The Colossal Statue of a Pharaoh Free Essays

Katherine Mordan Art Survey Research Paper Prof. Lindt 10/23/11 The Colossal Statue of a Pharaoh The Colossal Statue of a Pharaoh is a bit of Middle Age Egyptian workmanship and it was the piece that got my attention at the MET. The sculpture was made around 1919b. We will compose a custom article test on The Colossal Statue of a Pharaoh or then again any comparable point just for you Request Now c-1885b. c. to speak to the rule of the twelfth tradition pharaoh Amenemhat II. It is made out of stone, a stone called Granodiorite. It was cut in Aswan and was finished in Memphis close to Cairo. The model is a model in the round, implying that it is a three dimensional figure that is cut out of square. The sculpture has smooth surface and enormous in size. It’s a normous sculpture that raises over a horde of individuals, which includes an image of intensity towards it. I saw that it’s Amenemhat II sitting on his seat; you can see some harm to the figure because of time and moving around of the model. It’s missing a nose and its facial hair. The Pharaoh is wearing a kilt and wearing a belt that has a bull’s tail connected to it. To Egyptians a bull’s tail is an image of their quality as indicated by scientists at the Met. He is wearing a regal head material with a regal cobra representing the ruler’s power. At the foot of the solid shapes s eat is a lot of sacred texts representing it’s significance to the realm. The sculpture was made for the Pharaoh Amenemhat II who controlled in the twelfth administration. This was the most significant period in the center realm, he governed from 1919-1885 b. c. He initially began his rule with his dad and afterward assumed control over a nation that his dad kept stable and monetarily steady. Something that pharaoh Amenemhat II did was lead a military crusade in Syria getting detainees to fabricate pyramids for him. He would likewise directs exchanges with different nations for products, copper, wood , and stones. During this time craftsmanship was picking up fame in Egypt. A portion of the Fine gems made originated from this time. Stone figures like the enormous Sphinx originated from Amenemhat’s time. Quite a while after his rule the figure of the Pharaoh was moved here and there and different rulers would adjust the sculptures highlights to resemble theirs; they would cut their names on the sculpture too. During the hour of the Pharaoh’s in Egypt, the lords ensured that the open realized how ground-breaking they were. They ensured that all their work of art represented what their identity was and what quality they needed to control a realm. Figures, for example, a sphinx, lion, snake, bull’s tail and birds of prey, were figures of solidarity, force and life span. These were images that were utilized in these pieces to speak to the rulers. Since the king’s appeared to be all forceful and incredible the individuals of the nation would proceed to adulate and follow the lords; bringing the king’s force and thriving. The giant sculpture of a Pharaoh speaks to power and quality of an omnipotent ruler of king’s. Amenemhat II needed his open to realize that he was qualified to be the best and that he had the intensity of control. He needed his kin to have confidence in him and accept he would bring thriving. Generally significant of everything is that he needed individuals to realize that no ne could thump him off of his seat; he was the ruler and could do what ever he satisfied. In this kind of society, in Egypt king’s expected to show their open how ground-breaking they were with the goal that individuals couldn't violate their limits and realized they were under severe control. Each social class had to know were they st ood; the rich with rich and the poor working for the rich. This piece truly grabbed my attention because of its enormous size and great point by point structure. It entranced me to consider how this tremendous sculpture was made back in antiquated Egypt and I needed to impart this piece to every other person. Step by step instructions to refer to The Colossal Statue of a Pharaoh, Papers

Teachers in the mediathe movie October Sky Essay Example For Students

Educators in the mediathe film October Sky Essay I should have confidence in the unfortunate ones? On the off chance that I dont Id likely go crazy.(Laura Dern, October Sky) This could ostensibly be the most significant line in the whole film, as I would like to think. This instructor perceives the potential in each understudy, not just the ones with noticeable capacity. This, I would trust, would be the objective of each educator. Instructors have the best blessing on the planet the capacity to help shape an understudies life. Perceived and acknowledged the individual can utilize that to introduce a universe of chances to the individuals who might not have had any. This was valid in October Sky; the Rocket Boys were from a little bombing mining network, where little desires were set on them and even less open doors were accessible. When Derns character was blamed for giving the young men bogus expectations she held her grounds and kept on supporting the young men. This to me is a case of an extraordinary educator, one who will keep on doing what the person believes is correct whether or not it procures her the dissatisfaction with the remainder of the staff. The film October Sky gives a positive portrayal of an instructor. She is a good example, a companion, a wellspring of data, a safeguard, and a warrior. We will compose a custom paper on Teachers in the mediathe film October Sky explicitly for you for just $16.38 $13.9/page Request now She is depicted as merciful, understanding, and extremely advantageous in keeping the understudies coordinated toward their objectives. This would appear to state that educators need these characteristics so as to completely identify with their understudies. An instructor can not exclusively be there for enlightening needs, however should likewise remain behind her understudies and be set up to protect their privileges to find themselves. An educator ought to be set up to perceive concealed potential; it is in pretty much every understudy. This is a troublesome undertaking, particularly if the understudy likewise brings extraordinary difficulty, be that as it may, it isn't unimaginable; Derns character understood this. Each instructor will have an understudy in their study hall with shrouded capacity; notwithstanding the understudies opportunities for enormity, the incredible educator will be estimated by her capacity to see the potential inside that understudy. List of sources: n/a .

