You have wealth that was inherited from your own parents and grandparents. You want to help people with the wealth. At the same time, you also want to acquire profit as an income generation for you and your family's daily survival and future saving. You do not agree with the concept of interest in the current conventional finance. You intend to open your own company. Discuss how can you achieve the objectives stated in the above statements based on Islamic financial products within the context of Islamic finance and banking.

You have wealth that was inherited from your own parents and grandparents. You want to help people with the wealth. At the same time, you also want to acquire profit as an income generation for you and your family's daily survival and future saving. You do not agree with the concept of interest in the current conventional finance. You intend to open your own company. Discuss how can you achieve the objectives stated in the above statements based on Islamic financial products within the context of Islamic finance and banking.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Based on the information above which of the following types of bank is the best fit for Billy? Explain your choice using what you know about the advantages of different types of financial institutions. Identify at least 2 advantages of the type of bank you chose and explain why Billy would benefit from them.
Your grandmother calls you up and asks you for advice on where to invest some of her money. What do you think would be an appropriate investment for her. Choose one from the following A. Bitcoin B. An electric vehicle company C. A dividend paying stock D. A mutual fund that invests in risky smaller companies in the biotech industry.
1. Cost of money Everyone uses money, and it is important to understand what factors affect the cost of money. Consider the following scenario: A friend comes to you and asks you to invest in his business instead of investing in Treasury bonds. You think he has a good business model, so you tell him you are willing to invest as long as the expected return on the investment is at least four times the return you would have received on the Treasury bonds. Determine which of these fundamental factors is affecting the cost of money in the scenario described: Risk Inflation Time preferences for consumption
1. Suggest 2 financial instruments or tools of Islamic financial economics that you think can help to reduce the burden of economic difficulties during the current crisis of COVID-19 pandemic. Explain.
Mary Mari from Ghana needs your help with the following question: What would happen to Ghana or any other country’s standard of living if people lost faith in the safety of the financial institutions? Explain.
a) Provide the definition for personal financial planning and list all the specific advantages of personal financial planning. b) Opportunity cost can be viewed from two aspects. Explain each aspect with relevant examples. c) Fahmi decides to invest in a corporate bond of a certain company because he is after the coupon payment that he will receive throughout the bond period. Identify and elaborate the factor that driven him to make that decision. d) Before Taufiq make his investment decision, he realize the importance for investor to evaluate the risk factor when choosing an investment. Explain to him ANY TWO (2) components of risk factor.
What are the reasons SMEs in Zambia face challenges with access to finance? Are these reasons different for large Zambian businesses? What kinds of financial products can help SMEs?
What is your primary objective in choosing a company in which to invest money? What key items or relationships will you look for in each financial statement that will help you decide in which company to invest?
Please contemplate the following scenarios and answer accordingly. b. Islamic banks are often criticized for following KIBOR as pricing benchmark in structuring various products at asset andliability side. As it creates similarity with conventional banking and doubts among stakeholders, they demand IB toadopt/develop other pricing benchmarks which are innovative, transparent, and more suitable to shariah precepts.Requirement: As an Islamic Banker, please evaluate if following KIBOR poses a shariah non-compliance risk and discuss reasons and constraintswhich push an Islamic bank to follow KIBOR.
The financial markets play an important role in channeling funds from savers to borrowers. Which of the following illustrates this function of financial markets? Investors purchase assets like real estate and gold from other investors. Investors purchase capital goods which are used in production by borrowers. Investors deposit funds into interest-bearing accounts which are then loaned to borrowers. Investors purchase securities that are issued by firms and governments.
Financial markets and intemediaries provide financing for business. They channel savings to real investment. That much should be loud and clear from Sections 2.1 and 2.2 of this chapter. But there are other functions that may not be quite so obvious. Explain the Functions of financial markets and financial institutions in detail. (2
A financial services company is considering investing in a new fintech startup that has developed a new technology platform for investment management. The company is concerned about the risks associated with the investment and wants to evaluate the potential return on investment. You have been hired as a consultant to help the company make an informed decision. Which of the following financial ratios would be most appropriate for the financial services company to evaluate the financial health and performance of the fintech startup? Gross profit margin Debt-to-equity ratio Return on investment (ROI) Price-to-earnings (P/E) ratio

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