HAMILTONIAN AMERICA.EMIGRATION.chapter 3.page 2

"Why?"

"Because they rely on one crop.The Sugar cane crop like the Irish potato America today would have been like the rest of the Islands today had it not been from this simple but complex and uncommon foresight.The idea for diversification of the American economy was weaned during the formative period.Beekman left the company and was renamed Korthright and Cruger .It brokered foodstuffs and dry goods sometimes handle large cargo shipment much more perishables like slaves.They were chained and suffocated with stench of foul effluvia miles away imported from Gold coast in Africa.When he started work at the island of St.Croix slave population had doubled and a sign that considerable part of the company revenue came from slave trade and slave trafficking.He had first hand knowledge of inhumanity of man to man and witnessed brutal execution of slaves either by decapitation or hanging at Christiansvaern ."

"Hanging and decapitation!"

"Yeah beheading heads cut off."

"Jesus".

"If a run away slave returns within three months a foot is cut off .Or if a slave raises his hand against a white his hand is cut off."

"Oh my God!"

"That's a childplay boy!"

"A child play?"

"If he runs away second time the other foot is amputated".

"Oh my goodness! Balderdash!"

"You call it Balderdash but they call it commerce .The blacks paid the ultimate price for the American dream , World Freedom and world Civilization because they were the architect of that popular industrial revolution.They made it possible.Tell something the white had done to merit their enjoyment of world Civilization.Practically nothing.He who lays the foundation and builds on it owns everything.The hated blacks or so called people of color ,had laid the foundation for both the ancient and mordern Civilization.Some recidivists had their

THE COST DETERRENT CAPITAL ASSETS PRICING BUSINESS MODEL(CDCAPBM/MAPMO/CODECAPRIBUM/COAP .part 1

It is sometimes absurd if not a theatre of the absurd to apply Capital assets pricing model to corporate finance and allied methods in the estimation of the cost of equity Capital.It does not provide tangible insight into the market pricing of securities, determination of forecast returns and overall corporate risk management in general.

However to propose a standard theory in robust risk management and the optimal assumption that there is no risk in Business beyond the risk of entry and exit,we should first and foremost attempt the definition and examination of this theory under critique.Before we begin the truth is if model  does not guarantee a robust risk management for total elimination not reduction of risk , whatever benefits diversification brings can by neutralised when risk remainder deters the mainstream Business of the going Concern and does not guarantee it could be neutralised in ever diversified entity with poor Business model and lack of multiple tecnology.We can rely on proven metrics below.

In Capital assets pricing model,the prospects of diversification tends the riskiness of sharetrading in a portfolio of securities.Then it is assumed diversification tend  the risk in business.Therefore by diversifying investment over more than one firms  , the wise investor creates a portfolio of less risky Shares than its two concentrated components in one company.The notion is that in that the notion of concentrated risk elimination is not possible in firm B compared heavily diversified firm A.That Investment in a diversified portfolio is less risky.

The identification of both systematic and non systematic risk besides even investors exposed to diversified portfolio tends to market volatility in the stock performance.How come the justification of risk reduction in a heavily diversified platform.If systematic risk cannot be eradicated it doesn't afford a fact that systematic risk such as the stock market crash of 1987 and similar weird incidents can be eradicated. The best evidence the popular market indices such as the Down Jones ,S&P 500,New York stock exchanges and a host of others despite been themselves diversified portfolios are not spared of harsh bitter market volatility.Take a look at unsystematic risk factors such as the main firm's strategist is killed in auto accident;an uncommon strike declared;low cost competitors enter market;oil is discovered on a firm's newly acquired property.In the case of systematic risk we assume oil companies institute a boycott such as the Iranian revolution in 1979; Congress votes for massive cut on taxes; tight monetary policy by federal Reserves to Spike interest rates.Both forms of risk in their formation are short lived by nature and can be neutralised and eradicated by multiple technology and strengthened by unique Business model.

It is not true that only unsystematic risk can be eradicated simply by holding diversified portfolio to minimize risk.With multiple asset pricing model(MAPMO) or cost deterrent Capital assets pricing model , the risk of being in business is next to zero and that there is no risk.MAPMO provide a convenient measure of business zero risk while CAPM provide a good measure of market risk or systematic risk.Investors no doubt are risk averse and must be compensated for taking risk,a move that is compensated by extra reward that is risk premium.An Investor that invested in one only stock is still exposed to both forms of The measure of CAPM Beta gauges security's return tendency to move in parallel with overall market returns such as S&P 500;in contrast MAPMO's Z gauges the tendency of zero risk security return to move above not in parallel with total Market return or beat actively broad measure of return

Not stocks with a beta> 1 that tends to rise and fall by greater percentage than the market;that also have a high of systematic risk sensitive to market changes.or stocks with b<lwith low systematic risk and less sensitive to Market changes.

Whereas stocks with Z>1 or Z>0 with no systematic risk tends to rise by greater percentage above Market expectations with no crash.