Creating A Form Of Art Essay - 846 Words

A 2013 survey found that eight out of ten Americans are overly stressed about their jobs or schooling. Three out of five Americans cope with their stress in unhealthy ways such as overeating, drinking, smoking, or ignoring their stress altogether (Corinthian). Creating a form of art is is one of the most effective methods to relieve stress. The concept of using art as a form of managing stress has been around throughout all of history. However, art therapy was not a distinct profession until the 1940’s. Creating art is not only effective in managing stress, but also helps us safely identify, alleviate, and communicate our pent up emotions. Art allows you to take a moment to yourself and forget about your day to day problems. We tend to learn more about ourselves while creating art, â€Å"gaining greater self-knowledge can help us identify why and when we are stressed giving us the capacity to remove stressors or find ways of supporting ourselves when in stressful situations† (Willieme). Every form of art encourages creative thinking and problem solving skills, allowing you to come up with your own solutions since there are no right or wrong answers in art. The benefits of art aren’t limited to emotions, there are physical benefits to creating art as well. â€Å"The average person has 60,000 thoughts per day and 95% of them are exactly the same† (Alban). Creating art allows you to focus on a single activity and clear your everyday thoughts due to the â€Å"rhythmic and repetitiveShow MoreRelatedArts in Culture1509 Words   |  7 PagesArts in Culture Art is about ideas and representing them into visible perceptions and concepts. These ideas come from the heart and mind of the individual artist, putting all the talent they have into the artwork. In a way, that makes everyone that can specialize in a certain activity and create their expressions an artist. A cook preparing a meal with an appetizing appearance, an artist painting a beautiful painting, or a football star breaking a tackle for a game-winning touchdown all have theRead MoreEssay about Digital Art Technology1504 Words   |  7 PagesDigital Art Technology Technology is constantly growing and changing our ways of living. It makes life easier at times, and more interesting too. When one would think of art in the past, usually computers and technology did not come to mind. Now because of modern technology, the digital age is uncovering vast ways to create amazing works of art through computer tools and software. Art is now digitally created and can appear unbelievable to the modern eye. Digital art technologyRead MoreClement Greenberg Modernist Painting1062 Words   |  5 PagesModernist painting from previous forms of painting, particularly those of the Old Masters. Greenberg begins by relating Modernist art to Kantian philosophy claiming that, the same way Kant used reason in order to examine the limits of reason, Modernist art is when art became self critical because it uses the technique of art to draw attention to its status as art. Indeed, he explains how without this self-examination similar to that of Kant’s reflection on Philosophy, art would’ve been â€Å"assimilated toRead MoreConceptual Gardening : An Architectural Style Of Gardening1663 Words   |  7 Pagesconceptual art movement in the 1960s which has proven to be greatly influential towards the advancement of modern gardening. Conceptual gardening is an architectural style of gardening that focuses on the execution of ideas and themes rather than on landscape design solut ions. It began to emerge towards the end of the 20th century. Ultimately, conceptual gardening has revolutionized the horticulture world by shifting its focus from greenery to an outlet for artistic expression. The conceptual art movementRead MoreGraffiti Is A Form Of Art1019 Words   |  5 PagesWhite English 93 01 December 2016 Graffiti is Art Graffiti is a form of art well known in the street art. There are many forms of arts like drawing, painting, sculpture, or graffiti. Graffiti is an art used for the community to send messages as well as representing for community identity and pride through Graffiti artwork. In the book â€Å"Read Write Connect† by Kathleen Green Amy Lawler, chapter 22 Public Art talks about what graffiti art, vandalism art is, the differences between graffiti artworkRead MoreThe Budget Reduction Of Public Transportation And Its Security952 Words   |  4 Pagesinto glimmering canvases for those who wanted a form of expression. What started out as simple name taggings turned into a voice for society’s mutes. Despite being constantly at odds with the law, the community stood together and graffiti evolved into a more law abiding and more accepted variation of what it originally was. Despite its evolution and recognition, it has been constantly denounced as mere vandalism rather than a form of art. Graffiti is art because it is the purposeful arrangement of elementsRead MoreSkills For Visual And Written Analysis1474 Words   |  6 Pagescentral debate in different art societies. Writing about art has materialized to become a variable way to practice cultural, social, economic and political aspects. Precisely, a personal response to an art piece increases the understanding of the piece of art. As such, the role of individuals such as curators has become essential in improving the understanding of art. Evidence has proved that visual art has far reaching impact in reading, writing, geometry and science. Visual art creates an innate mentalRead MoreEcological Art And Its Effects On America And The Impact On The Entire Globe1473 Words   |  6 PagesAmerica and the impact the entire globe. Ecological art is an artistic movement to raise awareness and fight against the environmental damages caused by humans. Ecological art is an artistic movement to raise awareness and fight against the environmental damages caused by humans. This genre of art started in the 1990’s and uses practices