1989, p.48). Marketing plan is the marketing strategy by the developer to sell their property to the people so that people will attract to buy the property from them. The advantages of marketing strategy will diverse marketing activities that can be better co-ordinate and can avoid or reduce to a minimum crisis management such as unsold unit and etc. The basis of marketing strategy is 4Ps consist of Product, Price, Place and Promotion. 2.2.5 Developer The coordinators of the activities that converting ideas on the paper to the reality by building the realproperty that encompassing activities range from therenovationand re-leaseof existingbuildings to the purchase of rawlandand the sale of improved parcels to others. Developers usually take the greatestriskin the creation or renovation of real estate and receive the greatest rewards such as the money and also acknowledgement from the purchaser or respective buyer that satisfy with their product. Usually, developers purchase a tract of land then determine themarketing of the property. After that, they developing the building program and design, obtaining the necessary public approval and financing, building the structure, leasing, managing, and ultimately selling the property. Developers work with many different counterparts along each step of this process including the architects, planners, engineers, surveyors, inspectors, contractors, property agents and etc. The developers build the house to supply to the market and sell to the buyer based on the demand in the market. The demand depends on the needs of the consumer, the market trend and also the economic trends. 2.2.6 Residential Residential property is the property in the residential area that includes the single family housing, multi-family residential or mobile house. The residential property is under the zoning of residential and may permit high density land use or low density land use. Residential development is real estate development for the purpose of residential. The developments are when the land divided into lots with the house constructed on each piece of subdivided land. 2.2.6.1 Medium Cost Housing Medium cost housing is the property that sell in the median price that can be purchase by medium income group and high income group. The medium cost housing in this research is the single storey terrace house, double storey terrace house, single storey semi-detached house and double storey semi-detached house. 2.2.6.2 High Cost Housing High cost housing is the property that the price is high and usually for the high income group of people. The high cost housing is selling with the high price that the price influences by the material, the design, the location and the size or area. The people that usually buy the high cost property is the people that need the high satisfaction and also all about luxury. The high cost housing could be the detached house and also high end property. In this research, the high cost housing is the single storey detached house and double storey detached house. 2.3 Factors Factors divided into four categories which are demographics factor, economics factor, buyers taste and preferences and marketing strategy. The factors distribute in the categories so that it is easy to determine what, how, when and etc. In addition, the factors that influence buyers in decision of residential property can be determining by distributed the factors as above. For demographics factor, it includes the age, social class and race or ethnicity. Age of the buyer also important that may influence them in decision making because it may show that what type of residential property they want that can give them satisfaction or needs for the requirement of the property. For social class in this study, it consists of high income group and middle income group because it is easy to know what they want to consider before buying the property not only based on their financial. The low income group is not included in this study because of the affordability of them to buy the type of property which is just the low cost housing. Race or ethnicity is one of the demographics factor because it also could influence the buyer whether to live in a same location with it own ethnic or race or just mixed with other races and ethnic. For economics factor, it consists of prices, availability of finance and affordability. Prices of the property depends on the type of property, location of the property, the supply and demand of property and also the market trends of current situation. The availability of finance may depend on either the government loan or private institutions loan such as bank and etc. The finance also depends on the availability of the bank in releasing the amount of loan and based on the income of buyer. Affordability is the main thing to discuss whereby every people have their own level of affordability. Marketing strategy is also one of the factors in decision making. Marketing strategy has four basis which are price, promotion, place and product. The price can me the measurement to know what is the price that agreed and affordable for the buyer based on the type of property, location and also the market price. The promotions in this marketing strategy consist of the launching of the project and the exhibition also important which is good in order to promote the