Nicole Kozik-Ayers Essays (745 words) - Film, United States

Nicole Kozik-Ayers Gina Crawford English 10 1 09 March 201 8 Malcolm X Who is Malcom X? Malcolm X was an uncommon extremist for the African American people group. Malcolm X was gazed upward as an insightful individual with a major eye for change and having any kind of effect on the planet. Like any African American childhood during his time, Malcolm experienced isolation and prejudice. He considered this to be a danger to society. With everything going on around him, this filled Malcolm's enthusiasm to have a constructive outcome in the public arena. Malcolm CX is viewed as a solid extremist for change as a result of his childhood, the associations he was subsidiary with and his organization with Martin Luther King Jr., before his demise. At first, Malcolm X was brought into this world as Malcolm Little. Malcolm was conceived on May 19 th , 1925 in Omaha, Nebraska. His mom is Loise Little and father is Earl Little. Before birth Malcolm as of now had two social personalities. The negative character gave by a white-ruled society and a positive one related with B need pride (Barresi, P. 202 ). Malcolm's life was troublesome growing up. After once his dad died, at six years old, killed by this savage bigot bunch called the Black Legion who is viewed as like the Klu Klux Klan. His mom wound up in a psychological ward which at that point left Malcolm and his kin as dependent of the government. This was the establishment of where Malcolm's life began to roll out an improvement. Also, the associations he was partnered with is the purpose behind why his learning changed as a grown-up . Malcolm's learning is progressively self-realized, particularly while in jail, and change in the wake of visiting Mecca (Haley, P. 254 ). In the long run he got associated with the Black Muslims. The Black Muslims considered the white race as the fiend race. In the long run Malcolm turned into an extremist for the Black Muslim Faith. During the social equality development, Malcolm had tested Marten Luther King Jr' s peaceful methodology. Malcolm's methodology was for his devotees to guard themselves regardless of what it took. Malcolm X in the long run quit supporting the Black Muslim Faith after his undertaking to Mecca. Once back to the United States, his perspectives on the white race additionally changed. He no longer considered the to be race as the villain race any longer. At last, Malcolm's organization with Marten Luther King Jr. came after he left the Black Muslim Faith. Malcolm then would begin supporting the Afro-American solidarity association. The Afro-American solidarity had various perspectives on the white race. The Afro-American solidarity was on favorable terms in keeping up a relationship with the white race. The new Malcolm X in the long run began banding together with Martin Luther King Jr, and supporting the social liberties development. When the Black Muslim Faith found out about Malcolm's choice, his life immediately got undermined. Malcolm X on February 21 st , 1965 by means of death. He was killed in New York City while introducing a discourse . ( Harley, P.272) Taking everything into account, Malcolm X was known for his steadiness in battling for the human rights for the African American Community. Others saw Malcolm X as a vicious man also. Malcom's greatest perspectives on protecting the isolation and prejudice changed. When in Mecca he saw how the white and dark race cooperated calmly to roll out an improvement. From that point on, Malcolm's perspectives on the Black Muslim Faith had changed and he realized the association wasn't right. Malcolm X's heritage ought to be grasped in methods of stopping the isolation and prejudice issues in the public arena. Rather we should all follow Malcolm's backing and be joined to roll out a positive improvement in the public eye. Work Cited Page Barresi, John. In Identity and story: Creating self in account, by McAdams, Dan p. (ed);Josselson, Ruthellen (ed) ; Lieblich, Amia (ed.) . 201-222, Chapter x, 284 pages. Washington , DC, US: American Psychological Assocation, 2006. https://search-proquest-com.ezproxy2.apus.edu/docview/614197899?accountid=8289 Haley, A (1965). The life account of Malcolm X. New York: Grove Press Eric. The self-Education of Malcolm X., 2006 Do you comprehend your input? Indeed, I do. Straight to the point. Do you have any inquiries for your educator? No everything appeared to be straightforward Do you have any issues or worries that

Ways Social Media Is Changing the World Free Essays

Online networking has could propel the world. In short measure of time, we have reformed such a great amount of, for example, accepting the news and correspondence. Because of online networking, the way that we find out about and react to anything influencing our reality has changed. We will compose a custom exposition test on Ways Social Media Is Changing the World or then again any comparable point just for you Request Now We can accomplish such a great deal like find out about new sicknesses in a couple of snaps. Web based life isn't only a spot to eyewitness a friend’s profile and see what they are doing. It is likewise an enormous source where individuals can meet up. Huffington Post makes reference to that, â€Å"Interestingly, online networking as a mode for associating, sorting out and conveying is controlling and spreading vote based system far superior than billions of dollars of help or war in corners of world exceptionally impervious to such change.