The Precedence of Perseverance free essay sample

During my eighteen years of existence I have been subjected to countless advisements, proposals, teachings and guidance. And though I am extremely grateful for all the lessons have I have encountered, one specific piece of advice triumphs over the rest. A British author known as Samuel Johnson once declared, â€Å"Great works are performed not by strength, but by perseverance.† The significance and impact that this quote had over me was enough to form and shape my behaviors for the duration of my high school career. I spent all four years attempting to maintain an aura of diligence and understand the components of perseverance. If one were to look up the definition of perseverance they would simply see a cluster of large synonyms that have little purpose and lack compelling denotation. Nevertheless, over the years I have learned that perseverance is more of a state-of-mind than it is a simple adjective. In 2007 when I became a high school student I quickly realized a lot of things about myself. We will write a custom essay sample on The Precedence of Perseverance or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page I became aware that success was an important part of my education and in order to obtain my desired success, I was going to have to develop an incredibly persistent work ethic. I made a plan to always take notes in class and never miss a homework assignment. Little did I know, however, that those were only the beginning steps in becoming an accomplished student. I needed to demonstrate my ability to remain determined, focused, and devoted. Even being slightly stubborn and relentless proved itself helpful when it came to challenges in my education. In specific subjects such as Math and Science the words of Johnson seemed to have a surprising effect on me. Algebra and Chemistry contained some of the hardest concepts I’ve ever had to deal with. It was in these two classes that I learned I did not possess the natural strength that these subjects required. What I did possess, however, was perseverance. I worked unbelievably hard, spending many of my lunches, studies, and afternoons obtaining extra help in both classes. I became focused on not just learning the material, but actually understanding it. The notes and homework assignments went beyond normal school work and I treated every task like it was a test. I soon realized that I was no longer treating these courses like a high school class, rather a personal assessment taxing my endurance. I had now entered a state-of-mind. The exact state-of-mind that is perseverance. The quote by Johnson has taught me that to persevere is to maintain the highest level of motivation that one has. High school was a time for me to perfect my capability to persevere and I plan to use my capabilities starting the first day I walk through the college campus doors. The ability to remain motivated and maintain immunity against defeat is perhaps the most important ability that one can acquire. For me, I was able to begin my journey towards this ability due to the insightful words of Samuel Johnson.

The modern finance theory is based on the capital asset pricing model The WritePass Journal