property to the prospective buyer. Such promotion can attract more buyers and give the buyer opportunities to ask about the property and also giving the good image of developer and the product itself. Place is the location where is the property located and it seems very important because in every location, it have its own density and population. Some of the buyer wants the location either the high density or low density of population and some of the buyer wants to buy the property located in the city centre or otherwise. For the product, it depends on whether it is high class property or medium class property for high income group and middle income group. Depending on the class of property, the marketing strategy should be based on the focus group that will buy the property. So, the developer has the main role in the development to plan a good marketing strategy in order to have the successful project by selling 100% of the units. Buyers taste and preferences is the buyer needs and satisfaction in order to fulfill their taste and comfortless. The buyer needs and satisfaction is different. According to Abraham Maslow (1954), safety is one of the needs of human. The safety includes the security of family, health and property. So, the people needs the property for secure and health whereby every human being need shelter to lives. For satisfaction, it is more towards the luxury, taste and comfort that will be different depending on the person. Preferencesis a concept that have been used in thesocial sciences, particularly economics that assumes a real or imagined choice between alternatives and the possibility of rank ordering of these alternatives, based onhappiness, satisfaction,gratification, enjoyment and theutilitythey provide. More generally, it can be seen as a source ofmotivation. In cognitive sciences, individual preferences enable choice of objectives or goals. 2.4 Factors Might Be Influence the Buyer From the factors above, the factors might be influence the buyer in decision making for the residential property are the design, location, developers reputation, facilities within neighborhood, safety and security and the price. The residential property has several of design nowadays such as contemporary design, modern design or traditional design. All the design chooses by the buyers to buy the residential property. So, the design might be one of the factors that influence buyer in decision-making. The location also might be the factors that influence the buyer in decision making. The location might be choose by the buyer are in the city centre, near the city centre and out of the city. The location that the buyer wants to live is the factors might be influence them in decision making. The developers reputation might be the factor that influences buyers because it is all about quality and confidence to the buyer to buy the house. The reputation of the developer could show the quality of the house and build the confidence to the buyer in buying the property from them. The safety and security in residential area is important because nowadays the criminal cases highly increased and made people more aware about the security for the safety living. The people trust that if in the area have a good security and safety, it would be safe for living and it might be one of the factor that influence buyer. The price is based on the design, location and also the market trends. The price that is reasonable based on the area or size, design; location would be the factors that influence buyer in decision-making. So, the factors might be influence the buyer will be determined in the questionnaire and the level of interest would be defined. 2.5 Buyers Decision- Making Process Buyers decision vary an importance and complexity, thus, it is important to classify them to be understand the characteristics, the products, the marketing strategy implications on each type of purchase behavior. 2.7 Theory of Needs Maslows theory of needs Figure 2.5: Maslows Theory of Needs The safety level includes the security of the body, employment, resources, morality, the family, health and property. In this research, the important part of the safety is the shelter whereby its a need for the family to live with comfortable and healthy living in a property. So the buyers have the right in the need for a property that they want to buy and before make the decision, they need to know what is the factors that influence them in buying the property. 2.8 Conclusion For this literature review, the discussion more on the definition of decision making, consumer, developer, the marketing and also factors that lead to the factors that influence buyers in decision-making. All the category of factors based on the buyer itself and also the market trends that supply the property. The developer also have to take note that not only the demand of buyer need to be fulfill but also the economic and demographic factors must taking into account. In conclusion, the factors that influence buyers in decision making of residential property for this case of study and also the level of interest of those factors can be determine by the research. CHAPTER 3: OVERVIEW OF THE STUDY AREA CHAPTER 3 OVERVIEW OF THE STUDY AREA 3.0 Introduction This chapter attempts to give an overview of the study in Kuching. The issues to be discussed in this chapter are information related to socioeconomic in Kuching. 