Do Young People Spend Their Time Wisely?

Leisure time can be well spent in many different ways. One popular option among the young is playing video games and watching television. While other activities like sports, social gathering and reading are available to them but many people feel that they spend too much time on these indoor games and screens and prefer them to be more active. To a certain extend I disagree that some of young people today use effectively their leisure time in productive activities. However, I also think that others spend hours on watching television and playing video games. Nowadays, younger generation has greater choices of leisure facilities than previous one. Among such facilities are television and video games. Some social experts and families are concerned about health of teenage on these activities. This is supported by some reports that sitting too long in front of television could lead to problems of eyes and back like watching television and playing computer games have tended to increase recently. On the other hand, some experts believe that some video games can improve their skills and this could help his or her future career like operating doctor or pilot. In addition, watching television keeps young audience inform about what happens around locally as well as globally. That would enhance teenagers' to more opened-minded and encourage them to keep eyes on challenging local and international issues. In conclusion, it’s not really a question of age. Old and young people can choose to use their time wisely or to eliminate. I hopefully we all can make choices that benefit in the long run even more or less. However, encouragement from parents and community may help supporting young people to spend their free time wisely rather than wasting their time on watching too much television and also playing games.

Community Health Partnerships Essay

Community: Social groups of any size whose members reside in a specific locality, share government, and often have a common cultural and historical heritage. A social, religious, occupational, or other group sharing common characteristics or interest and perceived or perceiving itself as distinct in some respect from the larger society within which it exist ( Stanhope & Lancaster, 2012). Community Health: Refers to the health status of a defined group of people, or community, and the actions and conditions that protect and improve the health of the community. Those individuals who make up a community live in a somewhat localized area under the same general regulations, norms, values, and organizations. For example, the health status of the people living in a particular town, and the actions taken to protect and improve the health of these residents would constitute community health (Green & Ottoson, 1999). ). Community Health is the meeting of collective needs by identifying problems and managing behaviors within the community itself and between the community and the larger society (Stanhope & Lancaster, 2012). Community as Client: The concept of community as client is based on the assumption that community nursing practice is â€Å"community oriented,† seeking â€Å"healthful change for the whole community. The community is a client only when the nursing focus is on the collective of common good of the population instead of on individual health (Stanhope & Lancaster, 2012). Community Health Partnerships: defines as voluntary collaborations of diverse community organizations, which have joined forces in order to pursue a shared interest in improving community health. Community Health Partnerships differ from traditional community organizations in their mix of public and private members and they diverge from grass roots organizations with their inclusion of multiple constituents and stakeholders. (McKenzie & Smeltzer, 1997) Lay community members have a vested interest in the success of efforts to improve the health of their community. Lay community members who are recognized as community leaders also possess credibility and skills that health professionals lack. Therefore, successful strategies for improving  community health must include community partnerships as the basic means, or key, for improvement (Stanhope & Lancaster, 2012). Overall impression of participating family’s community and environment is an inner suburb of New York City named Hackensack, New Jersey, a city in Bergan County, New Jersey. Located 12 miles north west of Midtown Manhattan and about seven miles from the George Washington Bridge, from a number of locations, you can see the New York City skyline. The Metropolitan campus of Fairleigh Dickinson University borders the Hackensack River. The city is known for a great diversity of neighborhoods and land uses existing in very close proximity of each other. Within its borders are a massive medical center, a trendy high-rise district about a mile long, classic suburban neighborhoods of single family homes, stately older homes on acre-plus lots, older two –family neighborhoods, large garden apartments complexes, industrial areas, the Bergan Count Jail, a tidal river, and Hackensack River County Park. Cultural Diversity and Vulnerable Populations present in the Community: The racial make-up of the city was White, African American, Native American, Asian, Pacific Islanders, Hispanic or Latino. My participating family consists of an African American woman C.R. 68 years young whose family lineage is African American and Dutch, shares a lovely suburban two- family home with her daughter K. R. who is 48 years young and her life partner S. M. who is thirty nine years young and a native of the British Virgin Islands. It is my understanding from the family that same sex households are most certainly part of the community as well as interracial couples. The home is very nicely decorated, well-kept and the grounds are well manicured. The fact that the younger ladies are a same sex couple makes them part of a vulnerable population. I asked â€Å"if there were any prejudice or pressure they feel from the neighborhood regarding their lifestyle†? They both responded there is no pressure or prejudice put upon them. I must mention the time I have begun to spend with them, talking and observing their behaviors with one another, I have to say,† there is more love between the two of them than some heterosexual couples have in their little finger for each other† and they are not embarrassed by their life style nor do they hide who they are. They are both beautiful people inside and out. Aspects of the Community that could affect residents’ health: The  factor in the community that could affect health is the fact that there are many industrial areas surrounding the communities. The chemicals, fumes, and gases that ar e put into the air of the community and inhaled by all potentially could be of danger to the community. The County Jail and the potential of escaped criminals pose a threat to the community; Flooding is a potential threat during hurricanes and storms. Reproductive and Sexual Health of Lesbian, Gay, Bisexual, and Transgender Health is relevant to the community in that the goal is to maintain and improve health and well-being. LGBT individuals encompass all races and ethnicities, religions, and social classes. Eliminating health disparities and enhancing efforts to improve health are necessary to ensure that LGBT individuals can lead long healthy lives (healthy 2020), REFERENCES: Green, L.W., Ottoson, J. M. (1999). Community and Population Health, (8th ed.) Boston: WCB/McGraw-Hill McKenzie, J. F., Smeltzer, J.L. (1997). Planning, Implementing and Evaluating Health Promotion Programs: A Primer; (2nd ed.), Boston: Allyn & Bacon. Stanhope, M., Lancaster, J. (2008) (8th ed,). Population-Centered Health Care in the Community. St. Louis, MO. http://www.healthypeople.gov/2020/topics

Mexican War and the Spanish American War Essay

Both the Mexican War and the Spanish War were a result of unfair treatment against weaker nations. The origins of the Mexican War lay with the United States and its expansionistic policies. Most Americans believed they had a divine right to bring their culture among others, because they were superior. This belief was put forth by Manifest Destiny, which had been circulating around the United States for a long time. The ignorance possessed by the Americans show no courtesy toward the Mexicans. Under the administration of President Polk, America adopted an aggressive expansion policy that often ignored many inferior countries. In 1492, it was Spain whom sailed across the Ocean and colonized the Amerindian nations of the Western Hemisphere. At its greatest extent, the empire that resulted from this exploration extended from Virginia on the eastern coast of the United States south to Tierra del Fuego at the tip of South America excluding Brazil and westward to California and Alaska. The ambitious United States paid no attention to Spain and aggressively sought more territory and influence in Cuba, the Philippines, and Puerto Rico. The war started when the United States declared war on Spain after the sinking of an American vessel (Battleship Main) in Havana harbor on February 15, 1898. They war ended on December 10, 1898 after the unfair Treaty of Paris, in which Spain lost all of its overseas possessions including Cuba, Puerto Rico, the Philippine Islands, Guam, and many others. Both the Mexican War and the Spanish American War were a direct result in the abusive ways of superior power and influence. Manifest Destiny was more encouraged when Polk became President. He was elected president because of his strong support in bringing Oregon and Texas into the Union. President Polk was clearly the antagonist when he sent troops under General Zachary Taylor into land that Mexico held sovereignty, sparking a war. Polk now drafted a message to Congress: Mexico had â€Å"passed the boundary of the United States, had invaded our territory and shed American blood on American soil.† Whether the Mexicans had fired the first shot or the Americans, whether the armies were on Mexican territory or American territory, Polk got his war. Despite the plea of innocence, Mexico cannot escape blame for the war. Mexico never had a strong centralized government to negotiate with a foreign state. Mexico was never even  successful in governing themselves for the time being. Mexico was on the verge of bankruptcy and their army was inadequately trained and equipped. The country was awash with political turmoil throughout the war, indeed, throughout the century, making it near impossible for them to ever conduct a sound defense of the country. Nevertheless, the United States, as a superior nation under Polk’s Presidency assumed an aggressive war like attitude toward Mexico without consideration of the Mexican stance. The conflict between the Spanish and Americans grew dramatically when General Valeriano Weyler began implementing a policy of Reconcentration that moved the population into central locations guarded by Spanish troops and placed the entire country of Cuba under martial law in February 1896. The American government was once again looking to exploit their defenseless neighbors and gain more influence in the countries. The main targets were Cuba, Puerto Rico, and the Philippines. Cuba was the first to initiate its own struggle for independence from Spain. America, being the closest superior power intervened in Cuba’s affairs. The Philippines were also growing intolerable to Spanish rule, and the United States took interest in the Philippines. Following its declaration of war against Spain issued on April 25, 1898, the United States added the Teller Amendment asserting that it would not attempt to exercise hegemony over Cuba. Under Commodore George Dewy at the Battle of Manila Bay on May 1st, the Spanish fleet under Rear Admiral Patricio Montojo was destroyed. The most disrespect followed the signing of the Treaty of Paris when Spain lost all of its overseas possessions. The superior powers, such as the United States, are always looking to profit themselves. During the Mexican war and the Spanish-American War, the dominance and ethnocentric ideals that America held flourished in many un-called-for, disrespectful disputes. The aggressive stance the troops held under Zachary Taylor under the orders of President Polk did not give room for negotiation. If the United States did not get what they wanted, they would insist by force, not by allowing the inferior nation in their eyes to make suggestions that regard their country and dignity. Both the Mexican War and the Spanish-American War resulted because of the unfair and unjust treatment that the United States held in their so-called foreign policy. Hispanic Division Library of Congress http://lcweb.loc.gov/rr/hispanic/1898/intro.html A People A Nation 6th Edition The Mexican American War Memorial Homepage -from UMAN The Mexican American War Memorial Homepage -from UMAN Hispanic Division Library of Congress http://lcweb.loc.gov/rr/hispanic/1898/intro.html Hispanic Division Library of Congress http://lcweb.loc.gov/rr/hispanic/1898/intro.html

