A Beginners Guide to Elasticity Price Elasticity of Demand

Elasticity is a term used a lot in economics to describe the way one thing changes in a given environment in response to another variable that has a changed value. For example, the quantity of a specific product sold each month changes in response to the manufacturer alters the products price.   A more abstract way of putting it that means pretty much the same thing is that elasticity measures the responsiveness (or you could also say the sensitivity) of one variable in a given environment -- again, consider the monthly sales of a patented pharmaceutical  -- to a change in another variable, which in this instance is a change in price. Often, economists speak of a demand curve,  where the relationship between price and demand varies depending upon how much or how little one of the two variables is changed.   Why the Concept is Meaningful Consider another world, not the one we live in, where the relationship between price and demand is always a fixed ratio.  The ratio could be anything but suppose for a moment that you have a product that sells X units every month at a price of Y. In this alternative world whenever you double the price (2Y), sales fall by half (X/2) and whenever you halve the price (Y/2), sales double (2X).   In such a world, thered be no necessity for the concept of elasticity because the relationship between price and quantity is a permanently fixed ratio. While in the real world economists and others deal with demand curves, here if you expressed it as a simple graph youd just have a straight line going upward to the right at a 45-degree angle. Double the price, half the demand; increase it by a quarter and the demand diminishes at the same rate.   As we know, however, that world is not our world. Lets take a look at a specific instance that demonstrates this and  illustrates why the concept of elasticity is meaningful and sometimes vital. Some Examples of Elasticity and Inelasticity Its not surprising when a manufacturer substantially increases a products price, that consumer demand should diminish. Many common items, such as aspirin, are widely available from any number of sources. In such cases, the products maker raises the price at its own risk -- if the price rises even a little, some shoppers might stay loyal to the specific brand -- at one time, Bayer  nearly had a lock on the U.S. aspirin market -- but many more consumers would probably seek the same product from another manufacturer at the lower price. In such instances, the demand for the product is highly elastic and such instances economists note a high  sensitivity of demand. But in other instances, the demand is not elastic at all. Water, for example, is usually supplied in any given municipality by a single quasi-governmental organization, often along with electricity. When something consumers use daily, such as electricity or water,  has a single source, the demand for the product may continue even as the price rises -- basically, because the consumer has no alternative.   Interesting 21st Century Complications Another strange phenomenon in price/demand elasticity in the 21st century has to do with the Internet. The New York Times has noted, for instance, that Amazon often changes prices in ways that are not directly responsive to demand, but rather to the ways consumers order the product -- a product that cost X when initially ordered may be filled at X-plus when reordered, often when the consumer has initiated automatic re-ordering. The actual demand, presumably, hasnt changed, but the price has. Airlines and other travel sites commonly change the price of a product based on an algorithmic estimation of some future demand, not a demand that actually exists when the price is  changed. Some travel sites, USA Today and others have noted, put a cookie on the consumers computer when the consumer  first inquires about the cost of a product; when the consumer checks again, the cookie raises the price, not in response to a general demand for the product, but in response to a single consumers expression of interest.   These situations do not at all invalidate the principle of price  elasticity of demand. If anything, they confirm it, but in interesting and complicated ways.  Ã‚   In summary:   Price/demand elasticity for common products is generally high.Price/demand elasticity where the good has only a single source or a very limited number of sources is typically low.External situations may create rapid changes in the price elasticity of demand for almost any product with low elasticity.Digital capabilities, such as demand pricing on the Internet, can affect price/demand in ways that were unknown in the 20th century. How to Express Elasticity as a Formula Elasticity, as an economics concept, can be applied to many different situations, each with its own variables. In this introductory article, weve briefly surveyed the concept of the  price elasticity of demand. Heres the formula:   Ã‚  Price Elasticity of Demand (PEoD) (% Change in Quantity Demanded/ (% Change in Price)

Child Labor in America - 773 Words

Alzatia Wilson Western Civilization 1 Mrs. S. Melton November 30, 2009 Child Labor in America Our child labor issue an ongoing world wide effect, currently among America’s society. Researchers even today and our up and down crisis we face economically, leave us with the understanding that poverty is a main cause of child labor. Still in America poor families depend heavenly upon their children working in order to improve their chances of attaining basic necessities. American history goes way back to explain that poverty and a child’s workload come from a lack of not receiving the education which is important for their growing years. There are certain laws and policies that was established to control our child labor issue. Aiming†¦show more content†¦Many workers and unions in the U.S. and other countries are supporting efforts to end child labor by forging alliances with unions in other countries. Historically and in today’s global economy: strong unions are an important protection against child labor ,when parents are able to improve conditions through effective unions, children are much less likely to have to work ,and active struggles against child labor tend to strengthen unions and workers’ rights in general. In conclusion there aren’t many child labor issues in America they are mainly in South America, Asia, China, and India. I have learned a lot about child labor throughout this research. Site Page www.memoryloc.gov www.continuetolearn.uiowa.edu www.google.com www.ask.com www.bing.com www.twitter.com www.wilkepidea.org Alzatia Wilson 11/30/09 WilsonShow MoreRelatedChild Labor Industrialization Essay1537 Words   |  7 Pagesthat they should be protected. However, those people believed in a child s capacity to change the world in the future. While people in the past saw children as a way to change the world while they were children. 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Discount rate Free Essays

The rate used to discount future cash flows to their present values is a key variable of this process. A firm’s weighted average cost of capital (after tax) is often used, but many people believe that it is appropriate to use higher discount rates to adjust for risk or other factors. A variable discount rate with higher rates applied to cash flows occurring further along the time span might be used to reflect the yield curve premium for long-term debt. We will write a custom essay sample on Discount rate or any similar topic only for you Order Now Another approach to choosing the discount rate factor is to decide the rate which the capital needed for the project could return if invested in an alternative venture. If, for example, the capital required for Project A can earn five percent elsewhere, use this discount rate in the NPV calculation to allow a direct comparison to be made between Project A and the alternative. Related to this concept is to use the firm’s Reinvestment Rate. Reinvestment rate can be defined as the rate of return for the firm’s investments on average. When analyzing projects in a capital constrained environment, it may be appropriate to use the reinvestment rate rather than the firm’s weighted average cost of capital as the discount factor. It reflects opportunity cost of investment, rather than the possibly lower cost of capital. An NPV calculated using variable discount rates (if they are known for the duration of the investment) better reflects the real situation than one calculated from a constant discount rate for the entire investment duration. Refer to the tutorial article written by Samuel Baker[3] for more detailed relationship between the NPV value and the discount rate. For some professional investors, their investment funds are committed to target a specified rate of return. In such cases, that rate of return should be selected as the discount rate for the NPV calculation. In this way, a direct comparison can be made between the profitability of the project and the desired rate of return. To some extent, the selection of the discount rate is dependent on the use to which it will be put. If the intent is simply to determine whether a project will add value to the company, using the firm’s weighted average cost of capital may be appropriate. If trying to decide between alternative investments in order to maximize the value of the firm, the corporate reinvestment rate would probably be a etter choice. Using variable rates over time, or discounting â€Å"guaranteed† cash flows differently from â€Å"at risk† cash flows may be a superior methodology, but is seldom used in practice. Using the discount rate to adjust for risk is often difficult to do in practice (especially internationally), and is difficult to do well. An alternative to using discount factor to adjust for risk is to explicitly correct the cash flows for the risk elements using rNPV or a similar method, then discount at the firm’s rate. How to cite Discount rate, Essay examples