3.1 Background of Study Area Sarawak is one of the state on the island of Borneo which also known as ‘Land of the Hornbills. It is situated on the north-west of the island and it is the largest state among all in Malaysia. It is the capital of Sarawak as it is the largest city on the island of Borneo and also the fourth largest city in Malaysia. Sarawak divided into eleven administrative divisions which are Kuching Division, Samarahan Division, Sri Aman Division, Betong Division, Sarikei Division, Sibu Division, Mukah Division, Kapit Division, Bintulu Division, Miri Division and Limbang Division. Each division divided into districts which are 33 districts in Sarawak. In Kuching Division, there are District Of Kuching, Lundu and Bau. The study area of this research is District of Kuching in Kuching Division. The district covers an area of 1, 863 square kilometres with the population approximately 620 700. The district of Kuching is administered and divided into three local governments which are Kuching North City Hall, Kuching South City Council and Padawan Municipal Council. The part under Kuching North City Hall covering an area of 369.48 square kilometers which is the area north of te Sarawak River, parts of Old Kuching and also the western Central Business District. Meanwhile, the area south of the Sarawak River, eastern Central Business District and towards the South China Sea is within Kuching South City Council jurisdiction. The rural areas within Kuching District, Batu Kawa, Kota Sentosa and Third Miles are under the jurisdiction of Padawan Municipal Council. District Jurisdiction Land Area (square kilometers) Kuching Kuching North City Hall 369.48 Kuching South City Council 61.53 Padawan Municipal Council 1431.83 Total 1862.84 Table 3.1: Total Area of Kuching District For further information about the location of Kuching, please refer to the Appendix I. 3.2 Population Sarawak has the population of about 579, 900 in years 2006.From this survey, it shows that Kuching District has a great housing market which the potential buyers are from the category of 25 years old and above. According to the population census 2006 published by Department of Statistic, Malaysia, the population of Kuching District is as the following:- Jurisdiction Total Kuching North City Hall 133, 600 Kuching South City Council 143, 500 Padawan Municipal Council 302, 800 Total 579,900 Table 3.2: Population Census 2006 in Kuching District (Sources: Population Distribution by Local Authority Areas and Mukims, Census 2006, Department of Statistics Malaysia.) 3.2.1 Projected Population by Ethnic Group (Sources: Population Distribution by Local Authority Areas and Mukims, Census 2006, Department of Statistics Malaysia) The majority projected population by ethnic in Kuching District within Kuching Division is Chinese, which is 38% of the whole population and about 220, 400 people. The second ethnic is Malays, 36% and follow by other ethnic groups 16% and Iban 10 %. The projected population by ethnic group and jurisdiction in Kuching for year 2009 is shown in the Table 3.3. The total population from the table has shown that majority of residents in Kuching District live under Padawan Municipal Council jurisdiction. Population under Kuching North City Hall is lesser than other jurisdiction although the land area is bigeer in size than Kuching South City Council. Jurisdiction Total Malay Chinese Iban Other Ethnic group Kuching North City Hall 133, 600 80, 160 26, 720 10, 040 16, 680 Kuching South City Council 143, 500 40, 805 68, 800 21, 060 12, 835 Padawan Municipal Council 302, 800 87, 799 124, 842 26, 890 63, 269 Note: 1. Population projection based on the 2006 Population Census 2. The added total may differ due to rounding (Sources: Population Distribution by Local Authority Areas and Mukims, Census 2006, Department of Statistics Malaysia) 3.2.2 Projected Population by Age Group Age Group Kuching North City Hall Total 579, 900 0-4 80,500 5-9 60,800 10-14 52,200 15-19 54, 900 20-24 49, 300 25-29 49, 300 30-34 43, 500 35-39 37, 400 40-44 30, 700 45-49 29, 600 50-54 25, 300 55-59 20, 800 60-64 16, 900 65-69 14, 500

Macbeth

At the start of the play, Macbeth was portrayed as a heroic and courageous man. He created this image for himself by fighting long and hard in the King of Scotland’s battle. The King of Scotland (along with all his people) was very impressed with Macbeth. He was rewarded for his efforts, being presented with the title of the Thane of Cawdor. After the battle, he and Banquo were out riding when they bumped into a group of incredibly strange women that had a strange aura of power about them (the witches). It was here that Macbeth was confronted with the prophecy that someday he would become King of Scotland. There were many reasons Macbeth could become King without murdering anyone – the current king could die, renounce his throne and appoint Macbeth as King, or Macbeth could overthrow him. Macbeth did indeed think for a while that he could become King without murdering anyone. â€Å"If chance will have me king, why chance may crown me without stir. † There were a lot of reasons why Macbeth was reluctant to murder King Duncan. For a start, he was a good King. He had been treating Macbeth very well, showering him with praise