The modern finance theory is based on the capital asset pricing model Abstract The modern finance theory is based on the capital asset pricing model AbstractIntroductionTheory2.1 Prospect Theory2.1.1Certainty Effect2.1.2 Reflection Effect2.1.3 Isolation Effect2.2 Behavioural Capital Asset Pricing Theory2.3 Behavioral Portfolio TheorySome Models3.1 DSSW Model3.2 BSV Model3.3 DHS Model3.4 HS ModelAnomalies4.1 Closed-end fund puzzle4.2 the equity premium puzzleConclusionReferenceRelated Abstract As some anomalies are hardly explained by the traditional finance, the behaviour finance is introduced. It was first introduced by Kahneman and Tversky (1979), which they presented the prospect theory. In fact, investors’ behaviour often violates the expected utility theory, some of them trade irrrationally. Then Shefrin and Statman (1994) base on the CAPM, and put investor sentiment into the model to make the BAPM. They thought noise traders and information traders would interact and influenced the price setting, including the noise traders’ behaviour in the BAPM let the asset pricing more precise. Another important theory is the behavioral portfolio theory. The theory states that when investors choose portfolios, they on the one hand want to be security, while on the other hand they potentially also want to reach aspiration levels. So it lets BPT investors to choose bonds and lottery tickets together come true. According to these phenomenon which happen to investorsâ €™ portfolio selection, many researchers give their explaination. Generally speaking, bahaviour finance is based on two theories, which is limits of arbitrage and investor sentiment. DSSW model is based on the former theory while BSW model, DHS model and HS model are based on the latter one. There are also some more models in the behaviour finance area. These models can explain some anomalies, such as Closed-end fund puzzle and the equity premium puzzle. In this paper these two anomalies would be treated as examples to explain how behaviour finance explain these anomalies. Introduction The modern finance theory is based on the capital asset pricing model (CAPM), Markowitz’s Portfolio Theory, Arbitrage Pricing Theory (APT). The model CAPM is introduced by Sharpe (1964), Lintner (1965), and Black (1972). It provides the pricing mechanism of capital assets and the decision factor of risk isÃŽ ²(the relationship between firm returns and market returns). These theories are based on the Efficiency market hypothesis (EMH) and the CAPM can be used to test the EMH. While its analysis framework confined within the scope of rational analysis, when more and more anomalies arise in the market, they are hard to be explained by standard finance which is based on the EMH. In this situation, the questioning of modern finance beginned when the prospect theory is introduced by Kahneman and Tversky (1979). And then the behavioural finance is introduced to explain these snomalies. The definition of behavioural finance is that â€Å"Behavioural finance- that is, finance from a broader social science perspective including psychology and sociology- is now one of the most vital research programs, and it stands in sharp contradiction to much of efficient markets theory.† (Shiller, 2003 p83) It is a Marginal subject and opposite to the traditional finance, and it tries to explain the importance of investors’ emotion and mental mistakes, which would influence their decision-making process (Ricciardi and Simon, 2000). At first, behaviour finance is marginalized as â€Å" anomalies literature† (Frankfurter and McGoun, 2000).it has been researched for a long time, and then it has been accepted after more and more journals focusing on the discussion of anomalies. Section 2 of the paper explains three main theories of behaviour finance, which are prospect theory, behavioural capital asset pricing theory and behavioral portfolio theory. Section 3 presents some models which provided by the behaviour finance. Section 4 discusses the application of behaviour finance to explain anomalies. Section 6 concludes. Theory 2.1 Prospect Theory Prospect theory is the one of the most important theory in the behavioural finance. Investors   usually do not perform rationally, and prospect theory handles this issue. Expected Utility Theory is a kind of desceiptive model which is used to make decisions under risks, and the result is a criteria for investors to choose. While a large number of experimental research shows that investors choices are inconsistent with the basic tenets of utility theory. Kahneman and Tversky (1979) classify these differences into some areas, which is certainty effect, reflection effect and isolation effect. 2.1.1Certainty Effect Certainty effect is people often underestimate outcomes which are probable when compare outcomes which are received with certainty (Kahneman and Tversky, 1979). In order to demonstrate this issue, Allais (1953) gives a series of choice problems. On of the problem is that: Option 1: 2,500 with probability   0.33 2,400 with probability   0.66 0 with probability  Ã‚  Ã‚  Ã‚  Ã‚   0.01 Option 2: 2,400 with certainty The question is which option would give you the best chance to maximize your profits? The result shows that 82% people choose the option 2 among 72 people, most of them violated expected utility theory. According to the expected utility theory, the profit in option 1 (2500*0.33+ 2400*0.66+ 0*0.01= 2409) is greater than the option 2 (2400), while people prefer choosing the profit which is certain rather than choosing the profit which is risk. 2.1.2 Reflection Effect While when gains are replaced by loses, the result would be that the risk preference of people is contrary to the positive prospects, it transfers from risk aversion to risk seeking, and this is labeled as the reflection effect. For example, 92% people choose a probobility of 80% to loss 4000 when they are offered another choice which is a certainty loss of 3000. This example also shows that not only the positive domain violate the expected utility theory, but also the negative domain violate it in the same manner. 2.1.3 Isolation Effect When people choose one investment between alternatives, they usually exclude the common factors to consider, and focus on their different components. This division would lead to different reslults, for the same pair of investments can be divided into common and distinctive components in many different ways. This phenomenon is called the isolation effect. For example there is two-stage choice problem, the first stage is that people have a probability of 0.25 to go to the second stage, and in the second stage, you have to have a choice between the winning 3,000 of certainty and winning 4,000 of 0.8 probobility. The result states that 78% of 141 people choose the former one. While in this game, people should have had a choice between 0.25* 0.8= 0.2 possibility to win 4,000, and a 0.25* 1.0= 0.25 possibility to win 3,000, and this choice was demotrated by Allais (1953) that a marjor of people would choose a 0.2 chance to win 4,000. so in this situation, people ignore the first stage and based on the second stage to choose prospect. Prospect theory divides the choice process into two phases, one is editing and the other one is evaluation. Editing phase is used to analyse the options in order to get the simplified result, evaluation is to evaluate the edited prospects and choose one which has highest value. Editing includes four operations which are coding, combination, segregation and cancellation. According to the prospect theory, if a prospect is regular (p + q 1, or x ≠¥ 0 ≠¥ y, or x ≠¤ 0 ≠¤ y ), which also means neither strictly positive nor strictly negative, the equation would be: (1)  Ã‚   V(x, p; y, q) = Ï€(p) v(x) +Ï€(q) v(y) In this equation, the total value of an edited prospect is denoted V, and   it is expressed by two scales. The first scaleÏ€is connected with each possibility p and the decision weight isÏ€(p), the other scale is v, which the outcome is v(x) with a number x. the value of prospect in Equation (1) is the same as the result of expected utility theory. While if the prospects are strictly positive or strictly negative, they must use another rule. When prospects are in the editing phase, they are often divided into two parts, which is the riskless part and the risky part. The evaluation would use the next equation: If p + q = 1 and either x y 0 or x y 0, then (2)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   V(x, p; y, q) = v(y) +Ï€(p) [v(x) – v(y)] It means that the value of a strictly positive or strictly negative prospect is the same as the sum of the value of the riskless part and the value-difference between the outcomes multipling the weight associated with the more extreme outcome. Investors evaluation base on the value function and weighting function (Kahneman and Tversky, 1979). Prospect theory uses value function to explain the same meaning of utility. There are two arguments in the value function, the first one is the asset position which can be treated as reference point, and the other one is the magnitude of the change from the reference point. Value function normally concave for positive outcome and convex for negative outcome, and the losses is steeper than the gains. When the value approachs to the reference point, the value fuction is steepest, and the whole value fuction is S-shaped. Decision weights are usually different from the probability axioms, investors often overestimate the small probabilities, this situation often happens in gambling and insurance. While for other situations, decision weights are commonly lower than the corresponding probabilities However, there are two drawbacks existing in the prospect theory. Firstly, it uses the value function and weighting function to evaluate theory, while there are no specific functions and instead using examples to explain. It is a kind of experimental process. Secondly, there is no specific standard for reference point, it makes the theory not so pricise. 2.2 Behavioural Capital Asset Pricing Theory The behavioural capital asset pricing theory is based on the capital asset pricing model (CAPM) and the difference is that the behavioural capital asset pricing theory consider the behaviour of traders. It focuses on the market which noise traders and information traders affect each other. Information traders are traders in the condition of CAPM, they obey the Bayesian learning rule to evaluate the returns and most importantly, they never make cognitive errors. However, noise traders are contrary to information traders, they commit cognitive errors and break the Bayesian rules. These two traders interact and determine the asset price. Market is efficient when information traders are dominant in the market, while if dominant traders are noise traders, market is inefficient. What is the difference between markets in which prices are efficient and markets in which prices are not efficient? The main difference is that there is a single driver property existing the market which prices are efficient. As Shefrin and Statman (1994, p345) said, â€Å"This single driver drives the mean-variance efficient frontier, the return distribution of the market portfolio, the premium for risk, the term structure, and the price of options.