from the 1960’s. The art practice works to preserve, reverse, stop environmental damage, or vitalize the life forms, resources and ecology of earth. These practicesRead MoreArt Deco And Buhaus Essay993 Words   |  4 PagesArt deco and Bauhaus are best known as the forms of art that changed previous views of artwork during the 1920s and 1930s. Both of these forms of art impacted not only art itself but also architecture, fashion design, graphic design and industrial design. During this time new inventions involving technology where becoming popular along with the new forms of art and sculpture. A major effect on modernity occurred along with the designs being created during the 19th and 20th century due to the inventionRead MoreThe Principles Of Art785 Words   |  4 Pages In Chapter 7 of T he Principles of Art, Collingwood is seeking to find a correct definition of what art is. He starts by showing how many people have tried to define art in the past. Many people in the past have set out to define art as a craft, and that the art itself is the actual end product that can be seen or heard. A piece of art that is a song is the actual audible noises strung together in a pattern, and a painting would be the colors and forms that are actually on the canvas. This is

Struggle And Growth In Alice Walkers The Color Purple

Struggle and Growth in Alice Walker s The Color Purple The Color Purple by Alice Walker depicts the struggle and growth of Celie, an uneducated slave of the South who became a victim of racism, men, and social injustices, that we learn through numerous letters that she writes as a diary. Walker uses Celie s uneducated grammar to help the reader perceive the pain that she thinks and feels in order to become a mature, twentieth-century woman. As Celie writes to God for guidance and strength asking that she may carry on, her letters shift to be intended for her intensely loved sister, Nettie, whom separated from Celie at an early age. Celie becomes a victim of brutal violence as she refuses to fight back to the injustices†¦show more content†¦He gave you life, good health, and a good women that love you to death. (119). Celie replies with All my life I never care what people thought bout nothing I did, I say. But deep in my heart I care about God. What he going to think. And come to find out he don t think. Just sit up there glorifying in being deff I reckon. (120). She eventually believes that God has failed her and won t serve as a confidant, therefore, reaches out to Nettie. Celie s unwavering love for Nettie provides Celie with some optimism to hold onto, for Nettie s eventual happiness leads Celie to believe that happiness may also be possible for her in the future. Every letter that Celie writes to Nettie illustrates the strictest confidence she delivers to her sister; most feelings remain trapped inside of Celie except those told to either Nettie or Shug. Celie confides in Nettie her fears, her secrets, her joys and her disappointments: I sit here in this big house by myself trying to sew, but what good is sewing gon do? What good is anything? Being alive begin to seem like a awful strain (262). Well you know wherever there a man there trouble (213). I am so happy. O got love, I got work, I got money, friends and time. And you alive and be home soon (222). Nettie s confiding in Celie allows for an amazing relationship to develop, where they can feel each other s presence in their hearts. There is so much toShow MoreRelatedEssay on Struggle and Growth in Alice Walkers Color Purple836 Words   |  4 PagesStruggle and Growth in Alice Walkers The Color Purple The Color Purple depicts the struggle and growth of Celie, an uneducated slave of the South who became a victim of racism, sexual roles, men, and social injustices, in numerous letters that she writes as a diary. Walker uses Celies uneducated grammar to help the reader perceive the pain that she thinks and feels in order to become a mature, twentieth-century woman.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   As Celie writes to God for guidance and strength askingRead MoreCriticism and Reflection of the Color Purple by Alice Walker1151 Words   |  5 PagesCriticism and Reflection of the Color Purple by Alice Walker Criticized as a novel containing graphic violence, sexuality, sexism, and racism, The Color Purple was banned in several schools across the United States. Crude language and explicit detail chronicle the life of Celie, a young black woman subjected to society’s cruelties. Although immoral, the events and issues discussed in Alice Walker’s The Color Purple are prominent in today’s society, and must be public and conversed ratherRead MoreThe Color Purple by Alice Walker1192 Words   |  5 Pagesas a novel containing graphic violence, sexuality, chauvinism, and racism, The Color Purple was banned in numerous schools across the United States. Crude language, brutality, and explicit detail chronicle the life of Celie, a young black woman exposed to southern society’s harshness. While immoral, the events and issues discussed in Alice Walker’s The Color Purple remain pervasive in today’s society. The Color Purple epitomizes the hardships that Afri can Americans faced at the turn of the centuryRead MoreAlice Walkers Themes of Womanism, Community, and Regeneration1968 Words   |  8 Pages7th February 2011 Alice Walkers Themes of Womanism, Community, and Regeneration Alice Walker is considered one of the most influential African American writers of the 20th century, because of her raw portrayal of African American struggles and the injustices towards black women. She was the first African American female novelist to win both the Pulitzer Prize and the National Book Award for The Color Purple. Her work is appealing and powerful because â€Å"Walkers novels can be read as anRead More Alice Walkers The Color Purple: Celies Struggles Expressed in Letters547 Words   |  3 PagesAlice Walkers The Color Purple: Celies Struggles Expressed