Same Sex Marriages Essays - LGBT History, Same-sex Marriage

Same Sex Marriages Essays - LGBT History, Same-sex Marriage Same Sex Marriages 11/23/98Same-Sex Marriages(Should it be permitted? Should it include kids?) If a man lies with a man as one lies with a lady, them two have done whatis abominable. They should be executed; their blood will be their responsibility.- Leviticus20:13. Do you not realize that the insidious won't acquire the realm of God? Do notbe tricked: ......homosexual offenders.....will not acquire the realm of God.- 1 Corinthians 6:9-10. Try not to lie with a man as one lies with a lady; that isdetestable.- Leviticus 18:22. As indicated by the Bible same-sex relationships would be improper and evil. Beinggay and adoring someone else is absolutely not illicit, yet joining that couple in marriage isnot just dismissed by the greater part of society yet in addition by Judaism, Christianity and Islam. As aChristian I discover same-sex relationships unsuitable, yet I realize that not all individuals accept inthe Bible and we do have opportunity of religion in the US . Courts in Hawaii would not permit same -sex relationships and that is currently beinglooked at as illegal. Not permitting the relationships oppresses certaingroups that are United States residents and that is unlawful. Despite the fact that I dont affirm of same-sex relationships, as per our laws there isreally no motivation behind why the relationships shouldnt happen. In any case, I do think there should belimitations. Relationships of the equivalent sex ought not include youngsters. There is no naturalway that two individuals of the equivalent sex might have offspring of their own and shouldnot be given care of a youngster or the capacity to embraced a kid. Senator Wilson, California republican is proposing to boycott Second-parentadoptions, which in the past have been affirmed. These guidelines would require maritalstatus to be given to the Department of Social Services. I don't accept that gay guardians will make such a youngster be gay. Be that as it may, all thingsbeing equivalent, I do accept that kid is being de nied of vital, vital two-sexingredients fundamental in child rearing. That it takes a man and a lady to deliver that thirdperson is the most essential verification that a youngster needs both a mother and a daddy. Youngsters who have guardians of the equivalent sex would be intolerable pestered by otherchildren and thought about an untouchable. An honest kid put in a circumstance that would beemotionally distressing for the vast majority of their childhood there is no need. Simply envision what a childwould experience. Billy, which one of your fathers wore the dress in the wedding? orSuzy, which one of your mothers is going to the mother-little girl excursion? Why put kidsin a situation that isn't ethically or socially worthy in todays society? Being gay ought to never bring about being bugged, loathed or harmed. In any case, tragically, beinggay likewise should always mean being unable to wed or embrace. Everything in life has a price.Being childless is a significant expense. Yet, a youngster's essential needs should consistently override the desiresof a grown-up. Kids should consistently precede self. List of sources :Heavenly Bible (NIV) - Leviticus 18:22 - Leviticus 20:13 - 1 Corinthians 6:9Gay relationships ought to be permitted, state judge controls, The Wall Street Journal, Dec. 4, 1996.

