CAGR...

Is there anyone expert in stats??? Need ur help coz my boss just make me confusing...usually i'm using as per below calculation but my boss said that the n should be 19 instead of 20....hermmm....argh...mana satu nih...aci tak lawan cakap boss...haippp

How to Compute Compound Annual Growth Rate – CAGR


By JLP
June 8, 2006

Ricemutt over at Experiments in Finance has written some wonderful posts (here, here, and here) on financial math. It was through her (I think Ricemutt is a “her,” but I’m not positive on that) posts that I discovered the meaning of Compound Annual Growth Rate or CAGR as it is commonly known. Yes, I was aware of CAGR but I never really thought about it much. I didn’t know it at the time that I put my Average vs. Geometric Average post together using an Excel spreadsheet, but CAGR and Geometric Average are the same thing. And, to top it off, I found a formula for calculating them that is MUCH easier than I previously understood. That’s good for all of us!

If you remember from the Average vs. Geometric Average post, the beginning value of the example was $10,000 and at the end of 20 years, the ending value was $95,421.19. To compute the CAGR for this example you use this formula:

CAGR = [(Ending Value ÷ Beginning Value)1/n] – 1

where “n” is the number of time periods (20 years for this example)

Substituting the numbers from the example, the equation looks like this:

CAGR = [($95,421.19 ÷ $10,000)1/20] – 1

CAGR = [9.542119.05] – 1

CAGR = 1.119392 – 1

CAGR = .119392 or 11.94%

That’s the exact same answer we got in the previous post:

GDP vs GNI

What is Difference Between GNI and GDP?


The term Gross National Income (GNI) is widely used against the Gross Domestic Product (GDP) when the government implements Economic Transformation Programme (ETP) since 2010. So, what is the differences between the two terms?

Read this article to find the answer!

Gross Domestic Product (GDP) and Gross National Income (GNI) are the economic terms that are used to measure a nation's income.

Gross Domestic Product (GDP)

GDP is the market value of all final goods and services produced within a country in a given period, e.g: monthly, quarterly or yearly. GDP can be determined in 3 ways--in principle, should give the same result. They are the product approach, the income approach, and the expenditure approach. The expenditure approach works on the principle that all of the product must be bought by somebody, therefore the value of the total product must be equal to people's total expenditures.

Gross Domestic Product (GDP) is comprised of three components, there are:

GDP =Personal Consumption (C) + Private Investment (I) + Government Expenditures (G) + Net Exports (Exports-Imports)

Gross National Income (GNI)

GNI comprises the total value produced within a country (i.e. its GDP, together with its income received from other countries (basically interest and dividends ), less similar payments made to other countries.The GNI consists of the personal consumption expenditures (C), private investment, government expenditures (G), net income received from other countries, and exports of goods and services, after deducting imports of goods and services.

In a formula term:

GNI = GDP + (Income received from other countries less Income payments to other countries)

For example, the profits of a Malaysian-owned company operating in Indonesia will count towards Malaysia GNI and Indonesia GDP, but will not count towards Indonesia GNI or Malaysia GDP.

What is the main difference between Gross Domestic Product (GDP) and Gross National Income (GNI)?

One of the main differences between GDP and GDI, is that the GDP is based on location, while GNI is based on ownership. It can also be said that GDP is the value produced within a country’s borders, whereas the GNI is the value produced by all the citizens.

Since Economic Transformation Programme (ETP) deals with the foreign investment in Malaysia and the Malaysian investment abroad, it is meaningful to use GNI instead of GDP to measure the achievement of ETP in relation to achieve high-income nation.  The keyword here is "income".

(Note: This is a simplified article for the general readers to understand the basic concept of GDP and GNI.)

source: http://www.malaysian-economy.com/2011/03/what-is-difference-between-gni-and-gdp.html

FDI terms!

Just for my own note...suka lupa beza antara dua terms nih...nampaknya terms2 nih kena copy masuk sini la...senang nak review bila lupa...

 FDI Flows


For associates and subsidiaries, FDI flows consist of the net sales of shares and loans (including non-cash acquisitions made against equipment, manufacturing rights, etc.) to the parent company plus the parent firm´s share of the affiliate´s reinvested earnings plus total net intra-company loans (short- and long-term) provided by the parent company.

For branches, FDI flows consist of the increase in reinvested earnings plus the net increase in funds received from the foreign direct investor.

FDI flows with a negative sign (reverse flows) indicate that at least one of the components in the above definition is negative and not offset by positive amounts of the remaining components.

 FDI Stock

For associate and subsidiary enterprises, it is the value of the share of their capital and reserves (including retained profits) attributable to the parent enterprise (this is equal to total assets minus total liabilities), plus the net indebtedness of the associate or subsidiary to the parent firm. For branches, it is the value of fixed assets and the value of current assets and investments, excluding amounts due from the parent, less liabilities to third parties.

FDI has three components:


- equity capital;
- reinvested earnings, the investor's share of earning not distributed as dividends by affiliates, in proportion to its share in the equity (say for instance 50% in a certain joint venture);
- intra-company loans, when the investor borrows funds to the affiliate, usually without the intention of asking the money back.(bleh jd bila ada transactions between a parent co and its affiliates)

To better understand their defining characteristics, you should consider that FDI are flows of capital that share the following features:

- they are long-term (in contrast to portfolio investment in bonds and in short-term speculation in shares);
- they give rise to a property right on the asset built or bought (in contrast to foreign aid).

However, FDI is quite heterogeneous and one should distinguish several kinds, e.g. by looking at the following factors:

a. whether the activity in the host country is just an intermediate phase in a longer production chain or it gives rise to a finished good;
b. the production phase performed in the host country (design, manufacture, distribution);
c. where the outcome of the process in the host coutry will be sold (there or abroad).