† Social media makes an enormous stage where a network can rapidly, have an effect on the world and for a reason. Innovation is continually propelling each day. In this season of internet based life, we have both online life activism (or advanced activism) and hashtag activism. Today is a lot simpler than it was to before to spread mindfulness on a significant social issue. Utilizing both hashtags and online life serves to effortlessly spread and bring issues to light. Another post from Huffington Post expresses that, â€Å"Hashtags have the ability to point out and assemble an enormous populace. Petitions, fights, letters to lawmakers and people with great influence are spread through social media.† InMyArea has referenced a couple of the numerous hashtags that have brought mindfulness throughout a couple of years. â€Å"Social media’s job in activism can be credited to territories like these Abilene-Sweetwater, TX †#OccupyWallStreet Los Angeles, CA †#OscarsSoWhite Boston, MA †#ALSIceBucketChallenge Minneapolis-St. Paul, MN †#BlackLivesMatter #Charlottesville, VA† Internet based life activism incorporates bringing issues to light by utilizing an assortment of sites, for example, Facebook, Twitter, and so forth. By doing this, the world gets the chance to get familiar with causes and development just as their needs. Most online life stages have certain calculations that will advance the most mainstream hashtags, doing this assists with carrying basic social issues to the spotlight. Phycology Today makes reference to that there are, â€Å"four significant ways that online life is reclassifying activism and advocacy.† First is that web-based social networking can change open mindfulness. Second, is that â€Å"social media appropriation implies we are getting data from somebody in our network.† Third being that web-based social networking systems cross various stages and makes a brisk effect that gives it criticalness. Ultimately, web based life improvement has changed the impression of imparting by adjusting our assumptions regarding investment. Online networking has the astounding capacity to furnish the stage to anybody with access to the advanced world and offers them the chance to call for change. The stages that online networking give offer individuals and networks the chance to make occasions to anyone nearly anybody. The web has consistently been a stage that has offered anybody to frame new networks and offer assets. There are an expanded number of gatherings who are presently going to useful devices, which permit them to make brought together stages to build social change. There are a few distinct devices utilized by online activists being on the web petitions, informal organizations, websites, miniaturized scale blogging, mobile phones and intermediary servers. One of the other significant qualities of social activism is that it is quite often a peaceful type of dissent. American Press Institute demonstrated that 69% of recent college grads get their day by day news while 85% state that â€Å"keeping up with the news is at any rate to some degree imperative to them.† the reality of the matter is that this age get to their news in an unexpected way, they do get to their news routinely to stay aware of any new data and things that are changing around them. Alluding back to the examination, an enormous part of twenty to thirty year olds posted as of late about a subject they thought about via web-based networking media. In spite of the fact that it very well may be difficult to stay aware of now and again, it is pivotal to know about everything that is going on the planet. With online networking as often as possible being refreshed each second of consistently, individuals are effectively ready to acquire steady information. Internet based life stages have gotten something other than an approach to share how you are feeling. Because of web based life, individuals are not, at this point constrained to simply getting their significant news from one just one source. Online networking has had the option to propel the spread of mindfulness just as the pace at which we can help as a network. Web based life is a ground-breaking enough device for bringing issues to light. It gives everybody voice while it can likewise interface all of us to a huge assortment of foundations, and societies. Step by step instructions to refer to Ways Social Media Is Changing the World, Papers

$1.67 Billion Typo - Forgiven

$1.67 Billion Typo - Forgiven Image via Wikipedia Ive always thought that typos, so long as they are few and far between, are less egregious errors than misspellings and other errors that stem from lack of knowledge. Apparently a U.S. Seventh Circuit Court of Appeals judge agrees that people and multi-billion dollar companies who make typos should be given a second chance: Verizon $1.67 bln typo can be fixed: court I imagine my own typos and yours wont have such monumental consequences. Our readers are our judges, and we can only hope they have the same understanding as our nations highest courts. That said, if you are applying for jobs, your resume and cover letter are not the most ideal places to err. Make sure to read, re-read, and re-read again. There’s no need to risk judgment from a hiring manager that costs you a job. For editing help, contact The Essay Expert.