in Letters Dear God, Gets me out of here. I needs to love and laugh. I needs to be free of this bastard and these white people. At a very young age, Celie begins writing letters to God. In her letters she explains her fears about her stepfather raping her, her mother and sister being beat, and her fears for her sister, Nettie. This epistolary novel (a novel in which the narrative is carried forward by letters) takes placeRead MoreOvercoming Prejudices and Self Acceptance-the Color Purple1401 Words   |  6 PagesAcceptance Throughout Alice Walker’s novel, The Color Purple, the main character, Celie, reveals all of the hardships she has endured during her life. Celie confides in her younger sister, Nettie, and God to express the way she feels in certain situations. As the story progresses, Celie eventually finds her voice and breaks away from all the men who oppressed her during her life. For the duration of the novel, prejudice becomes a reoccurring theme. Not only does Celie struggle with the external prejudicesRead MoreAlice Walker And Zora Neale Hurston875 Words   |  4 PagesAlice Walker and Zora Neale Hurston Both Alice Walker and Zora Neale Hurston are similar to having the same concept about black women to have a voice and being perspective. These two authors are phenomenal women who impacted on the southern hospitality roots. Alice Walker and Zora Neale Hurston comment on fear, avenge, and righteousness among African American women that are abuse of their power. Walker and Hurston uses the same theory of feminism to point out the liberation that isRead MoreExamples Of Womanism In The Color Purple1866 Words   |  8 PagesWritten in 1982 by Alice Walker, The Color Purple is a Pulitzer-Prize winning novel about one Southern black woman’s life of abuse and journey of self-discovery in the search to reunite with her sister. With film and Broadway adaptations, the story has reached raving audiences all over the world and has come with a significant amount of both acclaim and criticism. In this essay, I will establish how Alice Walker subverts stereotypes associated with bla ck female sexuality through the relationshipRead MoreComparative Essay; to Kill a Mockingbird and the Colour Purple3841 Words   |  16 PagesOne Will Take What He Is Given The purpose of Alice Walker’s novel The Color Purple and Harper Lee’s To Kill a Mockingbird is to demonstrate the hardships that are met when ignorance and tradition bring about the influence of sexism, racism and genuine prejudice to the general public. Ignorance is the root cause of prejudice as it prevents one to see beauty, so when it comes to dealing with the discriminating behavior held in this social order, the vast majority of people are judged by the labelRead MoreThe Color Purple, by Alice Walker and Push, by Sapphire Essay3208 Words   |  13 Pagesshocked at how unprotected the heroine, Precious, is towards society. She is an African-American teenage girl who struggles with accepting herself and her past, but the cruel â€Å"unwritten laws† of her time constantly prevent her rise until she becomes the part of a community that will empower her to triumph over her barriers. â€Å"The Color Purple† is a Pulitzer Prize winning novel by Alice Walk er which tells the story of a black woman’s, Celie’s, striving for emancipation. (Whitted, 2004) These novels

Sample Letter Business Communication Free Essays

American Southern Airline 1804 Freeland Street East Warf, WA 97458 November 20, 2012 Mrs. Leticia Tomlinson 1952 Kanako Lane Mount Vernon, WA 98273 Dear Mrs. Tomlinson: At American Southern Airline, we take pride in exceptional customer services. We will write a custom essay sample on Sample Letter Business Communication or any similar topic only for you Order Now Not only is our staff regularly trained but also highly motivated to ensure comfort and convenience for our customers. Giving such importance to our customers is what differentiates us from other airlines operating in the country. Over the years, your feedback and our experience has indicated the need for a Standard Operating Procedure (SOP) for our flight teams. This allows our employees and customers to be well aware of our procedures and helps us consistently deliver the promise of superior service to you. At the heart of our SOP is proactive communication, which reflects through guiding our customers step-by-step from ticketing to safe landing at their destination. Most of customers travelling between Atlanta and Seattle take connecting flights to other destinations, Chicago O’Hare being the most suited switch stop for them. It also gives us an opportunity to clean up the cabins so that that the incoming passengers feel at home. For this reason, we always make an announcement advising the passengers to carry all their belongings with them while departing the aero plane. Despite all the measures to ensure your convenience, it is unfortunate for us for not being able to recover the loss of your prescription glasses. We assure you that we will continue searching and if we find it, we will have one of our team members deliver it at your doorstep. Taking this opportunity, we would like to tell you how much we value your choice to travel with us. As a token of gratitude, we would like to extend a special travel voucher valid for any destination up to 4,000 miles. We hope that you will continue to enjoy the same luxury we guarantee you every time. If I can be of any help, you may contact me directly at +91-566-8663456. Sincerely, Usama Rafi Manager, Customer Services How to cite Sample Letter Business Communication, Papers

Financial Management Exacta Organization