Health Care Interface Design Essay

This paper is mainly discussing about the user interface design problems faced by the healthcare professionals in the healthcare industry with the applications in their handheld devices that assist them in dealing with daily routine work. The authors attempt to identify and address the key problems from the previous researches. To tackle these issues, a mobile user interface (UI) framework is reviewed as the basis for discussion and suggestion for improving future interface design for healthcare. The discussion also includes case study on the interface design of an existing medical applications available on iPhone as the example of evaluation. 1 Introduction In the dynamic healthcare industry, healthcare professionals are expected to be highly mobile, ready and on-the-go. Accessing instant medical information at work is required almost all the time. Instead of carrying bulky laptops around the workplace, most healthcare professionals are carrying with them handheld devices of either the Personal Digital Assistants (PDAs) or smart phone nowadays. The applications commonly used by the healthcare professionals are those that enable them to have access to patients’ information, drugs information and administrative functions (Honeybourne et al, 2006). In order to keep them competent at workplace, usability of the mobile application is of vital important in ensuring that information can be retrieved by the healthcare professionals instantly at all conditions. In view of this, the objective of this paper is to understand the difficulties faced by this group of people with their mobile application and to provide insightful solutions to th ese problems in the context of user interface design. 2 Healthcare Interface Design Healthcare interface design is one of the important aspects many researchers are focusing on over the past decades. It is increasingly supported by multiple technologies including human computer interaction and media interactive design to improve the efficiency and quality. Generally, IT has the potential to provide healthcare professionals with faster access to patient information mainly by electronic healthcare records (EHCR) and medical knowledge resources (Volsko, 2004). These functions are normally associated with the use of stationary computers but also available on mobile technology such as personal digital assistants (PDAs), which can be used in a more flexible way than the stationary computers. A PDA is a small handheld computer popular for calendar and note functions (Lundby, 2002) but nowadays, PDAs are also employed in various medical applications, as well as in business and education environments (Volsko, 2004). A PDA allows large volumes of updated information to be stored in the pocket. It is the substitution or complement to laptops because it works as efficiently as a wireless mobile device that implies reading and computing data including images in a hospital environment. With connection to a computer it allows regular backups, data transfer and software downloads (Huffstutler, Wyatt & Wright, 2002). Different healthcare professionals have used the PDA to a various extent for different tasks, such as accessing patient records, writing prescriptions, billing, performing medical computations, e-mail, accessing the internet and medical textbooks (Miller, Beattie & Butt, 2003). 3 Problem Statements Although the latest PDAs and handheld mobile devices have increasing capabilities in getting information, there are still several issues affecting the user’s ability to access and use the information. Based on the studies by other researchers, the key issues are identified and addressed as follows: 3.1 Only Part of Screen is used to Show Information. Several studies done by researchers, who involved in healthcare PDA interface design, found that most of the healthcare professionals are not happy with the interface when it comes to display of information. Internet-based information or database information is usually delivered though web browsers of PDA. If only part of the screen is used to display information, users are unable to view the full information. Typically, the medical information is delivered inside one display window on the handheld device. Only part of the information is seen as it squeezed with other elements, for example, navigation buttons, menu, and etc. to fit into the window. Most of the browsers in the computer are able to switch to full screen display and this function enable users to hide the unwanted toolbars temporary while increasing screen space for information display. However, this was not available on the browser of handheld device. 3.2 Scrolling is Not Good Design for Healthcare Interface Design On top of that, research shows that most of the users do not like the scrolling button. Especially for users of healthcare information, they all agreed with the suggestion that scrolling should be avoided or at least minimized. In some interface design researches (e.g. Albers & Kim, 2001); researchers propose dragging the content presented on a screen as another solution for this problem. But this way has been proved that users are still not comfortable in other studies. As mentioned in previous research papers, healthcare information in the PDA devices should be able to use visualization and interactivity and minimize amount of text as much as possible on a screen. Scrolling is obviously not function for this purpose. Usually, information of healthcare for learning is better to be designed in the way of representation, so that the information can be delivered only in one screen. Lots of experiences feedback has shown t hat large amounts of information can be organized and effectively presented in this way. 3.3 Switching between Portrait and Landscape Mode Switching between portrait and landscape mode is functionality that traditionally has been available as tailored functionality in specific applications, where the developers have found it useful. At least on the PocketPC platform, using only landscape mode as an alternative to portrait used to be quite common in games, but applications supporting both have been rare – at least for the application as such, it is more common for special features like showing a picture in full screen mode. During the last years, switching between landscape and portrait has become standard functionality in the operating system of most platforms (including Windows Mobile, Symbian S60v3 and v5, iPhone/iPod Touch ) and all included applications support the switching. Also, some devices supporting these platforms use landscape mode as standard when the built-in HW keyboard is used. This facilitates having a larger keyboard than models using platforms only offering portrait mode. 3.4 Handheld Devices is Harmful to Eyesight In the recent reports, users are concern with their handheld devices will have harmful impact to their eyesight, if users use the devices to search complex information, e.g. patient historic data, frequently and in long time. A recent article in the Wall Street Journal (Spencer, 2006) stated that the impact of a small screen device might have serious impact on an individual’s eyesight. In this article, author described a case study, which can be used to prove that a person who uses PDA devices would be affected especially in eyesight. 3.5 Lack of Short Contacts and Task Centeredness A healthcare handheld device usually assists and supports a user in his or her activities, e.g., searching patient information, scheduling time for doctors, looking for relevant medicine information and so on. Most of handheld devices for healthcare do not provide the function, which is to plan user’s tasks simultaneously. The short contact with device is useful and usually short in terms of time (e.g., reviewing the tasks and timetables, computing the amount of medicine, viewing the professional introduction from remote doctors, or making a personal note). Considering this useful function, many healthcare interface users demand to have this way, which is provided short contacts and task centeredness in a simple action on a small screen. Healthcare information plays a significant role, which is supplements for user’s intelligence and supports their needs of rapid and convenience information retrieval way using the functions of the device at hand. Portability ensures dat abases or information is always available to access and provides support at anytime and anywhere whenever needed. 3.6 Lack of Rapid Interaction One of the healthcare interface design purpose is the information and database materials should be provided through visualization and interactivity and the devices can deliver all necessary information with a single screen. Some interactive elements are necessary, for example, hot-spots and button. Those elements would be integrated in a learning object should provide immediate feedback to the learner. Rapid interactions, such as moving a button, should result in immediate updates on the screen according to a user’s action. This is useful for healthcare information users, as they would change elements frequently but they don’t have enough time to modify every single element, which is affected by this change. Other alternative is the ability for customization services or functions for design interactive method to communicate with their handheld devices. They want to move or redesign the buttons, arrows and sliders depending on their needs. 4 Mobile User Interface Design In this section, the mobile user interface design guideline that has been identified will be addressed accordingly. The guideline that has been selected will be used in the subsequent section to resolve the common problems faced by the healthcare professionals with their current mobile applications (Zafar, 2009). 4.1 Learnability The mobile device should provide easy and simple interface for users when they firstly use the application. To define simple interface is where the application should only provide limited functions in the application to allow users to achieve the goal easily. Complex system will require users to explore and study each features provided in the application will eventually turn the users off. 4.2 Efficiency Efficiency in this context refers to the number of steps that required for user to accomplish the goal. Key task should be as direct as possible, key features are preferable to be available on the first page when the application is launched without wasting unnecessary time. 4.3 Memorability The user interface should be easy to use every time the users interact with the application. With simple and easy interface, user has higher tendency to use the application repeatedly, as memorability is related to the frequency of the users utilize the application. 4.4 Error Recovery Ideally, a perfect interface shall not allow mistakes, but in reality that there is always bug and errors for the applications. Therefore, application should be able to recovery from the error and return to the latest operation that has performed by the user to reduce data loss and damage to increase the confident of the users towards the application. 4.5 Simplicity Although the interface design should be easy and simple for all the usual task, nevertheless less common task need to be possible as well to provide a complete solution for the users. However, unnecessary functions should be avoided to reduce complexity. Lastly, visual design and layout should be uncluttered to attract users for re-using it. 4.6 Mapping The expectation of users towards the application is very important, the application should provide feedback and return result base on the action made by the users. As each feature / function should map the expectation of the users. 4.7 Visibility In term of the visibility perspective, important information should be visible at the application, while less important information can be display in the features or to be selected if necessary to reduce complexity of the interface at the glance for the users. But ultimately, understanding the users goal is crucial as that will determine the information / contents to be displayed in the main screen when the application is launched. 4.8 Feedback Being able to prompt appropriate feedback to the users so that users will be aware that the application is executing the action is important. By providing proper feedback, users will not tend to repeat the command or waiting if the application is running. 4.9 Consistency By satisfying users’ expectations towards the application, likewise functions should be displayed and acted in the consistent and systematic way across the application. There should not be many changes when users select each features of the application. 4.10 Satisfaction Ultimately, overall satisfaction of the users towards the application is the keynote. An application is successful if it is used repeatedly with good feedback from users and users are comfortable with each features provided in the application.

