Common Risk Factors In Stock And Bond Returns Fama free essay sample

After the development of the capital asset pricing model (CAMP) in the 1 sass, many empirical tests were developed. The poor performance of the CAMP in explaining realized returns was founded and significant doubts were raised about the beta premium. In Fame and French (1992), various factors were tested (as single explanatory variables and in combinations). The size and book-to-market ratio were found to be the most significant ones for describing returns. These variables were incorporated into the Fame-French three-factor model (FM) which is a modification of the CAMP.The big difference between the two is that the CAMP was derived from market oratorio theory with a huge list of idealized assumptions, whereas FM is a model developed as a modification of the CAMP to better fit the empirical data. Fame and French (1993) argue that anomalies relating to the CAMP are captured by the FM. The model fits two additional risk factors to the CAMP in order to explain the return variations better and cure the anomalies Of the CAMP. We will write a custom essay sample on Common Risk Factors In Stock And Bond Returns Fama or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page They base their model on the fact that average excess portfolio returns are sensible to three factors namely: (i): excess market portfolio return; (ii): the difference between the excess return on a portfolio of small docks and the excess return on a portfolio of big stocks (SMB, small minus big); and (iii) the difference between the excess return on a portfolio of high- book-to-market stocks and the excess return on a portfolio of low-book-to- market stocks (HIM_, high minus low). They formulate their model as: Where E (Ri): Expected rate of portfolio return.Ref: Risk-free rate of return. E (ARM-Ref): Expected rate of excess market portfolio return. E (SMB): Expected value of the SMB. E (HEM): Expected value of the HEM. These significant conclusions were found: Small-caps outperformed large- APS and high-B/M stocks outperformed low-B/M stocks. The explanatory variables in the time-series regressions include the returns on a market portfolio of stocks and mimicking portfolios for the size, book-to-market, and term-structure factors in returns.The returns to be explained are for government bond portfolios in two maturity ranges, corporate bond portfolios in five rating groups, and 25 stock portfolios formed on the basis of size and book-to-market equity. The study uses the same data as Fame and French (1992). Six portfolios are formed from the combinations of these roofs (small/high, small/medium, small/low, big/high, big/medium, big/low). Different time-series regressions were done on each of the 25 size-B/ Importations to compare the explanatory power of the regression of the CAMP against the FM.The result of empirical test is marginal rejection of the FM by the GRASS tests because the size effect did not occur for the low-book/ market portfolios. Fame and French (1996) point out that the model captures many of the variations in the cross-section of average stock returns, and it absorbs most of the anomalies that have plagued the CAMP. In the same study they argue that the empirical success of their model suggests that it is an equilibrium pricing model.However, a number of studies have reported that when the Fame-French model is applied to emerging markets the book- to-market factor retains its explanatory ability but the market value of equity factor performs poorly. This FM still ne eds to be adjusted to better capture the reality, for example, an alternative three factor model that replaces the market value of equity component with a term that acts as a proxy for accounting manipulation.