Down On The Upside free essay sample

One of Americas most misjudged groups, Soundgarden, delivers one more extraordinary collection. Down on the Upside, their most recent exertion, epitomizes their melodic ability as a band. Their other notable collections badmotorfinger and superknown-helped them break into the standard of hard rock groups, yet this record should put them over the top. It shows all the styles of music they play, punk tunes, for example, dusty and Ty Cobb, Zeppelin anthems like Never the Machine Forever and more tightly and more tightly. This collection has created three recordings on MTV. Soundgarden has now disposed of the simply one more Seattle band mark by putting themselves on another degree of music. Chris Cornells unimaginable voice is clear from the main tune. Kim Thayills creative mind and innovativeness with his guitar sparkles all through this collection. Ben Sheperd and Matt Cameron keep the gather as one with their consistent beat. Tragically for the audience members, Soundgarden separated following 13 years of playing. We will compose a custom exposition test on Down On The Upside or then again any comparable point explicitly for you Don't WasteYour Time Recruit WRITER Just 13.90/page In the event that you like hard rock, or like one of their past collections, purchase this one, its justified, despite all the trouble

Optimal Hedge Ratios - Free Essay Example

Estimation of Optimal Hedge Ratios (hedging strategies): Naà ¯ve or one-to-one hedge assumes that futures and cash prices move closely together. In this traditional view of hedging, the holding of both the initial spot asset and the futures contract used to offset the risk of the spot asset are of equal magnitude but in opposite direction. In this case the hedge ratio (h) is one-to-one (or unit) (-1) over the period of the hedge. This approach fails to recognize that the correlation between spot and futures prices is less than perfect and also fails to consider the stochastic nature of futures and spot prices and resulting time variation in hedge ratios (Miffre, City University). The beta hedge recognizes that the cash portfolio to be hedged may not match the portfolio underlying the futures contract. With the beta hedge strategy, his calculated as the negative of the beta of the cash portfolio. Thus, for example, if the cash portfolio beta is 1.5, the hedge ratio will be -1.5, since the cash portfolio is expected to move by 1.5 times the movement in the futures contract, where the cash portfolio is that which underlies the futures contract. The traditional strategy and the beta strategy yield the same value for h (Butterworth and Holmes 2001). Minimum Variance Hedge Ratio (MVHR) was proposed by Johnson (1960) and Stein (1961). This approach takes into account the imperfect correlation between spo t and futures markets and was developed by Ederington (1979). According to him, the objective of a hedge is to minimize the risk, where risk is measured by the variance of the portfolio return. The hedge ratio is identified as: h*= ?S,F / ?2F (1) Where, ?S,F is the variance of the futures contract and ?S,F is the covariance between the spot and futures position. The negative sign mean that the hedging of a long stock position requires a short position in the futures market. The relation between spot and futures can be represented as: St = ? + h*Ft + et (2) Eq. (2), which is expressed in levels, can also be written in price difference as: St – St-1 = ? + h*(Ft – Ft-1) + ?t (3) or in price returns as: St – St-1 / St-1 = ? + h*(Ft – Ft-1 / Ft-1) + ?t (4) Eq. (4) can be approximated by: logSt – logSt-1 = ? + h*(logFt – logFt-1) + ?t (5) Eq. (6) can be re-written as: RSt = ? + h*RFt + ?t (6) Where, RSt and RF t are returns on spot and futures position at time t. Equation (2) and (3) assume a linear relationship between the spot and futures while eq. (4)-(6) assumes that two prices follow a log-linear relation. Relative to equation (2)-(3), the hedge ratio represents the ratio of the number of units of futures to the number of units of spot that must be hedged, whereas, relative to eq. (4), hedge ratio is the ratio of the value of futures to the value of spot. (Scarpa and Manera, 2006) Eq. (2) can easily produce auto correlated and heteroskedastic residuals (Ederington, 1979; Myers and Thompson, 1989: cited in Scarpa and Manera, 2006). Due to this reason, some authors suggest the use of eq (3)-(6), so that the OLS classical assumption of no correlation in the error terms is not violated. Empirically, optimal hedge ratio h* can be obtained by simple Ordinary Least Square (OLS) approach, where the coefficient estimates of the futures gives the hedge ratio. This is can only be done when there is no co-integration between spot and futures prices/values and conditional variance-covariance matrix is time invariant (Casillo,XXXX). Even though application of MVHR relies on unrealistic assumptions, it provides an unambiguous benchmark against which to assess hedging performance ( Butterworth and Holmes, 2001). Error Correction Model (ECM) approach for determining optimal hedge ratio takes in to account the important role played by the theory of co-integration