Persuasive speech Essay Example | Topics and Well Written Essays - 250 words - 5

Persuasive speech - Essay Example People going to public places such as hotels or even some schools face the wrath of isolation. They are regarded as strangers or even terrorists and are stared at surprisingly. 2- Fear of physical harm. People opposed to wearing of hijabs have always assaulted girls wearing the hijabs in different countries such as France and other public places such as schools. They are always suspected to be hiding something behind their hijabs (Elawawadh Web). As a result of assault and discrimination, many girls have opted out of Islam and joined other religions or secular world. They fear the level of discrimination driven towards people wearing hijabs (â€Å"BBC News† Web). - Media has played a huge role in escalating challenges affecting people wearing hijabs. Through the media, such as social media and the television or newspaper, people around the world have been made to understand that terrorists are Muslims. The fear of interacting or rather mixing with Muslims has led to the isolation and physical abuse of people wearing hijabs (Elawawadh Web). Girls wearing hijabs do not have the knowledge on why they should wear the hijabs. They do not understand the benefits or even the meaning of wearing the hijabs (Asser Web). The knowledge should also be spread among people who discriminate against people wearing hijabs. They should understand that it is won for a good cause (Vyver Web). 2- Proper institutions and legal framework should be put in place to protect girls wearing hijab (Syed Web). Schools and other public places need to protect people wearing hijabs by introducing stern measures to punish any form of discrimination or physical assault. 3- Media should act as the number one messenger that promotes hijab wearing among Muslim girls (â€Å"BBC News† Web). They should bring in Muslim sheiks and clerics as well as leaders who support girls wearing hijabs. Wearing hijab is a command from Allah and it plays a major role in maintaining integrity and

Letter of Intent Personal Statement Example | Topics and Well Written Essays - 250 words

Letter of Intent - Personal Statement Example One of the most meaningful experiences to me was internship in Cairo Microsoft Innovation Center (CMIC). I have also participated in Imagine Cup 09 in Cairo hosted by Microsoft. This experience can serve as a proof of my professional skills and abilities. In my home country, I have worked on autonomous systems development projects, specifically, on Unmanned Aerial Vehicles (UAV) for 15 months. Moreover, I have enough experience in collecting requirements, designing, implementing, and testing different software applications. I also have a good knowledge of some key programming languages, such as, c++, java, and JSP. As a highly motivated person that enjoys working hard and achieving intended results I really want to be the part of this program since it will open a new opportunities towards international work experience. I am grateful in advance for thorough consideration and hope for the call for

Sustainble business Essay Example | Topics and Well Written Essays - 500 words

Sustainble business - Essay Example Social, economic, and environmental issues caused by businesses have prompted firms to act against the negative impacts of their operations (Folke & Gunderson, 2010). In essence, businesses are increasingly embracing green operations and/or strategies. The idea of sustainability is to ensure that business decisions account for the welfare of the entire society. In this respect, businesses are developing green products, employing sustainability-driven production mechanisms, or promoting environmentally friendly means of doing business. The ultimate objective is to shift from traditional competition practices to contemporary and greener modes of business within a highly competitive setting. The theory of sustainable business is subject to the influence of four major pillars, namely: economics, ecology, social science, and evolution (Holling, 2000). These pillars inform the completeness of sustainable business theories. The economic factor is critical in explaining both business and social welfare in the society. Business operations that negate the economic welfare of the masses fail to account for sustainable business practices. Drawing from principles of economics, sustainable business has to be financially viable and most importantly fit for future generations. Ecology and sustainable business connect based on maintaining, conserving, and protecting dynamic systems that define environmental relationships. Ecological systems host diverse and dynamic species, all of which compete with one another in many different ways. In this respect, sustainable business cannot afford to destroy ecological relationships that define people-nature interactions. Moreover, social science and evolution also play a central role as far as sustainable business is concerned. The interaction of people and nature crates many different developments that subsequently result in evolutionary processes (Penfield, 2008). For example,

Pilosophy of Community Policing Essay Example | Topics and Well Written Essays - 500 words

Pilosophy of Community Policing - Essay Example The notions of team work and leadership management are those to be learnt by the police of today and future (Trojanowicz & Bucqueroux, 2004). Community policing officers are â€Å"to be particularly thoughtful, creative problem solvers†, and preferably to be of the local residents (Carter 1997). After you’ve got the people you need, it is necessary to provide training, fair working conditions, permanent evaluation, appraisals, professional development, and always be ready for changes. Community policing requires unique strategies and decision in each locality, ability to build strong and lasting relations, based on co-operation and trust. It is a long-term, on-going, iterative process, demanding constant attention and flexibility. This all requires funding and governmental support. These features and requirements of the philosophy make it not that easy to implement the community policing everywhere and simultaneously. 2. Brock University Campus Security Services (2007) describes five generally accepted and interrelated components of Community policing, including: Enforcement, Continuous learning, Community development, Security Service re-engineering, Community/Security partnerships. Enforcement is an active component responding to the safety concerns. Each platoon is responsible for the community involvement into objectives determining and enforcement priorities. Continuous Learning is an imperative for both the police of all ranks and community members. It is key for revealing the commitment to the philosophy. Community Development suggests the full partnership of community and police in developing crime prevention program and public education, development of communication and cooperation. Security Service Re-engineering presupposes on-going, iterative, adaptable strategy in developing programs addressing the needs of the community. Community/Security Partnerships means â€Å"a full and equal partnership and meaningful dialogue with internal and

The economic consequences of the abolition of the Second Bank of the Essay

The economic consequences of the abolition of the Second Bank of the United States - Essay Example In 1837, the bank failed to renew its charter after Nicholas Biddle, the bank’s president, clashed with Andrew Jackson’s administration thereby leading to the liquidation of the bank in 1838 (Wilentz, 2008). Although proponents of the abolition of the Second Bank of the United States argued that the bank was responsible for inflation and was only improving the fortunes of an elite few, it played a number of critical roles with the primary responsibility being the main fiscal agent for the federal government thereby assisting in the stabilization of the economy and property values. For example, being the exclusive fiscal agent of the Federal government, BUS assumed a number of important economic roles some of which included holding and transferring all the U.S payments, deposits and receipts of nearly every government transaction as well as processing of tax payments. In this regard, the BUS was the exclusive depository of the Federal government, a role which made it the principal customer and stockholder. As a result, the abolition of the Second Bank of the United States in 1836 resulted in a diverse number of economic consequences some of which included inflation, increased national de bt, unemployment among other. This paper critically analyzes the various economic consequences of the abolition of the Second Bank of the United States in 1836. One of the immediate economic impacts of the shutdown of the second Bank of the United States was the loss of savings and investments. This was particularly attributed to the fact that the bank maintained the exchequer account where the federal government deposited its revenue for use by its agencies. Dowd, K, Hutchinson, M. (2010, 70) suggests that the Second Bank of the United States acted as the federal government banker. More importantly, the bank managed the accounts for departments and government ministries as well as Individual investors held both saving and liquid accounts. These accounts held a large

The Impacts Of Music In Learning English Essay Example | Topics and Well Written Essays - 2250 words

The Impacts Of Music In Learning English - Essay Example The variety of the forms of music means that not all forms of music can perform a specific function in the lives of human beings. The variety of the forms of music means that each form of music may be suitable for a specific form of task. For instance, there are love songs, blues, reggae as well as raga. Others include the pop, rap as well as gospel music. It is critical to note that different forms of music are always suitable for the work set up. These include such songs as smooth reggae, raga as well as pop songs. This paper is going to discuss some of the reasons to support the fact that using music to teach English is likely to make students learn English faster and show improved performance as well as good scores. In short, the paper is going to explore the impacts of music in learning English. In connection with the above, it is of crucial significance to note that music can also play significant roles in the education sector. The use of music in the education sector to teach students certain subjects may be associated with the increased performance of students (Alipour, 34). However, not all the students taught using music must show positive results. A fraction of the students may get absorbed into the music that they fail to understand the role of music in their lesson. A number of students may fail to understand that the music introduced during some lessons is geared towards ensuring that they understand the concepts of the subject being taught in an in-depth manner. However, on the other hand, the use of music in teaching the students may lead to a greater proportion of such students depicting better results. It is of critical significance to note that the use of music to help in teaching students English as a foreign language may lead to the improved and enhanced performance of those students in English (Alipour, 48).

Special needs in Forensic Mental Health-Women Essay

Special needs in Forensic Mental Health-Women - Essay Example It is interesting that the social worker sees her as "innocent" and that she feels that the drug and alcohol abuse has contributed to her being able to interact with her children. Although this may be true, there is another issue that should be addressed that include her fear of abandonment and anti-social behaviour. This behaviour, along with her ambivalence towards her children could be an indication of an attachment injury that she received during the sexual abuse. Sue would not have been able to attach well to her parents because her father was bipolar and her mother suffered from chronic depression. Her parents history of mental illness would also mean that her parents were unable to bond with her or take care of even her basic needs. From the case study, the counsellor cannot ascertain whether Sue is mentally ill or whether the drugs and alcohol are responsible for her behaviour. She may be mentally impaired since her IQ results are within "borderline range of intellectual functioning," She could have mental retardation either intellectually or environmentally. Sue was raised by a depressed mother and a bipolar father. This indicates that her needs probably were not met as a child and that her home life was very erratic, so attachment may have happened but not in a very positive way. According to Sorbello, Eccleston, Ward & Jones (2002), female offenders who have been abused or neglected have a "higher rate of psychological dysfunction than men" (p. 200). For Sue, this is shown through her need for alcohol and drugs. Although the case study does not specifically comment on whether Sue is bipolar or suffering from depression, her drug and alcohol problems could be triggered by episodes of depression. This would be something that the mental health practitioner should examine. Because Sue was sexually abused as a child, this issue must be

Aggregate demand and aggregate supply Essay Example | Topics and Well Written Essays - 750 words

Aggregate demand and aggregate supply - Essay Example Boyes, Melvin & Boyes (2008) stated that the value of real GDP is determined at the point where aggregate demand and aggregate supply curves intersect each others. From the above example of aggregate demand and supply curves of Evergreen Land, both aggregate demand and aggregate supply curves intersect at the price level of 100, and this equilibrium point determines the value of real GDP. Since equilibrium is the point where the value of real GDP is determined, a shift in either the aggregate demand or aggregate supply curves leads to a change in the real GDP values. Answer: Aggregate supply curve shows the level of real domestic outputs that firms produce at various price levels. Aggregate supply curve is short run is upward sloping, but is downward sloping in the long run. Long run aggregate curve, as depicted above, will be a vertical line at the full employment output because the wages and other input prices in the long-run increase and decrease to match changes in the price levels. Answer: A decrease in the price level is very likely to cause an increase in aggregate demands in the short run. According to Keynesian multiplier effect, this should in turn impact the aggregate demand to cause a further increase. An increase in the aggregate demand for goods or services due to various factors such as government policy or wealth factors or international factors can as a result shift the aggregate demand curve horizontally to the right (Kennedy, 2000). When there is an increase in the aggregate demand, it causes the price level and real GDP to move in the same direction because of increased spending or higher investments of governments. It also means that more and more quantities of national output will be demanded at any given price levels. The increase in aggregate demand thus shifts the aggregate demand curve to the right side. The short-run equilibrium level of real output and the price levels are determined by the point where both