and rewards. The King wasn’t the only one who thought highly of Macbeth. The people of Scotland also held him in high regard. If he killed or tried to kill the King and got caught, his reputation would be gone. The final reason he had for not murdering King Duncan was that he was his host, and he should be protecting not endangering him. These reasons were all forgotten when Macbeth’s wife, Lady Macbeth, convinced him to murder King Duncan. She told him straight out that he ‘wasn’t a real man’ if he didn’t do this. She was involved in the murders both by convincing Macbeth and by drugging the men who stood guard in front of the King’s sleeping chambers. King Duncan’s sons feared that after their father was murdered, they would be next. They were very wary of everyone, and wanted to leave the castle as soon as possible. Banquo strongly suspected Macbeth was involved in the murder. He had also heard the witches’ prophecy, and he feared that Macbeth had ‘played foully’ to make the prophecy come true. Meanwhile, Macbeth was shocked by what he did. He wondered whether in killing King Duncan he had not made the position available to himself, but to others. The prophecy played heavily on his mind, and he wondered whether he had now made the Crown available to children that are not his, namely Banquo’s. Macbeth decided to kill Banquo and his son Fleance for more than one reason. The major reason was the prophecy predicted that Banquo’s children would become kings. By killing Banquo and his son, he would be able to prevent Banquo from having more children and stop Fleance himself from becoming King. The other more minor reason was that Macbeth thought that Banquo was suspicious of him, and he was worried that Banquo would tell someone or act on his suspicions. Macbeth didn’t tell Lady Macbeth about what he was planning to do because he thought his wife would think that it would upset their plans. The appearance of Banquo’s ghost made Macbeth very scared and worried, it definitely made him appear incredibly disturbed to all the people around him. Macbeth then decided to go to the witches. He had become caught up in events and felt he had lost control of the situation. He desperately wanted to know what was going to happen next. This did help him a bit, or so he thought, because he knew more about what was going on. This was due to three new prophecies made by the witches – ‘Beware Macduff’, ‘No fear until Birnam Wood come to Dunsinane Hill’ and finally ‘No man of woman born can harm you. After hearing these prophecies, Macbeth felt much more confident. He scoffed at the idea that a wood could climb a hill, and after hearing that ‘no man of woman born can harm you’, the only thing he felt threatened by was Macduff. Since he was a threat, Macbeth wanted to kill Macduff (just like everyone else who had been a threat to him). But he couldn’t get to Macduff, so instead he killed everyone that Macduff loved and destroyed everything that he cherished. As expected, this had a very negative affect on Macduff. Macduff most likely would’ve preferred to have been killed himself. Lady Macbeth at the end of the play was very different from the composed lady at the start. Her guilty conscience had gotten to her, and by the end of the play she was a guilty, stuttering mess. She began admitting to some of the terrible deeds she had done. Finally she just couldn’t take it anymore, and committed suicide. Macbeth kept on going because he thought that the prophecies would protect him. He figures he’s killed so many people he might as well keep going. Finally, he didn’t want to look weak in front of everyone and he wanted to keep his honour. The witches were the starting point and basis for all the murders Macbeth committed. No matter who he killed, it could always be linked back to the witches and their prophecies. They were the ones who first put the idea into his head about becoming King of Scotland. Lady Macbeth also played a major part in him becoming a murderer. When he was undecided about whether he was going to kill King Duncan, she urged him on until he finally made the decision to kill him. This first murder resulted in all subsequent deaths. Nevertheless, Macbeth wasn’t forced to kill anybody. He has to take some responsibility for his actions. If he was not so egotistical and keen to hold power, the witches prophecies would not have has such an effect on him. Macbeth was obviously responsible for all the murders, and Lady Macbeth played her part in them too, but I think the people most responsible for the murders were actually the witches. Before he met them, Macbeth led a perfectly normal life, free of any thoughts of treason or murder. But when he met the witches they planted all sorts of thoughts into his head via the prophecies. He wouldn’t have thought of being King of Scotland, let alone killing the current King, if he hadn’t heard the prophecy about him being King. He wouldn’t have killed Banquo and attempted to kill his son if the witches hadn’t told him that Banquo’s children would one day be kings. Macbeth wouldn’t have ordered that Macduff’s family be killed and his household destroyed if the witches had not told him to beware Macduff. Therefore I think I can safely say that the witches were the ones who were most at fault for the murders, and for the downfall of Macbeth.