Maori Values for Address and Navigate Cultural - myassignmenthelp

Question: Discuss about theMaori Values for Address and Navigate Cultural. Answer: partnership participation protection For ensuring culturally safe Maori operating principles, the head of the whanau or the kaitunga should be consulted and engaged in effective partnerships where decisions form both the end should be taken (Orange, 2015). A combined effort based on the Maori peoples accessibility, needs and urgency need to be taken in partnership with the elders so that the policies can cover all aspects of their requirements in healthcare Care should be taken that the policies of the organization ensures complete participation for the Maori communities where they get the rights to voice their concerns and needs by actively participating in decision making sessions and similar other meetings for benefits of the community The policies should be such that it protects the rights of the Maori in getting the best care for professionals without any breaches of the dignity and autonomy of the patients. Partnership partnership protection While making decisions for any members of the family when admitted to the organization, partnership of the family members along with the healthcare professionals should be taken in considerations so that the elders of the whanau get the chance to suggest their decisions before the final care plan is made. This would make the client and the family members feel empowered. The client should try to participate in the care plan by suggesting their own decisions or by providing their consents to the treatment. The professional should also ensure empowering the patient by making the patient participate in health literacy programs. The health strategies should be such that it protects not only the health of the individuals but would also ensure the protection of their rights, cultural values and traditions so that they fell respected. Partnership participation protection While working in the organization, proper partnership among the colleagues should be ensured. Care should be taken that a collaborative work output takes place which will ensure better patient satisfaction (Hanusch, 2014). Every team members should participate equally through methods of proper communication, relationship building and respecting each other views and others. These would take place not only among the workers but also among workers and patients Proper protection of the workers should be ensured by every colleague by maintaining safety at workplace, protecting each others self esteem and self respect, empowering others by proper feedbacks and others. These would not only take place among workers but also among workers and clients. Kaitiakitanga: Kaitiakitanga is a Maori value that encircles the concepts of guardianship along with protection, preservation and also sheltering. It mainly portrays the management of the environment by following the traditional Maori views. It believes that all lives in the nature is connected and humans are a part of the frabric of life. It is important to understand the relationship between different parts of the web of the nature. In the workplace, it is very important for an individual to establish a stable relationship among the different components like that with other staffs, components of the workplace as well as prevent any activities that pollute the work environment or the nature (Miller, Tait Saunders, 2015). Moreover care should also be taken that our services should not destroy the biological cycles and its components and in turn maintain the sustainability of the resources used while providing service. Kaumatuatanga: This value mainly states the reciprocity of the Maori elderly and the whanau. The elders of the family (mainly the aged person ) have to maintain the role of the effective leadership in integrating the values and cultural choices of the family members. They instruct them by making them identify the right choices in life and also course the pathway of the whanau members. Recent researchers are of the opinion that the nations development of service planning for the Maori elders may make them less powerful as they would get less opportunity to develop a cultural identity. Hence, it is extremely important to maintain the value giving them the autonomy and dignity to enjoy their position as the Maori traditions believe elders to be the friend, philosopher guide in their lives (Chan et al., 2012). Therefore, in current workplace, care should be taken that interventions do not override the values of Kaumatuatanga. Mana: Mana is regarded as the value of the Maori people which entitle them to maintain the highest status in their society. They try to keep this value as high as possible by performing best deeds and achievements, avoiding any wrong actions and others. In the workplace, I would try my best to perform all the good deeds and maintain actions which brings the most positive outcomes on others (Hudso et al., 2012). We will also ensure that our work should ensure the best health of the patients so that their status in their whanau can be maintained in all possible situations. Manaakitanga: Manakitaanga can be described as the value of the Moari people which advices the Maori society to be highly responsible for being hospitable to any travelers. They take it as their duty to provide the best treatments and make them feel at home. Similarly in the workplace, we will try to make all the clients feel at home by providing the best hospitability. We should take actions that will make them feel comfortable in the new environment. Not only that, new workers who will join the association should also feel the same. Maori ora: Maori ora actually mean that the Maori life is alive. This means Maori life should have the zeal to get up and be active as long as the life is active within us (Stephenson et al., 2012). Within the healthcare system, this value can be followed as the set of directions which allow the Maori as consumers of health services to have the options of different pathways by which they can meet their important needs and also different future needs in all stages of their lives. Achieving the value will mainly mean that individual will have good health and the organization should address that the care they provide can meet all the aspect starting from prevention to treatment. Rangatiratanga: This value mainly captures the right of the people to participate in making decisions about the different aspect of their health. It also involves the providing of meaningful ways which will help in deciding how health services will bring the most beneficial outcomes for them. In the workplace, all the workers will try to incorporate this value and maintain the autonomy and dignity of the Maori patients while providing them with care. Not only, they should be asking for patients consent but will also educate them about their health so that they can select the best options for their own health. Tapu and noa: The value of tapu and noa mainly helps in providing two broad aims for the Maori society. the first aim is the survival of the future generations mainly by following actions which help in adapting more suitable with the environment. Secondly, it also acts a guide for developing social interactions with each others. Tapu mainly describes different states of danger and noa describes states of safety, openness and accessibility. By the maintaining of these values, the healthcare professionals should maintain practices and develop care plan and interventions which should be safe and hygienic and avoid any chances which would pose a risk to patient health or make them subjected to threats in lives (Harmsworth Roskruge, 2014). Tikanga: This value mainly states the importance of following the Maori styles of working and taking different actions. It mainly pays importance to the customary practices and behaviors of the Maori and maintaining such styles in every aspect of life. Therefore in the workplace, I will try to provide interventions and care following the Maori customary traditions. My care to the clients will be culturally competent where their cultural preferences and inhibitions will be taken care of by me. Wairuatanga: It is a belief of the Maori society that is considered as a unique feature of the mana whenau and tangata whenua. In this value, it is believed that there is a spiritual existence in every human being in respect to the physical self. Besides being associated with one own body, this value also states that every Maori is also associated with different components of the nature spiritually. Therefore while caring for the Maori clients, care should be taken by the individuals that the clients of the organization is provided with a holistic approach of treatments making them feel good internally for spirituals satisfactions. They should be also allowed to be exposed to nature on several occasions so that they can successfully connect themselves with the nature and maintain their lifestyle successfully (Marl, chamberlain Boulton, 2017). Whakapapa: The value of Whakapapa means providing importance of genealogy, lineage, or line of descent. It mainly represents the understanding of the collective identity as well as the purpose of the perceived value of Whanau. It mainly depicts the importance of the people to establish a sense of belonging by identifying the connections with other people, land and culture. This helps in providing a feeling of spiritual nourishments which contributes to the mental, intellectual as well as emotional well being of the whanau (Bennet Liu, 2017). Clients who would be coming to our organization for help should always be care for in a way where they would get all the efforts and care from our end which would help them to connect with their components of the ancestry of every family and that of the components of nature. This would ensure that they are happy internally and also care for their emotional and intellectual well being is taken care for. Whakarite mana: It mainly helps in describing the value of establishing a proper long lasting relationship. It mainly helps the social workers in healthcare sectors to adhere to their role description, working with proper job guidelines and their scope of practice so that they can help the employer of the organization to meet the goals. Complying with the correct workplace policies and procedures for development of privacy and safe work conditions and the clients well being would ensure the reputation of the organization to increase in many folds which will ensure a long lasting relationship with the employer. Whanaungatanga: This value mainly ensures the development of connections, relationships as well as a feeling of a sense of belonging. This value mainly states that relationships should be developed through shared experiences and also working together. In the workplace, the workers should try to include the clients as well as the different family members giving them scope to share their ideas and wished with the team and thereby help them to take the correct decisions (Orange, 2015). During development of personal plans for the clients, the family members and the clients should be allowed to share their concerns and wishes and by this they would feel empowered and respected. A: Social workers can follow the Mana-enhancing practice which ensures engagement of the clients through listening, understanding and respecting cultural differences. Also use of whakapapa and cultural narratives for proper restorative healing process through generations can also be ensured. It also provides importance to the recognitions of cultural wisdom of the Maori philosophical and ideological beliefs which will help in generating solutions or help in providing resolutions to Maori welfare. Te Whare Tapawh? can also be followed where the component of Te taha hinengaro. This ensures care which reinforces the inseparability of the mind and body. Here children need to emotionally attach with people so that the care provided to them has the best outcome (Wilson et al., 2017). Te taha wairua can also be adapted where the patients need to be connected with their spiritual side of life by the proper reinforcing of the importance of faith, health and healing to unseen and unspoken ener gies believed by them. B: Maoris are composed people who do not have the habits of challenging any healthcare professionals of their knowledge or the intervention they have taken for the patients. However, this should not be misutilised. Every healthcare professional should provide care that aligns with their cultures and traditions. They are very sensitive with their cultural beliefs and traditions and share a close bond with nature. Therefore providing care keeping the principles in mind ensure of a higher patient satisfaction. Moreover, care should be taken that families and clients decisions are entertained (Orange, 2015). This make them feel respected and feel that their dignity is cared for. These increase the chance of better patient outcomes and quick recovery in comparison to those where the principles are not followed. References: Bennett, S. T., Liu, J. H. (2017). Historical trajectories for reclaiming an indigenous identity in mental health interventions for Aotearoa/New ZealandM?ori values, biculturalism, and multiculturalism.International Journal of Intercultural Vol:: 5 (23) pp: 235 Relations. https://doi.org/10.1016/j.ijintrel.2017.05.005 Chan, K. M., Satterfield, T., Goldstein, J. (2012). Rethinking ecosystem services to better address and navigate cultural values.Ecological economics,Vol: 74, pp: 8-18.https://doi.org/10.1016/j.ecolecon.2011.11.011 Hanusch, F. (2014). Indigenous cultural values and journalism in the Asia-Pacific region: a brief history of M?ori journalism.Asian Journal of Communication,Vol: 24(4), pp: 390-403. https://dx.doi.org/10.5751/ES-08804-210409 Harmsworth, G., Roskruge, N. (2014). Indigenous Maori values, perspectives, and knowledge of soils in Aotearoa-New Zealand.The soil underfoot: infinite possibilities for a finite resource, Vol: 3pp: 111. Hudson, M. L., Allan, C. A., Bedford, K. R., Buckleton, J. S., Stuart, K. (2012). The impact of M?ori cultural values on forensic science practice in New Zealand.Journal of forensic sciences,Vol:53(2), pp: 380-383. DOI:10.1111/j.1556-4029.2008.00661.x Mark, G., Chamberlain, K., Boulton, A. (2017). Acknowledging the M?ori cultural values and beliefs embedded in rongo? M?ori healing.International Journal of Indigenous Health,Vol: 12(1), pp: 75-92. DOI:https://dx.doi.org/10.18357/ijih121201716902 Miller, S., Tait, P., Saunders, C. (2015). Estimating indigenous cultural values of freshwater: A choice experiment approach to M?ori values in New Zealand.Ecological economics,Vol:118, pp: 207-214. https://doi.org/10.1016/j.ecolecon.2015.07.031 Orange, C. (2015).The treaty of Waitangi. Bridget Williams Books. Stephenson, J. (2012). The cultural values model: an integrated approach to values in landscapes.Landscape and urban planning,Vol: 84(2), pp: 127-139. https://doi.org/10.1016/j.landurbplan.2007.07.003 Wilson, K. (2017). The Treaty of Waitangi: Preparing beginning teachers to meet the expectations of the new professional standards.Waikato Journal of Education,Vol: 8(1). pp: 336 DOI:10.15663/wje.v8i1.442