Lupus Research Paper Example | Topics and Well Written Essays - 1500 words

Lupus - Research Paper Example Lupus is a complex autoimmune disorder affecting numerous bodily systems (Bernknopf, Rowley, & Bailey, 2011). The disease can manifest in clusters of symptoms that have been described as specific syndromes (Zandman-Goddard, Solomon, Rosman, Peeva, & Shoenfeld, 2012). Although there is no cure for the disease, the symptoms caused by lupus can be treated with medications (Bernkopf et al., 2011). There may be an environmentally imposed aspect of the disease in some patients that develop lupus (Zandman-Goddard et al., 2012). Knowing the cause of a disease can increase our ability to understand and therefore treat the disease. Unfortunately, this is not possible with lupus. The exact cause of lupus is unknown, and while it is posited that there may be a genetic factor involved, no specific gene related to lupus has been identified (Lupus Foundation of America, 2012). Individuals with family members who have lupus or another autoimmune disorder are more likely to develop lupus, and twin studies show increased likelihood of developing lupus in one twin when the other has it (Lupus Foundation of America, 2012). Certain ethnic backgrounds demonstrate a greater frequency of lupus, including African, Native American, Asian, Hispanic/Latino, Native Hawaiian, and Pacific Island ethnicities (Lupus Foundation of America, 2012). Although anyone can get the disease, research shows that lupus appears in these populations more frequently than in others. The environmental aspect of lupus is related to the disease’s initial appearance, as well as the flare-ups the disease causes. For the disease to surface or flare up, there is exposure to some environmental catalyst that sets off a disease process (Lupus Foundation of America, 2012). ... It is also believed that the hormone estrogen is implicated in lupus, as the symptoms of the disease often first manifest during pregnancy or childbirth and can flare up with the menstrual cycle (Lupus Foundation of America, 2012). Despite the identification of these common factors in the backgrounds of individuals who develop lupus, science has yet to pinpoint a cause or cure for the disease. Anyone can get lupus and it does not appear to manifest more in any geographic location than another (Lupus Foundation of America, 2012). Scientists do not believe the disease is caused by anything in the diet of the sufferer, and cannot definitively state whether pollution could play a role (Lupus Foundation of America, 2012). Some studies have linked lupus with cigarette smoking, vitamin D deficiency, and vaccines, but have still been unable to attribute cause to any one of these (Zandman-Goddard et al., 2012). According to the present epidemiological data available on the disease, systemic l upus erythematosus usually appears in adult women aged twenty to forty years (Bernknopf et al., 2011). Its prevalence ranges from 14.6 to 68 cases per 100,000 population (Bernknopf et al., 2011). It appears in African American women as many as three to four times as frequently as in Caucasian women (Bernknopf et al., 2011). Only 15-20% of lupus cases are diagnosed during childhood (Livingston, Bonner, & Pope, 2011). There are a variety of symptoms that a person with lupus may describe during their first bout of lupus. Fever, fatigue, and weight loss are common complaints (Bernknopf et al., 2011). The symptoms of lupus can also appear on the skin in the form of a rash or in the mouth as an

Term paper Essay Example | Topics and Well Written Essays - 1750 words - 2

Term paper - Essay Example In addition, industrial hazards vary depending on the nature of the work environment and outcomes of work performed. Industrial hazards include fire and explosion, biologic hazards, ionizing radiation, heat stress, chemical exposure, electrical hazards, oxygen deficiency, noise, safety hazards, and cold exposure. These hazards among other incidents or situations in the contemporary industrial sector require the skill of an industrial hygienist. Furthermore, events such as the anthrax scares, terrorist attacks, and the potential use of â€Å"dirty bombs† enhance the importance for the awareness on the principles of industrial hygiene. The framework or main principles of industrial hygiene and toxicology include recognition, anticipation, control, and evaluation of workplace hazards. As such, an industrial hygienist must take into consideration these principles to ensure safety and health in the workplace. This paper will discuss ionizing radiation, a physical agent in industria l work environment. It will also discuss its effects on exposure, control, principles, and regulations. Ionizing radiation constitutes particles that hold sufficient energy to free an electron from a molecule or atom, thus ionizing it. This radiation is produced through nuclear reactions, natural or artificial, and by extremely high temperature. Ionizing radiation is also generated through high-energy particle production using particle accelerators, nuclear decay, or charged particles acceleration through electromagnetic fields created by innate processes such as supernova explosions and lighting (Wilson para.10). As such, natural sources of ionizing radiation include the supernova explosions, lightning, the sun, and artificial sources that include x-ray tubes, particle accelerators and nuclear reactors. Ionizing radiations includes x-rays, gamma, beta, alpha, and cosmic rays. There are three harmful radiation emitted by radioactive materials, which

Parent Education and Learning at Home Essay Example | Topics and Well Written Essays - 3000 words

Parent Education and Learning at Home - Essay Example The essay "Parent Education and Learning at Home" talks about the ways and the sources very helpful for parents who feel they need assistance getting down to their children, especially when helping them out in doing their homework since most parents want to help, but don’t know the right way to do it. Parents play the most important role in the education of their children, even more than the teacher, or the teacher can only teach, but a parent helps a child sink it in. For a child, only knowing that the parents are concerned is enough to boost his morale and to motivate him to work harder. According to a research, children whose parents are interested in their studies, work several times better than those whose parents are not. The best possible way for a parent to show concern in the child’s education is to take interest in and help the child do his homework since homework is an essential part of education done away from the supervision of the teacher at home. If a par ent concentrates on the child’s performance, the child is likely to do much better than he would without. A question that may arise to minds of many parents would be that why should they help when they send their children to good schools, and that if they ultimately have to do so, what the teachers are for. A simple answer to this question is that a teacher can only teach a student but a parent shapes a child’s mind. No matter how less time a child spends with his parents, it is the time he values and remembers the most. and the things they do together are integrated in his mind much more deeply. So if parents show concern and take interest in their child's education, it gives them motivation and encouragement to put in more effort n waste less time. It also makes them feel good and more attracted towards education and remember what they have studied for a longer period of time. How to help For the parents who feel confused about how and from where to start and how to get helping their children, this essay might prove to be a guide regarding how to interact and deal with them. Following are some of the numerous steps that can be followed in this regard: Set a regular time and place: Setting a regular time and place helps finish the assignments on or before the deadline and makes it a compulsion to study. If a child knows that he/she ultimately has to study during a certain time, he/she is less likely to get distracted due to thoughts of watching television, calling up a friend, playing outdoors or any other activity in this regard during the specific time. Considering setting the time, it might completely vary from family to family and child to child. Some children might do well in the afternoon after school, while some children might shine in the evening or before going to bed. The parent should decide the time according to the child's capabilities and interests. As far as the place is concerned, a fixed study area motivates to study and creates a healthy environment. A table in the room or a corner of the

Action Plan Assignment Example | Topics and Well Written Essays - 2250 words

Action Plan - Assignment Example This feedback is gathered by healthcare organisations in rigorous and systematic fashion. The information obtained is accurately made to improve on the complaints that are raised (Cabana, 2004). The study will, therefore, provide analysis and a discussion of the data provided to measure the clinical care outcome anomalies. As a result, it will provide a proposal for all the possible causes and formulate an action plan that will address these gaps. The main objective of a patient experience feedback is to deploy patient stories to boost health services. These services are therefore designed in such a way that they ensure that patients receive the best quality care. As a result, the services are focussed on the needs of the patients in opposition to the preferences and needs of the health service provider (Jha, Orav, Zheng, 2008). At the end of the day, the mode of delivery is improved in such a manner that it ultimately enhances the patient experience. Methods such as the reduction of patient delays in service queues, the flow and quality of health services and improvement in access to important fields of the health services are used just to name a few (Berwick, 2009). Patients are interviewed to obtain the much-required information directly. Some companies deploy satisfaction surveys that have obtained much fame in the past decade (Rathert, Huddleston and Pak, 2011). Programs such as partnering with patients are developed on a daily basis to assist clinicians who are led by a motive to provide excellent healthcare to their patients. This model does pay attention to the relationships that clinicians develop with their patients, and those that carers develop with families as they are all partners in a health service delivery system (Coulter, 2011). Patient experience is recognised as a member of the pillars supporting quality in health care. Its compatriots include patient safety and clinical effectiveness.

Triangulation in Geometry Research Paper Example | Topics and Well Written Essays - 3000 words

Triangulation in Geometry - Research Paper Example More specifically, it can be defined as the underlying space of a simplicial complex. Here, a polyhedron can be viewed as an intersection of halfspaces (Webster 1994). Then, a convex polytope may be defined as the convex hull of a finite set of points (which are always bounded), or as a bounded intersection of a finite set of half-spaces (Webster 1994). More specifically, it can be defined as a finite region of -dimensional space enclosed by a finite number of hyperplanes. The part of the polytope that lies in one of the bounding hyperplanes is called a cell (Weisstein 2002). Simplex is the generalization of a tetrahedral region of space to -D. The boundary of a -simplex has -faces (vertices), -faces (edges), and -faces, where is a binomial coefficient. The simplex named because it represents the simplest possible polytope in any given space (Weisstein 2002). Simplicial complex is a space with a triangulation. Formally, a simplicial complex in is a collection of simplices in such that: (i) every face of a simplex of is in , and (ii) the intersection of any two simplices of is a face of each of them (Munkres 1993). Objects in the space made up of only the simplices in the triangulation of the space are called simplicial subcomplexes (Weisstein 2002). Usually, surface is a -D submanifold of -D Euclidean space. More generally, surface is an -D submanifold of an -D manifold, or in general, any codimension-1 subobject in an object like a Banach space or an infinitedimensional manifold. A surface with a finite number of triangles in its triangulation is called compact surface (Weisstein 2002). Genus is a topologically invariant property of a surface defined as the largest number of nonintersecting simple closed curves that can be drawn on the surface without separating it. In fact, it is the number of holes in a surface (Weisstein 2002). The geometric genus of a surface is related to the Euler characteristic by . Our final key definition is for Betti numbers. Betti numbers are topological objects which were proved to be invariants by Poincar, and used by him to extend the polyhedral formula to higher dimensional spaces. Informally, the Betti number is the maximum number of cuts that can be made without dividing a surface into two separate pieces. Formally, the -th Betti number is the rank of the -th homology group of a topological space (Griffiths 1976; Weisstein 2002). 2. Euler's theorem Euler's theorem states relation between the number of vertices , edges , and faces of a simply connected (i.e., genus ) polyhedron () or polygon (), i.e. it states the polyhedral formula . Initial Euler's proof of the polyhedral formula is not irreproachable (Cromwell 1999). This proof is based on the principle that polyhedrons can be truncated. Euler's proof begins with a polyhedron consisting of a large number of vertice