† It satisfies the minimun information which required to cause the changes to the outcome distribution of the market portfolio. While a second driver is introduced to the market by noise traders, and it let the price far away from the price efficiency. They often creat some abnormal returns to particular securities. The expected return of security is determined by behavioural ÃŽ ², which is the ÃŽ ² of tangent mean variance efficient asset portfolio. Noise traders’ action let the relationship between security returns and bet a weaker. While at the same time, they built a positive relationship between abnormal returns and beta (Chopra, Lakonishok, and Ritter, 1992). When the prices are efficient in the market, price efficiency protects particular noise traders. At that time, the function of noise traders is to rise the trading volume. However, if the prices are not efficient, new information cannot be a sufficient statistic. Yet prices, volatility, the premium for risk, option prices and the term structure are still influenced by old information. Noise traders affect the return of securities through the term structure and they can arouse inefficient inversion which exists in the term structure. The behaviourÃŽ ² is introduced by the behavioural asset pricing model (BAPM), when the noise traders are included in the model, the behaviourÃŽ ² represents a lower risk than the traditionalÃŽ ². The BAPM research a series of issues such as risk premium, the term structure, and option prices in the situation of existing noise traders. The BAPM not only considers the performance characteristics of value, but also includes the characteristics of utility, therefore, on the one hand it has to accept the market efficiency when considering the unbeatable market, on the other hand it must reject the market efficiency when consider the irrational behaviours. This contradiction lead the finance to further research. 2.3 Behavioral Portfolio Theory The behavioural portfolio theory (BPT) is introduced by Shefrin and Statman (2000) and it is based on the SP/A theory (Lopes, 1987) and Safety-First Portfolio theory (Roy, 1952). Roy’s (1952) safety-first theory and Markowitz’s (1952a) mean-variance portfolio theory are introduced at the same year, however their opinion are different to the Friedman-Savage puzzle. The former theory is consistent with the puzzle while the latter one is not. SP/A theory is a psychological theory and it has been a choice framework. Security, potential and aspiration are the meaning of letters SP/A and they also reflect investors’ choice under uncertainty. The efficient frontier of BPT is different from the mean-variance efficient frontier, and the optimal portfolios of BPT and CAPM are not the same. BPT investors think about the expected wealth when they select portfolios. On the one hand, they want portfolios to be security, on the other hand they potentially want to reach aspiration levels. So BPT investors combine bonds and lottery tickets together. The BPT is classified into two versions, a single mental account version (BPT-SA) and a multiple mental account version (BPT-MA). Their differences are that BPT-SA investors use a single mental account to manage their portfolios while BPT-MA investors use several mental accounts to integrate their portfolios. So BPT investors are the same as investors in the Friedman-Savage puzzle, they both present risk averse and risk seeking. They buy risk-free investments for the low aspiration mental account and buy speculative bonds for the high aspiration mental account. BPT-SA investors treat the portfolio as a whole like mean-variance investors, and they also take covariances into consideration. So the framework of choosing portfolio are similar between BPT-SA and mean-variance theory, the difference is that their efficient portfolios are not the same. Portfolios in the BPT-MA is like layered pyramids, and every layer has its own aspiration level. The bottom layer is designed to protect investors from poverty and the top layer let investors have a chance becoming rich. BPT-MA investors are quite different from BPT-SA investors, they ignore covariances and treat portfolios separately in to different mental accounts. Because BPT-MA investors ignore covariance between layers, there is a risk that they may put the same security but with different positions into different layers. The similar evidence is provided by Jorion (1994), he finds that when investors invest globally, they put securities and currencies into different layers of the pyramid, while he thinks the overlay structure is not so useful, because it overlooks covariances between securities and currencies and it leads to 40 basis points loss of efficiency. Some Models 3.1 DSSW Model Behaviour finance is based on two theories, which is limits of arbitrage and investor sentiment. According to the tradition finance, arbitrage plays a key role in achieving the market efficiency. Its basic point is that even irrational investors exist in the market and let prices deviate their value, rational investors would eliminate their influence to prices, and finally prices and the value are consistent. However, behaviour finance thinks arbitrage is not unlimited, one of the reason is that arbitrageurs are risk averse and have resonably short horizons, its posibility to be dominant is small. For example, when arbitrageurs sell assets short, they first must know noise traders are bullish and they must be bullish in the future, And then noise traders would buy back the stock. While it is hard to predict noise traders thought, so arbitrageurs have to bear the risk and this would limit their willingness to take position against noise traders. The model consists of noise traders and sophisticated investors. There are some investors not following economists’ advice to invest, and they only trust their own research. So Black (1986) called these investors who have no private information and irrationally act â€Å"noise traders†. Noise traders obtain lots of information which comes from technical analysts, economic consultants and stockbrokers and they falsely believe this information is useful to predict the future price of risky asset. So noise traders choose portfolios according to such incorrect beliefs Alpert and Raiffa (1982). On the contrary, sophisticated traders make use of noise traders’ irrational misperceptions. They buy stocks when noise traders depress prices, while they sell stocks when noise traders think prices would be bullish. According to the risk of noise traders, the model can explain some financial market anomalies. These anomalies are the excess volatility of and mean reversion in stock market price, the Mehra-Prescott equity premium, the closed-end fund puzzles and some other anomalies. However, there is a drawback existing in the model, which is that it can not explain how investors make decisions. The assumption is that investors base on the behaviour portfolio theory to choose their portfolios, according to the different layers, they make different investment choices even for same assets. 3.2 BSV Model A huge amount of empirical evidence have shown two kinds of pervasive phenomenon, which are underreaction and overreaction of stock prices. Underreaction means that investors predict higher average return than the actual average return when good news are announced. in other words, the stock underreacts to the good news. if the average return comes from a series of announcements of good news and it is lower when compared with the average return coming from a series of bad news announcements, it is defined as overreaction (Barberis, Shleffer, and Vishny, 1998). BSV model is introduced by Barberis, Shleffer, and Vishny (1998). Investors often present two phenomena, which is conservatism and representativeness heuristic. Conservatism can be defined that people often react slowly when people encounter new evidence (Edwards, 1968). When investors face evidence which has high weigh but low strength, they do not care much about the low strenngh and react moderately to the evidence. While if the evidence has high strength but low weight, they overreact it like representativeness. Representativeness heuristic is the second important psychological phenomenon (Tversky and Kahneman, 1974). It means that investors focus on recent patterns in the data while give little weight to the properties of the population which generates the data (Fama, 1998). In the situation of representativeness heuristic, if a company performs well in the past and has a high growth, investor would ignore the truth that this well perform would hardly repeat itself. The result would be that they overestimate the value of the company and be disappointed when the expected growth does not come true. The BSV model bases on the two phenomena, and explain how investors decision-making model leads to the market price deviating the efficient market. The model also deals with the problem why arbitrage is limited, the reason it that investors’ sentiment are hard to forcast. The more extreme of investorsà ¢â‚¬â„¢ sentiment, the more further of price away from the actual value. It is known that earnings are a random walk, while investors falsely classify them into two earnings regimes. They underreact or overreact to a change in earnings, these lead to short-term momentum in stock returns and long-term reversal. The BSV model perform well on the anomalies it was designed to explain, while the forcast of long-term return reversal is not so good. 3.3 DHS Model Daniel et al. (1998) also provide a model which includes investor sentiment to deal with the situation of overreaction and underreaction. They try to use psychological theory to support their framework and classify investors’ sentiment into overconfidence and biased self-attribution. Overconfidence is defined that investors often overestimate their forecast ability when they have more significant information than others, so they often overlook their prediction errors. Biased self-attribution is investors feel confident when they find public information is the same as their information, but the confidence would not decrease proportionately when public information is opposite to their private information. According to the DHS model, it has been known that investors overreact to private information, while on the contrary investors underreact to public information signals. When public information signals eliminate behaviour bias, this would lead to short-term momentum of stock returns while long-run reversal. The model can reconcile this situation, it transfers the wealth from imperfect rational traders (e.g. noise traders) to rational traders and then price setting is dominated by rational traders. While even in this situation, rational traders could not be predominance in the long term. De Long et al. (1991) state that noise traders are risk averse and they prefer investing more money to risky, high expected return assets, if they overconfident about the true information signals, they would obtain more profits than those rrational investors. The forcasts of DHS are similar with BSV, they share the same empirical successes and failures. And this comment can also apply to Hong and Stein (1997). 