Our Town Essay Example For Students

Our Town Essay Battered Womens SyndromeIn 1991, Governor William Weld modified parole regulations andpermitted women to seek commutation if they could present evidenceindicating they suffered from battered womens syndrome. A short whilelater, the Governor, citing spousal abuse as his impetus, released seven women convicted of killing their husbands, and the Great and General Court of Massachusetts enacted Mass. Gen. L. ch. 233 23E (1993), which permits the introduction of evidence of abuse in criminal trials. These decisive acts brought the issue of domestic abuse to the publics attention and left many Massachusetts residents, lawyers and judges struggling to define battered womens syndrome. In order to help these individuals define battered womens syndrome, the origins and development of the three primary theories of the syndrome and recommended treatments are outlined below. I. The Classical Theory of Battered Womens Syndrome and its Origins The Diagnostic and Statistical Manual of Mental Disorde rs (DSM-IV), known in the mental health field as the clinicians bible, does not recognize battered womens syndrome as a distinct mental disorder. In fact, Dr. Lenore Walker, the architect of the classical battered womens syndrome theory, notes the syndrome is not an illness, but a theory that draws upon the principles of learned helplessness to explain why some women are unable to leave theirabusers. Therefore, the classical battered womens syndrome theory isbest regarded as an offshoot of the theory of learned helplessness andnot a mental illness that afflicts abused women. The theory of learned helplessness sought to account for the passive behavior subjects exhibited when placed in an uncontrollable environment. In the late 60s and early 70s, Martin Seligman, a famous researcher in the field of psychology, conducted a series of experiments in which dogs were placed in one of two types of cages. In the former cage, henceforth referred to as the shock cage, a bell would sound and t he experimenters would electrify the entire floor seconds later, shocking the dog regardless of location. The latter cage, however, although similar in every other respect to the shock cage, contained a small area where the experimenters could administer no shock. Seligmanobserved that while the dogs in the latter cage learned to run to thenonelectrified area after a series of shocks, the dogs in the shock cage gave up trying to escape, even when placed in the latter cage and shown that escape was possible. Seligman theorized that the dogs initial experience in the uncontrollable shock cage led them to believe that they could not control future events and was responsible for the observed disruptions in behavior and learning. Thus, according to the theory of learned helplessness, a subject placed in an uncontrollable environment will become passive and accept painful stimuli, even though escape is possible and apparent. With the people of Grovers Corners representing this daily ignorance and triviality, the lives of the people who surround me are no exception. Take, for instance, my father, who on most days awakes early to leave for his job, works all day and comes home only to drive my siblings and I around, run errands, go to his side jobs, or fix the house, help us with our homework, stay on top of both our social lives, our moral growth, and our educational careers. Some nights my father will sit down and watch some television for maybe an hour or two, while most he simply doing everything but something for himself. On rare occasion is my father allowed to stop and enjoy life, and savor the moment. Honestly, I would really like to know when the last time was that my father found time to simply admire his and my mothers garden without actually having to tend it. And yet another example is my mother, who does not even have to worry about her job most of the time, for she works once to twice a week , and yet I am sure she has never stopped to admire the earth and its beauty or cherished a time she has spent with her children, except if we are on vacation or at Christmas time. Throughout her days, my mother spends her time worrying about the aesthetics of our house, the worlds current events, her social life, as well as just about every other persons, and our familys day-to-day situations. Most of the time I come home from school, I get not a hello from my mother but an immediate question like, Why isnt your room clean? or a reminder that the lawn needs to be cut. My mother rushes about her days and never stops to admire anything or cherish the little time on earth that she may have with the people around her. It is this preoccupation with unimportant and trivial day-to-day matters that Thornton Wilder is highlighting and condemning in Our Town. He is attempting to display, with Simons comment, the apparent frivolity of people when dealing with the time they have each day. Peop le are ignorant of the preciousness of their time, and tend to spend it on things that do not matter. People also tend to live in and for the future. Wilder is also condemning this and attempting to persuade us to live in and for the present, for we do no know when our precious time will expire. .u6b4b0f19e16d1e59562bbf86c3368b68 , .u6b4b0f19e16d1e59562bbf86c3368b68 .postImageUrl , .u6b4b0f19e16d1e59562bbf86c3368b68 .centered-text-area { min-height: 80px; position: relative; } .u6b4b0f19e16d1e59562bbf86c3368b68 , .u6b4b0f19e16d1e59562bbf86c3368b68:hover , .u6b4b0f19e16d1e59562bbf86c3368b68:visited , .u6b4b0f19e16d1e59562bbf86c3368b68:active { border:0!important; } .u6b4b0f19e16d1e59562bbf86c3368b68 .clearfix:after { content: ""; display: table; clear: both; } .u6b4b0f19e16d1e59562bbf86c3368b68 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u6b4b0f19e16d1e59562bbf86c3368b68:active , .u6b4b0f19e16d1e59562bbf86c3368b68:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u6b4b0f19e16d1e59562bbf86c3368b68 .centered-text-area { width: 100%; position: relative ; } .u6b4b0f19e16d1e59562bbf86c3368b68 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u6b4b0f19e16d1e59562bbf86c3368b68 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u6b4b0f19e16d1e59562bbf86c3368b68 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u6b4b0f19e16d1e59562bbf86c3368b68:hover .ctaButton { background-color: #34495E!important; } .u6b4b0f19e16d1e59562bbf86c3368b68 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u6b4b0f19e16d1e59562bbf86c3368b68 .u6b4b0f19e16d1e59562bbf86c3368b68-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u6b4b0f19e16d1e59562bbf86c3368b68:after { content: ""; display: block; clear: both; } READ: Huxley's View EssayWords/ Pages : 800 / 24