What Is Standard Deviation free essay sample

One feature of the standard deviation that distin ¬guishes it from a variance is that the standard deviation is expressed in the same units as the raw data, whereas the variance is expressed in those units squared. The meaning of standard deviation is more readily understood from its use. Although the standard deviation and the variance are closely related and can be computed from each other, differentiating between them is important, because both are widely used in statistics. What is a standard deviation? What does it do, and what does it mean? The most precise way to define standard deviation is by reciting the formula used to compute it. However, insight into the concept of standard deviation can be gleaned by viewing the manner in which it is applied. Two ways of applying the standard deviation are the empirical rule and Chebyshev’s theorem. †¢The empirical rule is an important rule of thumb that is used to state r/. We will write a custom essay sample on What Is Standard Deviation? or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page v approximate per-centage of values that lie within a given number of standard deviations from the mean of a set of data if the data are normally distributed. The empirical rule is used only for three numbers of standard deviations: 1? , 2? , and 3?. †¢The empirical rule applies only when data are known to be approximately normally distributed. What do researchers use when data are not normally distributed or when the-shape of the distribution is unknown? Chebyshevs theorem applies to all distribu ¬tions regardless of their shape and thus can be used whenever the data distribution shape is unknown or is non-normal. Even though Chebyshevs theorem can in theory be applied to data that are normally distributed, the empirical rule is more widely known and is preferred whenever appropriate. Chebyshev’s theorem is not a rule of thumb, as is the empirical rule, but rather it is presented in formula format and there ¬fore can be more widely applied. Chebyshev’s theorem states that at least 1—1/K2 values M ill fall within  ± k standard deviations of the mean regardless of the shape of the distribution. The sample variance is denoted by s2 and the sample standard deviation by s. The main use for sample variances and standard deviations is as estimators of population variances and standard deviations. Because of this, computation of the sample variance and standard deviation differs slightly from computation of the population variance and standard devi ¬ation. Both the sample variance and sample standard deviation use n 1 in the denomina ¬tor instead of n because using n in the denominator of a sample variance results in a statistic that tends to underestimate the population variance. Reference link: http://classof1. com/homework-help/engineering-homework-help

Persuasive Argument For Good Nutrition essays

Persuasive Argument For Good Nutrition essays In today's hectic, high-speed Internet, quickly changing world, it has become common for us to think about the here and now, and put off concerns about the future as vague possibilities that we will deal with once we come to them. This, sadly, has reflected on our health, and the nutritional choices we are making. What we need to realize is there are important benefits to eating healthy, benefits that may not garner immediate gratification, but benefits that are well worth the wait! Our frenzied lifestyle is compounded by our tendency to put our careers in front of our health. Grabbing a burger and super-sized fries, on the go at lunch, only to scarf it down and hurry back to the office is common. Breakfast for busy workers can consist of a doughnut or bagel with black coffee, or worse, nothing at all! Working late is typical, leaving no time or energy to stop at the gym after a long, hard day. Dinner too often consists of fast -food, take out, or pre-packaged microwaveable meals eaten in front of the television, before heading off to bed. All of these habits, when they occur on rare occasions are not detrimental in and of themselves, however when they become the staple of the way we live and eat, our health suffers. Surely, we may be saving those finite minutes during the day, thanks to convenience, but in the end, we are shaving years off our lives. Not a good trade at all. In addition, for humans, eating is not merely a means to obtain the fuel we need to get through the activities of the day. Instead, we have taken eating and altered it into a social activity. We eat together to celebrate. We eat together to grieve. We eat together to say goodbye to someone. And, we eat together when we welcome them home. (Kluger, Gorman, Our very lives are threatened due to the poor nut...

Ascene of peace Essay Example | Topics and Well Written Essays - 250 words

Ascene of peace - Essay Example I could feel the cool breeze touching my face and filling me with energy and joy. I sat beside the sea watching the waves and the morning hues in the sky, I stopped the music and removed the headphone .I was soon lost in the mesmerizing view of the sunrise. It was still early and there were not many people around. The sea was calm, and then came a roaring wave hitting the shore , again it was still and so quite that you could hear the whistle of the breeze. I closed my eyes and felt the moment. This must be the kind of moment that must have inspired Wordsworth and Tennyson in many of their wonderful creations, I was so much lost in the scene of peace that I forgot all my worries and soon there were sounds of the birds and vendors setting up their counters selling food with the sun shining bright above the sea. I started walking back home enriched with morning’s delightful experience, my mind was no more pondering over the worldly affairs. I could hear the music of rustle of the leaves, chirping of the birds and the whistle of the breeze and I was overwhelmed by the peace of mind I felt after a sleepless night. Later that day my meeting went smooth and I realized that sometimes life’s easier than we can even think of, we seldom realize that real happiness is in small things we generally tend to ignore, because we have grown so materialistic and complex creatures that we search happiness in materialistic things, unfortunately the main factor which is dragging us away from feeling the essence of real life. That morning’s experience once again brought me closer to myself, and when I went to bed that night, Wordsworth’s lines from his classic rhyme Daffodils clicked

Overview and Objectives of the Network Technology Term Paper

Overview and Objectives of the Network Technology - Term Paper Example The researcher of this term paper presents a study of networks, that is a key part of the training that professionals using IT infrastructure need. This paper relates to the proposed adoption of a new low cost internet based network to help my organization save on network administration costs. There are many internet applications available to organizations that can help build reliable networks. However, there is need for careful analysis of the benefits and the costs of adopting such systems. The major IT applications at the researcher's organization include logging in of patient details, keeping track of the treatment process and recording of prescriptions. In addition, the organization generates and stores data relating to availability of drugs and vendor information. IT also provides support for the billing and accounts department, and is the means through which the other management functions take place. For instance, the management communicates to all members of staff via email g enerated and distributed through the existing network. All these services run from a variety of platforms, some of which are quite expensive to maintain. The proposed low cost network, that is described in this essay and has a very simple design, that may help to reduce the costs the organization incurs in software development and maintenance. Laudon and Laudon point out that â€Å"many business applications are now delivered online as an internet service, rather than as boxed software or custom systems†.