3.4 HS Model The model is provided by Hong and Stein (1999) in 1999, it also called the unified behaviour model. The model is different from BSV model and DHS model, it classifies agents into newswatchers and momentum traders. Each of them are restricted rational. Newswatchers making investment dicisions base on private information signals of movement of future values. Their drawback is that they do not use the current or past prices to choose portfolios. While on the contrary, momentum traders mainly base on the movement of past prices changes to invest. However, they also have limitations, which their forecasts should be â€Å"simple† function of the history of past prices. In this model, there is one more assumption, which is private information would spread slowly in the newswatcher group. The underreaction and overreaction are based on the private information spread slowly across the newswatcher population. As first, newswatchers underreact to the private information, then momentum tr aders try to make use of it to arbitrage, while it leads to overreaction. Anomalies 4.1 Closed-end fund puzzle There are some anomalies existing in the financial market, one of them is closed-end fund puzzle. The definition of it is that: â€Å"The closed-end fund puzzle is the empirical finding that closed-end fun shares typically sell at prices not equal to the per share market value of assets the fund holds† (Shleifer and Thaler, 1992, p. 75). The puzzle is that closed-end funds are sold with 10 percent premium at first, while after around 120 days, the premium of 10 percent moves to a discount of over 10 percent (Weiss, 1989). And then discounts fluctuate over the period of funds, they would narrow and then disappear until the closed-end funds terminate. This proposition has been researched in the past, they pointed out that the value of securities maybe overstate when compared with their true value of the assets. And they provided three explainations, which are agency costs, tax liabilities and illiquidity of assets. Generally speaking, agency costs are constant, it cannot let prices fluctuate. Moreover, it even cannot explain why rational invettors buy funds at a premium initially and finally sell them at a discount. Restricted stock and block discount hypotheses are two versions of asset illiquidity, they explain the reason to sell stocks at a discount, that is, trading fees are expensive. The tax liabilities’ explaination is that the gain tax has included in the funds, so discounts happen. while these three standard explanations cannot explain the puzzle together or separately. Another explaination is provided by De long, Shleifer, Summers and Waldmann (1990) (DSSW). They develop DSSW model to explain rational investors and noise traders interact in financial markets, and the key point is that noise traders’ sentiment are unpredictable. So the noise traders’ sentiment influence the demand of closed-end fund shares and then influence the changes in discounts. The model makes two hypotheses, they assume rational investors are short horizons, they focus on the interim resale of prices rather than the present values of dividends. The other assumption is that noise traders’ sentiment is stochastic and hard to predicted by rational investors. If investors are optimistic about the return of funds, funds will be sold at premia or only a little discounts. While if noise traders are pessimistic, it will result of a large discounts. There are two kinds of risk when investors hold closed-end funds, which are the risk of holding the fund’s portfolio and the risk of noise traders’ sentiment causing prices changes. If noise traders become continuously pessimistic about closed-end funds, this risk would be systematic. And then its influence will not be restricted in the closed-end funds. According to this aituation, it is easy to find that holding the fund is risker than holding its portfolio, and then prices of closed-end funds wou ld be lower than their true value. There is a fact that closed-end funds are mainly traded by individual investors. And individual investors also invest small stocks. According to the empirical evidence which researched by Shleifer and Thaler (1992), it shows that the performance of small stocks also influence the changes of discounts. If the small stocks do well, the discounts of closed-end funds would be narrow. 4.2 the equity premium puzzle When researchers observed the economy of the United States during 1889 to 1979, they found that the annual return of stocks was seven percent, however, the return of treasury bills was less than 1 percent after 1926. Mehra and Prescott (1985) stated that this huge gap causes from the huge difference of risk aversion. They explained the high equity premium with having excess of 30 risk aversion. While the actual figure observed is only close to 1. so it is a problem that why is the equity premium so large. Benartzi and Thaler (1995) gived two concepts which comes from the psychology of decision-making. The first one is loss aversion, and the other one is mental accounting. Loss aversion is similar with the Kahneman and Tversky’s (1979) descriptive theory. It becomes more sensitive to loss money rather than increase wealth. It is also opposite to the expected utility theory. Mental accounting is defined that â€Å"mental accounting refers to the implicit methods individuals use to code and evaluate financial outcomes: transactions, investments, gambles, etc† (Benartzi and Thaler, 1995, p.74). Investors are loss aversion, so if they invest stocks, they would care about the security of portfolios. While stock prices are fluctuated, frequent performance evaluation would make investors feel loss. So stocks are less attracted by investors. Only when the return of stocks keeps a high level, investors would replace bonds with stocks. Barberis, Huang and Santos (2001) explain this puzzle in another aspect and they introduce a model. The model not only bases on the onsumption but also bases on fluctuations of investors’ loss averse. As it is known to all, investors are sensitive to their decrease of wealth rather than to increase. And The changes of loss aversion depends on investors’ prior investment performance. If investors are profit in the prior period, they would become less loss averse. While if the loss is over the profit, or there existing loss in the prior period, investors would become more loss averse. According to this situation ,it needs a large premium to let investors hold stocks. However, the conclusion is made under some conditions. Firstly, researchers only use a single risky asset to do research for the sake of simplicity. So in the real economy which has lots of risky assets, it is not easy to identify what investors are loss averse about. Another one is that it is not clear to what range the preferences can interpret financial data and risky gambles. Conclusion The behaviour finance as a Marginal subject has been developed quickly during the recent years. It combines the finance, psychology, sociology and anthropology to explain finance. According to the empirical research of the finance market, some anomalies cannot be explained by the traditional finance. While the behaviour finance use a unique aspect to systematically explain these anomalies, such as Closed-end fund puzzle and the equity premium puzzle. compared with the traditional finance, the behaviour finance does not have a complete systematic theory. However, the prospect theory (Kahneman and Tversky, 1979), the behavioural capital asset pricing theory (Shefrin and Statman, 1994) and the behavioral portfolio theory (Shefrin and Statman, 2000) constitute the fundamental systematic behaviour finance theory. They introduce an evidence that investors not always perform as rational traders, there are a part of traders perform irrrationally. Traders do not obey the expected utility theo ry. Then talking about the prices setting, the original CAPM model which is used to set prices of asset is not appropriate, noise traders often commit cognitive errors and their actions would influence the price setting. So the BAPM model which includes the investors influence can make prices more real. The main point of BPT theory is that investors choose portfolios basing their different layers of needs. The bottom layer is designed to protect investors from poverty and the top layer let investors have a chance becoming rich. In order to explain anomalies, some models have been introduced. For example, DSSW, BSV, DHS and HS models. They investigate the influence of investors’ sentiment from two aspects, which are limits of arbitrage and investor sentiment. However, the behaviour finance has its inherent drawbacks. As Fama (1998) states that even the behaviour finance can explain some anomolies existing in the capital market, it does not mean market efficiency should be abandoned. The data shows that the frequency of overreaction of stock prices is the same as underreaction, so it can be seen that anomalies are chance results in the market efficiency hypothesis. Moreover, anomalies existing in the long-term return are fragile, they tend to be a reasonable changes. Behaviour finance is the sum of anomolies which EMH and CAPM cannot explain, And it does not have its own independent evidence. So the development of behaviour finance needs further research. Reference Shiller, R. J. 2003. From efficient markets theory to behavioral finance. Journal of Economic Perspectives 17, pp. 83-104. Ricciardi, V. and Simon, H. K. 2000. What is behavioral finance. Business, Education and Technology Journal, fall. Frankfurter, G. M., McGoun, E. G. 2000. Market efficiency and behavioral finance: the nature of the debate. The Journal of Psychology and Financial Markets 1, pp. 200–210. Allais, M. 1953. Le Comportement de 1Homme Rationnel devant le Risque, Critique des Postulats et Axiomes de 1Ecole Americaine. Econometrica 21, pp. 503-546. Kahneman, D. and Tversky, A. 1979. Prospect theory: an analysis of decision under risk. Econometrica 47(2), pp. 263-292. Chopra, N., Lakonishok, J. and Ritter, J. 1992. Performance measurement methodology and the question of whether stocks overreact. Journal of Financial Economics 31, pp. 235-268. Shefrin, H. and Statman. M. 1994. Behavioral capital asset pricing theory. Journal of Financial and Quantitative Analysis 29(3), pp. 323-349. Lopes, L. 1987. Between hope and fear: the psychology of risk. Advances in Experimental   Social Psychology 20, pp. 255-295 Roy, A. D. 1952. Safety-First and the holding of assets. Econometrica 20, pp. 431-449. Markowitz, H. 1952. Portfolio selection. Journal of Finance 6, pp. 77-91. Jorion, P. 1994. Mean-Variance analysis of currency overlays. Financial Analysts Journal 50, pp. 48-56. Shefrin, H. and Statman, M. 2000. Behavioural portfolio theory. Journal of Financial and Quantitative Analysis 35(2), pp. 127-151. De Long, J. B., Shleifer, A., Summers, L. H. and Waldmann, R. J. 1990. Noise trader risk in financial markets. Journal of Political Economy 98(4), pp. 703-738. Alpert, M. and Raiffa, H. 1982. A progress report on the training of probability assessors. In Judgment under Uncertainty: Heuristics and Biases, edited by Daniel Kahneman, Paul Slovic,   and Amos Tversky. Cambridge: Cambridge Univ. Press. Samuelson, P. A. 1958. An exact consumption-loan model of interest with or without the social contrivance of money. J.P.E. 66, pp. 467-82. Black, F. 1986. Noise. Journal of Finance 41, pp. 529-543. Edwards, W. 1968. Conservatism in human information processing. In: Kleinmutz, B. (Ed.), Formal Representation of Human Judgment. John Wiley and Sons, New York, pp. 17-52. Tversky, A. and Kahneman, D. 1974. Judgment under uncertainty: heuristics and biases. Science 185, pp. 1124-1131. Barberis, N., Shleifer, A. and Vishny, R. 1998. A   model of investor sentiment. Journal of Financial Economics 49, pp. 307-343. Fama, E. F. 1998. Market efficiency, long-term returns, and behavioral finance. Journal of Financial Economics 49, pp. 283-306. De Long, J. B., Shleifer, A., Summers, L. H. and Waldmann, R. J. 1991. The survival of noise traders in financial markets. Journal of Business 64, pp. 1-20. Daniel, K., Hirshleifer, D. and Subrahmanyam, A. 1998. Investor psychology and security market under and overreactions. Journal of Finance 53(6), pp. 1839-1885. Weiss, K. 1989. The post-offering price performance of closed-end funds. Financial Management Autumn, pp. 57-67. Shleifer, A. and Thaler, R. H. 1991. Investor sentiment and the closed- end fund puzzle. Journal of Finance 46(1), pp. 75-109. Mehra, R. and Prescott, E. R. 1985. The equity premium puzzle. Journal of Monetary Economics, pp. 145-161. Benartzi, S. and Thaler, R. H. 1995. Myopic loss aversion and the equity puzzle. The Quarterly Journal of Economics 110(1), pp. 73-92. Barberis, N., Huang, M. and Santos, T. 2001. Prospect theory and asset prices. The Quarterly Journal of Economics February. Hong, H. and Stein, J. C. 1999. A unified theory of underreaction, momentum trading, and overreaction in asset markets. Journal of Finance 54(6), pp. 2143-2184.

