I. This summative assignment has two assessment tasks. You must complete both task 1 and task 2. Each task is worth 50 marks.
II. For task 1, download and extract BFE_Takeaway.zip. You must use dataXY.dta where XY refers to the last two digits of your anonymous exam code. For example, if anonymous code is Z0912345, you must use data45.dta. Each data file is in Stata format, and has been simulated using BFE_Sect2.dta (i.e. the data file that you analysed in your computer practical) as a basis. All variable names and definitions are identical to the source data.
III. In task 2, Barberis, Mukherjee and Wang  refers to the following article: Barberis N, Mukherjee A and Wang B. 2016. Prospect Theory and Stock Returns: An Empirical Test. Review of Financial Studies 29: 3068-3107. [Link]
IV. Your assignment must include a code appendix that reports all computer codes that have been used to generate your output for task 1. The code appendix DOES NOT count towards your overall word limit. Failure to include the code appendix may result in a loss of marks awarded to task 1.
Task 1: There are well-known models in finance which assume that the decision maker is an expected utility maximiser with a CARA utility function. Propose structural econometric models which can be used to test this assumption, and use your allocated data file to estimate at least two of the proposed models. Report the estimation results in a format that is suitable for academic journals, and discuss your findings.
Task 2: Critically evaluate the construction and use of variable TK in Barberis, Mukherjee and Wang . You must cite appropriate studies to support your discussion.
Overall word limit, 2500 words maximum.
The word count should:
• Include all the text, including title, preface, introduction, in-text citations, quotations, footnotes and any other item not specifically excluded below.
• Exclude diagrams, tables (including tables/lists of contents and figures), equations, executive summary/abstract, acknowledgements, declaration, bibliography/list of references and appendices. However, it is not appropriate to use diagrams or tables merely as a way of circumventing the word limit. If a student uses a table or figure as a means of presenting his/her own words, then this is included in the word count.
Examiners will stop reading once the word limit has been reached, and work beyond this point will not be assessed. Checks of word counts will be carried out on submitted work, including any assignments or dissertations/business projects that appear to be clearly over- length. Checks may take place manually and/or with the aid of the word count provided via an electronic submission. Where a student has intentionally misrepresented their word count, the School may treat this as an offence under Section IV of the General Regulations of the University. Extreme cases may be viewed as dishonest practice under Section IV, 5
(a) (x) of the General Regulations.
Very occasionally it may be appropriate to present, in an appendix, material which does not properly belong in the main body of the assessment but which some students wish to provide for the sake of completeness. Any appendices will not have a role in the assessment
– examiners are under no obligation to read appendices and they do not form part of the word count. Material that students wish to be assessed should always be included in the main body of the text.
Performance in the summative assessment for this module is judged against the following criteria:
• Relevance to question
• Organisation, structure and presentation
• Depth of understanding
• Analysis and discussion
• Use of sources and referencing
• Overall conclusions
Students are strongly advised to use Arial font size 11 for their assignments. A template assignment is provided for students and it is recommended for students to use this.
You must submit an electronic copy of your assignment on DUO which will be put through the plagiarism detection service.
The electronic version of the assignment which you submit on-line should INCLUDE all appendices and any extracts from the companies’ financial statements.
The purchaser invests little energy in the buy choice. He at times ever takes a gander at the specialized particulars. Brand loyalties or proposals of solid retailer/merchant drive buy choices. Restricted stock of these items (huge numbers of which are perishable) are kept by shopper and wants to buy them as often as possible, as and when required. Brand exchanging is frequently prompted by substantial notice, suggestion of the retailer or verbal. Recognizing highlights of Indian FMCG Business FMCG organizations offer their items specifically to shoppers. Real highlights that recognize this segment from the others incorporate the accompanying: Plan and Manufacturing Low Capital Intensity as the vast majority of items in FMCG requires generally little interest in plan, hardware and other settled resources. Fundamental innovation required for assembling is effectively accessible. Outsider assembling is normal and the advantages incorporate creation and stock arranging adaptability, adaptability in controlling work expenses and coordinations. Showcasing and Distribution High Initial Launch Cost with colossal interest in item advancement, statistical surveying, test promoting and dispatch. Making mindfulness for another brand requires gigantic starting use. Immense Distribution Network as India has a great many retail outlets the nation over making the coordinations capacities troublesome for some players. Rivalry Market is swarmed with numerous chaotic players. Nearness of numerous sloppy players and very skilled MNCs gives savage rivalry in the market to dispatch numerous new brands. This gives extensive variety of selection of brands for the clients. PORTER'S FIVE COMPETITIVE FORCES: Purchaser POWER: The buyer base of this industry is bigger than some other industry and they have next to zero effect on the cost of the item. The purchaser dependably has awesome selection of brands inside the item class and they can move starting with one then onto the next without much impact. Subsequently, purchaser control isn't exactly solid in this industry. Be that as it may, they have control when they