Personal statement for ucas Example | Topics and Well Written Essays - 500 words

For ucas - Personal Statement Example I have practiced dancing for twelve years and instructed dancing in schools like IISC. Through my dancing skills, I have managed to achieve a government award in 2007. I love concerts and seldom miss any occasion. I have participated in cultural events like at the Indus, and danced at the Indus cultural festival like the ‘Mamma Mia, and We Will Rock You Musical’. As a kid, I had the passion of becoming an engineer, which motivated me to excel in subjects like Mathematics and Physic. I have conducted a full length research on, "How the temperature affects the magnetic field of different magnets" and wrote a 4000 words essay on the research. I conducted this research in a PHD research university in my 11th grade summer vacations. As a young adult, I had asked for career advice from a motivational speaker who had visited my school. Henceforth, I have found learning Mathematic to be interesting, since it is a powerful tool for analyzing and solving problems. Mathematics has several specialization segments like pure and applied mathematics. Additionally, I love Physics since it assists in understanding the world deeply by its information. I learned about Electrical Engineering in my initial school and assistance from my bigger brother. He is a Civil Engineer doing well in his line of specialty. Furthermore, he is my role model, since we share the same dream of being engineers. In particular, I realized that my passion was in Electrical Engineering. My career master rightly advised me on the path to follow to be an Electrical Engineer, which I followed it to the latter. My college years have vastly acquired me with educational and managerial skills. My internship at the Battery Industry (Amaron Battery Industry) instilled managerial and leadership skills in me. I was exposed to dealings within the learning institution; hence I am armed with administration and managerial skills. Taking part in the science

Capital Asset Pricing Model (CAPM)