between futures and spot market, which is ignored by MVHR (Casillo,XXXX). The theory of co-integration is developed by Engle and Granger (1981), who shows that if two series are co-integrated, there must exist an error correction representation that permits to include both the short-run dynamics and the long-run information. ECM approach augments the standard OLS regression used in MVHR by incorporating error correction term (residual) and lagged variables to capture deviation from the long run equilibriu m relationship and short-run dynamics respectively (XXXXect). The presence of the efficient market hypothesis and the absence of arbitrage opportunity imply that spot and futures are co-integrated and an error correction representation must exist (Casillo,XXXX) of the following form: i=1 j=1 ?St = ?et-1 + Ft + ? ?i?Ft-i + ? ?j?St-j + ut (7) Where, ? is the optimal hedge ratio and et-1 = St-1 – ?Ft-1 All the above mentioned approaches employ constant variance and covariance to measure hedge ratio, which have some problems. The return series of many financial securities exhibit non-constant variance, besides having a skewed distribution. This has been demonstrated by Engle 1982, Lamoureux and Lastrapes 1990, Glosten, Jagannathan and Runkle 1993, Sentana 1995, Lee and Brorsen 1997 and Lee Chen and Rui 2001 (Rose, et al.,2005). Non-constant variance, linked to unexpected events is considered to be uncertainty or risk, and this uncertainty is particularly importa nt to investors who wish to minimize risks. In order to cope with these problems, Engle (1982) introduced the Autoregressive Conditional Heteroskedasticity (ARCH) model to estimate conditional variance. It takes into account changing variance over time, by imposing an autoregressive structure on the conditional variance. Bollerslev, Engle and Wooldridge (1988) expanded the univariate GARCH described above to a multivariate dimension to simultaneously measure the conditional variance and covariance of more than one time series. Thus, the multivariate GARCH model is applied to calculate a dynamic hedge ratio that varies over time based upon the variance-covariance between time series. (Rose, et al.,2005) Finally, other researchers have proposed more complex techniques and some special case of the above techniques for the estimation of the OHR. Among these we mention the random coefficient autoregressive offered by Bera et al. (1997), the Fractional Cointegrated Error Correction mod el by Lien and Tse (1999), the Exponentially Weighted Moving Average Estimator by Harris and Shen (2002), and the asymmetric GARCH by Brooks et al. (2002). (Casillo,XXXX) Despite the existence of massive literature on all the above approaches, no unanimous conclusion has been reached regarding the superiority of a particular methodology for determining the optimal hedge ratio. However, it would be wise to suggest that the choice of a strategy for deriving optimal hedge ratio should be based on the subjective assessment to be made in relation to investor preferences (Butterworth and Holmes, 2001). Development of Research: Figlewski (1984) conducted the first analysis of hedging effectiveness of stock index futures in US. He examined the hedging effectiveness for Standard and Poors 500 stock index futures against the underlying portfolio of five major stock indexes for the period June 1, 1982 to September 20, 1983. All five indexes represented diversified portfolio, however they were different in character from one another. Standard and Poors 500 index and New York Stock Exchange (NYSE) Composite included only the largest capitalization stocks. The American Stock Exchange composite (AMEX) and the National Association of Securities Dealers Automated Quotation System (NASDAQ) index of over-the-counter stocks contained only small companies which somewhat move independently of the Standard and Poors index. Finally, the Dow Jones portfolio contained only 30 stocks of very large firms. Return series for the analysis included dividend payments as risk associated with dividends on the portfolio is presumably one of many sources that give rise to basis risk in a hedges position. However, it was found that their inclusion did not alter the results. Consequently, and given the relatively stable and predictable nature of dividends, subsequent studies have excluded dividends. Figlewski used beta hedge and minimum variance hedge strategies and showed that the latter can be estimated by Ordinary Least Square (OLS) approach using historical data. He found that for all indexes hedge performance using minimum variance hedge ratio (MVHR) was better than beta hedge ratio was used. MVHR resulted in lower risk and higher return. When MHHR was uses, risk was reduced by 70%-80% for large capitalization portfolios. However, hedging performance was considerably reduced for smaller stocks portfolios. Also, hedging performance was better for once week and four week hedges when compared with overnight hedges. Figlewski (1885) studies hedging effectiveness of three US index futures (SP500, NYSE Composite and Value Line Composite Index (VLCI)) in hedging five US indices (SP500, NYSE Composite, AMEX Composite, NASDAQ and