Chapter 9 Review Questions

Unit 9 (E. B. ) 1. What is magnetism? When two pieces of iron are attracted to each other by physical means or electrical means. 2. Torque is A. Strength that a motor produces by turning. 3. A magnetic field is D. All the above. 4. True or False: A permanent magnet is a piece of material that has been magnetized and can hold its magnetic strength for a reasonable length of time. True. 5. How is an electromagnet produced? Through electricity. 6. Which of the following produces the best electromagnet? B. soft iron 7. Unlike poles of a magnet repel each other and like poles attract each other. 8. What part does polarity play in the operation of an electric motor? It allows the motor to run continuously. 9. What part of a motor produces an inductive magnetic field within itself to facilitate the rotating motion? Rotor and stator. 10. What part does the frequency of alternating current play in the operation of an electric motor? Helps change polarity 120 times a second. 11. What would be the speed of a two-pole motor operating on a 120 volts 60 Hertz power supply? 3450rpm 12. What are the five types of single-phase motors used in the industry? 3. Which of the following correctly lists the motor’s starting torque from lowest to highest? B. Shaded pole, three phase, permanent split capacitor, capacitor start. 14. Which of the following is a common use of a shaded pole motor? A. Furnace fan motor. 15. How does a shaded pole motor operate? The shaded poles produce a magnetic field that is out of phase with the magnetic field of the main winding. 16. How can a shaded pole motor be reversed? The stator must be reversed to change the positions of the shaded poles, and this usually means disassembling the motor. 17. What determines the rotation of a shaded pole motor? B. Location of shaded pole. 18. Draw a diagram of a three speed, shaded pole motor. 19. What enables a split phase motor to develop enough torque to begin rotation? The method of splitting the phase of incoming power to produce a second phase of power, giving the motor enough displacement to start. 20. What removes the starting winding from the electrical circuit of an open type split phase motor once it reaches 75% of its operating speed? Centrifugal switch. 21. What are the three probable areas of trouble in a split phase motor? The bearings, windings, and the centrifugal switch. 22. What is the unit of measurement for the strength of a capacitor? C. microfarad. 23. What is the purpose of the capacitor? To boost the starting torque or running efficiency of a single phase motor. 24. What is the difference between a running and a starting capacitor? Starting capacitors are usually made of plastic and used to assist a single phase motor in starting. A running capacitor has an oil filled case and is mainly used to increase a motor’s running efficiency. 25. List the five capacitor replacement rules. 1. The voltage of any capacitor used for replacement must be equal or greater than that of the one being replaced. 2. The strength of the starting capacitor replacement must be at least equal to but not more than 20% greater than the one being replaced. 3. The strength of the running capacitor replacement may vary by plus or minus 10% of the strength of the one being replaced. 4. If capacitors are installed in parallel, the sum of the capacitors is the total capacitance. 5. The total capacitance of capacitors in series may be found in the following formula: 26. Explain the operation of a permanent split capacitor motor. It has two windings, running and starting. A running capacitor is put in series with the starting winding. The capacitor causes the electron to flow through the starting winding to shift it out of phase with the running winding. Therefore, a rotating magnetic field is set up, causing the rotor to turn. 27. How are a PSC motor and a capacitor start capacitor run motor similar? C. Both use starting relays. 28. What are the advantages and disadvantages of using the following types of motors? A. Shaded pole motor- 29. What are the similarities between an open type split phase motor and a capacitor start motor? C. Both have a centrifugal switch. 30. Which of the following is an advantage in using a three phase motor? B. Stronger. 31. Draw a wiring diagram of a capacitor start capacitor run motor: 32. True or false: All starting apparatuses are mounted externally to the hermetic compressor shell. True. 33. What is the purpose in troubleshooting any electric motor? 34. Which of the following is the capacitance of an 88 uf and a 108 uf starting capacitor connected in series? A. 196uf. 35. Which of the following is the capacitance of two 20 uf running capacitors connected in parallel? B. 20uf. 36. If a capacitor produces 15 A on a 240 volt supply, which of the following is its microfarad rating? A. 166 uf. 37. Which of the following capacitors could be used to replace a 35 uf, 370 volt running capacitor? B. 35uf, 390 volt. 38. Which of the following capacitors could be used to replace a 188 uf, 250 volt starting capacitor? C. 200uf, 250 volts. 39. Which of the following capacitors or combination of capacitors could be used to replace a 45 uf 370 volt running capacitor? A. 40uf, 440 volt. 40. Which of the following capacitors or combination of capacitors could be used to replace an 88uf 250 volt starting capacitor? D. 150uf, 250V. 41. Find the common, start, and run terminals of the following hermetic compressor. 42. Briefly explain the procedure for troubleshooting hermetic compressor motors. Electrically taking resistance readings of the windings with a good ohmmeter. 43. What are the electrical failures categories for hermetic compressor motors? Open, shorted, or grounded. 44. What precautions should be taken when checking hermetic compressor motors? Infinity. 45. What would be the highest allowable resistance reading for a grounded compressor motor? Zero. 46. What are the advantages of using an electronically commutated motor over a PSC motor? 47. Explain the construction of an ECM. The direct current converters convert the alternating current that the power company supplies to direct current, which can then be regulated to vary the speed of the motor. 48. An ECM is a B. Three-phase DC motor. 49. True or False: The resistance readings of the windings of a properly operating ECM should be equal. False. 50. True or False: The line voltage power supply of an ECM should never be disconnected or connected with the power on. True. Chapter 9 Review Questions Unit 9 (E. B. ) 1. What is magnetism? When two pieces of iron are attracted to each other by physical means or electrical means. 2. Torque is A. Strength that a motor produces by turning. 3. A magnetic field is D. All the above. 4. True or False: A permanent magnet is a piece of material that has been magnetized and can hold its magnetic strength for a reasonable length of time. True. 5. How is an electromagnet produced? Through electricity. 6. Which of the following produces the best electromagnet? B. soft iron 7. Unlike poles of a magnet repel each other and like poles attract each other. 8. What part does polarity play in the operation of an electric motor? It allows the motor to run continuously. 9. What part of a motor produces an inductive magnetic field within itself to facilitate the rotating motion? Rotor and stator. 10. What part does the frequency of alternating current play in the operation of an electric motor? Helps change polarity 120 times a second. 11. What would be the speed of a two-pole motor operating on a 120 volts 60 Hertz power supply? 3450rpm 12. What are the five types of single-phase motors used in the industry? 3. Which of the following correctly lists the motor’s starting torque from lowest to highest? B. Shaded pole, three phase, permanent split capacitor, capacitor start. 14. Which of the following is a common use of a shaded pole motor? A. Furnace fan motor. 15. How does a shaded pole motor operate? The shaded poles produce a magnetic field that is out of phase with the magnetic field of the main winding. 16. How can a shaded pole motor be reversed? The stator must be reversed to change the positions of the shaded poles, and this usually means disassembling the motor. 17. What determines the rotation of a shaded pole motor? B. Location of shaded pole. 18. Draw a diagram of a three speed, shaded pole motor. 19. What enables a split phase motor to develop enough torque to begin rotation? The method of splitting the phase of incoming power to produce a second phase of power, giving the motor enough displacement to start. 20. What removes the starting winding from the electrical circuit of an open type split phase motor once it reaches 75% of its operating speed? Centrifugal switch. 21. What are the three probable areas of trouble in a split phase motor? The bearings, windings, and the centrifugal switch. 22. What is the unit of measurement for the strength of a capacitor? C. microfarad. 23. What is the purpose of the capacitor? To boost the starting torque or running efficiency of a single phase motor. 24. What is the difference between a running and a starting capacitor? Starting capacitors are usually made of plastic and used to assist a single phase motor in starting. A running capacitor has an oil filled case and is mainly used to increase a motor’s running efficiency. 25. List the five capacitor replacement rules. 1. The voltage of any capacitor used for replacement must be equal or greater than that of the one being replaced. 2. The strength of the starting capacitor replacement must be at least equal to but not more than 20% greater than the one being replaced. 3. The strength of the running capacitor replacement may vary by plus or minus 10% of the strength of the one being replaced. 4. If capacitors are installed in parallel, the sum of the capacitors is the total capacitance. 5. The total capacitance of capacitors in series may be found in the following formula: 26. Explain the operation of a permanent split capacitor motor. It has two windings, running and starting. A running capacitor is put in series with the starting winding. The capacitor causes the electron to flow through the starting winding to shift it out of phase with the running winding. Therefore, a rotating magnetic field is set up, causing the rotor to turn. 27. How are a PSC motor and a capacitor start capacitor run motor similar? C. Both use starting relays. 28. What are the advantages and disadvantages of using the following types of motors? A. Shaded pole motor- 29. What are the similarities between an open type split phase motor and a capacitor start motor? C. Both have a centrifugal switch. 30. Which of the following is an advantage in using a three phase motor? B. Stronger. 31. Draw a wiring diagram of a capacitor start capacitor run motor: 32. True or false: All starting apparatuses are mounted externally to the hermetic compressor shell. True. 33. What is the purpose in troubleshooting any electric motor? 34. Which of the following is the capacitance of an 88 uf and a 108 uf starting capacitor connected in series? A. 196uf. 35. Which of the following is the capacitance of two 20 uf running capacitors connected in parallel? B. 20uf. 36. If a capacitor produces 15 A on a 240 volt supply, which of the following is its microfarad rating? A. 166 uf. 37. Which of the following capacitors could be used to replace a 35 uf, 370 volt running capacitor? B. 35uf, 390 volt. 38. Which of the following capacitors could be used to replace a 188 uf, 250 volt starting capacitor? C. 200uf, 250 volts. 39. Which of the following capacitors or combination of capacitors could be used to replace a 45 uf 370 volt running capacitor? A. 40uf, 440 volt. 40. Which of the following capacitors or combination of capacitors could be used to replace an 88uf 250 volt starting capacitor? D. 150uf, 250V. 41. Find the common, start, and run terminals of the following hermetic compressor. 42. Briefly explain the procedure for troubleshooting hermetic compressor motors. Electrically taking resistance readings of the windings with a good ohmmeter. 43. What are the electrical failures categories for hermetic compressor motors? Open, shorted, or grounded. 44. What precautions should be taken when checking hermetic compressor motors? Infinity. 45. What would be the highest allowable resistance reading for a grounded compressor motor? Zero. 46. What are the advantages of using an electronically commutated motor over a PSC motor? 47. Explain the construction of an ECM. The direct current converters convert the alternating current that the power company supplies to direct current, which can then be regulated to vary the speed of the motor. 48. An ECM is a B. Three-phase DC motor. 49. True or False: The resistance readings of the windings of a properly operating ECM should be equal. False. 50. True or False: The line voltage power supply of an ECM should never be disconnected or connected with the power on. True.

List the four polymers from which hydrogels can be made, and, for each Assignment

List the four polymers from which hydrogels can be made, and, for each one, list the advantages and disadvantages of each.at least one different possible application for each hydrogel - Assignment Example It has emulsifying and adhesive properties making it suitable for glue manufacturing. Its ability to form films makes it useful in making contact lenses and envelope seals (Gnanou & Fontanille 24). The surfactants in detergents, found in Sodium Polyacrylate are efficient in binding hard water elements such as, calcium and magnesium making them a choice Sequestering agent in detergents. Sodium polyacrylate is also used in making diapers and some brands of sanitary towels owing to their super absorbent ability (Gnanou & Fontanille 34). They have a thermoplastic ability that makes it possible for them to be processed as a melt at high temperatures. They have elastomeric ability. This enables it to regain its original shape even after stretching (Gnanou & Fontanille

Feminism In The Real world Essay Example | Topics and Well Written Essays - 1250 words