How to Choose All about Writing Paper

How to Choose All about Writing Paper My writing was not good, but I was not prepared to invest in myself to secure better. Sounds excellent, but people don't always understand what they require. Read anything and everything you may find, and you're going to develop into a better writer. By Les Edgerton Les is among the most powerfully edgy writers in the organization, and you should have your huge kid pants on to read his novels. Work out this issue on the topic or A superb approach to trust about novel and idea is to scout internet. Some of the most important art is the end result of a number of the best pain. Each day, your mental kaleidoscope is full of images and impressions you may use to create mesmerizing stories. Additionally, there are books for entrepreneurial-minded writers who need to begin their very own grant-writing company, in addition to a book about ways to utilize Google Ad Grants. You may want to ask your blog readers to vote on various titles, to learn which is the most compelling. The stakes have to be clear if you desire the reader to care. Writing a book is not difficult. It reveals the story because you have to write to figure out what you're writing about. It can serve as a profound pathway to healing. If you just have time to read a couple of books, I would recommend studying the Top Writing Books section below. Up in Arms About All about Writing Paper? A pen, paper and effort are all that's been required for centuries. Whenever you own a look at the function of the viewer degree as well as the paper you're able to determine. In addition, don't omit the simple fact your paper needs to be original. The listening paper contains listening to conversations between at least two lawyers or an attorney and a customer and answering questions based on understanding. A lot of people never learn to compose essays, and they miss out on opportunities as an outcome. 30% of the time the true thing people are asking is how can you locate a publisher. If you're in a place where other people today are receiving things done, then you won't have any choice except to join them. About 50% of the time the actual thing people wish to understand is the way to turn into a famed millionaire rock-star author person. It is simpler to delete existing or even bad writing than it is to get nothing on a page and begin from scratch. 8 The most important rule of writing is that whether you do it with enough assurance and confidence, you're permitted to do whatever you enjoy. No reader relishes the sight of a very long introduction they would like to dive into the true content. Its sole goal is to produce the reader curious about what is going to happen next. With a tiny bit of distance, you will be able to realize your work from the view of a reader, not a writer. Whether want to get the recognition of being a best-selling children's author. Many writers today make a great living creating captivating content for a wide array of clients. The reasons might be absolutely different. If you're a little organization, a book will be able to help you compete with the huge players. 2 The way to compose a book is to really compose a book. If you consider your book as competing for precious reader-eyeball-hours, it seems equally idiotic. The book also has an extensive directory of major funders' contact details. All about Writing Paper Fundamentals Explained So you don't just have to compose the book, you also need to learn how to sell it. Save a great paper editors may look like polishing your class. Predict what is going to occur if the choice is ignored. Predict what is going to occur if the choice is followed. Order top-notch essay at the moment and certified specialists will do their very best to supply you with higher quality at affordable price. The fundamental tasks are the exact same. You've written a lot for a very long time and possess the mechanics mastered. Not everything needs to be a full-fledged chapter in the first stages of novel-writing.