Capital Asset Pricing Model (CAPM) 1. Introduction Markowtiz (1952) did the ground work for the CAPM (Capital Asset Pricing Model). From the study of the early theories we know that the risk of an underlying security is measured by the standard deviation of its pay off or return. Therefore, for a larger risk we will have higher standard deviation of the respective security return. Markowtiz argued that the standard deviations of security returns for any two securities are not additive if they are combined together unless the returns of those two assets are perfectly positively correlated. He also observed that the standard deviation of security return of a portfolio is less than the sum of the standard deviation of those assets constituted the portfolio. Markowitz developed the efficient frontier of portfolio, the efficient set from where the investors select the portfolio which is most suitable for them. Technically, an investor will hold a mean-variance efficient portfolio which will return the highest pay off to them with a given level of variance. Markowitz’s computation of risk reduction is very rigorous and tedious. Sharpe (1964) developed the single index model which is computationally efficient. He derived a common index where the asset return is related with the common index. This common index can be any variable which has influence on the asset return. We can apply this single index model to the portfolio as well since the expected return of a portfolio is the weighted average of the expected returns of the constituents of the portfolio. When we need to analyze the risk of an individual security, we have to consider the other securities of the portfolio as well. Because, we are interested about the additional risk being added to the portfolio when one addition security is added to the portfolio. Thus the concept of risk share of an individual security to the portfolio is different from the risk of that security itself. An investor faces two kinds of risks. One is called the systematic risk and the other is known as unsystematic risk. Unsystematic risk is a kind of risk which can be minimized or eliminated by increasing the size of the portfolio, namely, by increasing the diversity of the portfolio. The systematic risk is well known as the market risk. Because, it depends on the overall movement of the market and the financial condition of the whole economy. By diversifying the portfolio, we cannot eliminate the systematic risk. Theoretically CAPM offers very commanding predictions about how to measure risk and return relationship. However, the empirical evidence of CAPM is not very encouraging. One may conclude that these failings are rooted in poor construction of the model but once can argue that this failing arises because of the difficulties of building comprehensive and valid test model. The estimation strategy of CAPM is not free from the data-snooping bias. Because of the non-experimental nature of economic theory we cannot avoid this problem. Moreover a lot of investigations already have been done to test the validity of the CAPM. Thus, no attempt has been made in this paper to test the validity of the model. Here in this paper we will critically examine some literatures on CAPM testing. We will begin with understanding the model. We will briefly outline some mathematics required to understand the underlying assumptions of the model. Then we will focus on the single and multi-factor CAPM models to a nalyze the model assumptions and restrictions required to hold these models to be true. 2. The Capital Asset Pricing Model Explained   In 1959 Markowitz introduced the notion of mean-variance efficient portfolio. According to him it is optimal for an investor to hold a mean-variance efficient portfolio. The mean-variance efficient portfolio is a portfolio for an investor where he minimizes the portfolio return, given the expected return and maximizes expected return, given the variance. Later Sharpe (1964) and Lintner (1965b) further developed the work of Markowitz. In their work it has been showed that if the investors’ expectations are homogeneous and when the hold the mean-variance efficient portfolio then in the nonexistence of market friction the market portfolio will be a mean-variance efficient portfolio. There are two basic building blocks to derive the CAPM: one is the capital market line (CML) and the other one is the security market line (SML). In CAPM the securities are priced in a way where the expected risks are compensated by the expected returns. As we will be investigating different form of CAPM in this work it is worthy to review the basic notions of CML and SML. The capital market line (CML) conveys the return of an investor for his portfolio. As we have already mentioned, there is a linear relationship exists between the risk and return on the efficient portfolio that can be written as follows: On the Other hand the SML specifies the return what an individual expects in terms of a risk-free rate and the relative risk of a portfolio. The SML with security i can be represented as follows: Here the Beta is interpreted as the amount of non-diversifiable risk intrinsic in the security relative to the risk of the efficient market portfolio. The utility function of the market agent is either quadratic or normal All the diversifiable risks are eliminated The efficient market portfolio and the risk-free assets dominate the opportunity set of the risky asset. We can use the security market line can be used to test whether the securities are fairly priced. 3. The Logic of the Model: To understand the logic of CAPM, let us consider a portfolio M. To clear the asset market this portfolio must be on the efficient frontier. Thus the underlying concept that is true for minimum variance portfolio, must be true for the market portfolio as well. With the minimum variance condition for portfolio M when there are N risky assets, we can write the minimum variance condition by the following equation: Where is the expected return on the asset i and . The market beta for the asset is derived by dividing the covariance of the market return and individual asset return by the variance of the market return, In the minimum variance condition stands for the expected asset return whose market beta is zero which implies that the asset return is not correlated with the market return. The second term of the equation represents the risk premium. Here the beta measures how sensitive the asset return is with the variation in the market return. Sharpe and Lintner focused on three important implications. They are: 1)the intercept is zero; 2) Beta can completely capture the cross sectional variation of expected access asset return; and, 3)The market risk premium is positive. Sharpe and Lintner in their CAPM model assumed that the pay off from a risky asset is uncorrelated with the market return. In their model the beta becomes zero when the the covariance of a asset return offsets the variance of the other assets’ returns. When the borrowing and lending is risk free and when the asset return is not correlated with the market return then the asset return equals the risk free rate. In the Sharpe-Lintner model the relationship between the asset return and the beta is represented by the following equation: However, this assumption of riskless borrowing and lending is unrealistic. Black (1972) developed a CAPM model where he did not make this extreme assumption. He showed that the mean variance efficient portfolio can be obtained by allowing the short selling of the risky assets. The Black and Sharpe-Lintner model differ in terms of the . Black observed that has to be less than the expected market return which allows the premium for the market beta to be positive. In the Sharpe-Lintner model the expect return was the risk free interest rate. The assumption that Black made about short selling is not realistic either. Because, if there is no risky asset (Sharpe-Lintner version) and if there is unrestricted short selling of the risky asset (Black version) then the efficient portfolio is actually not efficient and there does not exist any relation between market beta and CAPM (Fama and French: 2003). So, the CAPM models are built on some extreme assumptions. To testify the validity of these models researchers have tested the model against the market data. In this paper we will investigate some of those empirical researches. 4. Literature on CAPM testing There are three relationships between expected return and market beta which is implied by the model. First, the expected returns on all the underlying assets are linearly related to their respective betas. Second, the premium for beta is positive which implies that the expected return on the market portfolio exceeds the expected return on assets. Moreover, the returns of these assets are uncorrelated with the expected return of market portfolio. Third, in the Sharpe-Lintner model we see that the underlying assets which are uncorrelated with the market portfolio have the expected returns which are equal to the risk neutral interest rate. In that model, if we subtract the risk free rate from the expected market return, we get the beta premium. Conventionally the tests of CAPM are based on those three implications mentioned above. 4.1 Tests on Risk Premiums Most of the previous cross-section regression tests primarily focus on the Sharpe-Lintner model’s findings about the concept and the slope term which studies the relationship between expected return and the market beta. In that model they regressed the mean asset returns on the estimated asset betas. The model suggests that the constant term in the cross-section regression stands for the risk free interest rate and the slope term stands for the difference between market interest rate and risk free interest rate. There are some demerits of the study. First of all, the estimated betas for individual assets are imprecise which creates the measurement error when we use them to explain average returns. Secondly, the error term in the regression has some common sources of variation which produces positive correlation among the residuals. Thus the regression has the downward bias in the usual OLS estimate. Blume (1970) and Black, Scholes and Jensen (1972) worked on overcoming the shortcomings of Sharpe-Lintner model. Instead of working on the individual securities they worked on the portfolios. They combined the expected returns and market beta in a same way that if the CAPM can explain the security return, it can also explain portfolio return. As the econometric theory suggests, the estimated beta for diversified portfolios are more accurate than the estimated beta for the individual security. Therefore, if we use the market portfolio in the regression of average return on betas, it lessens the cr itical problem. However, grouping shrinks the range of estimated betas and shrinks the statistical power as well. To tackle this researchers sort securities to create two portfolios. The first one contains securities with the lowest beta and it moves up to the highest beta. We know that when there exists a correlation among the residuals of the regression model, we cannot draw accurate inference from that. Fama and Macbeth (1973) suggested a method to address this inference problem. They ran the regression of returns on beta based on the monthly data rather than estimating a single cross-section regression of the average returns on beta. In this approach the standard error of the means and the time series means can be used to check whether the average premium for beta is positive and whether the return on the asset is equal to the average risk free interest rate. Jensen (1968) noted that Sharpe-Lintner model also implies a time series regression test. According to Sharpe-Lintner model, the average realized CAPM risk premium explains the average value of an asset’s excess return. The intercept term in the regression entails that â€Å"Jensen’s alpha†. The time series regression takes the following form: In early studies we reject Sharpe-Lintner model for CAPM. Although there exists a positive relation between average return and beta, it’s too flat. In Sharpe-Lintner model the intercept stands for the risk free rate and the slope term indicates the expected market return in access of the risk neutral rate. In that regression model the intercept is greater than the risk neutral rate and the coefficient on beta is less than . In Jensen’s study the p value for the thirty years period is 0.02 only which indicates that the null hypothesis is rejected at 5% significance level. The five and ten year sub-period demonstrates the strongest evidence against the restrictions imposed by the model. In past several studies it has been confirmed that the relationship in between average return and beta is too flat (Blume: 1970 and Stambaugh: 1982). With the low betas the constant term in the time series regression of excess asset return on excess market return are positive and it becomes negative for the high betas of the underlying assets. In the Sharpe-Linter model, it has been predicted that portfolios are plotted along a straight line where the intercept equals the risk free rate, , and the slope equals to the expected excess return on the market rate . Fama and French (2004) observed that risk premium for beta (per unit) is lower than the Sharpe-Lintner model and the relationship between asset return and beta is linear. The Black version of CAPM also observes the same where it predicts only the beta premium is positive. 4.2 Testing the ability of market betas of explaining expected returns Both the Sharpe-Lintner and Black model predict that market portfolio is mean-variance efficient. The mean-variance efficiency implies that the difference in market beta explains the difference in expected return of the securities and portfolios. This prediction plays a very important role in testing the validity of the CAPM. In the study by Fama and Macbeth (1973), we can add pre-determined explanatory variables to the month wise cross section regressions of asset return on the market beta. Provided that all the differences in expected return are explained by the betas, the coefficients of any additional variable should not be dependably different from zero. So, in the cross-section analysis the important thing is to carefully choose the additional variable. In this regard we can take the example of the study by Fama and MacBeth (1973). In that work the additional variables are squared betas. These variables have no impact in explaining the average asset return. By using the time series regression we can also test the hypothesis that market betas completely explain expected asset return. As we have already mentioned that in the time series regression analysis, the constant term is the difference between the asset’s average return and the excess return predicted by the Sharpe-Lintner model. We cannot group assets in portfolios where the constant term is dependably different from zero and this applies only the model holds true. For example, for a portfolio, the constant term for a high earning to price ratio and low earning to price ratio should be zero. Therefore, in order to test the hypothesis that betas suffice to explain expected returns, we can estimate the time-series regression for the portfolios and then test the joint hypothesis for the intercepts against zero. In this kind of approach we have to choose the form of the portfolio in a way which will depict any limitation of the CAPM prediction. In past literatures, researchers tend to follow different kinds of tests to see whether the constant term in the time-series regression is zero. However, it is very debatable to conclude about the best small sample properties of the test. Gibbons, Shanken and Ross (1989) came up with an F-test for the constant term that has the exact-small sample properties and which is asymptotically efficient as well. For the tangency portfolio, this F-test builds an entrant by combining the market proxy and the average value of an asset’s excess return. Then we can test if the efficient set and the risk free asset is superior to that one obtained by combining the market proxy and risk free asset alone. From the study of Gibbons, Ross, and Shanken (1989) we can also test whether market betas are sufficient enough to explain the expected returns. The statistical test what is conventionally done is if the explanatory variables can identify the returns which are not explained by the market betas. We can use the market proxy and the left hand side of the regression we can construct a test to see if the market proxy lies on the minimum variance frontier. All these early tests really do not test the CAPM. These tests actually tested if market proxy is efficient which can be constructed from it and the left hand side of the time series regression used in the statistical test. Its noteworthy here that the left hand side of the time series regression does not include all marketable assets and it is really very difficult to get the market portfolio data (Roll, 1977). So, many researchers concluded that the prospect of testing the validity of CAPM is not very encouraging. From the early literatures, we can conclude that the market betas are sufficient enough to explain expected returns which we see from the Black version of CAPM. That model also predicts that the respective risk premium for beta is positive also holds true. But at the same time the prediction made by Sharpe and Lintner that the risk premium beta is derived from subtracting the risk free interest rate from the expected return is rejected. The attractive part of the black model is, it is easily tractable and very appealing for empirical testing. 4.3 Recent Tests on CAPM Recent investigations started in the late 1970s have also challenged the success of the Black version of the CAPM. In recent empirical literatures we see that there are other sources are variation in expected returns which do not have any significant impact on the market betas. In this regard Basu’s (1977) work is very significant. He shows that if we sort the stocks according to earning-price ratios, then the future returns on high earning-price ratios are significantly higher than the return in CAPM. Instead of sorting the stocks by E/P, if we sort it by market capitalization then the mean returns on small stocks are higher than the one in CAPM (Banz, 1981) and if we do the same by book-to-market equity ratios then the set of stocks with higher ratio gives higher average return (Statman and Rosenberg, 1980). The ratios have been used in the above mentioned literatures associate the stock prices which involves the information about expected returns which are not captured by the market betas. The price of the stock does not solely depend on the cash flows, rather it depends on the present discounted value of the cash flow. So, the different kind of ratios discussed above play a crucial role in analyzing the CAPM. In line with this Fama and French (1992) empirically analyzed the failure of the CAPM and concluded that the above mentioned ratios have impact on stock return which is provided by the betas. In a time series regression analysis they concluded the same thing. They also observed that the relationship between the average return and the beta is even flatter after the sample periods on which early CAPM studies were done. Chan, Hamao, and Lakonishok (1991) observed a strong significant relationship between book-to-market equity and asset return for Japanese data which is consistent wit h the findings of Fama and French (1992) implies that the contradictions of the CAPM associated with price ratios are not sample specific. 5. Efficient Set of Mathematics The mathematics of mean-variance efficient set is known as the efficient set of mathematics. To test the validity of the CAPM, one of the most important parts is to test the mean-variance efficiency of the model. Thus, it is very important to understand the underlying mathematics of the model. Here, we will discuss some of the useful results of it (Roll, 1977). Here we assume that there are N risky assets with a mean vector ÃŽ ¼ and a covariance matrix ÃŽ ©. In addition we also assume that the covariance matrix is of full rank. is vector of the portfolio weight. This portfolio has the average return; and variance. Portfolio p is the minimum variance portfolio with the mean return if its portfolio weight vector is the solution to the following constrained optimization: We solve this minimization problem by setting the Lagrangian function. Let’s define the following: The efficient frontier can be generated from any two minimum variance portfolios. Let us assume that p and r be any two minimum variance portfolio. The covariance of these two portfolios is as follows: For a global minimum-variance portfolio g we have the following: The covariance of the asset return of the global minimum portfolio g and any other portfolio as defined as a is as follows: For a multiple regression of the return of an asset or portfolio on any minimum variance portfolio except the global minimum variance portfolio and underlying zero-beta portfolio we have the following: The above mentioned result deserves some more attention. Here we will prove the result. As . The result is obvious. So, we just need to show that and . Let us assume that r be the minimum variance portfolio with expected return . From the minimization problem we can write the following: Portfolio a can be expressed as a combination of portfolio r and an arbitrage portfolio which is composed of portfolio a minus portfolio . The return of is expressed as: Since , the expected return of is zero. Because, as mentioned earlier that it is an arbitrage portfolio with an expected return of zero, for a minimum variance portfolio q. We have the following minimization problem: The solution to the optimization problem is c=0. Any other solution will contradict q from being the minimum variance. Since, , thus taking the derivative gives the following expression: Setting the derivative equal to zero and by substituting in the solution c=0 gives: Thus the return of is uncorrelated with the return of all other minimum variance portfolio. Another important assumption of the CAPM is if the market portfolio is the tangency portfolio then the intercept of the excess return market model is zero. Here we will prove the result. Let us consider the following model with the IID assumptions of the error term: Now by taking the unconditional expectation we get, As we have showed above, the weight vector of the market portfolio is, Using this weight vector, we can calculate the covariance matrix of asset and portfolio returns, the expected excess return and the variance of the market return, Combining these results provide, Now, by combining the expression for beta and the expression for the expected excess return give, Therefore, the immediate result is 6. Single-factor CAP In practice, to check the validity of the CAPM we test the SML. Although CAPM is a single period ex-ante model, we rely on the realised returns. The reason being the ex ante returns are unobservable. So, the question which becomes so obvious to ask is: does the past security return conform to the theoretical CAPM? We need to estimate the security characteristic line (SCL) in order to investigate the beta. Here the SCL considers the excess return on a specific security j to the excess return on some efficient market index at time t. The SCL can be written as follows: Here is the constant term which represents the asset return (constant) and is an estimated value of . We use this estimated value as an explanatory variable in the following cross-sectional regression: Conventionally this regression is used to test for a positive risk return trade off. The coefficient of is significantly different from zero and is assumed to be positive in order to hold the CAPM to be true. This also represents the market price of risk. When we test the validity of CAPM we test if is true estimate of . We also test whether the model specification of CAPM is correct. The CAPM is single period model and they do not have any time dimension into the model. So, it is important to assume that the returns are IID and jointly multivariate normal. The CAPM is very useful in predicting stock return. We also assume that investors can borrow and lend at a risk free rate. In the Black version of CAPM we assume that zero-beta portfolio is unobservable and thus becomes an unknown parameter. In the Black model the unconstrained model is the real-return market model. Here we also have the IID assumptions and the joint normality return. Many early studies (e.g. Lintner, 1965; Douglas, 1969) on CAPM focused on individual security returns. The empirical results are off-putting. Miler and Scholes (1972) found some statistical setback faced when using individual securities in analyzing the validity of the CAPM. Although, some of the studies have overcome the problems by using portfolio returns. In the study by Black,Jensen and Scholes (1972) on New York stock exchange data, portfolios had been formed and reported a linear relationship between the beta and average excess portfolio return. The intercept approaches to be negative (Positive) for the beta greater than one (less than one). Thus a zero beta version was developed of the CAPM model. The model was developed in a model where the intercept term is allowed to take different values in different period. Fama and Mcbeth (1973) extended the work of Black et al (1972). They showed the evidence of a larger intercept than the risk neutral rate. They also found that a linea r relationship exists between the average returns and the beta. It has also been observed that this linear relation becomes stronger when we work with a dataset for a long period. However, other subsequent studies provide weak empirical evidence of this zero beta version. We have mixed findings about the asset return and beta relationship based on the past empirical research. If the portfolio used as a market proxy is inefficient then the single factor CAPM is rejected. This is also true if the proxy portfolio is inefficient by a little margin (Roll: 1977, Ross: 1977). Moreover, there exists survivorship bias in the data used in testing the validity of CAPM (Sloan, 1995). Bos and Newbold (1984) observed that beta is not stable for a period of time. Moreover, there are issues with the model specifications too. Amihud, Christen and Mendelson (1993) observed that there are errors in variables and these errors have impact on the conclusion of the empirical research. We experience less favourable evidence for CAPM in the late 1970s in the so called anomalies literature. We can think the anomalies as the farm characteristics which can be used to group assets in order to have a high ex post Sharpe ratio relative to the ratio of the market proxy for the tangency portfolio. These characteristics provide explanatory power for the cross-section of the average mean returns beyond the beta of the CAPM which is a contradiction to the prediction of CAPM. We have already mentioned that the early anomalies include the size effect and P/E ratio as we have already mentioned. Basu (1977) observed that the portfolio formed on the basis of P/E ratio is more efficient than the portfolio formed according to the mean-variance efficiency. With a lower P/E firms have higher sample average return and with high P/E ratio have lower mean return than would be the case if the market portfolio is mean-variance efficient. On the other hand the size effect shows that low market capitalization firms have higher sample return than would be expected if the market portfolio was mean-variance efficient. Fama and French (1992,1993) observed that beta cannot explain the difference between the portfolio formed based on ratio of book value of equity to the market value of equity. Firm has higher average return for higher book market ratio than originally predicted by the CAPM. However, these results signal economically deviations from CAPM. In these anomalies literatures, there are hardly any motivations to study the farm characteristics. Thus there is a possibility of overstating the evidence against the CAPM since there are sample selection bias problem in estimating the model and also there is a problem of data snooping bias. This a kind of bias refers to the biases in drawing the statistical inference that arises from data to conduct subsequent research with the same or related kind of data. Sample selection bias is rooted if we exclude certain sample of stocks from our analysis. Sloan (1995) argued that data requirements for the study of book market ratios lead to failing stocks be ing excluded which results the survivorship bias. Despite an ample amount of evidences against CAPM, it is still being widely used in finance. There is also the controversy exists about how we should interpret the evidence against the CAPM. Some researchers often argue that CAPM should be replaced with multifactor model with different sources of risks. In the following section we will analyze the multifactor model. 7. Multifactor Models So far we have not talked anything about the cross sectional variation. In many studies we have found that market data alone cannot explain the cross sectional variation in average security returns. In the analysis of CAPM, some variables like, ratio of book-to-market value, price-earning ratio, macroeconomic variables, etc are treated as the fundamental variables. The presence of these variables account for the cross-sectional variation in expected returns. Theoretical arguments also signal that more than one factor are required. Fama and French (1995), in their study showed that the difference between the return of small stock and big stock portfolio (SMB) and the difference between high and low book-to-market stock portfolio (HML) become useful factor in cross sectional analysis of the equity returns. Chung, Johnson and Schill (2001) found that the SMB and HML become statistically insignificant if higher order co-moments are included in the cross sectional portfolio return analysis. We can infer from here that the SMB and HML can be considered as good proxies for the higher order co-moments. Ferson and Harvey (1999) made a point that many econometric model specifications are rejected because they have the tendency of ignoring conditioning information. Now we will show one of the very important results of the multifactor model. Let us consider a regression of portfolio on the returns of any set of portfolios from which the entire minimum variance boundary can be generated. We will show that the intercept of this regression will be zero and that factor regression coefficients for any asset will sum to unity. Let the number of the portfolios in the set be K and is the (Kx1) vector of time period t of asset returns. For any value of the constant ÃŽ ¼, there exists a combination of portfolio and assets. Let us consider ÃŽ ¼ be the global minimum variance portfolio and we denote the portfolio as op. Corresponding to op is minimum variance portfolio p which is uncorrelated with the return of op. As long as p and op are efficient portfolios in terms of the minimum variance their returns are the linear combinations of the elements of , where and are (Kx1) vectors of portfolio weights. As p and op are minimum variance portfolio their returns are linear combinations of the elements of , Then for the K portfolios we have, By rearranging, we get the following, Substituting this value into ÃŽ ¼ returns the following: Now let us consider a multivariate regression of N assets on K factor portfolios, where a