Economics - 611 Words

Economics - Assessment Task 1 1. Total cost is the figure that describes the total cost of production for an organisation. It is made up of both fixed costs, which are costs that are fixed in relation to output, and variable costs, which are costs that vary depending on the level of output. Before production commences, the total costs of the organisation will be the same as the fixed costs, as no raw materials or labour have been utilised. Although when production increases, variable costs will also rise, meaning the total costs will increase. This can be shown by the diagram below: Average cost is the production cost per each unit of output. This can be calculated by dividing the total costs of the business by the number of units†¦show more content†¦This means that firms must take into consideration the possible reactions of all other competing firms. Another characteristic is that products within an oligopoly will be similar. In an oligopoly market, prices are stable. This is because firms within this market fear a price war occurring. When it comes to lowering or increasing price, oligopoly firms will consider the likelihood of competing firms doing the same thing, in order to avoid triggering a price war. 3. Another market structure is a monopoly. This is a situation in which a single company owns all of the market. It is defined by a lack of competition meaning high prices being charged by the solitary company operating in the market, and the restriction of other producers entering the market. In their attempts to maximise profits, these firms will charge high prices and rarely respond to consumer needs. This is because consumers have no other choice in terms of competition, so they will buy from monopolist firms regardless. There are several characteristics of a monopoly. Firstly, extreme economies of scale are available to monopolist firms, giving them a huge advantage over any other company. Because of this and relatively low costs despite large product ranges, supernormal profits are achieved. Another characteristic is the inelastic demand for these firm’s products.Show MoreRelatedEconomics And Economics On Economics Essay1142 Words   |  5 PagesWhen we talk about economics we must first defined the word. Economics is a social science that studies human behavior and how to allocate our limited (scares) resources, efficiently and effectively to meet our unlimited human wants. Now as we dive deeper in to the field of economics we realized that there are two separate categories that the study of economics breaks off into. The first is macroeconomics, macroeconomics is the study of the whole picture when it comes to economics. Macroeconomics willRead MoreEconomics : Economics And Micro Economic s1238 Words   |  5 Pages Economics is the study of how our unlimited demand of certain things can be met by our limited amount of supply. For instance, if there was an unlimited amount of money for everyone, then everyone would have everything they had always wanted and would not have to work to get the money. Everyone would have billion dollar homes and the nicest cars in the world. Unfortunately, we do have a limited amount of money, so the economists find ways to get around that. There are two types of economicsRead MoreEconomics : Economics Of Business1361 Words   |  6 PagesHND Accounting Economics FINAL REPORT: The Economics of Business DUE DATE: 20 May 2015 Catherine Macintosh 11006620 For the attention of Sarah Sutherland Word count: 1,243 (Excluding Acknowledgements, Abstract/Executive Summary, Terms of Reference, References Appendices TABLE OF CONTENTS Page 1.0 Costs 3 1.1 Total costs 3 1.2 Average costs Read MoreEconomics1291 Words   |  6 Pageshis profit. Do you agree? Use a graph to illustrate your answer. The argument is incorrect. 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They looks like perfect and definitely it’s a â€Å"think big† way of delivering the information. His book â€Å"The Zero Marginal Cost Society† is must read, of course. Trigger is a zero marginal cost. I’m completelyRead MoreEconomics1000 Words   |  4 Pagesconsumer change, there will be a much greater change in the production output in the capital equipment required to make those consumer goods. This change in the production of capital equipment, that is , investment spending speeds up the rate of economic growth or slump Since we are focused on short-run business-cycle fluctuations here, it is reasonable to ignore changes in K/Y that may be associated with long-run advances in technology. 15 – 10 proportional to the level of output in t, Kt Read MoreEconomics1134 Words   |  5 PagesMF 7701 Managerial Economics Quiz #1 Fall 2014 Instructions: 1. You may work on this quiz alone or with as many other students as you wish. 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The Need to Address Poverty in Canada - 990 Words

Poverty is a serious issue in Canada needs to be addressed promptly. Poverty is not simply about the lack of money an individual has; it is much more than that. The World Bank Organization defines poverty by stating that, â€Å"Poverty is hunger. Poverty is lack of shelter. Poverty is being sick and not being able to see a doctor. Poverty is not having access to school and not knowing how to read. Poverty is not having a job, is fear for the future, living one day at a time†. In Canada, 14.9 percent of Canada’s population has low income as Statistics Canada reports, which is roughly about two million of Canadians in poverty or on the verge of poverty. In addition, according to an UNICEF survey, 13.3 percent of Canadian children live in†¦show more content†¦The government needs to provide more support and police hours to these types of neighbour hoods. The only reason the crime rates are up is due to the lack of cops in that area. Furthermore, the prices of h ouses have been increasing in Canada rapidly. To find a suitable place to live which is affordable is becoming really rare due to the increase in real estate. As the prices rise, the people who are not as fortunate as the rest of us are forced to live in deprived areas. This will cause the upbringing of children to be difficult which might ultimately lead to poverty. Thus, through providing funding for affordable and appropriate housing, Canada can start to diminish the homeless population. The issue of economic inequality has ruined the economy of the United States completely. This issue is making its way to Canada, which is causing more of its citizens to go into poverty. When this problem first started to arise, it was strongly ignored by the government because they believed it would not cause a problem. However, over the past twenty years, it has increased rapidly which caused the gap between rich and poor to became enormous. 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Momentum trading and Business Cycle Risk Evidence from BRIC Countries Free Essays