What Investment Entails Concerning Future Share Period Returns Finance Essay - Free Essay Example

Sample details Pages: 6 Words: 1685 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? Investment entails some degree of uncertainty concerning future share period returns. In financial perspective risk is a synonym for uncertainty while return signify the totality of gain or loss on an investment. Risk in investment cannot be eliminated but can be managed through number of strategies such as diversification, asset allocation etc. This study was conducted to help Sandra (widow) manage her inherited portfolio by explaining to her on how reduce the risk level of her portfolio and risk-return tradeoffs. RELATIONSHIP BETWEEN RISK AND RETURN Risk is the possibility of suffering a financial loss due to vagueness in terms of Macroeconomic fluctuations, asset-specific unexpected developments, and changing fortunes of various industries (Bodie et.al 2007). While return is the overall gain or loss on an asset. Risk and return cannot be separated from one another in an investment as the required return depends on the risk of the investment (Stephen A. Ro ss et.al 2008). Companies Utility Company High-Tech Company Counter Cyclical Company Return 9.70% 10.0% 5.0% Risk 2.65% 21.91% 12.07% In the table above, it is clearly illustrated that High-Tech Company has higher risk and return compared to Utility Company and Counter Cyclical Company while Counter Cyclical Company has higher risk and return compared to Utility Company. That is, the greater the risk, the greater the return and vice versa as clearly depicted in appendix A. BETA AND ITS RELEVANCE TO REQUIRED RETURN ON STOCKS In view of the fact that risk are related to return in an investment and that some risk (Unsystematic) can be eliminated by diversification, therefore such risk cannot be rewarded since it s borne unnecessarily. The expected return on an investment depends only on that stock systematic risk. Beta assesses how volatile an asset is in relation to the general market (Elton and Gruber, 1991) i.e. it assess a risk that arises from the relationship be tween the return on an asset and the return on the market. It also measures the systematic risk and doesn t change no matter the economic situation. In appendix B the composite index was chosen to calculate for beta instead of index fund because it is associated with a higher expected return of 18.7% and less risk of 4.96% compared to Index fund which has an expected return of 8.40% and risk of 10.72% as illustrated in appendix A. The higher the required return and expected return the Higher the beta (risk). Stock Beta Required Return Expected Return Utility Company 0.529 12.24% 9.70% High T Company 4.043 60.39% 10.00% C.C Company -2.109 -23.89% 5.09% Diversification and Its Importance to Investment The simple fact that an asset is associated with diverse degrees of expected risk leads most investors to the notion of holding more than one security at a time. According to Fischer and Jordan ((1999)), endeavour to reduce and spread risk take the form of diversificati on. Diversifying investment means spreading risk across variety of asset classes i.e. investment. Investors invest their money in firms of dissimilar industries to avoid the risk of losing their portfolio because no matter the situation of the economy, some investment will do well. Diversification of one s investment is anticipated to lessen risk in an economy wherein each asset s returns lies on some degree of uncertainty. In appendix B we can see the difference between the risks of holding a single asset compared to holding of diversified portfolio. Company Utility Company High-Tech Company 50-50 Portfolio Expected Return 9.70% 10.00% 9.85% Standard Deviation 2.65% 21.91% 12.19% From the scenario sited above, Investment in 50-50 portfolio shows higher returns compared Utility Company and reduces risk compared to High-Tech Company. Therefore investment in portfolio asset generates higher return in asset and reduces risk compared to individual stocks. VALUATION OoF STOCK Investors in the financial market use to calculate intrinsic or intrinsic value of stocks and companies due to uncertainty in order to predict potential market prices. Stocks are either judged overvalued or undervalued. Undervalued stocks are considered good as there is expectation for return while there is no expectation for return on overvalued stocks. Security Market Line is a line on graph that illustrates the relationship between risk as measured by Beta and the required rate of return for individual securities (Brigham and Houston, 1998). The line changes over time due to changes in investor s aversion to risk, interest rates and individual company Betas. Results in the SML are graphed using the Capital Asset Pricing Model formula. Stocks plotted below the security Market line are overvalued while the ones plotted above the security market line are undervalued. The graph below shows the relationship between the risk and return using the SML line. The X-axis repres ents the risk (Beta) while the Y-axis represents the expected return. The slope of the SML reflects degree of the aversion in the economy. Stocks in Counter Cyclical Company are undervalued while stocks in High-tech Company are overvalued. Therefore, the greater the average investor s aversion to risk the steeper the slope of the line and the higher the required rate of return on all stocks. RELATIONSHIP