Strategy and organizational learning Essay Example | Topics and Well Written Essays - 3000 words

Strategy and organizational learning - Essay Example Flow of information, knowledge, technology and capital has transcended geographic and national boundaries due to globalization. With such fast, easy and fluid flow of information, knowledge and technology the major asset of an organization has become knowledge and not production. Rate of an organizations ability to learn and adapt is considered to be the only real source of competitive advantage. How organizations can become a learning organization? Does individual learning and social learning has any relationship with organizational learning? What is the difference between an organization that learns and a learning organization? Is it just mastery of words or there is some substance in it? This paper aims at answering all these questions with the help of theory and its critical analysis along with the examples from the business world. Emergence of Knowledge/ Learning Organizations Charles Darwin said â€Å"It is not the strongest of the species who survive, nor the most intelligent ; as a matter of fact, it is the ones who are the most agile to change†. The same point stands valid for organizations too. The organization who wishes to remain relevant and thrive in the long run, learning better and faster is the solution or the technology. Learning is not only the key to success but perhaps vital for survival for today’s organizations. For this purpose organizations must strive to enrich knowledge through continuous internal and external learning. A learning organization is one that encourages and values learning and realizes the role learning can play in enhancing organizational effectiveness. This attitude and importance of learning is reflected in the vision of the organization and a learning strategy that supports the inspiring vision for learning. Building a Learning Organization A learning organization depends on a lot of internal and external factors. External environment includes economy, society, polity and technology. The subsystem of lear ning organization includes organization, people, knowledge and technology. Each subsystem not only interacts with each but also support for learning to permeate all across the organization. The importance of learning is communicated by leaders. An effective communication system is developed to avoid the development of silos and ensure smooth lateral flow of knowledge across structural boundaries. Both planned and emergent learning needs are emphasized. For building effective learning organization following steps must be taken, strategy development, collaboration mechanism, knowledge sharing and learning, management techniques and knowledge capture and storage (Serrat, 2009). Social Complexity and Organizational Learning Organizational learning is a very complex social phenomenon. Emergent and fluid nature of organizational learning makes it more complex. The two most important determinants of complexity science are schemas of diversity and interaction interdependence. Presence of bo th in learning organizations makes it a complex. Tensions within and between internal and exte

Financial Management Essay Example | Topics and Well Written Essays - 1000 words - 2

Financial Management - Essay Example The discussion will further analyze two strategies of how multinational corporations attempt to maximize profits by utilizing increased demand. New York Stock Exchange (NYSE) NYSE is a tech stock company located in Wall Street in district of lower Manhattan New York. According to 2013 indices the stock market is by far the largest stock market in the world. The market is a result of Buttonwood Agreement of 1792. The exchange is renowned for its survival in the aftermath of World War I, 1929 economic depression and 1945 World War II. However, as this discussion will attempt to establish, the exchange is primarily responsible for cause of the great depression and other similar unethical economic acts. Some of these unethical economic acts are cancellation of companies from trading due to algorithm issues. Market technicians will create a complex algorithm status to make it harder for the common trader to trade. In particular, the Exelon case, a utility company was a direct depict of th is malpractices. The software is altered to ensure that some significant amount of loss is registered on every trade. National Association of Securities Dealers Automated Quotations (NASDAQ) NASDAQ seconds NYSE in terms of size and trade. The company was founded in 1971 and its operated by NASDAQ OMX group. NASDAQ was the first computerized electronic market, and as a result, traders enjoyed NASDAQ platform which was characterized with bid price and ask price of the stock market. In this case, the introduction of electronic system successfully over powered over-the-counter (OTC) system of trading, which was considered as ineffective. The company also introduced the online platform. Again, the introduction of Small Order Execution System (SOES) provided a market platform to beat the prevailing order of phone call automation. However, NASDAQ has with time attempted to manipulate the market demand to boost its profits. This discussion will present the Facebook initial IPO has vivid cas e presentation. Analyze how they attempted to make a profit after the crash and discuss any unethical practices. The economic mood of after recession is characterized with panic, fear resulting to low investments and trading rates. In this event, trading companies will attempt to present to the trader a poor market performance offering a â€Å"do not trade advice†. Many investors will attempt to withdraw their accounts, due to panic, in the process prices will instantly fall. Declined prices are as a result of manipulation will spiral back negatively to the market leading to a further declined prices. The general question rotates on the ability of markets and thoughts of ordinary people. After economic crash, companies resiliently try to bounce to the market with thoughts of capital reformation process (Ingerbrestsen, 2002). For instance, the JPMorgan Chase Bank behavior is totally based on unethical criminal act. Again, after the crash, NYSE and NASDAQ often allow traders to pick given prices without negotiation. This give and take situation is based on market dictatorship of prices. In most cases, these prices are underpriced up to 15% less or even more. Thirdly, the application of de-regulation tendencies on a high frequency trading is an outright move to ensure that there are overwhelming amounts of capital are not used. This is a direct move to

Rising of Oil Prices Essay Example | Topics and Well Written Essays - 750 words

Rising of Oil Prices - Essay Example On the one hand, the western world led by the United States as the world’s largest consumer of energy, has been practicing geo-political policies that would ensure control and supply of this vital natural resource; on the other, the realization of the value of this near monopoly resource by the world’s leading oil producers has upset the supply, demand and price equation in a most significant manner. This conflict of interest has resulted in what we are witnessing today: cartelization of the oil industry, soaring oil prices, weakening the dollar, rising inflation and worst of all, war/threat of further wars in West Asia - the major oil-producing region of the world. At USD 110 per barrel, there are ominous signs of not just in the US but a serious worldwide economic downturn.  In the West Asian region, Saudi Arabia, Iran, Iraq, and the Gulf countries are among the world’s largest oil producers. The US, UK, and other European oil corporations were controlling th e oil exploration and refining industry here and setting the price of this vital commodity. The growing economies of the western countries and Japan needed ever-increasing volumes of the oil products, which had to be imported mainly from the Gulf region. The Arab-Israel conflict and the formation of the oil cartel – Organization of Petroleum Exporting Countries (OPEC), led to the first oil price shock. In the words of Meyer et al., â€Å"†¦possession of a monopoly resource by OPEC countries †¦a rising tide of nationalist self-awareness, old resentment at exploitation †¦would force renegotiation of the terms on which petroleum was to be made available†¦ The  outbreak of the Yom Kippur war in 1973 and the subsequent oil embargo led to a quadrupling of the oil prices† (Meyer et al., p.6). The days of cheap oil were over once and for all, although the later fluctuations in the prices were generally in tune with the increased availability of non-OPEC s upplies, the occasional breakdown of cartel arrangement, supply/demand situation etc. For example during 1982 – ’83, oil prices fell by 15% (Meyer et al., p.95) due to a decrease in US demand. Disruption of supplies due to the recent militant events in Nigeria, Africa’s largest oil producer, has also impacted oil prices (Shanmugam & Singh). Similarly, Russia’s stranglehold on supplies of oil and gas to east European nations dictates the energy prices.

Individual Gathering and Evaluating Information Essay Example for Free

Individual Gathering and Evaluating Information Essay List the APA reference citation for the source. Determine the credibility of the source. Consider the following criteria: What is the purpose and affiliation of the organization or author related to the article? What are the author’s credentials? Is the information current? When was the information last updated? Does the information cross-reference with other sources? Does the source contain bias without evidence to support the claim? Explain in at least two to four sentences what information you can gather from this source. Source (formatted consistent with APA guidelines)What makes the source credible or noncredible? What information can you gather from this source? Curfman, G. D., Morrissey, S., Drazen, J. M. (2013). Affirmative action in the balance. The New England Journal of Medicine, 368(1), 73-4. Retrieved from http://search.proquest.com/docview/1266235513?accountid=458 What impact the outcome may play on school admissions. Hu, H. (2012). Debate over affirmative action in college admissions continues. Diverse Issues in Higher Education, 29(19), 8. Retrieved from http://search.proquest.com/docview/1117362730?accountid=458 This article has been peer reviewed for credibility.Another perspective of Fisher vs. University of Texas. The role NACAC plays in admissions to schools. Julia S. Jordan-Zachery, Richard Seltzer, Responses to affirmative action: Is there a question order affect?, The Social Science Journal, Volume 49, Issue 2, June 2012, Pages 119-126, ISSN 0362-3319, http://dx.doi.org/10.1016/j.soscij.2011.08.012. (http://www.sciencedirect.com/science/article/pii/S0362331911001169) This article has been peer reviewed for credibility.This source will be used to show the public’s response of Affirmative Action, and its varying degrees. This source also has great experimental results that can be incorporated. Fullinwider, Robert, Affirmative Action, The Stanford Encyclopedia of Philosophy (Winter 2011 Edition), Edward N. Zalta (ed.), http://plato.stanford.edu/archives/win2011/entries/affirmative-action/ This source is from the Stanford Encyclopedia of Philosophy.This source will be utilized for various information since it covers many topics. This source will also be used to explain the beginning of affirmative action. American Association for Affirmative Action. (2013, July). American Association for Affirmative Action. Retrieved from American Association for Affirmative Action: www.affirmativeaction.org The American Association for Affirmative Action is the association of professionals managing affirmative action, equal opportunity, diversity and other human resource programs.This source will be used to explain AAAA and its role in Affirmative Action. Illustrate any current legislative cases that may be happening. †¢What strategies did you use to gather reliable information for your research paper? Affirmative action has many policies about race, color, religion, and/or sex. In essence affirmative action is equal opportunity, not only in a work environment but also admissions. Looking at search results gave way to sub topics. In order to write a streamlined paper a subtopic will be the focus of this paper. The subtopic will need to be relevant and current. When having a relevant and current topic, there must me multiple credible sources to back up the information on that topic. Searching through the University of Phoenix Library yielded many positive results on the topic of Fisher vs. the University of Texas. This outcome of this case could change the course of affirmative action when it comes to admission into school. This is a historical case of today’s time, similar to many landmark cases from the civil rights movements of the 1960’s. The sources that are to be used will be from peer reviewed articles or websites that are the authority on this topic. †¢What other strategies might you use? Provide a rationale for your choices. Other strategies that will be used through this paper will include a devil’s advocate approach. When talking about affirmative action there are two groups, those in favor and those against. The goal of this essay is to explain the reasons behind both groups’ arguments and allow the reader to make their own decision. All information will be relevant data. The question that will need to be answered â€Å"is affirmative action still needed today?† By illustrating both viewpoints the reader should have enough base information to research more. Once they have research more on their own they will be able to formulate an answer. This essay will give the reader a start of materials to research, and may have those asking questions never before thought of. The word count associated with this essay does not allow the author to get too far into detail on such a vast topic.