DJIA). Data was collected for 1982. He analyzed the hedging effectiveness for the holding period ranging from one day to three weeks using the standard deviation of the hedged position, divided by the standard deviation of the un-hedged position, as a measure of assessing hedging effectiveness. Hedge ratios were derived using beta strategy and MVHR. Assuming constant dividends, the weekly returns of each of the five indices were regressed on the on the returns of the indices underlying the three futures. Daily data was used to compute ex post risk-minimizing hedge ratios. In nearly every case, risk-minimizing hedge ratio outperformed the other in terms of hedging effectiveness, for both types of hedge ratio it was found that the hedges under a week were not very effective. It was also found that hedging was more effective for the SP500, NYSE Composite and the DJIA th an for NASDAQ and AMEX Composite. In other words, once again, portfolios of small stocks were hedged less effectively than were those comprising large stocks. Junkas and Lee (1985) used daily spot and futures closing prices for the period 1982 to 1983 for three US indices: SP500, NYSE Composite and VLCI. They investigated the effectiveness of various hedging strategies, including the MVHR and the one-to-one hedge ratio. This was done for each index using data for a month to compute the hedge ratio used during that same month in hedging the spot value of the corresponding index. MVHRs were computed by regressing changes in the spot price on changes in the futures price. The average MYHR was 0.50, whike the average effectiveness, as measured by variance of un-hedged position minus variance of hedged position divided by variance of un-hedged position (HE), was 0.72 for the SP500 and the NYSE Composite, and 0.52 for the VLCI. The effectiveness of the one-to-one hedge ratio was poor, leading to an increase in risk for the VLCI and the NYSE Composite, and an effectiveness measure of 0.23 for the SP500. In other words, MVHR was found to be most effective in reducing the risk of a cash portfolio comprising the index underlying the futures contract. There was little evidence of a relationship between contract maturity and effectiveness. Peters (1986) examined the use of SP500 futures to hedge three share portfolios; the NYSE Composite, the DJIA and the SP500 itself. MVHR and beta hedge strategy was applied to the data for the period 1984 to 1985. For each of the portfolio, MVHR gave a hedged position with a lower risk that did beta. Graham and Jennings (1987) were first to examine hedging effectiveness for cash portfolios not matching an index. They classifies US companies into nine categories according to their betas and dividend yield. For each beta-dividend yield category, ten equally weighted portfolios of ten shares each were constructed. Weekly returns w ere computed for each portfolio for 1982-83. They then investigated the performance of SP500 futures in hedging these portfolios for periods of one, two and four weeks. Three alternative hedge ratios were uses: one to one, bets and MVHR. The MVHR produced hedged positions with returns that were about 75% higher than for the other two hedge ratios. The measure of hedging effectiveness HE ranged from 0.16 to 0.33. For the one and the two week hedges, the MVHR hedge was more effective, that is, had a higher HE value. Morris (1989) investigated the performance of SP500 futures in hedging the risk of a portfolio of the largest firms in the NYSE. The data was monthly from 1982 to 1987. The MVHR was estimated using data for the entire period, and gave a HE value of 0.91. Lindhal (1992) investigated hedge duration and hedge expiration effects for the MMI and SP 500 future contract. Results showed that MVHR increased towards unity with an increase in the hedging duration. For SP 500 he dge ratios were found to be 0.927, 0.965 and 0.970 for one, two and four week hedge duration, respectively. It was concluded that hedge ratio and hedging effectiveness increase as duration increase. Lindhals examination of the hedge expiration effect is based on the fact that future prices converge towards spot prices as expiration approaches. According to him MVHR can be expected to converge towards the naà ¯ve hedge ratio if future prices also exhibit less volatility when approaching expiration. It was concluded that there was no obvious pattern in terms of risk reduction in relation to time to expiration. Unlike previous studies which only investigate ex post hedging effectiveness, Holmes (1995) became the first individual in UK to examine the hedging effectiveness of FTSE-100 stock index futures contract using Ex Ante Minimum Variance Hedge Ratio strategy. The cash portfolio being hedged mirrored FTSE-100 stock index. Data for spot and future series was collected for the per iod July 1984 to June 1992 for hedging duration of one and two weeks. The results also demonstrated the superiority on MVHR over beta hedges and showed that ex ante hedge strategy resulted in risk reduction of over 80%. Greater risk reduction was also shown to be achieved by estimating hedge ratios over longer periods. Holmes(1996) examined the ex post hedging effectiveness