Questions: 1. Exacta, s.a., is a major French producer, based in Lyon, of precision machine tools. About two-thirds of its output is exported. The majority of these sales are within the European Union. However, the company also has a thriving business in the United States, despite strong competition from several U.S. firms. Exacta usually receives payment for exported goods within two months of the invoice date, so that at any point in time only about one-sixth of annual exports to the United States are exposed to US Dollar currency risk. The company believes that its North American business is now large enough to justify a local manufacturing operation, and it has recently decided to establish a plant in South Carolina. Most of the output from this plant will be sold in the United States, but the company believes that there should also be opportunities for future sales in Canada and Mexico.The South Carolina plant will involve a total investment of $380 million and is expected to be in operati on by the year 2015. Annual revenues from the plant are expected to be about $420 million and the company forecasts net profits of $52 million a year. Once the plant is up and running, it should be able to operate for several years without substantial additional investment. Although there is widespread enthusiasm for the project, several members of the management team have expressed anxiety about possible currency risk. M. Pangloss, the finance director, reassured them that the company was not a stranger to currency risk; after all, the company is already exporting about $320 million of machine tools each year to the United States and has managed to exchange its dollar revenue for euros without any major losses. But not everybody was convinced by this argument. For example, the CEO, M. B. Bardot, pointed out that the $380 million to be invested would substantially increase the amount of money at risk if the dollar fell relative to the euro. M. Bardot was notoriously risk-averse on f inancial matters and would push for complete hedging if practical. M. Pangloss attempted to reassure the CEO. At the same time, he secretly shared some of the anxieties about exchange rate risk. Nearly all the revenues from the South Carolina plant would be in U.S. dollars and the bulk of the $380 million investment would likewise be incurred in the United States. About two-thirds of the operating costs would be in dollars, but the remaining one-third would represent payment for components brought in from Lyon plus the charge by the head office for management services and use of patents. The company has yet to decide whether to invoice its U.S. operation in dollars or euros for these purchases from the parent company. M. Pangloss is optimistic that the company can hedge itself against currency risk. His favoured solution is for Exacta to finance the plant by a $380 million issue of dollar bonds. That way the dollar investment would be offset by a matching dollar liability. An altern ative is for the company to sell forward at the beginning of each year the expected revenues from the U.S. plant. But he realizes from experience that these simple solutions might carry hidden dangers. He decides to slow down and think more systematically about the additional exchange risk from the U.S. operation. Questions a. What would Exactas true exposure be from its new U.S. operations, and how would it change from the companys current exposure? b. Given that exposure, what would be the most effective and inexpensive approach to hedging? 2. Discuss how diversification reduces risk. Comment on the beta of a portfolio with a large number of randomly selected stocks. (Hint: your discussion should include the increased importance of diversification post 2008 financial crisis.) Answer: 1. Background Information According to the given information it can be denoted that being the leading manufacturer of exactitude machine tools located in Lyons, Exacta, S. a., is looking forward to build a local plant for manufacturing in United States. The larger part of sales of the company is with the European Union. In United States, Exacta exports almost two-third of its output. Agreed by Exacta, s.a, management group, the sales level at United States is not only sufficient enough but also is in huge in order to have a unit in local manufacturing. The company also anticipates that in future there are possibilities of Expansion of business activities in the Market of Mexico and Canada. The Financial director of Exacta Organization, Mr. Pangloss, seems to be curious about this new venture after surveying the circumstances. With the provided information it was clear In South Carolina, the preliminary investment in order to establish the manufacturing plant; $380 million will be required. The facts state that there is a big opportunity to be successful, but then there are some shortcomings and anxieties related to the risks for expansion of business in International forum. The CEO of the Company Mr. M. B. Bardot as considered has clarified worried regarding the probable in reference to the exchange rate or the Currency. As per the information, though it is clear that Mr. M. Pangloss has made his efforts in order to boost the confidence of the CEO by stating the possible risk related to currency is not a new challenge for the organization. It can be true as according to the fact, presently the Organization is exporting tools of machine in US every year, whose worth is around $320 million. To do so, the company never witnessed any type of losses that are significant that were incurred due to risk of exchange rates and the dollar revenues for Euro. The information also did explore that recently the Company exercises a credit period of two month in order to pay for its goods which are exported. Hence, it indicates that about one-sixth part of money [previously stated as 320 million] has been before and now depicts to the currency oriented risk, at any point of time. Again it has also been stated that Mr. Pangloss has faith in the companys sufficiency in to prevaricate itself against risk related to currency with issuing bond as a way. Hence, it can be stated that certain initiatives might check and correct the amount of investment with the help of an equivalent dollar liability. This transaction would