Howards End :: essays research papers

Young, pretty Helen has left her London home to visit the Wilcox family estate, Howards End. (Helen and her sister Margaret met Mr. Wilcox and his wife while traveling in Germany.) Margaret was also invited to Howards End, but stayed home to care for their 16-year-old brother Tibby who has hay fever. From Howards End, Helen sends Margaret several letters describing the beautiful estate and the energetic, materialistic Wilcoxes. Her last letter sends a shock through Margaret when she reads it: Helen has fallen in love with Paul the youngest Wilcox son. When Mrs. Wilcox dies not long afterward, she leaves a handwritten note behind asking that Howards End be given to Margaret. But her pragmatic husband,Henry, a prominent businessman, and her greedy son Charles, a struggling businessman, refuse to act on the matter and never mention it to Margaret. One night, Margaret and Helen run into Henry, and they discuss the case of Leonard Bast; Henry warns them that Leonard's insurance company is doomed to failure, and they advise him to find a new job. But poor Leonard, who associates the Schlegels with all things cultural and romantic--he reads constantly, hoping to better himself--resents this intrusion into his business life and accuses them of trying to profit from his knowledge of the insurance industry. Margaret and Henry develop a halting, gradual friendship. When the lease expires at Wickham Place, the Schlegels begin looking for another house (their landlord wants to follow the general trend and replace their house with a more profitable apartment building). Henry offers to rent them a house he owns in London, and when he shows it to Margaret, he suddenly proposes to her. She is surprised by her happiness, and after considering the proposal, she accepts. Shortly before Margaret and Henry are scheduled to be married, Henry's daughter Eviemarries a man named Percy Cahill; the wedding is held at a Wilcox estate near Wales. After the party, which Margaret finds quite unpleasant, Helen arrives in a disheveled state, with the Basts in tow. She declares indignantly that Leonard has left his old company, found a new job, and been summarily fired; he is now without an income. Helen angrily blames Henry for his ill-considered advice. Margaret asks Henry to give Leonard a job, but when he sees Jacky Bast, he realizes that he had an affair with her 10 years ago, when she was a prostitute in Cyprus. Margaret forgives him for the indiscretion--it was before they even met--but she writes to Helen that there will be no job