To what extent does prejudice affect Essay Example for Free

To what extent does prejudice affect Essay Prejudice and Racism are very closely related to each other in our society. To stereotype someone is when we apply a series of traits to them based on one trait that resembles their identity in a particular group. Some examples to stereotyping would be Asians are hardworking and studious, black people steal a lot, and many others. This very closely relates with the definition of prejudice. Prejudice is a preconceived opinion that is not based on reason or actual experience. Most of the people who judge people on their particular culture using stereotypes do not actually have an experience of seeing or experiencing that particular stereotype. They are basing it off of knowledge they have received or came across from other people. Very few actually have experiences of encountering the stereotypical character of a certain group and use their experience to conceive and judge the people of that certain group. We tend to categorize ourselves in different groups whether it is through cultural differences, race differences, or difference in interest. Why do people who have prejudices tend to stereotype? These people tend to divide people into different categories of â€Å"them†. They classify these people as different. Although grouping ourselves is a nature of human kind, groups of different goals, interest, race or culture tend to prejudice using stereotypes of other groups. Is it impossible for us to reduce social prejudice? Prejudice and stereotyping will always exist in parallel with these things. Instead of trying to totally get rid of prejudice and stereotyping, it is more progressive and effective to try reducing it. Given that our world is diverse and multi ethnic, it is important to understand ways to reduce social prejudice. An approach about prejudice was made by Sherif in 1966 who believed that prejudice arises out of conflict between two groups however they do not automatically lead to prejudice, but depends on the situation and relationship involved among the groups. Sheriff also claimed that prejudice can be often seen when two groups want to achieve the same goal but only one can have it, causing them to be hostile and abusive against each other. This is the Realistic Conflict Theory. Sherif conducted a study to prove this theory and this was know as the ‘Robber’s Cave’ Study. This accurately displayed how competition and conflict between two groups can cause negative stereotyping and aggressive manners towards the out-group. Another example of Sheriff’s claim would be the study done by Dollard (1938) who found out that prejudice against German immigrant increased slowly in the US towns, as jobs were harder to get. This research study proves Sherif’s claim of prejudice being built on depending on the situation and relationship between the two groups. In this case the Germans and U. S citizens had a sense of competition over jobs, leading them to have a rivalry relationship and ultimately causing prejudice against each other. ( AS Psychology). Agreeing, but also opposing to this Tajfel (1971) argued that competition is not a likely condition for group-to-group conflict. He does not completely disagree about competition being one of the reasons for prejudice among groups, but more strongly argues that the existence of an opposing group itself produces prejudice among the groups. He also argued that in-group favoritism was present in groups and called all of these behaviors the Social Identity Theory. An example of favoritism explained in the Social Identity Theory is that two opposing groups, Man U and Liverpool would more likely help people wearing the same color uniforms if they are injured – Levine et al (2005). ( AS Psychology) In the 1950’s, American psychologist Gordon Willard Allport introduced the Intergroup-contact hypothesis. The intergroup –Contact Hypothesis considered of one having the opportunity to communicate with others. Through this communication they are able to understand and appreciate different points of views involving their way of life. Alport thought that issues of stereotyping, prejudice, and discrimination commonly occur between rival groups. Alport’s proposal was that properly managed contact between the groups should reduce these problems and lead to better interactions. (Psychology Today) In Robert S. Feldman’s Social Psychology, the book states that prejudice will reduce only under certain conditions. Decades of research by psychologists lead to the discovery of three conditions. The contact needs to occur between people of relatively equal status, the contact must be close and personal; goals that they are seeking must be common goals. Through frequent contact of each other in a relationship where the status is equal, prejudice can be reduced in certain ways. Personal relationships are another key of reducing prejudice in society. By forming personal relationships, people can find out that some of the prejudices and stereotypes they had of a certain group may not be true. But this condition may vary for the opponent may have the stereotypical characteristics of that certain group. Lastly prejudice can be reduced through seeking common goals. As a community, once a goal is set and achieved, the achievements are shared among those inside the community. This develops a form of bonding and grouping within the group as well, making it questionable if this is a true way of getting rid of prejudice and stereotyping since it is creating a new social identity. (Jiskha) In January 3, 2011, a more recent research on how to overcome prejudices was announced by Rodolfo Mendoza- Denton from the University of California, Berkley. Although many of Rodolfo’s ideas were similar to that of the solutions mentioned in Robert S. Feldman’s Social Psycygology, there were some significant concepts that Rodolfo had found out. One of his concepts consists of the common in-group identity model, which shows that humans are able to recategorize themselves according to interests, features, or characteristics that they share. Once they have recategorized themselves, they are more tightly bonded and understand each other within the people inside the group even though they might have been people from two different groups that once were prejudice and hostile to each other. Another major difference from Rodolfo’s solution and Feldman’s solution is that Rodolfo claims that the behavior of humans in a neutral state is critical in the effect of prejudice towards each other. To reduce prejudice among groups, Rodolfo suggested that approaching other groups in a different manner will greatly affect the presence of prejudice in two opposing groups. If approached in a manner of trying to get along, it is hard for prejudice to happen in the contact of the two groups. But by raising awareness of the stereotypes and having a negative view of the opposing group from the beginning, prejudice and stereotyping is likely to be present in this situation. (Greater Good) Work Cited (Psychology Today) Chen Ph. D, Lisa. The Psychology of Prejudice and Racism. Psychology Today . Sussex Publishers, LLC, 24 Jan. 2011. Web. 29 Oct. 2013. http://www. psychologytoday. com/blog/handy-psychology-answers/201101/the-psychology-prejudice-and-racism. (Jiskha) David A. Gershaw, Ph. D. Homework Help: Social Studies: Psychology: Reducing Prejudice. Jiskha Homework Help. David A. Gershaw, Ph. D. , n. d. Web. 29 Oct. 2013. ( AS Psychology) GROSS, R. (1999) Key Studies in Psychology, 3rd Edition. London: Hodder and Stoughton BANYARD, P. AND GRAYSON, A. (2000) Introducing Psychological Research; Seventy Studies that Shape Psychology, 2nd Edition. London: Macmillan (Greater Good) Rodolfo Mendoza-Denton. Greater Good. The Top 10 Strategies for Reducing Prejudice. University of California Berkeley, 3 Jan. 2011. Web. 29 Oct. 2013.