give risk to move starting with one brand then onto the next brand. In FMCG retailers ought to likewise considered for investigation. Retailers can simply choose which brand to stock and shoppers don't indicate much enthusiasm to pause in the event that one brand of decision isn't accessible. So retailers can simply settle on decision amongst brands and they have more purchaser control than buyers. Provider POWER: Provider control is pretty much nothing or restricted in the FMCG business. The business dependably has awesome number of providers with extraordinary size. There won't be any uniqueness in the item or administration of providers and the producer can simply move from one provider to other provider. However maker faces some measure of provider control because of the cost they need to cause when exchanging providers. Providers who do extensive business with producers are constantly obliged to their clients. Risk OF NEW ENTRANTS: Risk of new contestants is constrained in this industry. The new participants for the most part take into account nearby or little markets adding to the substantial chaotic segment. Crude materials for the vast majority of the sections in FMCG industry can be effectively obtained. The speculation won't be high for apparatus and different resources required for the vast majority of the items in the business. Additionally the fundamental innovation is effectively accessible. These components can make the nearby or little makes to enter effectively in the business. Be that as it may, this industry requires high introductory dispatch cost and appropriation organize is dependably a test. These variables go about as an obstruction for any new participants in the business and for all intents and purposes give low risk of new contestants. Danger OF SUBSTITUTES: The FMCG business bears a high danger of substitutes. The business has numerous composed players with incredible number of nearby produces. The items in the business can simply be imitated and showcased. The business has abnormal state risk of substitutes in country advertise than in the urban. Level OF RIVALRY: The level of competition is high in the business. There are numerous worldwide players alongside neighborhood makers. The business appreciates low client dependability. The clients dependably have wide selection of brands and the exchanging cost is constantly least or irrelevant. There will be just slight distinction in the nature of brands. So the opposition is wild in the business to draw in clients and hold them. Vital gatherings in the business: Among the FMCG organizations in India Hindustan Unilever Limited is most provided food organization to relatively every portion in the business. Its rivals are just taken into account certain sections however HUL faces firm rivalry from all rivals in each portion. The significant organizations of vital gatherings in FMCG industry are Hindustan Unilever Limited, ITC Limited, Nestle India, Emami Limited, Colgate-Palmolive (India) Limited, Dabur India Limited, Procter and Gamble, Godrej Consumer Products Limited and Cadbury India. Worldwide Competition: India is a developing business sector and has turned into a hotspot for some multinational FMCG organizations like HUL, Proctor and Gamble and Nestle. However household organizations like Marico, Dabur and Emami are giving extreme rivalry to them. These organizations advance into normal item classification by offering natural items and figured out how to possess the market. For example, Marico's leader image Parachute Coconut Oil has no outside rivalry. The nearness of universal rivalry is limited to zones of where they can act and classes like normal items did not premium the worldwide players. Industry Threats: The sorted out players in the business are confronting issues high extent of imitative items. The phony items are seen exceptionally in rustic markets and the Indian FMCG area is losing expansive measure of cash because of quality of fakes items. The business is confronting expanding input costs because of increment in cost of the crude materials because of worldwide financial stoppage and potential effect of rising raw petroleum costs Industry Opportunities: The FMCG area is the fourth-biggest division in the Indian economy and has been becoming extensively finished the previous couple of years because of evolving way of life, purchaser inclinations and high discretionary cashflow. The provincial market is as a rule very undiscovered and gives ideal condition to development of the organizations in this area. Assessing HUL STRENGTHS AND WEAKNESS: VRIO Framework of Hindustan Unilever Limited: The estimation of HUL lies in their capacity to offer diverse items and take into account the distinctive portions in the business. The association has global skill and abundance of information to take into account distinctive portions fulfilling the client needs. The association is showing elevated requirements of corporate conduct towards its partners. The organization understands that its workers are the essential wellspring of accomplishment and very much dedicated to their representatives. The association energizes the open correspondence with clients to get criticism and enhance its item offerings. Irregularity: The organization appreciates the upper hand in its hearty production network and conveyance arrange. Despite the fact that the organization assets are not uncommon it appreciates the upper hand in its assets utilized in production network and dispersion arrange. Imitability: The association has profitable and uncommon assets in its production network and appropriation arrange that the contenders did not have taken a toll advantage in mimicking the asset. The social connections involved in assets are unpredictable that the contenders can't without much of a stretch mirror and oversee well. Association: The association structure of HUL with its engaged chiefs over the organization's across the nation activities gives speed and adaptability in basic leadership and execution. The association use its assets for effective administration. The organization understands that its workers are the essential wellspring of progress and all around focused on their representatives. >GET ANSWER