be in dollars. In reference to the given context of the information, it point towards the existence of another alternative for the company. It demonstrates that the Company can sell forward the expected revenue contract of $420 million preceding the progress with this project. Before proceeding with this project such kind of inform ation would help the Organization. Now, It is a fact that as the Director in Finance, Mr. Pangloss is acquainted with the fact that the responsibility to carefully handle the risk in regard to the exchange rate depends on him. The exchange rate might increase in future if such investments are made. In accordance with the information given, it can be denoted that an opportunity to earn probable amount of profit around $52 million per year can be made, if other affecting factors doesnt change. There wont be the requirement of any type of excess investment during operation that would exceed the time frame. This kind of Expansion in the U.S. market will increase the international survival of Exacta, which is advantageous for the company. Hence, it can be inferred that Mr. Pangloss as the manager in finance department needs to investigate and speculate any sort of dependent matters from U.S. investment. This can be done by the help of using techniques to check its existing as well as factual exposure. These techniques will help to take a decision on which certain specific method of hedging will be effective and would not be cost effective to the organization. Statement of the problem: From its new operation in U.S market what would be the true exposure of Exacta How the exposures from its new operation will, will differ from that of the current exposure of the company? In respect to that exposure, what could be the possible low cost and effective approach for hedging? The required options for management review. The two available alternatives for management review like: In requirement of the establishment of this new plan in South Carolina of United States of America, an investment of 380 dollar can be made by issuing bonds of US dollars. This would balance the amount of investment in dollars can be done with the aid of a equivalent liability of Dollars. To sell forward the contract of probable revenue of 420 million dollars before proceeding with the project, as this could an effective option for the organization (Announcements, 2014). Required financial information: The following are the information that would support in conclusions, is as follows: $380 million is the total amount to be invested for the new plant in United States. The operation expects annual revenue will be around $420 million. The net profit annually as per the expectation will be $52 million. $320 million is already being exported each year without any loss incurred in regard to exchange risk and currency. According to the CEO Mr. M.B. Bardot, the amount of investment of $380 million might be able to prove to make a significant amount of loss for dollar depreciation against Euro. The revenue will be earned in dollars from South Carolina new plant. About 2/3rd of the operating cost will be in Dollars. 1/3rd contribution would be from head office charges for services in management and patent use, and apparatus fetched from Lyons. In charge for patents, the decision of using Euro or Dollar is yet to be decided. Table 1: US $ per Euro *Shows U.S. $ per Euro Spot Rate Fwd Rate 1 Month 3 Months 1 Year Euro 1.25 1.2501 1.25 1.2507 Source: https://www.xe.com/currencyconverter/convert/?From=EURTo=USD The above table represents the exchange rate of US dollar with Euro. From the above table, it can be said that in one month, the euro will be worth same as it is now. This indicates that the Euro is holding its value till one month (Berk DeMarzo, 2007). The table also shows that in three months, the Euro will have gone down the value and in one year, the euro will have gone up in value. Therefore, it indicates that, while in three month time, there are more Euros required to buy $1, in one year time, it will be the opposite, that is, there will be less Euros required to buy $1. Table 2: Exacta Currency Risk Description U.S. $ - now Euro - now Euro - 1 month Euro - 3months Euro - 1 year Investment $ 380,000,000.00 304,000,000.00 303,975,681.95 304,000,000.00 303,829,855.28 Annual revenues $ 420,000,000.00 336,000,000.00 335,973,122.15 336,000,000.00 335,811,945.31 Net Profits $ 52,000,000.00 41,600,000.00 41,596,672.27 41,600,000.00 41,576,717.04 2/3 Op Costs $ 245,333,333.33 196,266,666.67 196,250,966.59 196,266,666.67 196,156,818.85 1/3 Op Costs $ 122,666,666.67 98,133,333.33 98,125,483.29 98,133,333.33 98,078,409.42 * U.S. dollar price = euro price in France / # Euros per dollar * Euro price = $ price in U.S. / # $ per euro (Bos, Mahieu Dijk, 2001; Campbell, Medeiros Viceira, 2007) The above table provides details of the two investment strategies along with their currency risk exposure in terms of spot rate, 1 month forward rate, 3 months forward rate, and 1 year forward rate. Now, from the above table it is noted that if the organization aims to sell forward expected revenue, then, it will evidenced gain of 336,000,000.00 - 335,811,945.31 = 188,054.69 Now, since, the payment is received within two months of purchase, only 1 / 6 th of the money will 2. The risk management practices are the most significant aspect of Portfolio optimization succeeding to global financial crisis. Many expansions have taken place in the whole process of portfolio risk management. Nevertheless the construction for diversification using portfolio theories have become the pillars of investment decisions (christoffersen,2003). The global financial crisis of 2008 saw many doubts in the financial markets on the benefits and the limitations of diversification. At the same time the importance of diversification in reducing the risk of the portfolios came out (chen Yu, 2011 ; Moran, 2010). The section here will go through a proper study