ERP Comparison of Developed and Emerging Markets

ERP Comparison of Developed and Emerging Markets Chapter 1: Introduction 1.1 Research Topic The investment dilemma hits when individuals earn more than their consumption needs. Considering the fast rising inflation globally, saving the surplus earnings for future consumption is not sufficient anymore. Hence, making an investment such that the surplus earnings grow or even multiply over time is almost imperative. Such an investment can be made in many ways for instance commodities, stocks, bonds, pension funds, real estate etc. This study is concerned with individuals investment in stocks. When an individual invests, he/she expects a certain rate of return in the future from the investment which should ideally compensate future consumption needs, future increase in inflation and uncertainty of return if any. Therefore, investments with higher returns are preferred. A number of studies find evidence of stocks giving higher return than government bonds, although the relative uncertainty of return from stocks being much higher than from bonds (Dimson et al, 2002; Ibbotson Senquefield, 1976). Consequently, the more uncertain the future return gets, the riskier it is to invest. Hence, when an individual invests in stocks, he/she expects added compensation for added risk which leads to the concept of Equity Risk Premium (ERP). ERP is the surplus return from stocks/equities over the return from nearly risk-free (here on mentioned as risk-free) asset such as government bonds.It is the premium that individuals demand for bearing the additional risk in equity investments (Reill y Brown, 1999). ERP is calculated using equation-1. Stock returns can be the returns from a benchmark index (market returns) such as FTSE 100 and the returns from risk-free asset (risk-free returns) can be those from UK gilts. (Reilly Brown, 1999) ERP is an important consideration from an investors point of view for building and analysing a domestic equity portfolio or an entire equity market especially for an investor looking to diversify globally (here on mentioned as global investor). Therefore, it is a widely researched topic, however yet the existing literature is inadequate, considering there are numerous debates and puzzles pertaining to various aspects of ERP. Hence, looking at its significance in theoretical practical finance, ERP is chosen as the central topic to be researched in this study. 1.2 Research Background Individuals (retail investors) use ERP to forecast the expected growth of their equity portfolios over long-term and for portfolio allocation decisions. Corporations (here on mentioned as organisations) need ERP as an input to determine the cost of equity i.e. the annual expected rate of return from investment in stocks and for capital budgeting decisions. Overall, ERP is a significant factor in most risk-return models of corporate finance and investment management. Hence, estimating future ERP and identifying possible reasons for the results found, is an important financial and economic research topic for academia and practitioners alike. Although historical data is most popularly used to estimate future ERP, there exist financial, economic asset pricing models developed over the years which predict an implied ERP based on companies, macroeconomic equity market data. Evidence from the relevant literature suggests that every ERP estimation method has a distinct set of assumptions a nd underlying ideas therefore exuding both merits and demerits when compared to another estimation method. Rapid economic growth of emerging countries has been apparent especially because of industrialisation. Consequently the performance of emerging equity markets has been remarkable in the past decade. The big 4 i.e. Brazil, Russia, India China (BRIC) alone, accounted for more than 50% of the world GDP in 2006 (RICS, 2008). Due to saturation in developed countries and growing avenues for investment in those emerging, the ERP of emerging markets has risen due to growing investor confidence. Although perceived social, economic political risks are equally high, financial systems have strengthened and macro-economic conditions have improved drastically for most emerging countries. Barry et al (1997) argues that investing in emerging markets is more than just profitable, considering the risk-return trade-off. Hence, gauging the future of emerging equity markets has become a vital research topic for economists, finance professionals and global investors alike. In a discussion of emerging markets, India cannot be left out. Post liberalisation (i.e. post 1991) India is definitely the secondmost preferred emerging economy by global investors after China. Although Foreign Direct Investment (FDI) flows have been average compared to other emerging countries, Foreign Institutional Investment (FII) flows increased almost 10 times, from United States Dollar (USD) 739million in 2002 to a record USD 7.59billion in 2003. CALPERS, the worlds biggest pension fund with a base of USD 165billion has recently included India in their list of countries for investment (BSE India, 2008). The noteworthy rise to the position of the sixth largest emerging equity market with a total market capitalisation of USD 818billion and 8% p.a. average economic growth (CIA Fact-book, 2008) over past decade accentuates the importance of Indias ERP estimation and analysis. 1.3 Research Gap, Objective Questions Most of the research on ERP has focussed on developed markets clearly because of their sound history and stable fundamentals. Within limited research conducted on ERP in emerging markets, Salomons Grootveld (2003) demonstrate the evident differences in ERPs of developed and emerging markets and claim that global business cycle influences these differences. Claessens (1995) argues through his empirical research that investment in emerging markets can be fruitful in long-term considering that high ERP compensates for high risk. Although these and similar related researches vaguely guide investors wanting to explore emerging markets, there lacks a clear evidence of the possible risks attached and whether those risks can be tackled to earn complete benefit of the high ERP. Bernartzi Thaler (1995) and Campbell Cochrane (1999) claim that the reason for increase in investors interest in U.S. markets was the high ERP it offered. Hence if the same rule is applied to emerging markets then i nvestments should be made without any prior estimation of possible risks, especially considering the success of U.S. markets. However it is not the case, as investors are still sceptical about getting confirmed high returns from emerging markets. Therefore, the precise reasons for the difference in ERPs of developed and emerging markets have not been clearly identified as yet, hence constituting the first research gap. There exists considerable evidence on how political, social and especially macroeconomic factors affect the equity market returns of developed countries, especially U.S. (Chen et al, 1986). Considering the limited work done on ERP of emerging markets on the whole, negligible contribution has been made to analysing ERP in India with respect to its growing economy, Mehra (2006) being the most notable, hence constituting the second research gap. Considering the importance of ERP it is interesting to note that in-spite of there being many ways to calculate ERP; there exists no consensus on the best approach. Financial market analysis is performed based on historical data and the ERP measured from past performance of equity markets is most commonly used as an estimate of future ERP. For instance Ibbotson Sinquefield (1976) exemplified first accurate calculations of annual rate of return on equity investments in U.S. and ERP. Since then, Siegel (1992) Dimson et al (2002) are two of the most notable researches on ERP estimations using the historical method. However, there exist models developed for instance by Fama French (2002) and Arnott Bernstein (2002) that determine future ERP entirely based on forward-looking information through estimation of future investors markets expectations. This variation of approaches to ERP estimation has only widened the range of results and complicated the unresolved debate, hence constitut ing the third research gap. The 3 research gaps identified above lead to the overall Research Objective of this study, which is: Comparative analysis of ERP in the leading developed emerging markets; determine the macroeconomic influence on ERP and examine the ERP estimation methods; all from a global investors point of view. It is not realistically possible to fill the research gaps entirely through this study considering time, knowledge and relevant experience constraints. However, this study aims to fulfil the above objective through the accomplishment of satisfying solutions to the following 3 Research Questions: After estimating future ex-post ERP in the chosen sample index of developed and emerging markets, what is the impact of risk responsible for the differences found through the comparison of their risk-return trade-off? What effect do the country specific macroeconomic factors have on the ERP in India, if any? After estimating future ex-ante ERP in India using a supply-side method and comparing it with the estimated ex-post ERP, what is the most suitable method for global investors, if at all, and why? Research Contribution As this study is predominantly aimed at analysing the ERP of leading emerging markets and particularly India, it is hoped that this study contributes to simplify the decision making of global investors regarding their equity investments in emerging markets India. Furthermore, it is hoped that this study provides guidance to the global investors regarding the macroeconomic situation in India and its influence on the ERP, for sound portfolio management. Moreover, it is hoped that this study adds a small brick to the large edifice of ERP analysis/measurement/estimation on the whole. Finally, if this study motivates the eminent researchers and consequently triggers some ground breaking academic scholarship regarding the ERP of emerging markets, then the worthiness of this study will be truly identified. 1.4 Research Structure The following is the chronology and brief content of the chapters in this study here on: Chapter 2: Literature Review: This chapter aims to explain the historical development of ERP through empirical researches and relevant theoretical background. Furthermore, it examines important research literature on ERP estimation methods and emerging equity markets. Chapter 3: Overview of Research Methodology: This chapter aims to briefly explain the chosen research methodology for this study and justify its appropriateness. It also describes the chosen data collection method and clarifies how the data will be collected used for achieving the research objective. Chapter 4: Data Analysis, Findings Interpretative Analysis: This chapter aims to identify the collected data, explain the data analysis technique/model/method in detail, analyse the data that is collected by using the chosen methods models; and finally, interpret, examine evaluate the results/findings from the analysis to identify justifiable solutions to the research questions. The chapter is divided into 3 parts, each part pertaining to each research question and the procedure is conducted separately for each. Chapter 5: Discussion Conclusion: This chapter aims to summarise the results from chapter 4, recapitulate the entire paper and testifies the level of fulfilment of the research objective. Also, it plausibly links the past literature results from this study to check the level of accomplishment in filling the research gap and to identify the need for future study. Chapter 2: Literature Review 2.1 Chapter Introduction ERP is a vital numerical figure in practical modern finance as it is considered by financial analysts, business managers and economists for the purpose of decision-making; perhaps best testified by Welch (2000, p.501) wherein he calls ERP the single most important number in financial economics. Consequently, it is and has been one of the most fascinating topics for academic scholarship leading to vast amount of literature. This Chapter discusses the various significant perspectives about ERP generated from the literature. The literature reviewed in this chapter is primarily related to the research questions that this paper aims to answer; having said that, other theoretical developments and empirical researches in the field of portfolio management and corporate finance that are significantly relevant to the research topic, are also discussed. Broadly speaking, the content matter in this chapter is organised in chronological order beginning from the earliest. Here on this chapter is divided into 5 sections. The historical advancements in productive assessment of the relationship between equity risk and return resulting from empirical researches which lead to the conceptualisation of ERP is discussed in section-2. The next section-3 highlights the important theoretical developments which laid the foundation for the large edifice of researches on investment management. Section-4 focuses on the models/methods that were formulated based on the theories, with an aim to calculate expected returns and measure estimate ERP. It also looks at the important contemporary researches in the field of ERP with a brief backdrop of macroeconomic factors. The following section-5 highlights the important literature with respect to the ERP Puzzle. It discusses the significant attempts by researchers to solve the puzzle. The next section-6 follows which briefly looks at the important literature on emerging equity markets overall. Finally, section-7 summarises the entire discussion. 