for the same data and return series used in the earlier study (1995) and showed that the standard OLS estimated MVHR provided the most effective hedge when compared to beta hedge strategy, error correction method and GARCH estimation. Results also suggested increase in hedging effectiveness with increase in hedging duration. This can be explained as variance of returns increases with an increase in the duration, resulting in the reduction of the proportion of the total risk accounted for by the basis risk. Butterworth and Holmes (2001) provided an unprecedented insight in to the hedging effectiveness of inv estment trust companies (ITCs) using Mid250 and FTSE100 stock index futures contract ,the former being introduced in February 1994 with an aim to provide better hedging for small capitalization stocks. Analysis is based on daily and weekly hedge durations for the cash and future return data of thirty-two ITCs and four indices for the period of February 1994 to December 1996. FTSE100 index futures and FTSE Mid250 index futures are used to hedge cash positions. Apart from well established OLS approach, consideration is also given to Least Trimmed Squares (LTS) approach for estimation which involves trimming of regression by excluding the outliers. Four hedging strategies including traditional hedge, beta hedge, minimum variance hedge and composite hedge were compared on the basis if within sample performance. Composite hedge ratio was generated by considering returns on synthetic index futures formed by weighted average of returns on FTSE100 and FTSE-Mid250 contracts. Results demonstr ated that traditional and beta hedge performed worst. MVHR strategy for daily and weekly hedges using Mid250 contracts outperformed the same strategy using FTSE100 contacts in terms of risk reduction for ITCs. However the superiority of Mid250 over FTSE100 is significantly less for cash portfolios based on broad market indexes. The composite hedge strategy demonstrated only minor improvements over results of the Mid250 contract. The LTS approach suggested similar results as OLS. Seelajaroen (2000) attempted to investigate the hedging effectiveness of All Ordinance Share Price Index (SPI) to reduce price risk of All Ordinary Index (AOI) portfolio in the Australian financial market. Hedging effectiveness was investigated for one, two and four week hedge duration. Hedge ratios were generated by using Workings model and the Minimum variance model and their effectiveness was determined by comparison with naà ¯ve strategy. Data for the analysis consisted if daily closing prices of the SPI and API for the period January 1992 to July 1998. Minimum variance model consisted of both ex post and ex ante approach. Results demonstrated superiority of both Workings model and Minimum variance model over naà ¯ve hedge strategy. Workings strategy was found to be more effective in long run, however, in short run the strategy is more sensitive to basis level used in the decision rule. Minimum variance strategy was also found to be highly effective, as even the standard use of the hedge ratio derived from past data was able to achieve risk reduction of almost 90%. Also, longer duration hedges were found to be more viable than short duration hedges and finally effects of time expiration on hedge ratio and effectiveness was found be ambiguous. DATA METHODOLOGY: This paper examines the cross hedging effectiveness of five of the worlds most actively traded Stock Index Futures to reduce the risk of KSE100 index. The 5 stock index futures include SP500, NASDAQ100, FTSE100, HANG SENG and NIKKEI 225. All 5 stock index futures and KSE100 index are arithmetic weighted indexes, where the weights are market capitalization. Analysis is based on daily and weekly hedge durations by using spot and futures return data for the period commencing from 1st January 2003 to 31st July 2008. Due to problems of sample size hedge durations of more than one week are not considered. Each daily return series consists of 1457 observations, out of which last 157 (from 1st January 2008 to 31st July 2008) are used to calculate out of sample (ex ante) hedging performance. Each weekly series consists of 292 observations, out of which last 31 (from 1st January 2008 to 31st July 2008) are used to measure ex ante hedging performance. The return series for each index is calcu lated as a logarithmic value change: Rt = logVt – logVt-1 (2) Where, Rt is the daily or weekly return on either the spot or futures position and Vt is the value of the index at time t. Value is the daily or weekly closing value of all 6 indexes. All data was obtained from Datastream. Two hedging strategies are considered. First, is the MVHR, and the second, is an extension of the first strategy by applying the theory of co-integration, formally known as Error Correction Model. MVHR is estimated by regressing spot returns (KSE 100 in this case) on futures returns using historical information: RSt = ? + bRFt + et (3) Where, RSt is the return on KSE100 index in time period t; RFt is the return on the futures contract in the time period t; et is the error term and ? and b are regression parameters. Value of b is obtained after running