string(249) " investors who have quick access to information are capable of making superior abnormal returns while those who do not have quick access to information tend not to make superior risk-adjusted returns by using such information as a basis of trading\." 1. Introduction. BRIC (Brazil, Russia, India and China) countries are growing at an alarming rate. We will write a custom essay sample on Momentum trading and Business Cycle Risk: Evidence from BRIC Countries or any similar topic only for you Order Now This growth can be attributed to a number of factors including globalisation, financial liberalisation which has led to an increase in cross-border capital flows, technological developments and the internet. These countries are forecast to witness tremendous growth in the years ahead. The alarming growth of BRIC countries has attracted investors in search of suitable environments for portfolio diversification to consider BRIC countries as potential destinations for diversifying their portfolios. This paper presents a proposal to study the link between business cycles and momentum trading in the BRIC stock markets. The paper aims at understanding how business cycle risk affects momentum profits in BRIC countries. The study also seeks to provide an understanding of how momentum profits are affected by firm specific characteristics such as firm size and book-to-market ratios in BRIC countries. 2. Objectives of the study The objective of the study is to determine the impact of business cycle risk on momentum profits and thus momentum trading in BRIC countries. Research Questions The study aims at answering the following questions: Are there momentum profits in the stock markets of BRIC countries If so, what is the impact of Business Cycle risk on these profits What are the regulatory implications of momentum profits in BRIC countries Significance of the Study The study is significant to market regulators in that it will enable them design regulatory requirements aimed at reducing inefficiencies in BRIC stock markets thereby increasing their ability to attract capital. The study will also help foreign investors to gain more confidence in BRIC countries. Finally, the study will serve as a reference point for future researchers interested in conducting research on momentum profits. Limitations of the Study The study is limited only to BRIC countries. This limitation means that generalising results to other countries may not be possible. It is also limited only to a number of firms in these countries which suggests that results obtained may not be generalised to all firms. Finally, the variables employed in the study may not adequately measure momentum profits or adequately conceptualise how momentum profits are affected by business cycle variables. 5. Literature Review. A momentum trading strategy is a trading strategy that is designed based on past performance. The trading strategy is based on the assumption that â€Å"history will repeat itself†. A momentum trading strategy is therefore a strategy, which assumes that the return performance will persist in the medium term (Signos and Chelley, 1994). Momentum profits were first observed by Jegadeesh and Titman (1993). Accordingly, the study observed that stocks that performed well in a previous period also performed well in the current period, while those that performed poorly in the previous period also performed poorly in the current period. This means that a trading strategy that went long on previous winners while shorting previous losers would result in positive abnormal returns. In particular Jagadeesh and Titman (1993) observed the realisation of positive abnormal returns of 1 percent with the momentum strategy. In addition, a number of other studies have observed significant positive abnormal returns with the momentum trading strategy (e.g., Moskowitz and Grinblatt, 1999; Jegadeesh and Titman, 2001; Liu et al. (1999), Hong and Tonks, 2003; Gregory et al., 2001; Griffin et al., 2003; Gregory et al. 2001; Rouwenhorst 1998). The implication of the existence of such a Band Wagon (money making strategy) is that markets were not efficient. According to the weak- and semi-strong form efficient market hypotheses, all information available to the general public is already reflected in stock prices. This means that investors cannot realise superior risk adjusted returns by adopting a particular trading strategy such as the one proposed by momentum trading (Ross et al., 1999; Bodie et al., 2007). Attempts to attribute this finding to inefficient markets have been opposed by Fama and French (1993, 1995, 1996) who argued that observing momentum profits cannot be attributed to inefficient capital markets. Rather the single factor capital asset pricing model (CAPM) has been criticised for not being able to properly explain the variability of the cross-section of stock returns. This model suggests that stock market returns depend on a single factor (i.e., the return on the market portfolio). However, Fama and French (1993, 1995, 1996) contest this view and argue instead that stock returns could be explained by additional factors such as the book-to-market ratio and firm size. A three factor model is therefore proposed which takes into account the impact of size and book-to-market ratio and is found to perform better than the single factor CAPM (Fama and French, 1993, 1995, 1996). In addition, the three factor model was extended to a four-factor model to include a momentum factor w hich measures the difference between the return on portfolios of stocks that performed well in the previous period and the return on portfolios of stocks that performed poorly. Including a momentum factor in the three-factor model thus making it a four-factor model enabled the model to be able to explain the momentum profits observed in Jagadeesh and Titman (1993) and the other studies identified in the Literature. In summary, Fama and French argue that anomalies such as those observed in momentum trading cannot be attributed to inefficiencies in capital markets. Rather they should be attributed to inadequacies in the models that are used in explaining the cross-section of stock returns. Other explanations have been offered for the observation of