on the process of diversification and its advantages and disadvantages. The diversification of the portfolio principally rotates around the mean variance analysis to develop its risk return aspect (Figlewski, 2003; Hicks, 2000; Horcher, 2005). As per the mean variance analysis the diversification of the portfolio is done in two different ways(Jorion,2005; King Slorach, 1996; Lucas, 2010). At first a specific risk or variance level, the level of expected rate of return is determined, then for a specific return level, the risk or variance of the portfolio can be maximized to a good extent. Markowitz said that, by using any of the two approaches, the portfolio can be estimated (Arnold, 2013). The portfolios then collected in the mean variance space are termed as efficient frontier (Berk, 2013). Thus by eliminating the non-efficient portfolios, and mean variance analysis, diversification of portfolios can be estimated. Markowitz formulated that on a given level of risk a rationale investor will accept the portfolio which has the largest expected return on investment. Specifically, modern theory of portfolio endeavours to account for the risks and expected return. In short, it represents the most expected return at a given amount of risk at one point of time. The mathematical model developed by Markowitz f or the optimization of portfolios can be formulated as shown below: Min w w Subject to, w e = 1 w = m Where, denotes the covariance matrix of stock returns; W = (w1, w2, , wn) = vector of portfolio weights; = vector of expected return; m = target portfolio return; e = (1, 1, 1, , 1) from the view of an individual investor, optimizing the risk return trade off can be estimated using the above given optimization problem shows that the method of diversification does not only applies on risk alleviation but also it also guides the investors in making through investment decisions( Chen Yu, 2011; Moran,2010). The traditional portfolio theory has three strata of diversification of the portfolio. At first the allocation of capital is done then the needs to employ the allocation of assts is done and then it is followed by the selection of security ( Roache Merritt, 2006). The process of allocating capital rotates around the process of allocating capital between highly risky and marginal risky assets. The allocation of the capital depends on the overall estimated risk of the portfolio( Chen Yu, 2011 ; Moran, 2010). It tells about the amount of capital that should be invested on risky assets( Clarke, silve and Thorley,2013; Duchin Levy, 2009). So, this is an important f actor that determines the level of return of the portfolio considering this particular level of risk(Ross, Westerfield Jordan, 2000; Ross, Westerfield Jaffe, 2005). Once the allocation of capital has been done the allocation of the assets takes place. This explores the capacity of each asset and determines the level of risk that it holds and the market to which it belongs(Campbell, Mederios Viceira, 2007). The allocation of the assets generally specifies the level of risk it holds and the portfolio that it belongs to( Rudin Morgan, 2006). The proportion of assets allocation is adjusted after fix intervals in order to maintain a particular level of return. The figure that is mentioned below represents a proposed asset allocation at a particular investor`s portfolio. Figure: Proposed asset allocation: [source: Smart, Megginson Gitman, 2004]. The proportion of assets that must be included in the portfolio entirely depends on the expected level of return and the risks that are associated with all these assets ( Campbell, Medeiros Viceira, 2007). Here the figure shows that the domestic stocks include 35% of risks, bonds intermediate have 28%of risks, and international securities have 12% risks. If the portfolio is fairly diversified, then the risk of the portfolio is actually much lesser than the sum of each single asset(Duchin Levy, 2009). The third step of diversification of portfolio rotates around the selection of security. In this stage a security is being selected from each of the asset criteria. This is an indication that there is an opportunity to utilize company or industry diversification( Clarke, Silva Thorley, 2013; Duchin Levy, 2009). An important outcome that can be seen here is that if an investor invests at various securities from various industries instead of selecting a huge number of securities from on e industry, then it would reduce the risk associated with it. It will minimize the level of risk (Berk, DeMarzo and Harford, 2012). The three steps known as the levels of diversification(Smart, Megginson Gitman, 2004). Figure: Level of diversification: [ Source: Smart, Megginnson Gitman, 2004] The market crash that took place in the 2008, the portfolio had become highly volatile. The shortcomings of diversifications can easily be understood by this figure. The figure given below shows the mean correlation of the S P 500 indices increased during dot-com bubble as well as the attack of 9/11. Hence there was a huge global melt down in that year. The world economy saw a major drop in the investments and there was no profit on portfolios and the risk on investment was very less. Figure: The average correlation of the sectors in the S P 500 indices is calculated over two year rolling window.