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The German mark, Canadian dollar, Swiss franc, Japanese yen and British pound are examined using futures, forward and spot foreign exchange rate information. An exaggeration of optimal hedging ratios from those currencies is noted from least square regression analysis. Autocorrelation in the residuals of the time series were excluded. The use of autoregressive and Box-Jenkins methods resulted in more precise optimal hedge ratio and reduced risk.

Capital budgeting applies to investments that will yield capital returns over a number of years. Capital budgeting is important to a company when a large cash outlay is involved for long term investment in a project. Marketing decisions are now employing capital budgeting. There are several capital quantitative budgeting alternatives that marketers can choose from. Some guidelines for employing capital budgeting in decision making for long term plans include: setting a low discount rate, employing a sequential procedure, and, employing a mix of methods.

Cycle analysis and traditional technical analysis are two techniques investors use to try to predict outcomes in the market. Cyclical and technical analysis of a price chart should be considered complementary rather than competing. Technical patterns can be analyzed as the length of a cycle changes. Used together the two can become an important tool for the investor.

The role that the discount rate plays in the capital budgeting process for new technological innovations in industrial firms is examined. The difficulties in setting the discount rate are discussed. There is no uniformly optimal solution to creating a discount rate. Even so, tips on how to best set the discount rate are given. Discounted cash flow methods of setting the discount rate are based on sound theory, but care should be taken in their application.