Building Types through Time

Since the evolution of mankind, he has been in the struggle of creating and molding the world and its raw resources according to his dire needs and comfort. When Adam and Eve were sent down to an absolute barren world they had all the resources unrestricted, and in an unlimited amount, but what they didn’t have then was knowledge of exploiting them or even the crave of attaining comfort of unimaginable means. They lived in small stone caves, supported with branches of trees and nature, sheltering themselves just like their peer animals.Man since the very beginning has been the same animal, however the way his surroundings changed and his abilities evolved, he gained the potential of achieving the maximum efficiency and production from his living designs and that is the concept of derived modernism in man’s life today. What identifies man from other animals of his race is his ability to think, to create and then design it according to his own needs.And his ability to fin d and form a shelter for him self and his family, has been his habit since prehistoric times; while the economy and technology have been changing throughout his life, so have been the forms of his construction and way of living. The word architecture can be taken in a very broad manner; from the residential houses, bungalows, flats and apartments, to commercial plazas, offices, shops and industrial structures.While over the time, with the malting of candle of time the architectural form which has witnessed the greatest change due to societal, demographical, economical, political and technological changes is that of residential buildings and its architecture. Stone Age Constructions Taking a look back into the history of mankind, we see that during the Stone Age’s man started off his life in animal like caves, and under canopies of trees, which could provide them shelter from the changing seasons and protection from the wild animals around.He did not possess the knowledge or t he tools to formulate anything more comfortable for himself and did not even have the potential of doing so. The human living status however soon shifted to tents and huts, to meet greater needs of self sufficiency. With the growth of man’s needs and the population size, with the formation of ruling bodies, came the establishment of urban centers. This change in establishment was brought forth by simple use of wood and metal in construction techniques; along with the use of nails, levers and pulleys.Medieval Construction With the 1500 century, residential architecture found a new era of development and progress with the rising of cathedrals, castles, and fortifications; the biggest man made structures even to this time, with their grandeur and magnificent craftsmanship. These huge structures were mainly built for the war purposes, in case of an attack from the enemies, these residences were also used as battlefields.Large forts were built in which entire cities lived so that if any threat to sovereignty occurred the mighty gates were closed, securing the entire population guarded by huge strong walls which surrounded them around. Theses powerful structures, had crosses erected across the glass windows, which represented ready made aims for crossbows, while strong arches and pillars were hiding places for the archers during war times. Thus the residences of the medieval times basically facilitated the warriors and served a stronger protection purpose from the enemies.However, as the world moved towards a greater peaceful living, one of the greatest elements of change that was brought during this period was the discovery of bricks, which greatly eased the production techniques making it less time consuming and gave a greater liberty to the designers. Thus houses shifted from less of being battle fields and more towards homely structures. Renaissance architecture As the world was shifting from living lives less of that of warriors, and had the aesthetic se nse slowly inhabiting their culture and tradition, the social lives of the people were on the verge of seeing a major change.Art was slowly becoming a modern part of their lives, which first started the sense of creating the elite and sophisticated class of aristocrats who greatly indulged in the exhibition of this abstract sense. This cultural rebirth was brought by the philosophical and scientific works which were gaining great popularity. The architecture of this period thus presented the aim of joining spaces to human lives, by which the theories of geometry were relate to light and how it varied with different materials, bringing the idea of ‘perspective viewing’ for the first time.Thus first architectural plans came into being, where designs were laid out first before they were rectified, and the idea plunged from France, to Italy, England and took over the rest of the world. Thus the new perspectives were further refined by the coming of the Baroque Architecture in the 17th Century, which redefined Renaissance with the agility of sculptures and theatrical fashion clean sweeping the olden ideas established by the staunch Church laws, which represented the religious shift of people from pure Catholicism to Protestants.It thus gained is freedom through fortifying grand palaces in Paris, London and then the rest of the world, the period giving birth to the world’s greatest architects such as Michelangelo and Carlo Maderno. Industrial Revolution and the rise of Modern Techniques The Industrial Revolution, a period which elongated from the late 18th to the early 19th Century, was an era which brought major structural changes in agriculture, manufacturing and transportation; greatly influencing the socioeconomic and cultural status of people in the North America and Britain, which later slowly took over the entire world.This was an era, in which machinery was gradually taking over manual and animal drift labor, whereby impossible acts seeme d to be coming to reality, with massive production, less time consumption, greater efficiency, lower costs as well as magnified distribution facilities. This revolution influenced the normal life style of almost every individual, who became a part of the new machine world. The turning point was brought by the easier transportation techniques, reinforced with the development of steam engines, giving life to trains, canals and road; and also the usage of metal and steel at higher levels for stronger and machinery.This metal was being used for the development of I-Beams and reinforced concrete; glass panels were being excessively installed, with more intricate wooden work now being made possible with precise machinery, able to work on minute details. Also with the launch of plumbing techniques, access to drinking water became easier, and thus houses could now even be built further away from a water source. However the Industrial Revolution, also gave rise to the new riches and poor who had been forced out of the income stream.It divided the community into two halves, the capitalist’s class who were the rich factory owners and industrialists living in enormous castles and gardens to meddle in, while the poor labor class hardly survived in small houses clustered in abundance across a street, which shared sanitation facilities. Epidemics of disease plagued these claustrophobic areas, where there were almost no plumbing facilities, no food supplies and large families living in houses of one or two rooms, with no government rules to intervene with the inhumane conditions.Victorian Architecture The Victorian era, which predominantly attained its name; through the rule of Queen Victoria (from 1837 to 1901); is most importantly remembered for the grace and elegance that it brought in the architectural sense of that time period. The newly established Industrial Revolution, which had made machine made products now cheaper and easier to use by the majority of the peo ple, saw the development of complex houses, different from their regular box like forms.The architects ad constructors found themselves exploding with ideas and notions which were diverse and freed themselves from the traditional forms, and allowed them to play with bolder colors, elaborate and prudent exterior fixtures. With the growth of trade, and growing influx of people to and forth different parts of the world; brought in more creative ideas. The most famous of the Victorian houses were the Gothic styles, or commonly known as the gingerbread homes; due to their strong color and intricate structures, derived their inspiration from Western Europe.As the era became more engrossed in maintaining grander, the Italianate style came in formation with huge arches and pediments influenced from the Roman Architecture were camouflaged into everyday houses, with porches elaborated with a centered square. As urbanized architecture was on the rise, mass and cheaper productions of materials were required, which it initiated the development of wooden shingles rather than the thick wooden use; thus for the first time the working class could erect their own homes, giving birth to the English traditional cottage style and American homestead, popularly known today as the Folk Victorian architecture.While the richer class dwelled in more expensive sort of ‘Queen Anne homes,’ with unequal floor plans, numerous arched windows, grand porches, elaborate, fancy gardens all fountain set and decorative windows and doors. While the American architecture of mansions consisted of large stone buildings, topped with giant chimneys, large windows and decorated with massive sculptures around the house. Moreover, the Industrial Revolution provided the cheap availability of brass and steel hardware utilized throughout these houses.History states that every great revolution or civilization meets it end in catastrophe, and so did the Victorian Era, whose closure was marked by the First World War in 1914. Whereas on the other hand, modernization and rise in incomes which was brought by the Industrial revolution, was further engulfed by the Great Depression, which plagued the economic status of the people. This span of downtrodden economies spun from 1929, and ended in the late 1930s to 1940. Modern Architectural DesignsThe end of the Second World War, brought with it an era of International living, with ever increased communication levels around the global, emerging creativity, sophisticated tools and designs which were impossible before now were standing in the broad daylight exhibiting the evolution of man’s mind to greatness. With the emergence of developing countries, new and intricate ideas were on the rise. Where structures stood on abstract lines, giving the architects a wide field to play with geometrical figures and culminate them into an extraordinary structure, each standing a loaf from the other in every aspect.In the 1930’s came th e idea of Art Deco, which exploited the use of various other materials such as nickel, chrome, stainless steel and aluminum. These substances proved to be more efficient and cheaper to use. However, to accommodate the war trodden refugees houses which were more simple and quicker to produce were introduced, making elaborate use of glass, flat roofs and simple interior. While most of these houses were duplicates of each other lacking individuality, but enough to meet up with daily needs; whereas an attached garage was a new feature.The second Industrial Revolution, in the early 20th century, with the aid of computer generation, and even efficient poor tools and machinery, led to the establishment of elevators and escalators, to approach the high rise buildings, later turning into skyscrapers, and it attained its maximum with the building of the twin towers of the World Trade Centre in New York in 1977, which however faced its tragedy in 2001 due to the rising political calamity throu gh the world.The modern architecture is a blend of boldness, affordability, abstract designs and comfort; which all look towards the gleaming future of innovation. However, an aspect which cannot be avoided in these residences is their connection still staying strong with the traditional lines and patterns of their ancestors, which gives it a stronger and more sustainable area of growth, developing its roots for a longer time of existence.Nevertheless, the social status of the modern homes is evolving towards smaller families usually comprising of four members, thus such families also prefer living in a relatively smaller house, which is cost effective and could be easily be maintained by the mediocre earning of both the parents. Today with the growing urbanization and over utilization of resources, most of the residential architecture of the modern times is moving towards energy conservation and more of a sustainable development, which is easy to maintain and is less heavy upon the incomes of individuals.The residences of the future will be less of consumer friendly but more catering towards the needs of the environment. Throughout the world resources have been exploited to their maximum, with the increasing green houses effect, global warming, curtailing energy resources, and growing population levels there is a need of the creation of â€Å"Green Building,† which focuses upon conservation of energy, materials and water, which would have least externalities upon human health and the environment.Thus architecture is a living source, which evolves with time, perspective and society, taking over the shape and style which best meets its needs of the present as well for the generations to follow. References Dixon, Roger and Muthesius, Stephan. (1978) Victorian architecture. Thames & Hudson. ISBN 0-500-18163-2 Ching,F. , Jarzombek, M. , & Prakash, V. (2006). A Global History of Architecture. John Wiley and Sons Inc. Hopkins, R. (2002). A Natural Way of Buil ding. Transition Culture.Retrieved on April 26, 2009 from http://transitionculture. org/essential-info/articles/a-natural-way-of-building-2002/ Pater, P. (1976). Renaissance Rome. University of California Press The Architectural Timeline: Victorian. Retrieved on April 26, 2009 from http://houseofantiquehardware. com/site/timeline/tl_victorian. html Theisson, A. The Evolution of American Residential Architecture. Retrieved on April 24, 2009 from http://www. helium. com/items/1366726-american-residential-architecture? page=2