[ Source: Clarke, Silva Thorley, 2013]. The expectancy of portfolio diversification is significant for a long run which can mislead the investors. Thus the investors should invest in multiple securities in order to minimize the risk. Financial analysis Table 1: US $ per Euro Shows US $ per Euro Spot Rate Fwd Rate 1 Month 3 Months 1 Year Euro 1.14 1.47 3.72 14.5 Source: https://www.investing.com/currencies/eur-usd-forward-rates From the above table, it shows the valuable exchange rate of US dollar with Euro. From the table, it is observed that the value of will be increased in one month. It indicates the positive trend of Euro. This table shows that the value of Euro will go up to 3.72 within three month. The value of forward rate will further increase within one year. This data indicates that there will be fewer Euros required to purchase one dollar and in one year there will be less Euro required to purchase one dollar. Table 2: The Currency Risk of Exacta Description U.S. $ - now Euro - now Euro - 1 month Euro - 3months Euro - 1 year Investment $ 380,000,000.00 333,333,333.33 258,503,401.36 102,150,537.63 26,206,896.55 Annual revenues $ 420,000,000.00 368,421,052.63 285,714,285.71 112,903,225.81 28,965,517.24 Net Profits $ 52,000,000.00 45,614,035.09 35,374,149.66 13,978,494.62 3,586,206.90 2/3 Op Costs $ 245,333,333.33 215,204,678.36 166,893,424.04 65,949,820.79 16,919,540.23 1/3 Op Costs $ 122,666,666.67 107,602,339.18 83,446,712.02 32,974,910.39 8,459,770.11 Euro price in France/ Euro per dollar = U. S dollar price $ Price in US / $ per euro = Euro Price (Bos, Mahieu Dijk, 2001; Campbell, Medeiros Viceira, 2007) From the above table, represents the two investment strategy as per their above mention currency risk exposure according to the value of spot rate, one month forward rate, 3 month forward rate as well 1 year forward rate. There is an opportunity to get the profit if the company develops the strategy to sell the forward expected revenue. It will provide a gain of ( 112,903,225.81 28,965,517.24) = 83937708.57. As per the data, the payment is received within two month of purchase, 1/6 of the total money will be at risk. In this calculation, the value of the risk will be 83937708.57 * (1,6) = 13989618 In the above data, the change in dollar will be = (14.5 1.14)/ 1.14 = 11.72 Conclusion and recommendations: The prime company Exacta is one of the affluent of the invoice its US operation in Euros which relates to the selling activities as per the parent organization (Campbell, Medeiros Viceira, 2007). The main reason of that the value of Euro is increasing within the time frame of one year during the operation. The above calculation indicates, at the time of payment made, this will be beneficial for the organization than the payment is occurred in dollars (Chen Yu, 2011; Moran, 2010). As per the prior reason, it concluded that this happened due to the fact that the operation of the company in the US will provide fewer amount of the Euros within one year of the operation as per the comparison of the strategy in the US. a) From the above calculation it is observed that the new operation in the U.S, This Company Exacta get the transaction exposure. This will happened due to the delay of two months as per the payment in term of foreign currency transaction. In the above context, it is observed that M Pangloss have to estimate current exposure as per the risk related to currency which considered one sixth as per the total annual sales of $ 320 million, which will provide the total amount of $ 53.33 million. On the other way The Exacta true exposure of its new operation will be $ 174.67 million. This data is the combination of the operating expenses and the net profit. This is one of the fact that the as the organization has developed a plan to take loan as per the US dollar that need to be funded in the investment amount $ 380 million. This decision need to be taken as per the reason that the US revenue has to employ to mitigate the interest on the debt. In this case, the net income is one the main component return to France over the cost related management fees and patents. The organization has to make decision to get the money as per Euros over France of $ 380 million as per the same purpose. In this case, the company requires counterbalancing of the speculation in the $ 420 million of the annual revenues with the one sixth portion of the current risk. If the management of the company selected this option, then the company will get $ 70 million at the risk from the revenue and the investment risk will be $ 253.33 million, this combined the value of $ 323.33 million. It also observed that the value of dollar depreciated against the value of euro within the time frame of one year by 11.72. In this case the transaction exposure is not negligible. On the other hand it is also said that 11.72 will decreased according to the euro proceeds. In this case the organization should sell forward dollar (Coyle, 2000). This is happened due to the exports of this company taken place in term of Euros. b) From the table 1, it is observed that the value of Euro will be appreciated within one year of time. M. Panglosss need to sell one year forward which expected the revenue contract per year is going to be ineffective as per the US dollar. When the company sell one year forward in US dollar then it will lose money as the value of euro is appreciating and on the other hand the value of the dollar is decreasing. As per the circumstances, to develop the most effective approach of hedging for this company which require certain measure like issuing US dollar bond of the South Carolina Plant, management se rvice fees in Euros as well as bill the home office patent. When the company takes this measure then the risk related to the exchanging currency will be reduced (Campbell, Medeiros Viceira, 2007). Another reason is that the patent and management fees will be paid out of the one third of the total cost which generates from France. The sales of one year forward revenue contract in term of Euros represents that this company gets more investment if the management of the company use spot rate (Berk, DeMarzo and Stangeland, 2010). As per the proposal, the selling of forward expected revenue contract is very effective idea. This is helpful as the management of the company accepted the payment within the two month of purchase (Brealey, Myers and Marcus, 2012). It also noted that the one sixth of the total value is considering the currency risk as per the time frame due to the selling of forward expected revenue contract (Fisher Kumar, 2010). If the above scenario