Feminism In The Real world - Essay Example Many women today support the equality of genders while brushing aside the idea of feminism. Some do not consider themselves feminist, but their actions compared to the description offered by the dictionary indicate they support to feminist. Therefore, from the past feminism to modern era, it is evident that it exist in the real world.despite its existence, it is evident that the face of feminism is changing, but the principles remain static regardless of the time. The success of the 20th century cannot be compared with the current situation. The role of women and position has been changing as a result of several issues that were solved through liberation. From a humble and oppressed background beginning in the 1800s, women have been faced by serious challenges that could not be solved by the actions of their male counterpart. Despite women active participation in the struggle for the abolition of slavery, they were sidelined, and several rights denied (Lovenduski, 1986, p. 56).The first wave of liberation, which has been named feminism led to the allowance of women to vote. The success, however, was not achieved in all the other demands. The start of the industrial revolution led to discrimination based on sex, and despite the role accomplished by the women in the earlier slavery struggles, they were not allowed to assume offices. They were given positions that did not require decision making. The mistreating and discrimination based on sex r esulted in the creation of and start of second liberation. The second liberation started in the 1960s addressed issues relating to employment discrimination and other social injustices that were not addressed in the earlier revolution. The urge for second liberation was brought about by the discriminatory laws passed by their male counterpart that barred discrimination in the basis of race originality, religion, color and not sex. This law did not address the feminine problems thereby forcing women to start

Gender stereotypes Essay Example for Free

Gender stereotypes Essay According to the oxford dictionary the definition of stereotype is â€Å" A widely held but fixed and oversimplified image or idea of a particular type of person or thing†. Everyone has a preconceived notion about a ‘MAN’ and a ‘WOMEN’, a man’s work or women’s work, the characteristic ways in which a man or a women is defined also has some preconceived notions. These preconceived notions can be defined as stereotypes. The stereotypes begin at an early age, even as an infant it is already decided that blue is for boys and pink is for girls, even their toys are decided, have you ever witnessed a small boy ever agreeing to like or play with Barbie dolls? I haven’t. Stereotypes are embedded in our society to such an extent that we don’t even realise it, they influence our thought process, the way we become less indifferent towards things, the way we perceive things everything is defined by a simple word:- Stereotype. Even in the 21st century stereotypes exist, it is considered curtsey when a man opens the door for women, but is it really? Or has it always been like this? Why is it that the man has to propose to the love of his life why can’t a women to do? Why is it that women have to always be in the kitchen and cook? Why dothey have to take care of the kids? These are still some of the most common stereotypes that exist but no one really does much about it. Usually, the female stereotypic part is to get married and have children. She is also expected to put her relations well-being before her own, be loving, compassionate, caring, nurturing, and sympathetic. The male stereotypic part is to be the financial provider. He is also to be assertive, competitive, independent, courageous, and career? focused, expected to keep his emotions aside or in check. These stereotypes can hinder a person’s development and make them restricted to the confinement of the stereotype that precedes their gender and never be able to grow out of it. â€Å"Women were created from the rib of man to be beside him, not from his head to top him, nor from his feet to be trampled by him, but from under his arm to be protected by him, near to his heart to be loved by him. † ? David O. McKay.

An Annotation of John Crowe Ransoms Blue Girls Essay -- Crowe Ransom

An Annotation of John Crowe Ransom's Blue Girls Simply put, Blue Girls is about beauty. The poem focuses on the realization and truthfulness that beauty undoubtedly fades. The speaker appeals to young girls, warning them to not put all their hope in their beauty, but to still utilize it before it diminishes. Blue Girls By John Crowe Ransom Twirling your blue skirts, travelling the sward Under the towers of your seminary, Go listen to your teacher old and contrary Without believing a word. Tie the white fillets then about your hair And think no more of what will come to pass Than bluebirds that go walking on the grass And chattering on the air. Practise your beauty, blue girls, before it fail; And I will cry with my loud lips and publish Beauty which all our power shall never establish, It is so frail. For I could tell you a story which is true; I know a lady with a terrible tongue, Blear eyes fallen from blue, All her perfections tarnished &endash; yet it is not long Since she was lovelier than any of you. The "your" in this poem signifies young adolescent girls attending school. While the moral of the poem could apply to anyone, he probably chose young girls as his audience because they are often the most aware and the most controlled by outward beauty. He also chose the color blue here, which can mean "intellectual" when speaking of a woman. So, "blue" could very well refer to the knowledge the girls hold, or it could just be the color of their skirts. I prefer the first meaning, especially since we find out that they are attending school in the next line. A sward is a grassy area of land, thus suggesting that the girls lead a carefree life of "twirling" and "travel... ... his point across here: beauty does indeed fade away, so some other purpose in life is necessary. In this poem, Ransom offers the girls three main lessons, which, although they seem contradictory, are really closely related: (1) Beauty does fade. (2) Use your beauty as much as you can before it fades. (3) Have something in your life besides beauty, so that when it fades, you are not left with nothing. He describes beauty as delicate and rare, unable to be established. He focuses on the lightheartedness of young girls, how they are caught up in beauty, and he warns them to be conscientious of the fact that their beauty will fade and that they cannot put all their hope on their beauty. At the same time, he encourages them to "practice" their beauty until it is gone, and he promises to celebrate that beauty as best he can, with all its value and frailty.