2.2 Historical Conceptualisation of ERP The apt risk-return trade-off sought by investors worldwide augmented the importance of ERP evaluation and forecasting. Consequently, vast theoretical empirical research under various objectives has been conducted till date since the early 20thcentury on measuring, estimating and analysing ERP, most of which has concentrated on the developed markets, especially U.S. Furthermore, eminent financial economists have been engaged in empirical analysis of past investment results to gauge future investment strategies. In the late 19th and early 20thcenturies, most economists did not endorse the importance of risk in evaluating and justifying excess returns. The conception of the fact that incremental profit on equity investments is a result of the higher risk attached, was a gradual process. For instance, Clark (1892), professor at university of Columbia, claims that investments in some organisations give higher returns than risk-free rate some other organisations because those organisations have an advantage of monopoly in the market. Furthermore, modernisation and development in technology lead to comparatively higher competitive advantage which in turn gives excess returns. However, renowned author of the book Risk, Uncertainty and Profit, Knight (1921), does not endorse Clarks view but instead criticises him for inadequately exploring the association of risk and return in the models used in his economic research. Knight analyses the importance of risk in equity investments through past performance of U.S. markets and aimed at relating it to the concept of profit in the basic economic theory. He argues that any kind of risk deserves a premium (i.e. excess returns), even if the risk is unquantifiable (which he later termed as uncertainty), although, he could not suggest any solid and foolproof way of measuring the premium that he justified. As a cumulative result, the debate on equity risk and the attached premium flared up which necessitated ground breaking empirical researches based on historical data of past performance. Hence, many scholars developed stock price indices in early 20thcentury in order to measure long-term investment performance and estimate future returns; For instance, Mitchell (1910, 1916), Persons (1916, 1919), Cole Frickey (1928) in the U.S. and Smith Horne (1934) and Bowley et al (1931) in the U.K. However, Hautcoeur et al (2005) in their analyses of early stock market indices; argue that the main motive in development of these indices was forgotten in no time and instead they were used to gauge the influence of macroeconomic cycles on equity markets and as an easier way to estimate macroeconomic fluctuations. The popular index of 30 stocks developed by Charles Dow was never aimed at estimating future long-term returns but instead to measure daily returns on the market. Consequently, the relevance of the returns from risk-free assets like government bonds to comparatively risky equity returns was tested. The difference in their rate magnitude of returns solidified the so far debated idea of returns being a compensation of the risk attached to the investments made. Smith (1924) advocates through empirical research and later through his book that; equities give higher returns than bonds because they carry higher risk. He collected historical data on stock prices, dividends and corporate bonds from the stock exchanges at Boston and New York spanning 1866-1923. Furthermore, he divided this period into 4 sub-periods to recognise the economic development. After creating separate portfolios for each asset class (10 securities in each portfolio), he measured cash income and capital gains from both. Equity investments give higher appreciation and returns than bonds in the long-term in-spite of economic changes in the sub-periods, was his conclusion. Further in his book, he suggested a mechanical way of calculating ERP by paying out the equivalent amount of bond returns from the total equity returns and re-investing the remaining in the same equity portfolio. In this way, the relative growth rate of the equity portfolio is the ERP over the bond portfolio. Smiths estimation and method of ERP calculation attracted many retail investors towards the equity markets in 1920s. Later, Smiths attempt to assess equity investment returns over bonds; was improvised by Cowles (1938). He collected historical data on most of the stocks of NYSE instead of only 10 for the period 1872-1937 and notably created the first nearly-accurate index of total returns from common stock investments. Furthermore, he suggested of re-investing the dividend yields into the equity portfolio to save from measuring cash returns and value appreciation separately, the way Smith did. However, he made no concluding remarks such as equity investments can be more profitable than bonds, unlike Smith. By then, although the idea of an ERP was making financial economic sense, a solid way of estimating future ERP could not be developed yet; the two main reasons being the unavailability of adequate historical equity market data and the ignorance about the possibility of a forward looking method. However later, John Williams (1938) wrote the first book that defined; modelled and estimated forward looking ERP. Although he estimated future ERP in U.S. using Dividend Discount Model (DDM), he argued that ERP estimates based on Historical Method are equally precise. He believed that the most suitable way to calculate the riskiness of a security is by appending a premium to the risk. Later, he also became the first researcher to numerically estimate a forward looking ERP for U.S. By then, the concept of ERP had been clearly understood and its importance had been recognised. Nearing late 1940s economists and researchers had realised the importance of risk and conceptualised ERP as an essential ingredient to calculate future returns on equity investments. Moreover, enough historical data of U.S. equity markets was also available for past performance analyses and empirical researches. Even so, there was no method/measure that could quantify future risk and returns for any given portfolio of investments, as most experts and investors believed in calculating risk-return trade-off individually for equities and other securities. However, that did not serve the purpose of optimal risk-return trade-off as far as entire portfolio of investments was concerned, until 1952 when crucial theoretical developments began. 2.3 Theoretical Developments This section summarises the important theoretical developments which built models to quantify future risk and returns of equities and related vital researches in portfolio investment management and corporate finance, with a backdrop of their implications on ERP. The 4 most important theories/models reviewed in this section are Portfolio Theory, Capital Market Theory, Capital Asset Pricing Model and Arbitrage Pricing Theory. 2.3.1 Markowitzs Portfolio Theory Harry Markowitz (1952) introduced the Portfolio Theory or now what is called the Modern Portfolio Theory (MPT). It provides a formalised method to diversify the portfolio of all investments (not just equity) with an aim to achieve highest possible returns for lowest possible risk. MPT records expected returns, volatility or risk (standard deviation) for each investment and correlation of one investment to another to create the best combination. Therefore, risk is minimised while maintaining the expected returns, if investments are diversified based on the risk of each individual investment. However, Markowitz (1952) assumed that investors are naturally risk averse, i.e. they tend to choose the investment with highest returns for a given level of risk and refrain from investing if risk is higher than acceptable/favourable levels. Hence, by applying MPT, investors can choose less risky and highly risky investments at the same time in such a way that cumulative expected returns are unharmed and optimised. The risk appetite, although, of each investor differs from the other. Therefore, based on the above assumption, Markowitz (1952) believed that depending on the risk appetite, every investor aims at attaining highest possible returns for the level of risk that he/she is ready to bear. In other words, aims to build an Efficient Portfolio. Consequently, all the portfolios, ranging from high-risk to low-risk, which give optimal returns lie on the Efficient Frontier, as termed by Markowitz. Although Markowitzs MPT is still followed by many experts and investors, it also faces criticism on its unreal assumptions. MPTs assumption of volatility with figures of standard deviation or variance of an investment as its risk measurement may not always be true, especially for equities. It speaks about only a single period when actually volatility changes over time. Therefore, even if a portfolio is efficient today, it may be not be the same tomorrow. For instance, in an economic crisis or equity market crash, there is a high possibility of correlation of two assets in an efficient portfolio increasing than average. Malkiel Xu (1997) empirically prove that volatility of stocks increases with an increase in institutional ownership in the organisations. Similarly Campbell (2000) shows results of increased volatility with reduction in number of conglomerates as organisations started to narrow their focus. Lofthouse (2001) criticises MPT on the fact that it bases its calculation of expected returns, volatility and correlation on past historical figures which is inadequate especially when the aim is to build the most efficient portfolio possible. Furthermore, Bernstein (2002) notes that; MPT assumes that there is a possibility that some investments absolutely do not correlate with any of the other investments which is untrue, as each investment at some point in time correlates with one or the other investment in the portfolio. Hence, although MPT model enables investors to optimally gauge the future risk to gain highest possible returns, it is based on idealistic, theoretically decorative and practically unreal assumptions. 2.3.2 Capital Market Theory After MPT was developed, many researchers worked on the most important missing link in MPT, the inclusion of risk-free asset with zero volatility, zero correlation with risky assets and certain future returns. Tobin (1958) was the first to extend Markowitzs Portfolio Theory by introducing risk-free asset to the Efficient Portfolio. Later, Sharpe (1964), Lintner (1965) and Mossin (1966) contributed to his idea as they independently worked on similar theories. The final development is known as Capital Market Theory (CMT). It is important to note that CMT shares 3 assumptions with those made by Markowitz (1952) for MPT, as follows: Investors are always risk averse Investors decisions are solely based on expected returns and their volatility There exist no transaction costs and taxes However following are the new assumptions that CMT makes as extracted from Lofthouse (2001): All the investors have the exact same time-horizon for their investments Borrowing and lending at the risk-free rate is not restricted All the investors have the exact same expectations for correlation, risk and returns CMT states that the volatility for Efficient Portfolios that include risk-free asset; is actually the linear equivalent of volatility (risk) for the portfolios before risk-free asset inclusion. Hence these combined Efficient Portfolios lie on the straight line graph of risk and return, joining the risky and risk-free assets. This way, the optimal combined portfolio i.e. point-M in Figure.2.2, is identified at the tangency point formed by the ray starting from point-F in Figure.2.2 i.e. expected return of risk-free asset and the Efficient Frontier. It is optimal because it gives the highest possible returns for any level of risk. Therefore, it is known as Market Portfolio as it has all risky assets and the ray is known as Capital Market Line (CML). CMT advocates that all the investors should aim to build their portfolios on CML depending on their risk appetite. They could invest in risk-free asset by lending or borrow at risk-free rate to invest in Market Portfolio. Either way their p ortfolios will earn more returns than other portfolios (blue spots in Figure.2.2) on or off the Efficient Frontier, for any given risk (Brealey et al, 2007). Therefore, under the CMT the expected returns of the equity portfolio are calculated by determining the slope of CML which is the change in return for a given change in risk and intercept which is return of risk-free asset (See Equation-2). The risk is measured by the standard deviation (Lofthouse, 2001). The development of CMT was ground-breaking in the field of investment management. It clarified the effect of including risk-free asset in an equity portfolio. It formed the first equation made of ERP, risk and returns, all together. In Equation-2, change in return is market return less the risk-free return which is actually the ERP. However, this estimation of ERP is an empirical deduction (calculated from slope of CML), as early development of CMT by Tobin (1958) was just an extension of MPT. Until it was theoretically formalised by Sharpe (1964), Lintner (1965) and Mossin (1966) independently, which then led to the gradual development of the Capital Asset Pricing Model (CAPM). Hence, the CAPM is usually referenced as SLMs CAPM for Sharpes, Lintners and Mossins equal and vital contributions. 2.3.3 Capital Asset Pricing Model The CAPM is undoubtedly the most widely known model to calculate expected returns. It is a sophisticated improvisation of CMT, which in-turn is an extension of MPT and therefore builds on the relationship/trade-off between risk and returns. It is primarily based on the universal classification of risk into 2 broad categories namely: Systematic: Risk that affects almost all assets equally Unsystematic or Specific: Risk that affects only individual asset or asset class (Sharpe, 1964) The CAPM is developed through the conception of Security Market Line (SML) (See Figure.2.3) which is a ray similar to CML originating from the return of risk-free asset. However, the big difference being that SML represents the linear relationship between risk and return from individual assets and/or inefficient portfolios in respect to market portfolio, unlike CML which only represents efficient portfolios. The risk that is measured is only systematic as it is un-diversifiable and hence rewarded, unlike unsystematic risk. The standardised measure of this systematic risk is called Beta which is covariance of an asset or portfolio with market portfolio divided by variance of market portfolio. Market portfolio has Beta equal to 1. Asset with Beta higher than 1, is riskier than market portfolio and hence higher return is expected. Assets with Beta lower than 1, are less risky with lower return. The expected returns are calculated by adding return on risk-free asset to the product of ERP and systematic market risk borne by the stock (See Equation-3) (Sharpe, 1964), (Lofthouse, 2001). However, the value of Beta for individual stocks of portfolios is not known. It needs to be estimated and is hence subject to errors. Understanding the mechanics and application of the CAPM is imperative to the study of ERP, as the slope of SML i.e. linear relationship between risk (Beta) and return, equals the difference between market returns and risk-free returns which is ERP. The application of the CAPM is extremely vital in the context of ERP measurement methods as it uses ERP as an input to calculate the expected returns on a stock. The empirical studies and relevant literature related to the CAPM and its applicability in ERP estimation methods are discussed in section 2.4.3. 2.3.4 Arbitrage Pricing Theory As seen before, MPT and CMT both assess only the cumulative risk of individual assets and market risk respectively, while calculating expected future returns. Ross (1976) proposed the Arbitrage pricing Theory (APT) based on the perception that the risk of assets and their future returns vary in accordance with the risks affecting the overall economic situation. Ross believed that unsystematic risks can be curbed/nullified through diversification as suggested by MPT CAPM and hence will not affect expected returns. But systematic risks having influence on all assets cannot be diversified and hence can cause fluctuation in the expected returns. Although he did not suggest any particular factors that can trigger the systematic risk, empirical results of Burmeister et al (1997) implied the following 5 factors: Inflation Business cycle Investor confidence Time horizon Market timing APT states that; the sensitivity of assets to the unanticipated instability in the above factors varies due to which one of them can get mispriced therefore creating an arbitrage opportunity. Consequently, by selling the highly-priced asset to buy the low-priced asset, the investor can ensure profit and nearly-perfect pricing of both assets. This arbitrage can be termed as the Risk Premium for that particular factor. However, this profit is expected and not guaranteed unlike usual arbitrage gains. Like MPT and CMT, APT also has some underlying assumptions as follows: No transaction costs Short selling i.e. selling assets that are not owned, is allowed Enough assets to diversify unsystematic risks (Ross, 1976) APT has faced many criticisms on its applicability in calcul