Globalization effect on mechanical engineering in the U.S

Dr. MLK Jr. essays

Dr. MLK Jr. essays Martin Luther King Jr.s Letter from Birmingham Jail, was very persuasive to a wide variety of audiences. Not only did he directly address the writers of the newspaper article, but included fellow African Americans with their struggle to gain acceptance. What makes this letter persuasive, is the amount of examples and situations described by Martin Luther King Jr. King also gains credibility by citing these sources without a history book, using only his own intellect that shows that he is not just your average man. Martin Luther King Jr. directed his letter to the white clergymen of Birmingham, in a response to their newspaper article criticizing him for his actions. At the beginning Martin Luther King Jr. states that he is in Birmingham for three reasons. I along with several members of my staff, am here because I was invited here. I am here because I have organizational ties here. But more basically, I am in Birmingham because injustice is here.(King, Pg.2) King has gone to where injustice is, and he is carrying the word of freedom with him, Just as the prophets of the eighth century BC left their villages and carried their thus saith the lord far beyond the boundaries of their home towns.(King, Pg.2) With that statement he is reaching to the religious part of the clergymen, stating that he is just like the ancient prophets, building his ethos with his audience. Martin Luther King uses historical examples to prove his point, using logos which most intellectuals can understand, and then uses examples for any African American can understand. In paragraph 16, King talks about St. Thomas Aquinas and his definition of an unjust law. Any law that degrades human personality is unjust.(King, Pg.3) In Paragraph 21, In the refusal of Shadrach, Meshach, and Abednego to obey the laws of Nebuchadnezzar, on the grou ...

Cash Flows in Business Organisations Coursework

Cash Flows in Business Organisations - Coursework Example The concept of Net Profit and Net Cash Flow are not the same which often becomes a cause of concern for business owners. The difference in net income and cash flow arises because of the way income statements are prepared. Under the ‘accrual’ method of accounting, net income is calculated subtracting incurred expenses from earned revenues. Further, net revenues include credit sales (not involving immediate cash flows) and expenses include various provisions, deferred payments, depreciation, etc. that does not involve actual movement of cash during current period. In the statement of cash flow, all such accrual concepts are adjusted to net profit and only then operating cash flow is correctly arrived. For instance, consider the financial statements of UAL (shown in Appendix) where the company has incurred net loss of $723 million for the year ending 2012 but from the consolidated statement of cash flows we find that its Net Cash from Operations for the same fiscal was $935 million. This is because the company has charged higher ‘Depreciation & Amortisation’ for capital expenditure that does not involve actual outflow of cash. Thus, the books of account of company may show high/low net profits despite of having much less/high cash on hand. As per the requirements of IAS 7, operating activities involved in a business has to be reported using indirect or direct method. In the former method, profit/loss has to be adjusted after considering the effects of non-cash transactions like deprecation, accruals or deferrals of future or past operating activities. The later method classifies different operating items into gross cash payments and gross cash receipts. Information required for calculating these items are derived from books of account (adjusted sales, cost of sales, etc.). The basic layout of each method is depicted below, The ‘Net Cash from Operations’ in US Airways in 2011 was $472 million