McDonaldization of Online Dating Essay

McDonald’s is one of the most recognizable companies in the world, they have served billions and have restaurants in nearly every country in the world. In a society that greatly values efficiency McDonald’s could be looked at as the ideal model for how to run a corporation. In recent years, the ideologies that McDonald’s uses in running their company are being absorbed into our everyday lives. In 1996 sociologist, George Ritzer, came out with a book explaining this process, even creating the term, â€Å"McDonaldization,† to describe it. Essentially, he explains how, â€Å"†¦principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as of the rest of the world† (Ritzer 1). This model, based off of the world’s largest chain of hamburger fast-food restaurants, is one of the most influential facets of the global marketplace, and its assembly-line process of doing business is driving down c osts and skyrocketing profitability. However, these cost cuts do not come without a price. Although McDonald’s and other fast-food restaurant chains like it have been highly successful in terms of efficiency, there are subtle negative effects on the quality of the product and society as a whole. In recent years one of last industries that would be suspected of McDonaldization, has in fact adopted this business model, the world of dating. Modern technologies are making it more and more easier to meet new people, with as little face-to-face interaction as possible. A most recent example of this is the dating application, Tinder, which may just be the purest example of how McDonaldization has seeped so far into the floorboards of our society that it is now even affecting the way people are meeting potential life partners. The application shows a picture of one user to another and allows the user to anonymously like or pass them. If two users like each other then it results in a â€Å"match† and Tinder introduces the two users and opens a chat. Only after the two users connect solely because they find the other aesthetically pleasing, then do they get to know anything about the other person on a level deeper than their appearance. Eliminating time lags and  distance, Tinder bridges the gap between digital and physical dating, enabling users to experience the instant gratification that modern society holds in suc h high regards. While Tinder is just one example of this, online dating as a whole has become McDonaldized, and all of the principles that constitute the process can be applied to this modern form of dating. To start, the principle of control is, â€Å" the standardization and uniformity of the corporation and the replacement of humans by non-human technologies† (Ritzer). In the means of online dating this would be the replacement of meeting someone in person and feeling a connection, to talking to a person from behind a computer screen. The principle of predictability goes along with this. Predictability is how the services have become uniform and standard. This means that no matter where a person goes, they will receive the same service and receive the same product every time when interacting with the McDonaldized organization. An online dating profile can only be so customizable. You can view a person’s career, location, their hobbies, but there is only so much words on a screen can say about someone, and essentially all of these profiles can begin to seem a lot alike. What these profiles lack is the way someone’s face lights up when they are talking about their f avorite book, how they get embarrassed when you compliment them, or even something as simple as the way they smell. Although the romantic in everyone likes to believe that they can find their soulmate, the chances of meeting them through a computer screen seem a lot less likely. When online dating, for the most part, you are just looking at photo, after photo of people, and without human interaction you don’t much of a deeper connection unless you provoke a conversation with all of the hundreds of profiles you are faced with. The next principle, calculability means that â€Å"the objective should be quantifiable (sales) rather than subjective (taste).†(Ritzer) McDonaldization developed the notion that quantity equals quality, and that a large amount of product delivered to the customer in a short amount of time is the same as one high quality product. Essentially, calculability is the idea that you get out, what you give into it. Forming an online relationship does not take much effort at all, but in doing so you are jeopardizing the quality of the relationship. An example of this wo uld be if you are going out and making an effort to talk to, connect and form real world relationships with people, you are much more likely to find  someone that you could have a meaningful relationship with instead of simply posting an online profile and having a computer between you and the person you are talking to. Online dating websites use the idea that joining is â€Å"simple and easy† to attract new customers, but that’s not the way dating should be. Like anything else in life if you want to get something done the best way possible you need to invest time and effort in order into it to see the results you are looking for. You get what you give. The last principle that ties into this is efficiency. Efficiency in terms of McDonaldization is the optimal method for accomplishing a task. The example that Ritzer uses for McDonald’s is, the fastest way to get from being hungry to being full. Efficiency in McDonaldization means that every aspect of the organization is geared toward the minimization of time. For online dating efficiency would be how long it would take someone from being single to in a relationship. Efficiency could be considered the most important principle due to how much of today’s society has this need to get what they want when they want it. However, with efficiency, when getting something faster you are risking a lower quality product, good things take time. It takes time to make a good hamburger, much like it takes time to form a good relationship. Hypothetically speaking, if you are hungry and seeking a hamburger you have two options, a fast food or a sit down restaurant. You could get a cheap, low quality burger immediately, through a drive-through window, with limited human interaction and right when you want it, one that it much like a lot all of the other fast food burgers you’ve had before. You also have the option to go out and take the time and invest the effort into seeking out the best burger restaurant and going there and getting that once in a lifetime, high quality, satisfying burger, and even then, it’s not just about getting the burger, it’s about going out and enjoying the experience of sitting in the restaurant and waiting for your food. That is how online dating could be viewed, as settling for a McDonald’s quarter-pounder when you really want a gourmet burger. Also, when you go to a drive-t hru you are missing the experience of dining out, like how if you spend your dating years behind a computer, you are missing out on the experience of going out into the world and meeting new people and trying new things. For fast food restaurants the constant repetition of bland, low-quality ingredients being put into exactly the same thing millions of times a day, is not at all the problem, but is in fact the solution, and it the very basis of McDonald’s highly successful business model. Their products may not be ideal taste-wise, and not at all nutritional, but the customer’s know what they are getting. Online dating websites operate in a similar fashion. These companies are showing thousands of potential singles to each other everyday, and like fast-food, these results are usually low-quality and the same thing over and over again. However, these dating websites are making a significant profit due to monthly membership fees and money from advertising, when what they are doing is nothing more the serving up the same bland results time after time. The advertisements that you see for these websites include statistics about how an increasing number of marriages today are started on the internet. What these companies fail to mention is how the divorce rate in America right now is tragically high. In her 2013 piece, Analyzing Divorce From Cultural And Network Approaches, Tamara Afifi explains this tragic statistic. She discusses the many factors of such a high div orce rates, such as, the economy and also mentions the fact that this can be caused due to people rushing into relationships. Online dating makes it incredibly easy to meet people quickly, thus rushing into relationships, and ultimately, shortening the lifespan of such relationships. This can be seen in the media all the time, and most notably, Kim Kardashian’s incredibly short marriage to Kris Humphries. Tamara Afifi also goes on to explain the high costs of divorces and how lawyers benefit from this. Additionally, there are new websites where you can get a divorce online since it is so common today, making it fast and convenient, with little human interacting. This suggests that even the marriage/divorce industry is succumbing to McDonaldization. The people behind dating websites are trying to run a company and are focused on making money. In her piece, The Price of Love, Emi Berry explains how dating websites care nothing more than the profit they receive from people looking for love. She explains this best when she says, â€Å"Money can’t buy me love. Money can, however, help find that love you seek via a dating service.† Dating websites are following the principles of McDonaldization. They are looking to get as much revenue as they can a s fast as they can. They have essentially created a conveyer-belt method for getting single individuals into relationships, and at the end of the day, they are just people trying to run a company. Dan Slater, a former  litigator, talked to several individuals, married, single, and going through divorce about online dating to better other stand the topic first hand, and made a list of common ideas that he heard during his interviews. This list includes ideas such as, â€Å"Internet dating has made people more disposable.† â€Å"Internet dating may be partly responsible for a rise in the divorce rates. Low quality, unhappy and unsatisfying marriages are being more visible due to Internet dating sites. Internet dating can help people of all ages realize that there’s no need to settle for a mediocre relationship.†(Slater) The rise of divorce caused by online relationships could be us to the idea of something seeming â€Å"too good to be true†. Like for example, when you see a McDonald’s Big Mac on a commercial, it looks like a delicious, expertly-crafted burger, go to the store and order one however, and if you are expecting to see the same burger you saw in the pictures then you are about to be extremely let down. The same principles can apply to dating profiles. The beautiful thing about the internet is that you can show people looking at your profile all of your best qualities, while hiding your less desirable ones, thus making people seem much more appealing online. When couples from online dating websites meeting in real life, they may not be all the seemed to be online. However, people might try to make things works because they believe that the person they are meeting in real life is just as great as the one they met online, only to be disappointed later on when they are not all they turned out to be. However, is all online dating necessarily bad? You hear many success stories on television, as well as real life, and theres a positive and negative side to most things. In the case of online dating, all you really hear about in the media is the good and happy relationships that come out of this new technology. What they fail to mention is the disappointment, short-term relationships, and they large amounts of money that people are spending on these websites to be connected with people. Yes, it is true that these websites allow you meet people you may not have ever met without them, as well as match you with people who the website feels you would be compatible with. However, when behind a screen it is very easy to be something you’re not, and with lack of actual interaction with the other person you are missing out on so much more. When you meet someone in person there is a connection that you get that is unlike anything else that can be felt through a computer screen. So whil e online dating does  have it’s benefits, it just seems that not only are there more negatives that can come out of online dating, but its also takes away what human interaction was left, especially in a world where everyday human interactions are slowly being replaced with electronics, self-checkout at the grocery store, atm machines, shopping, and now even something that’s been around since the beginning of time, companionship, is being computerized. This just makes you think, how long is this going to keep going on until human interaction is completely obsolete? So at the end of the day, we are living in a modern world, one where McDonaldization is inevitably taking over the way that most organizations are run. It is important to remember this process, has it’s benefits, but also many negatives. With it’s principles of, efficiency, calculability, control and predictability, this concept is becoming the new norm, faster than you may realize. This process is making the world more technological, and computerizing everything. You have to ask yourself, when is it too far? Should something that’s been around as long as dating be something that is now done through technology? and is McDonaldization in fact, making the world a bigger place by isolating everyone behind their own computer screen? Works cited Ritzer, George. â€Å"An Introduction to McDonaldization.† The McDonaldization of Society 7. Thousand Oaks, CA: Sage, 2013. 1-20. Print. 19 Mar. 2014. Turner, Bryan. â€Å"Does Anthropology Still Exist?.† Society 45.3 (2008): 260-266. SocINDEX with Full Text. Web. 19 Mar. 2014. Afifi, Tamara D, et al. â€Å"Analyzing Divorce From Cultural And Network Approaches.† Journal Of Family Studies 19.3 (2013): 240-253. SocINDEX with Full Text. Web. 7 Apr. 2014. SLATER, DAN. â€Å"A Million First Dates How Online Dating Is Threatening Monogamy.† Atlantic Monthly (10727825) 311.1 (2013): 40-46. Literary Reference Center. Web. 7 Apr. 2014. BERRY, EMI. â€Å"The Price Of Love.† Money (14446219) 162 (2013): 52. Business Source Complete. Web. 7 Apr. 2014.

On Ageing by Maya Angelou Essay

Warning by jenny joseph is a humorous way of looking towards old age. It is written as a monologue within which the poet describes how she will behave when she is an old woman. In The first stanza she talks about herself and lists all the things she will do when she is old. She says she will wear the colours purple and red which are significant in the fact that they are bright garish colours. The two colours clash with each other and would not be put together by someone who cares about keeping up their appearance. One of the main themes to this poem is the idea of rebelling against the way society expects you to behave and the idea of not conforming therefore she decides to deliberately make a statement with her appearance by wearing clashing colours to show rebellion against the idea of everyone looking the same- everyone conforming. This idea of rebellion is further emphasised when she says â€Å"I shall spend my pension on brandy†¦ and say we’ve no money for butter†. She has decided that she is going to be deliberately difficult and irresponsible. She is desperate to rebel against the norms of responsible adulthood and change the way she has always been † escape from the sobriety of my youth† . The acts she chooses are harmless and humorous and she will be likely to get away with them as people will think she is senile. The fact that all of these things are what she wants to do in the future shows that she has never done this before and so she could be saying that old age is the time for freedom and to escape from the rules in society. However this could also show that she is only able to do these things with the excuse of being elderly. She would never feel comfortable to break the rules without having the excuse of being senile etc hence why she is waiting until old age to do these things showing that she is still trapped in the rules of society. This shows the underlying more depressing image behind the humour that society doesn’t allow for freedom and the message of how the pressure there is to conform prevents you from being yourself. All of the lines in the poem run on with a quick pace into each other reflecting the excitement and anticipation for the things she talks about doing. Throughout she repeats â€Å"and† and â€Å"I† which also adds to the pace and energy of the poem. The second stanza itself is one long sentence in which she directly addresses the reader with words of encouragement. She wants other people to feel and be able to do whatever they like without worrying about the social pressures of conformity, she could be thinking that if everyone does this then eventually those pressures will not be a problem anymore.