deviates from the calculated revenue then the company will face the trouble. From the calculation it can be observed that the 380 million dollar bonds as per the funding of U.S. plant which can be treated as ineffective investment. The main reason of that the dollar bonds have to be issued as per the US dollar that can provide positive impact to the company (Campbell, Medeiros Viceira, 2007). From the above charts it can concluded that the value of dollar is going to depreciate within the time frame of one year (Brooks, 2013). This situation raises the question if the investors are going to invest in bonds or not. If they invest then they will face the definite loss. In this case the bond holders have to sell the bonds as the money will provide more value to them. This indicates that if this company uses the bond amount to finance the capital for new plant then the company will not get the sufficient fund for future investment. Refrences: Announcements. (2014).Financial Management, 43(2), pp.467-471. Arnold, G. (2013).Corporate financial management. Harlow, England: Pearson. Berk, J. (2013).Corporate finance. [S.l.]: Prentice Hall. Berk, J., DeMarzo, P. (2007).Corporate finance. Boston: Pearson Addison Wesley. Berk, J., DeMarzo, P. and Harford, J. (2012).Fundamentals of corporate finance. Boston: Prentice Hall. Berk, J., DeMarzo, P. and Stangeland, D. (2010).Corporate finance. Toronto: Pearson Canada. Bos, C., Mahieu, R., Dijk, H. (2001).On the variation of hedging decisions in daily currency risk management. Amsterdam: Tinbergen Institute. Brealey, R., Myers, S. and Marcus, A. (2012).Fundamentals of corporate finance. New York: McGraw-Hill/Irwin. Brealey, R., Myers, S., and Allen, F. (2011) Principles of Corporate Finance, 10th ed. McGraw-Hill Irwin: New York. Brooks, R. (2013).Financial management. Boston: Pearson. Campbell, J., Medeiros, K., Viceira, L. (2007).Global currency hedging. Cambridge, Mass.: National Bureau of Economic Research. Campbell, J., Medeiros, K., Viceira, L. (2007).Global currency hedging. Cambridge, Mass.: National Bureau of Economic Research. Chen, C., Yu, C. (2011). International Diversification, Product Diversification, Firm Return, And Firm Risk.Academy Of Management Proceedings,2011(1), 1-7. doi:10.5465/ambpp.2011.1.1cy Chen, C., Yu, C. (2011). International Diversification, Product Diversification, Firm Return, And Firm Risk.Academy Of Management Proceedings,2011(1), 1-7. doi:10.5465/ambpp.2011.1.1cy Christoffersen, P. (2003).Elements of financial risk management. Amsterdam: Academic Press. Clarke, R., Silva, H., Thorley, S. (2013). Risk Parity, Maximum Diversification, and Minimum Variance: An Analytic Perspective.The Journal Of Portfolio Management,39(3), 39-53. doi:10.3905/jpm.2013.39.3.039 Coyle, B. (2000).Hedging currency exposures. Chicago: Glenlake Pub. Co. Duchin, R., Levy, H. (2009). Markowitz Versus the Talmudic Portfolio Diversification Strategies.The Journal Of Portfolio Management,35(2), 71-74. doi:10.3905/jpm.2009.35.2.071 Eptas, A., Leger, L. (2010). A Mean-Variance Diagnosis of the Financial Crisis: International Diversification and Safe Havens.JRFM,3(1), 97-117. doi:10.3390/jrfm3010097 Figlewski, S. (2003).Estimation error in the assessment of financial risk exposure. New York, NY: New York University Salomon Center, Leonard N. Stern School of Business. Fisher, B. Kumar A. (2010). McKinsey Quarterly: The Right Way to Hedge. Retrieved from https://www.mckinseyquarterly.com/The_right_way_to_hedge_2644 Fisher, B. Kumar A. (2010). McKinsey Quarterly: The Right Way to Hedge. Retrieved from https://www.mckinseyquarterly.com/The_right_way_to_hedge_2644 Grieve, I. (2013).Microsoft Dynamics GP 2013 financial management. Birmingham, UK: Packt Pub. Helbk, M., Lindest, S. and McLellan, B. (2010).Corporate finance. New York: McGraw-Hill. Hicks, A. (2000).Managing currency risk using foreign exchange options. Boca Raton, [Fla.]: CRC Press. Holden, C. (2012).Excel modeling in corporate finance. Boston: Pearson. Horcher, K. (2005).Essentials of financial risk management. Hoboken, N.J.: Wiley. Jandik, T. and Lallemand, J. (2014). Value impact of debt issuances by targets of withdrawn takeovers.Journal of Corporate Finance, 29, pp.475-494. Jorion, P. (2005).Financial risk manager handbook. Hoboken, N.J.: Wiley. Khan, A. (n.d.).DHS financial management. King, R., Slorach, J. (1996).Corporate finance. London: Blackstone Pr. Laeven, L. (2003). Does Financial Liberalization Reduce Financing Constraints?.Financial Management, 32(1), p.5. Lucas, D. (2010).Measuring and managing federal financial risk. Chicago: University of Chicago Press. Moran, M. (2010). Diversification and Risk Management with Index Products During the 2008 Financial Crisis.The Journal Of Index Investing,1(1), 117-130. doi:10.3905/jii.2010.1.1.117 Parrino, R., Kidwell, D. and Bates, T. (2012).Fundamentals of corporate finance. Hoboken, NJ: Wiley. Renneboog, L. and Zhao, Y. (2014). Director networks and takeovers.Journal of Corporate Finance, 28, pp.218-234. Roache, S., Merritt, M. (2006).Currency risk premia in global stock markets. [Washington, D.C.]: International Monetary Fund. Ross, S., Westerfield, R. and Jaffe, J. (2010).Corporate finance. New York: McGraw-Hill/Irwin. Ross, S., Westerfield, R., Jaffe, J. (2005).Corporate finance. Boston: McGraw-Hill/Irwin. Ross, S., Westerfield, R., Jordan, B. (2000).Fundamentals of corporate finance. Boston: Irwin/McGraw-Hill. Rudin, A., Morgan, j. (2006). A Portfolio Diversification Index.The Journal Of Portfolio Management,32(2), 81-89. doi:10.3905/jpm.2006.611807 Smart, S., Megginson, W., Gitman, L. (2004).Corporate finance. Mason, Ohio: Thomson/South-Western. Taillard, M. (2013).Corporate finance for dummies. Hoboken, N.J.: John Wiley Sons, Inc. Walker, M. (2000). Corporate Takeovers, Strategic Objectives, and Acquiring-Firm Shareholder Wealth.Financial Management, 29(1), p.53. Watson, D. and Head, A. (2013).Corporate finance. Harlow, England: Pearson.