Ethical Argument Choose a topic and argue the ethical side opposite of Essay

Ethical Argument Choose a topic and argue the ethical side opposite of the accepted norm - Essay Example Such could be the results of miscues especially of decisions, which are shadowed by the mists of pride and vested interests and the neglect of some ethical and moral guidelines. War had been a way of life for early civilizations. It was primarily the direct result of segmented societies where communities are tied by tribal concerns of control. The need for survival requires dominance within an area. To have a wider space means an assurance for more resources more security for living. The evolution of societies from early nomads until the present is marred by a lot of small and big wars. We have two major world wars and other big war yet to come, which doomsday seers predicted to cause an end to humanity. Therefore, whether we like it or not, war is an accepted norm. But trends in war have changed from the way it was fought in prehistoric and olden times. The rise of deep concern to human lives created awareness among the government leaders and ordinary persons alike the importance of preservation of life. War has become a form of arrogance and aggression. Wars fought today in the same cause, as thousand years ago is condemnable act. Today, war becomes a means of defense to suppress the interest of those who want to dominate a certain territory without respect for human rights. When the US led a campaign in Kuwait, it was meant to liberate a nation. When US challenge the North Koreans or other nations going into nuclear program, it was intended to warn them of the possible effects in future ambitions of arms development. Since the idea about war has shifted from barbaric acts of territorial grabbing to more of defensive acts the norm shifted to international recognition of human rights. Nations, great or small, share equal right and peoples of d ifferent races, colors, and territory show respect with one another. Many nations joined international organizations to recognize everyone's rights. The 21st century is the turning point of history and witness to the shift from the savage war of the past to humanistic concern of the present and the future. But the declaration of the war on terror after the 9/11 events caused a global war against enemies we don't know. The campaign has caused more casualties of innocent lives, arrests of innocent persons, and branding of several organizations who air grievances against their nations as terrorists. The war was indeed claimed to have been launched to secure the world against terrorists, but it has gone to a point that human rights were already compromised. But terrorism is a big issue and requires some moral judgment to qualify or consider certain acts as a form of terrorism. There are accepted definitions of terrorisms but interpretations differ. As Record stated: The definitional mire that surrounds terrorism stems in large measure from differing perspectives on the moral relationship between objectives sought and means employed. It is easy for the politically satisfied and militarily powerful to pronounce all terrorism evil regardless of circumstance, but, like it or not, those at the other end of the spectrum are bound to see things differently (8). As a result the War on Terror created confusion among the young Americans, who were taught about the morals of war and peace. The moralist consider the "attacks on the World Trade Center and the Pentagon not acts of war but as a species of natural disaster, requiring unstinting generosity towards the