momentum profits. According to behavioural finance theorist, momentum profits are a result of slow movement of information. Behavioural finance theorists are against market efficiency theorists who argue that information is rapidly reflected in stock prices. Among behavioural theorists, Hong and Stein (1999) argue that momentum profits can be attributed to slow diffusion of information across interested investors. This means that some investors receive information about stock prices earlier than others and as such appropriate action faster than others. By so doing, investors who have quick access to information are capable of making superior abnormal returns while those who do not have quick access to information tend not to make superior risk-adjusted returns by using such information as a basis of trading. You read "Momentum trading and Business Cycle Risk: Evidence from BRIC Countries" in category "Essay examples" Barberi s et al. (1998) argues that momentum profits can be attributed to overreaction or underreaction of stock prices to news. The explanation from behavioural theorists conflict with those of Fama and French because behavioural theorists also suggest that there is nothing like an efficient market. Given the conflict between behavioural theorists and proponents of market efficiency, alternative explanations have been provided by recent studies. These studies argue that momentum profits are influenced by business cycle variables (e.g., Antoniou et al., 2007; Liew and Vassalou, 1999). Contrary to this view Griffen et al. (2002) in a study examining the link between business cycle variables and momentum profits across many countries argue that momentum profits are not a function of business cycle variables. While many studies have investigated the relationship between business cycle variables, most of these studies focus on developed markets with very little attention paid to emerging markets such as those of BRIC countries. Given the increasing role that BRIC countries play in the global economy, it is important to understand whether there are momentum profits in these countries as well as the role that business cycle risk has on momentum profits. This study is therefore a positive step toward contributing to the literature on momentum profits and business cycle risk by extending previous studies to stock markets in BRIC countries. 6. Research Methods This study will employ an econometric model to study the relationship between momentum profits and three sets of variables: (i) business cycle variables; (ii) firm specific variables (iii); and behavioural finance variables. The relationship between momentum profits and these variables can be represented using the following econometric model: (1) Where is a measure of the momentum profit of country i at in year t; is a vector of firm specific variables; is a vector of the past cumulative raw returns; and are the sensitivities of the momentum profits to changes in firm-specific variables and past cumulative returns respectively. The magnitude of the effect of these variables will be determined by testing the significance of the parameters at the 5% level of significance. In order to study business cycle variables, a model was developed by Chordia and Shivakumar (2002) and later extended by Antoniou et al. (2007). The model is an econometric model which establishes the relationship between momentum profits and business cycle variables. The model can be stated as follows: (2) Where is the return (inclusive of dividends) of firm i in month t, BC is a vector of j (j=1-6) macroeconomic variables representing business cycle variables (DY, Rf, TERM, DEF, FX, and GDP), and is the error term of stock i in month t. DY is the dividend yield; Rf is the risk-free interest rate; DEF is the premium for default risk premium which is estimated as the difference between the yield on long-term corporate bonds and the yield on long-term government bonds; The term spread (TERM) is the difference between the yield on long-term government securities minus the yield on short-term government securities; FX is the foreign exchange rate; and GDP is the change in GDP (Antoniou et al., 2007). As earlier mentioned, stock returns depend on two factors: market factors and firm-specific factors. There is a trade-off relationship between the manner in which each group of factors affect stock returns. That is the higher the impact of firm-specific factors, the lower will be the impact of market factors and vice versa (Antoniou et al., 2007). To estimate equation (1) equations 3 has to be estimated and its parameters used as inputs to equation (2). After estimating equation (2) its parameters can then be used as inputs to equation (1). In this study, both time-series and cross-sectional regressions are used. Cross-sectional regressions are preferred over time series regressions because they help to avoid data-snooping biases which tend to occur in time-series regressions. In the time-series regressions, individual stocks are used which help to reduce the degree of loss of information that tends to occur when portfolios are used. Using first-pass time series regression, which allows the parameters to also fluctuate with firm-specific variables. The firm-specific factors include firm size and book-to-market ratio. The first-pass time-series regression can be stated as follows: (3) is the return on firm i at time t, BC is a the vector of business cycle risk variables identified earlier, FF (Fama and French factors) are the firm-specific variables. Once equation (3) has been estimated, the parameters will be used as inputs to the second pass regression equation (4) below: (4) Where is the output of equation (3). It is the unexplained variation from equation (3). These include the intercept coefficient and the residual term (+) of the regression equation (3); is a vector of firm characteristics, which include firm size and book-to-market ratio for security i at time t. represent the three sets of past cumulative raw returns (for m=1-3) over the second through third (RET 2-3), fourth through sixth (RET 4-6) and seventh through twelfth (RET 7-12) months prior to the current month t. (Antoniou et al. 2007). 