Media Portrays Violence Essays

Media Portrays Violence Essays Media Portrays Violence Essay Media Portrays Violence Essay Thomas H English 1a 10/31/2010 Media Portrays Violence In the world today with technology advancing so fast its hard to keep up with it all; but with the advancement of technology comes the extensive media exposure to viewers. Pretty much everyone is exposed to the media today whether it is television or internet the news can be accessed within moments. And the entertainment industry is no different furthering making options of media accessible with a push of a button whether it is cell phones or other handheld devices to laptops and so on and so forth. This also brings us to the main question. What exactly do the media portray for the viewer and what do we learn from it? Television tries to become more real and real as movies push for 3d and television screens try to push for the clearest picture possible trying to bring the screen to life. Television shows have been pushing more and more to reality shows giving a so called perception of what life would be like in said situations. And even gaming tries to push the lines making things more and more realistic such as call of duty and grand theft auto. Which are great and all but what is all this stuff doing for us really what is it teaching us? In Michael Moore’s Movie Bowling for Columbine, he addresses how the United States of America is clouded with fear and driven with violence and this essay is to prove that. The movie opens to this event: One of the deadliest massacres in the Unites States of America happened in a High school in Columbine,  Colorado. April 20th 1999 the massacre caused by two students, Eric Harris and Dylan Klebold, killed twelve students as well as one teacher only to kill themselves after. 1Moore) The event had pushed the media to question the abuse of firearms availability and the troubles of youth. Apparently though the guns that Harris and Klebold had used were legally purchased at stores and gun shows. The bullets were purchased at a local K-mart in Littleton. This example shows how the media portrayals today affect the minds of youth giving them violent solutions to ideas that should not be s olved in such manners. They think, well it’s in video games we see it all over television it must be okay right? And only after realizing the situation they were truly in did they feel the guilt and attempted suicides. Personally I would not be able to live a trouble free life with the fact that someone died because of me running through my conscious. 3 weeks ago a fight broke out in Hayward high school which involved two local gangs and police enforcement to be involved. The principal stated that the two gangs were fighting with each other and when the police stepped in to control the situation. â€Å"As the officer stepped in to stop that fight, a male student tried to punch the officer. Several smaller altercations ensued, prompting the officer to ask for assistance from other officers. (ABC) Eventually 6 students were arrested in suspect to causing and leading the whole altercation. (1Kurhi) this event is proof enough that the issues expressed in the movie and in this essay is close enough to hit the state even the city we live in today. Medias’ portrayal of how things should be in the so called â€Å"real world† such as MTV; this no longer really being a music television channel , is still driven into the younger generation and very much is strongly influencing them to condone violence as a means to solve things regardless if the issue at hand is even logical to be at arms about. And who in their right mind would hit an officer? So how is this related to the media? Entertainment to people is always something somewhat close or related to real life. Whether it is a drama or action, some form of violence is expressed in almost everything we watch or play. Moore hits one of the most famed shows that are still being run on television today, Cops. A show very stereotypically profiling blacks and Hispanics. (2Moore) although the show is supposedly supposed to portray what police officers go through on a daily basis; it is far from what the average American sees every single day. How often do you see an officer running around town guns blazing? And how often do you see a white man being arrested in the show. This shows portrayal of Blacks and Hispanics give the general population a common racial profiling fear of them although this should not be the case. Once again another media has driven fear due to the critics mainly wanting a boost in ratings. Another prime example of what people see in the media and how they portray it in real life is in our text book when Zimbardo conducted an experiment on how people portray what life is like in prison. â€Å"Male college students needed for psychological study of prison life. 15 per day for 1-2 weeks beginning Aug 14. For further information amp; applications come to room 248†¦Ã¢â‚¬  (233 Behrens) The ad attracted many students but only 21 were selected throughout the experiment the students began to get more and more into the role playing where it finally got out of hand that Zimbardo had to stop the experime nt. â€Å"Everyone and everything in the prison was defined by power. To be a guard who did not take advantage of this institutionally sanctioned use of power was to appear â€Å"weak/out of it/wired up by the prisoners† or simply a deviant from the norm of established guard behavior. (239 Behrens) now I know that guards must have some level of aggressive enforcement, but this experiment was a leading example of how we literally do what we believe is right and we believe what’s on television is right because rarely any of us take the time to find out what the truth really is. Now with all the examples provided, it is pretty much a given that America society is driven with fear and violence by the media but what about other countries? Moore lets us look at a neighboring country, Canada; where guns are available in fact are also endorsed in the country seeing it is a hunting community in most if not all parts. So what could it be? Looking at their news the politicians speak in a much different aspect compared to American news reporters. Instead of scaring the population with the most recent corruption in the community, the news reporters and politicians only speak of the continuing improvements in the community today. What kind of community isn’t scared to keep their doors locked? It sure as hell isn’t America that’s for sure. But Moore proves this theory by walking around a neighborhood in Canada briefly interviewing neighbors why they leave their doors open. All the neighbors know each other within the community interviewed and none were really scared of anything. (3 Moore) America is so caught up in the next biggest scare on television rarely anyone in their neighborhood really knows their neighbors like family; and the media is living proof of this. Our television screens are filled with nothing but violence and no resolve the Entertainment industry keeps pushing for more and more closer to life gaming and viewing that people have it in their minds that this is possible and that is why our country is the way it is today. Maybe The Unites states of America should stop boasting with its egocentric powers and start focusing on the problems at home. Is driving the people of our country with fear and violence really the best way to go? Maybe America should look at our neighboring country and sk them for a few pointers on how to have a community full of friendly neighbors; and maybe one day we’ll be able to feel comfortable leaving our doors unlocked just like Canada, or maybe not. Works cited * Bowling for columbine, Michael Moore, Video, United Artist/Dog eat dogs, October 9th 2002 * Six arrested after brawls at Hayward high, Erik Kurhi, Oakland Tribune, October 5, 2010 * Behrens Rosen, Writing and reading across the curricul um third edition, Pearson Longman copyright 2009 * 6 students arrested after series of fights, Unknown, ABC Bay City News, October 5, 2010

English paper Essay Example | Topics and Well Written Essays - 1000 words

English paper - Essay Example Writing in the first person, Rose defies the traditional political and cultural associations relating to personal achievement to insist that the narrative of an individual’s life is both the product and process of surrounding social and educational narratives. In this article, I will feature the title both metaphorically and literally. The American education institutions are diverse in culture and population. In almost all institutions, one will find themselves surrounded by African, African American, Hispanic, Cantonese, and Asian among other students. Also to be considered is the economic vantage and disadvantage of the student in question, their esteem levels, the parental control as well as the will by the student. Being an African student, I can relate to Rose’s experiences. Coming from a culture that does not value education in general, it was hard to enter into a classroom. Being a girl added insult to injury. Growing up, my going to school was not debatable. I will begin by giving you a glimpse into a traditional Maasai homestead. A girl is supposed to get married as soon as she â€Å"graduates† into a woman. The graduation is marked by pomp and color, after which one undergoes female genital mutilation (FGM). Additionally, culture and family (save for my mother) did not support my dreams or care to provide a conducive environment for my studies, the call was inherent and evident. I loved education and dreamt of being a writer despite the many hurdles and bleak future ahead. Like Rose, my education journey has been a long way coming. Miraculously, I was able to swim my way through high school and won a scholarship to study in the United States. Now came the freshman experience in foreign soils. The alienation and the loneliness was enough to dampen my spirits. In â€Å"The Politics of Remediation†, Rose discusses these feelings. The experience was more or less

ASEAN Free Trade Area Essay Example | Topics and Well Written Essays - 500 words

ASEAN Free Trade Area - Essay Example The AFTA agreement aims at promoting free trade in the region by bringing down the tax barriers and making the trade related policy framework to be more encouraging. The agreement can be understood as a kind of regional liberalization of trade policies that are favorable for boosting regional trade. Further the article focuses to find out whether if formation of this agreement has created trade creation or trade diversion. Trade creation can be considered as a development whereas trade diversion from the non member nations to the member nations can not be considered as a positive development. An important instrument for applying the trade agreement in the total region is the Common Effective Preferential Tariff scheme that requires the tariff of certain commodity to fall below zero to five percent. These commodities include capital and non capital as well as manufactured goods. This process of liberalization and eliminating the identified commodities from taxable commodities has been phased out in for phases. This has been done in order to prevent any instantaneous impact over the respective national economies of the member countries. A gradual tariff reduction would assure that the change shall be absorbed over a period of years and thus promote trade. After fifteen years of the agreement, it can be observed that the countries have largely succeeded in achieving the goals.