Management of Provision in the Early Years Setting

Management of Provision in the Early Years Setting Introduction: This essay is built on the management case study. I am going to critically analyse the case study using theoretical and research evidence of the management of provision in early years setting. This will provide a critical analysis of the management of provision of the setting in terms of these factors. (a) The manager’s role and responsibilities. (b) Leadership styles. (c) Government early years policies that influence the management of provision. (d) Financial and human resources management. To understand the manager’s role and responsibilities I and my friends in decided to interview a children centre manager. I was asked to make an appointment with the manager. I called the manager and arranged interview time with groups mutual understanding. But unfortunately my mates were not ready to go for the interview. So with my lecturer’s permission I went alone to interview children centre nursery manager. Provide relevant contextual information about the setting where you did the interview, for example is it a school-based early years provision, a private nursery, or Children Centre? Is it in a rural or urban location? Is the area social and ethnically mixed? What ages of children attend? (150 words approx I visited Children Centre in Hackney to interview nursery manager. The purpose of interview was to understand the role and responsibilities of nursery leader or manager in early years setting. The Children Centre is located in Central London under Hackney council authority. The children centre provides health and education services for children and families. The nursery provides the provision for 0-5 years old with the maximum capacity of 75 children. It consists of two baby rooms; both rooms can have 12 children in each room. Also, they have two toddler rooms; large room can have 14 children and small room with capacity of 12 children. The pre-school can have 24 children in the roo m. According to the manager, all rooms are full with maximum number of children and have two years waiting list for baby room and long waiting list for other rooms for children from outside admissions. According to Ofsted report (April 2014) The centre provides outstanding service for children and families and the nursery educators are supporting children to get ready to school and support them to learn numeracy and phonics before starting school. To understand leadership role in the early years setting it is vital to understand the contextual meaning of leadership. According to Northouse (2013, p4) â€Å"leadership have different meanings for different people and there is no common theory about leadership† It is vital to have good management to deliver good provision on children in early years settings. The management or leadership in early years settings should have good knowledge and understanding of early years foundation stage curriculum, governments policy and guidelines, current research and practice and work in partnership with parents, staff and other agencies to provide high quality provision for children. Northouse (2013) suggests that â€Å"leadership needs followers and leaders role to achieve a common goal with followers with a common purpose†. According to Blatchford and Manni (2007, p.1) effective management provides better outcome for children when there are better and warm relationships between practitioners and children. Also children learn better when practitioners use open-ended questions to give chance to children to use their critical thinking and answer with confidence. For effective leadership role, appropriate training is essential to provide good quality of provision for the early years because, leadership role involves multi-professional work. Moyles (2006) suggests that leader and manager have different roles but complement each other. In early years the mangers role is to making sure that the organisation is running smoothly by good planning and coordination. However, the leaders role is to inspire and motivate others for change. The manager and leader both characteristics are important in education field. Therefore, it is more important especially in pre-school age, when manager, leader, parents, and teacher rapidly form relationship. It is vital to examine government’s policy to provide highly qualified and trained workforce as leaders and managers in early years settings and children centres, to provide better care and education for children and excellent working partnership with patents. A good leader always encourages the staff to accomplish set targets or tasks. The tool of supervision is a useful way to support staff by listening to their voices, thoughts, interests and needs. It is essential to unfold government of UK’s policy on early years education. Ang (2012) states that government of UK gives high priority of training and qualification programmes for leadership to work in early years. The workforce and development council (CWDC) introduced Early Years Professional Status (EYP) award in 2007, to all graduates from different sectors to get qualification and training to work as early years professional (EYP). It is nationally accepted standards for professionals to work as a leader in children centres or schools within early years settings. The government of UK have facilitates students with full grant to accomplish the EYP status. Its Managers duty to make sure that nursery is running smoothly on daily basis and provides high quality provision for the children. For example, during my interview with nursery line-manager in Children Centre in Hackney, I asked one part of my question. [Q] ‘How do you ensure the continuing development of staff s strengths and areas of development? [A] â€Å"I use tool of supervision and appraisals to ask staff if they need any support or want to go to any training. Sometimes, I used my initiative to recommend certain training for staff such as my one staff was not confident to deal with children with challenging behaviour so I spoke to her and recommended training ‘Working with Children with Challenging Behaviour’. Also Centre teachers make observations on staff on monthly basis. It’s including outdoor play and small language sessions and literacy sessions. Teachers give comments what they observe and give copy to staff as well to read feedback from teacher and write any comments. During teachers observations if teacher feel that education officer needs support and training to support children, then we send them on relevant training or on next session teacher and the educator take the session together and educator observe the teacher to improve her techniques to run l anguage or literacy sessions. According to staffs strengths they have been designated areas of responsibilities such as staff with creative skills is given creative area and to manage displays in the room†. Rodd (2006,p) suggests that â€Å" the professional support provided through effective supervision helps staff to listen to and accept constructive feedback and learn to reflect upon and critically evaluate their own performance†. The new collation government policy (2013) is emphasis on to provide better child care, by raising the standards and quality and giving parents more choices. The recommendations were set out after ‘Nutbrown report’ was published in 2012.It was commissioned by the government and Cathy Nutbrown was responsible to carried out the research. According to BBC report (2012) on ‘Nutbrown Review’, the report says that early years students have not questioned on competency in literacy and maths. Professor Cathy Nutbrown(2012 ) recommended that â€Å"Well-taught courses and learning routes which lead to reliable qualifications can help early-years practitioners to improve their skills, knowledge and personal qualities, constantly developing in their roles†¦.This can only benefit young children, both in terms of their day-to-day experiences in the Early Years Foundation Stage and future learning outcomes. [Q] What system do you have in place to ensure effective assessment and early years profiling. Do practioners have time away from the children to complete this work? How do you ensure that assessment clearly informs planning for the medium and short term? [A] â€Å"When we recruit new staff , always make sure that candidate have minimum level 3 qualification or diploma in early years care and education and good knowledge of early years foundation stage curriculum with good communication and writing skills to produce well structured assessment and daily observations. All staff is taking one hour time out to do assessments or filling every week. Also every week each room is having time out to have planning meeting for one and half hour to share observations with colleges and plan for target children. During planning staff looked into medium term planning before implement activities for coming week†.