Current International Issues Between China and U.S

Current International Issues Between China and U.S Introduction The world is currently facing many global issues. These issues despite their size and weight usually lead to either positive or negative effects. Some of these global issues, if not well attended to, may cause conflicts between nations and possibly affect global economy. This calls for proper diagnosis of any arising issues so as to make sure that they are properly and adequately solved.Advertising We will write a custom essay sample on Current International Issues Between China and U.S specifically for you for only $16.05 $11/page Learn More For instance, the booming economy of China has substantially threatened the markets and investment opportunities previously explored by the U.S (Reus-Smit 344). This paper is an exploration of how China’s fast economic growth has impacted the policies of the United States. Global issue between China and U.S.A The United States of America has for a long period of time been known as the most powerful n ation in the world. It is famous for its high stable economy which every nation yearns to achieve. China on the other hand is a largely populated nation that in the past had a very low Gross Domestic Product (Beeman 1). However, the situation has changed in the recent past as China’s economy has tremendously gone up placing her in second position after U. S.A. The rapid growth of China’s economy was greatly influenced by its government which made reforms in the major sectors of the economy. Looking at the rate at which China’s economy is growing it can be forecasted that it may overtake the economy of the U.S (Fry and Jacinta 336). Due to the fact that China is fast rising in terms of economy and the military force, there has been conflict between China and the United States of America. This conflict is what the whole world is focussing on so as to bring harmony between these two nations (Steinberg 1). A detailed look at the amount of grants and aid despatched b y U.S.A to other nations shows its importance to the entire world. The same case applies to China because of its endless list of imports and exports. The current president of U.S.A, President Obama has been the ring leader in the initiative of engaging with China (Seabrooke 304). He has campaigned for peace within the two countries telling his nation to give China a warm welcome as it is a successful and hardworking country. He further tells them that incorporating China as an ally will lead to positive results including a prosperous future for their young generation.Advertising Looking for essay on international relations? Let's see if we can help you! Get your first paper with 15% OFF Learn More Not only President Obama but also the Secretary Clinton emphasizes on the creation of a bilateral relationship between China and the United States of America. The last time she was in China, she highlighted on three major issues that needed the unity of both nations to handle. She talked of security issues especially on solving the political matters of countries like Iran and North Korea (Steinberg 1). The other issue was on climatic problems like biodiversity and lastly the current economic crisis in the world. Conclusion The conflict between China and the United States has, with time, led to a harmonious relationship between the two countries. This has, in turn, led to positive impacts on the global economy and a good relationship between the two nations. Development of the relationship was necessitated by the fact China is becoming a major rival of the United States in exploring international markets and investment opportunities. In a nutshell, China’s rapid economic growth has obliged the U.S to seek alliance with the former in a bid to phase out unhealthy competition for international opportunities. Beeman, William. â€Å"Current and International Affairs† 2010- September 15, 2010. http://wbeeman.blogspot.com/ Fry, Grey and O’Hagan, Jacinta. Contending Images of World Politics 2000. London, Macmillan Press, pp336. Reus-Smit, Christian. The Politics of International Law. 2004. Cambridge University Press. Seabrooke, Leonard. US Power in International Finance. 2001. London: Palgrave.Advertising We will write a custom essay sample on Current International Issues Between China and U.S specifically for you for only $16.05 $11/page Learn More Steinberg, James.† U.S. China Cooperation on Global Issues.† 2010. September 15, 2010. https://www.state.gov/

Goodfellas Essays - Lucchese Crime Family, The Vario Crew

Goodfellas Essays - Lucchese Crime Family, The Vario Crew Goodfellas Goodfellas The 1990 Martin Scorseses motion picture Goodfellas, is a classic movie about the world of organized crime. Goodfellas is based on the Nicolas Pileggi novel WISE GUY. The film starts off in New York City in the 1950s, and is on the life of a poor Irish-Italian named Henry Hill. Hill is an aspiring criminal who threw the movie, rises threw ranks of his Brooklyn neighborhoods organized crime branch, and has Henry and his family living the good life with his profits from his criminal activity, finally Henry is forced to testify against his former partners and lands Henry and his family in the FBIs Witness protection program. In his teen age years Henry starts working in a local hangout for wise guys (members of organized crime). At first Henry is put to work, parking cars and little odd jobs for the wise guys. After a few years things escalate into more involvement for Henry like working in an underground gamboling ring, running messages, Torching cars, and to selling stolen cigarettes. Most of his current activity is a classified as a misdemeanor, or a public order crime. When Henry ends up getting arrested, and after a light slap on the wrists, Henry earns much trust and respect and starts off on his life of crime. In his early 20s Henry and his partners, Tommy, and Jimmy set up different jobs Crowell 2 to improve there financial gain, social status and if not more importantly respect, from other individuals involved organized crime. The three ran jobs like robbing cargo trucks filled with goods from fur coats, to cigarettes, and even occasionally a shipment of shrimp and lobsters. These goods are sold illegally on the black Market for a fraction of their original costs. These criminal activity starts to enhance as time moves on, with public official and police payoffs, crimes are put on the bottom of the pile or never investigated. Along with the intimidation of witnesss and the common fear of two-timing organized and never being herd from again members of organized crime usually escape the long arm of the law. Henrys first big score was a robbery of an over seas bank exchange from the Air France loading dock with the help of Tommy and the head security guard jimmy just walked out with a suit case of almost 250,000 dollars, After this Henry earns respect as a big time wise guy. With time Henry, Tommy, and Jimmy move on to more serious crimes like Major shakedowns of business for protection and skimming a popular restaurant by unloading goods like liquor out the back door and selling them for a fraction of the price, but it was not a loss because no one was going to pay for it when the restaurant barrowed every last dime they torched the place. This was an insurance fraud crime and Arson witch are both serious felonies. When members of organized need to keep someone quiet they take care of it by making the person disappear, In the film this usually entailed a six foot pit up state. Henry, Tommy and, Jimmy took many trips up state during the course of the movie. Hits were not an uncommon thing in the movie, like when Jimmy pulled off one of the Crowell 3 biggest robberys in u.s. history he killed everyone involved. In most crimes vehicles are stolen to be used in illegal dealings so no one could trace a car back to the person who committed the crime. After the criminal activity was over the car was torched or driven into the river. When Jimmy made his big score, the get away driver got drunk and forgot to dump the car, this is when people started disappearing. On a failed robbery Henry and Jimmy were pinched (arrested) on federal charges and given Ten years in a federal prison. When Henry went to prison he stated paying off the guards to look the other way so he could sell narcotics to other inmates, and live a decent life behind bars. Henry did not live with the prison population he lived in a private cell with other mafia figures in prison on different charges, they received many privileges like being able

Implementation of human resources strategies in the chosen Essay

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