6. Data Stock price data for stocks in the BRIC countries will be retrieved from the Thomson Financial Datastream Database. Data on dividend yields will also be retrieved from this database. The database also reports data on exchange rates. GDP, interest rate and exchange rate data will be retrieved from the IMF International Financial Statistics (IFS) database. Stock price data will be used to calculate the monthly return for each stock over the 60 monthly holding periods from January 2007 to December 2011. The returns will be used as inputs to the first-pass regression. Given that this study is based on quantitative models that have been applied in other studies, there would be no need for pilot testing. Conclusion This paper was aimed at providing a research proposal to study how momentum trading is affected by business cycle variables. The proposal began by providing a general background on the topic. It later focused on the literature review, methodology and data description. The study will apply quantitative analysis to quantitative data from BRIC countries. The findings will provide a better understanding of momentum trading in BRIC countries and help policy formulation on how markets can become more efficient in these markets so as to enable investors make invest with greater confidence. References Antoniou A., Lam H. Y.T., Paudyal K. (2007). Profitability of momentum strategies in international markets: The role of business cycle variables and behavioural biases. Journal of Banking Finance volume 31, issue 3, pp. 955-972. Barberis N., Shleifer A., Vishny R.W.(1998). A model of investor sentiment, Journal of Financial Economics 49, pp. 307–343. Chelley-Steeley, Patricia and Siganos, Antonios, (2004). â€Å"Momentum Profits in Alternative Stock Market Structures†. Available at SSRN: http://ssrn.com/abstract=624583 Fama E.F., French K.R. (1996). Multifactor explanations of asset pricing anomalies, Journal of Finance 51 (1996), pp. 55–84. Griffin, John M., Martin, J. Spencer and Ji, Susan, â€Å"Momentum Investing and Business Cycle Risk: Evidence from Pole to Pole† (March 18, 2002). AFA 2003 Washington, DC Meetings; EFA 2002 Berlin Meetings Presented Paper. Available at SSRN: http://ssrn.com/abstract=291225 or DOI: 10.2139/ssrn.291225 Hong H., Stein J.C. (1999). A Unified Theory of Undereaction, Momentum Trading, and Overreaction in Asset Markets. Journal of Finance. Vol. 6, pp 2143-2184 Jegadeesh N., Titman S. (1998). Returns to buying winners and selling losers: Implications for market efficiency, Journal of Finance 48, pp. 65–91. Liew, Jimmy K.yung Soo and Vassalou, Maria, (1999). â€Å"Can Book-to-Market, Size, and Momentum Be Risk Factors That Predict Economic Growth?† Available at SSRN: http://ssrn.com/abstract=159293 or DOI: 10.2139/ssrn.159293 Rouwenhorst, K.G. (1998). International momentum strategies, Journal of Finance 53, pp. 267–284. Wu, X. (2002). A conditional multifactor analysis of return momentum, Journal of Banking and Finance 26 (2002), pp. 1675–1696 How to cite Momentum trading and Business Cycle Risk: Evidence from BRIC Countries, Essay examples Momentum trading and Business Cycle Risk Evidence from BRIC Countries Free Essays string(57) " suggest that there is nothing like an efficient market\." 1. Introduction. BRIC (Brazil, Russia, India and China) countries are growing at an alarming rate. We will write a custom essay sample on Momentum trading and Business Cycle Risk: Evidence from BRIC Countries or any similar topic only for you Order Now This growth can be attributed to a number of factors including globalisation, financial liberalisation which has led to an increase in cross-border capital flows, technological developments and the internet. These countries are forecast to witness tremendous growth in the years ahead. The alarming growth of BRIC countries has attracted investors in search of suitable environments for portfolio diversification to consider BRIC countries as potential destinations for diversifying their portfolios. This paper presents a proposal to study the link between business cycles and momentum trading in the BRIC stock markets. The paper aims at understanding how business cycle risk affects momentum profits in BRIC countries. The study also seeks to provide an understanding of how momentum profits are affected by firm specific characteristics such as firm size and book-to-market ratios in BRIC countries. 2. Objectives of the study The objective of the study is to determine the impact of business cycle risk on momentum profits and thus momentum trading in BRIC countries. Research Questions The study aims at answering the following questions: Are there momentum profits in the stock markets of BRIC countries If so, what is the impact of Business Cycle risk on these profits What are the regulatory implications of momentum profits in BRIC countries Significance of the Study The study is significant to market regulators in that it will enable them design regulatory requirements aimed at reducing inefficiencies in BRIC stock markets thereby increasing their ability to attract capital. The study will also help foreign investors to gain more confidence in BRIC countries. Finally, the study will serve as a reference point for future researchers interested in conducting research on momentum profits. 5. Literature Review. A momentum trading strategy is a trading strategy that is designed based on past performance. The trading strategy is based on the assumption that â€Å"history will repeat itself†. A momentum trading strategy is therefore a strategy, which assumes that the return performance will persist in the medium term (Signos and Chelley, 1994). Momentum profits were first observed by Jegadeesh and Titman (1993). Accordingly, the study observed that stocks that performed well in a previous period also performed well in the current period, while those that performed poorly in the previous period also performed poorly in the current period. This means that a trading strategy that went long on previous winners while shorting previous losers would result in positive abnormal returns. In particular Jagadeesh and Titman (1993) observed the realisation of positive abnormal returns of 1 percent with the momentum strategy. In addition, a number of other studies have observed significant positive abnormal returns with the momentum trading strategy (e.g., Moskowitz and Grinblatt, 1999; Jegadeesh and Titman, 2001; Liu et al. (1999), Hong and Tonks, 2003; Gregory et al., 2001; Griffin et al., 2003; Gregory et al. 2001; Rouwenhorst 1998). The implication of the existence of such a Band Wagon (money making strategy) is that markets were not efficient. According to the weak- and semi-strong form efficient market hypotheses, all information available to the general public is already reflected in stock prices. This means that investors cannot realise superior risk adjusted returns by adopting a particular trading strategy such as the one proposed by momentum trading (Ross et al., 1999; Bodie et al., 2007). Attempts to attribute this finding to inefficient markets have been opposed by Fama and French (1993, 1995, 1996) who argued that observing momentum profits cannot be attributed to inefficient capital markets. Rather the single factor capital asset pricing model (CAPM) has been criticised for not being able to properly explain the variability of the cross-section of stock returns. This model suggests that stock market returns depend on a single factor (i.e., the return on the market portfolio). However, Fama and French (1993, 1995, 1996) contest this view and argue instead that stock returns could be explained by additional factors such as the book-to-market ratio and firm size. A three factor model is therefore proposed which takes into account the impact of size and book-to-market ratio and is found to perform better than the single factor CAPM (Fama and French, 1993, 1995, 1996). In addition, the three factor model was extended to a four-factor model to include a momentum factor w hich measures the difference between the return on portfolios of stocks that performed well in the previous period and the return on portfolios of stocks that performed poorly. Including a momentum factor in the three-factor model thus making it a four-factor model enabled the model to be able to explain the momentum profits observed in Jagadeesh and Titman (1993) and the other studies identified in the Literature. In summary, Fama and French argue that anomalies such as those observed in momentum trading cannot be attributed to inefficiencies in capital markets. Rather they should be attributed to inadequacies in the models that are used in explaining the cross-section of stock returns. Other explanations have been offered for the observation of momentum profits. According to behavioural finance theorist, momentum profits are a result of slow movement of information. Behavioural finance theorists are against market efficiency theorists who argue that information is rapidly reflected in stock prices. Among behavioural theorists, Hong and Stein (1999) argue that momentum profits can be attributed to slow diffusion of information across interested investors. This means that some investors receive information about stock prices earlier than others and as such appropriate action faster than others. By so doing, investors who have quick access to information are capable of making superior abnormal returns while those who do not have quick access to information tend not to make superior risk-adjusted returns by using such information as a basis of trading. Barberis et al. (1998) argues that momentum profits can be attributed to overreaction or underreaction of stock prices to news. The explanation from behavioural theorists conflict with those of Fama and French because behavioural theorists also suggest that there is nothing like an efficient market. You read "Momentum trading and Business Cycle Risk: Evidence from BRIC Countries" in category "Essay examples" Given the conflict between behavioural theorists and proponents of market efficiency, alternative explanations have been provided by recent studies. These studies argue that momentum profits are influenced by business cycle variables (e.g., Antoniou et al., 2007; Liew and Vassalou, 1999). Contrary to this view Griffen et al. (2002) in a study examining the link between business cycle variables and momentum profits across many countries argue that momentum profits are not a function of business cycle variables. While many studies have investigated the relationship between business cycle variables, most of these studies focus on developed markets with very little attention paid to emerging markets such as those of BRIC countries. Given the increasing role that BRIC countries play in the global economy, it is important to understand whether there are momentum profits in these countries as well as the role that business cycle risk has on momentum profits. This study is therefore a positive step toward contributing to the literature on momentum profits and business cycle risk by extending previous studies to stock markets in BRIC countries. 5. Research Methods This study will employ an econometric model to study the relationship between momentum profits and three sets of variables: (i) business cycle variables; (ii) firm specific variables (iii); and behavioural finance variables. The relationship between momentum profits and these variables can be represented using the following econometric model: (1) Where is a measure of the momentum profit of country i at in year t; is a vector of firm specific variables; is a vector of the past cumulative raw returns; and are the sensitivities of the momentum profits to changes in firm-specific variables and past cumulative returns respectively. The magnitude of the effect of these variables will be determined by testing the significance of the parameters at the 5% level of significance. In order to study business cycle variables, a model was developed by Chordia and Shivakumar (2002) and later extended by Antoniou et al. (2007). The model is an econometric model which establishes the relationship between momentum profits and business cycle variables. The model can be stated as follows: Where is the return (inclusive of dividends) of firm i in month t, BC is a vector of j (j=1-6) macroeconomic variables representing business cycle variables (DY, Rf, TERM, DEF, FX, and GDP), and is the error term of stock i in month t. DY is the dividend yield; Rf is the risk-free interest rate; DEF is the premium for default risk premium which is estimated as the difference between the yield on long-term corporate bonds and the yield on long-term government bonds; The term spread (TERM) is the difference between the yield on long-term government securities minus the yield on short-term government securities; FX is the foreign exchange rate; and GDP is the change in GDP (Antoniou et al., 2007). As earlier mentioned, stock returns depend on two factors: market factors and firm-specific factors. There is a trade-off relationship between the manner in which each group of factors affect stock returns. That is the higher the impact of firm-specific factors, the lower will be the impact of market factors and vice versa (Antoniou et al., 2007). To estimate equation (1) equations 3 has to be estimated and its parameters used as inputs to equation (2). After estimating equation (2) its parameters can then be used as inputs to equation (1). In this study, both time-series and cross-sectional regressions are used. Cross-sectional