BETWEEN INTEREST RATE AND VALUE OF STOCK Interest rate and stock exchange are two key factors of economic development of a country. Interest rate is one of the vital economic variables which are related directly to economic growth. It is regarded as cost of capital i.e. the cost paid for the use of money over a period of time. Good investors always search for investment in a proficient market in order to be able to make extra ordinary profit .If interest rate paid to depositors increased by banks people switch from stock market to fixed deposit. In the other hand if interest r ate paid to depositors decreased by banks, people switch from fixed deposit to share markets. That is, demand for stock increases when interest rate is low and vice versa. STOCK AND FIXED INCOME SECURITIES Despite the fact that the risk associated with fixed income security are low compared to stock investment, the aim of every investor is to acquire the highest possible return in an investment. Market risk and interest rate greatly affects fixed income as it is coupled with continual change (Brealey et. al, 2009). Also the opportunity cost investing fully in stock may be high as in most cases does not make high returns compared to stock market. An investor should diversify its investment in order to eliminate the unsystematic risk and also try to invest some of its funds in fixed income when there is a rise in interest rate so as to be able to get the maximum return obtainable. HOT TIPS REGARDING UNDERVALUED STOCKS Undervalued stock as mentioned above is the type of sec urity which has the possibility of getting high returns in the future. The real money is in finding a truly undervalued stock. Investors when trying to buy undervalued stock should check on the stock s price earnings ratio, cheaper securities really have lower price earnings ratio (Levi, 1996). The lesser the price earnings ratio the more attractive the security. Secondly, assessment of debt to equity ratio should be carried out. Companies with higher equities compared to their debt stand the chance of excelling in terms of any hardship arousal. Thirdly, search for companies which have unfailing growth quarter after quarter in order to identify any reason for bad performance. Fourthly, build your stock screener on any financial website to be able to plug in ranges of variables such as price parameters, sector parameters etc so as to get a list of stock in which you will identify the hottest undervalued stock. Lastly and most importantly, look for undervalued stock with decent divide nds in order to be paid while waiting for rise of undervalued stock. EXPECTED RETURN AND RISK ON 50-50 PORTFOLIO Portfolio of asset compared to single asset is subject to low level of risk. Therefore if combination of 50-50 portfolio asset in high-tech Company and counter-cyclical company was undertaken there will be lower rate of risk compared to fully investing in one of them. Company High-Tech Counter-Cyclical 50-50 portfolio Return 10.00% 4.09% 7.55% Risk 4.0431 -2.1089 0.9670866 The table above clearly illustrate the relationship between risk and return in the three companies. Investment in 50-50 portfolio will generate higher returns compared to Counter-Cyclical Company and lower risk compared to High-Tech Company. Since the investor do not need to bear more risk and its aim is to get the most obtainable return, investment in 50-50 will stand more feasible. Refer to appendix C for calculation. EXPECTED RETURN AND RISK ON 70-30 PORTFOLIO Although portfol io of asset reduces risk on an investor s asset, an investor should try to choose among the best possible combination in order to get the most obtainable return with less rate of risk (Bodie and Merton, 2000) Company High-Tech Index-Fund 70-30 Portfolio Return 10.00% 8.40% 9.52% Risk 21.91% 10.72% 18.54% The table above illustrate the level of risk and return of 70-30 portfolio of High-Tech Company and index-fund. The risk in the portfolio is too high compared to index fund and doesn t have high expected return compared to High-Tech. Since the potential investor s status in life does not need to bear much risk, this portfolio combination does not seem to be feasible. Refer to appendix D for calculations. POSSIBLE PORTFOLIO COMBINATION Based on the calculations undertaken in the appendix C and D, the most favourable combination which will generate the most possible achievable return alongside with less rate of risk is 50-50 portfolio of High-tech and Counter-Cycl ical Company. This combination has less expected return compared to 70-30 portfolio but is coupled with low rate of risk which suites the investors status in life. CONCLUSION Investment requires the commitment of a sum of money in order for profit to be received in the future. Since risk cannot be eliminated from investment and that risk can only be reduced, the best possible way for reducing risk in an investment is through diversification. The hot tips regarding undervalued stock were clearly stated so as to help Sandra in making investment. Calculations of possible portfolio combination were calculated and the researcher came to a conclusion of choosing 50-50 portfolio of High-tech and Counter cyclical Company because it has low rate of risk and a good rate of return which suites the investors status in life. Don’t waste time! Our writers will create an original "What Investment Entails Concerning Future Share Period Returns Finance Essay" essay for you Create order