regressions are preferred over time series regressions because they help to avoid data-snooping biases which tend to occur in time-series regressions. In the time-series regressions, individual stocks are used which help to reduce the degree of loss of information that tends to occur when portfolios are used. Using first-pass time series regression, which allows the parameters to also fluctuate with firm-specific variables. The firm-specific factors include firm size and book-to-market ratio. The first-pass time-series regression can be stated as follows; is the return on firm i at time t, BC is a the vector of business cycle risk variables identified earlier, FF (Fama and French factors) are the firm-specific variables. Once equation (3) has been estimated, the parameters will be used as inputs to the second pass regression equation (4) below: Where is the output of equation (3). It is the unexplained variation from equation (3). These include the intercept coefficient and the residual term (+) of the regression equation (3); is a vector of firm characteristics, which include firm size and book-to-market ratio for security i at time t. represent the three sets of past cumulative raw returns (for m=1-3) over the second through third (RET 2-3), fourth through sixth (RET 4-6) and seventh through twelfth (RET 7-12) months prior to the current month t. (Antoniou et al. 2007). 6. Data Stock price data for stocks in the BRIC countries will be retrieved from the Thomson Financial Datastream Database. Data on dividend yields will also be retrieved from this database. The database also reports data on exchange rates. GDP, interest rate and exchange rate data will be retrieved from the IMF International Financial Statistics (IFS) database. Stock price data will be used to calculate the monthly return for each stock over the 60 monthly holding periods from January 2007 to December 2011. The returns will be used as inputs to the first-pass regression. References Griffin, John M., Martin, J. Spencer and Ji, Susan, â€Å"Momentum Investing and Business Cycle Risk: Evidence from Pole to Pole† (March 18, 2002). AFA 2003 Washington, DC Meetings; EFA 2002 Berlin Meetings Presented Paper. Available at SSRN: http://ssrn.com/abstract=291225 or DOI: 10.2139/ssrn.291225 Antoniou A., Lam H. Y.T., Paudyal K. (2007). Profitability of momentum strategies in international markets: The role of business cycle variables and behavioural biases. Journal of Banking Finance volume 31, issue 3, pp. 955-972. Liew, Jimmy K.yung Soo and Vassalou, Maria, (1999). â€Å"Can Book-to-Market, Size, and Momentum Be Risk Factors That Predict Economic Growth?† Available at SSRN: http://ssrn.com/abstract=159293 or DOI: 10.2139/ssrn.159293 Rouwenhorst, K.G. (1998). International momentum strategies, Journal of Finance 53, pp. 267–284. Wu, X. (2002). A conditional multifactor analysis of return momentum, Journal of Banking and Finance 26 (2002), pp. 1675–1696 Jegadeesh N., Titman S. (1998). Returns to buying winners and selling losers: Implications for market efficiency, Journal of Finance 48, pp. 65–91. Barberis N., Shleifer A., Vishny R.W.(1998). A model of investor sentiment, Journal of Financial Economics 49, pp. 307–343. Fama E.F., French K.R. (1996). Multifactor explanations of asset pricing anomalies, Journal of Finance 51 (1996), pp. 55–84. Hong H., Stein J.C. (1999). A Unified Theory of Undereaction, Momentum Trading, and Overreaction in Asset Markets. Journal of Finance. Vol. 6, pp 2143-2184 Chelley-Steeley, Patricia and Siganos, Antonios, (2004). â€Å"Momentum Profits in Alternative Stock Market Structures†. Available at SSRN: http://ssrn.com/abstract=624583 How to cite Momentum trading and Business Cycle Risk: Evidence from BRIC Countries, Essay examples

The Bloomabilities of Life free essay sample

I still remember those book club days like they happened yesterday. All eleven of us third and fourth graders would find a spot on the library floor in a circle. Pillows propped, shoes taken off, and blankets brought out as everyone settled in. Our teacher would sit â€Å"pretzel style† on the floor in our circle, seeming to be one of us. After taking out a book, the aroma of lemon poppy seed muffins wafted throughout the snug space. When everyone was settled, my teacher would ask a question to get our minds thinking. Did the tollbooth really take Milo to a land far away from his bedroom? Did we think Mr. Popper’s penguins could actually live in his house? Eagerly we all participated, calling out what we wanted to say. I looked forward to this Wednesday ritual. In this small, high ceiling room, I met Domenica Santolina Doone. She was my age, shy, and about to experience a big change. We will write a custom essay sample on The Bloomabilities of Life or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page We had these things in common. But unlike me, she was used to change. Although she was a fictional character, we could always relate to each other. Together, we went on adventures. Dinnie took me around the United States. She brought me along when she skied in the Swiss Alps. She let me listen in on her Global Awareness classes where she learned about the poverty of the world. She taught me how to accept the things you are given in life with thanks, not anger or guilt. Domenica Santolina Doone changed my views on the world. Dinnie changed schools and moved from the United States to Switzerland. When the time came for me to switch from private to public school in fifth grade, I was unprepared. I took her everywhere with me: school, the grocery store, dance class, riding my bike. As a child, I was always afraid of getting rid of old clothes that did not fit me anymore. I was not afraid of monsters, or ghosts, or the dark. No, I was afraid of change. When the initial shock of the scho ol switch was over, I began to think about Dinnie. At first she was scared, like me. Little by little she made new friends, just as I was doing. We both began to see that change is not necessarily a bad thing, and that it can open up many new possibilities, or â€Å"bloomabilities,† as her friend said. Since reading Bloomability by Sharon Creech in that third grade reading group, I have reread it over thirty times. Each time I pick up that book, I think about my life from a new perspective. As I grow and mature, Dinnie seems to grow and mature with me. The meaning of the book is forever changing just as the world around me is. That scared little girl is no longer here. She transformed when she saw that the wonderful â€Å"bloomabilities† of life only result from change.