the above regression in e-views, which is the hedge ratio h* shown earlier in equation 1. This hedge ratio is used in furt her calculation for determining risk reduction. Effectiveness of minimum variance hedge is determined by examining the percentage of risk reduced by the hedge (Ederington, 1979; Yang, 2001). Consequently, hedging effectiveness is measured by the ratio of the variance of the un-hedged position minus the variance of the hedged position, divided by the variance of the un-hedged position (Floros, Vougas 2006). Var(u) = ?2s (4) Var(h) = ?2s + h2?2F – 2h?S,F (5) Hedging Effectiveness (HE) = (Var(u) Var(h)) / Var(u) (6) Where, Var(u) is the variance on un-hedged position (KSE100); Var(h) is the variance on the hedged position; ?S ?F are standard deviation on spot (KSE100) and futures returns respectively; h is the value of hedge ratio (b in equation 3); and ?S,F is the covariance between spot and future returns. Error Correction Model (ECM) approach requires testing for co-integration. The return series are checked for co-integration by following a simple two step a pproach suggested by Engle and Granger. Consider two time series Xt and Yt, both of which are integrated of order one (i.e. I(1)). Usually, any linear combination of Xt and Yt will be I(1). However, if there exists a linear combination (Yt – ?Xt) which is I(0), then according to Engle and Granger, Xt and Yt are co-integrated, with the co-integrating parameter ?. Generally, if Xt is I(d) and Yt is I(d) but their linear combination (Yt – ?Xt) is I(d-b), where b0 then Xt and Yt are said to be co-integrated. Co-integration conjoins the long-run relationship between integrated financial variables to a statistical model of those variables (XYZ,200N). In order to test for co-integration, it is essential to check that each series is I(1). Therefore, the first step, is to determine the order of integration of each series. Order of integration is determined by testing for unit root by using Augmented Dickey Fuller (ADF) test. A variable Xt is I(1), if it requires differenc ing once to make it stationary. The null of unit root is rejected when probability is less than the critical level of 5%. Then the following OLS regression is estimated: RSt = ? + bRFt + et Where, variables are same as equation 3. Empirical existence of co-integration is tested by constructing test statistics from the residuals of the above equation. If two series are co-integrated then et will be I(0). This is found by testing the residuals for unit root by using ADF test. The null of unit root is rejected if probability is less than 5%. Once it is established that the series are co-integrated, their dynamic structure can be exploited for further investigation in step two. Engle and Granger show that co-integration implies and is implied by the existence of an error correction representation of the series involved. Error correction model (ECM) abstracts the short- and long-run information in modeling the data(XYZ,200N). The relevant ECM to be estimated for generation of the optimal hedge ratio is given by: j=1 i=1 RSt = ?et-1 + ?RFt + ? ?iRFt-i + ? ?jRSt-j + ut (7) Where, et-1 is the error correction term and n and m are large enough to make ut white noise; ? is the hedge ratio. The appropriate values of n and m are chosen by the Akaike information criterion (AIC) (Akaike1974). In short, returns on KSE100 are regressed on futures returns and residuals are collected by using OLS. ECM with appropriate lags is estimated by the OLS in the second stage. Next phase is to determine the superiority of the two models MVHR and ECM, which were used to obtain the hedge ratios b and ? respectively. This is achieved by conducting Wald Test of Coefficient on model (7). If anyone of the lags in model 7 turn out to be significant, then optimal hedge ratio obtained through model (7) will be superior then hedge ratio obtained through model (3). Hence, signaling the superiority of ECM over MVHR. The significance is tested by a hypothesis, where: Ho= C(1)=C(2)†¦=C(i)=0 H1 = C(1)=C(2)†¦=C(i)?0 The null is rejected if the probability of Chi-square statistic is less than the critical value of 5%. Lastly, the superior hedge ratio will be used to determine ex ante performance. The hedging effectiveness of the superior hedge ratio will be based on the measure of risk reduction achieved through equation (6).

The Question What I Have Learned From The Book (The Core) - 550 Words

The Question: What I Have Learned From The Book (The Core) (Essay Sample) Content: The CoreNameInstitutionThe CoreThe core is a book, which is used to explain the application of the sociological principles in the circumstances of the real world. For the application to be possible, it is necessary for people to develop a sociological consciousness so that they can determine how they will apply the different principles to make their lives better. According to Hughes and Kroehler, sociology has to interact with the experiences of the people, whether difficulties, failures or achievements. I agree with the authors since various factors such as class conflict, power, dependent variables and others influence the experiences of different people in life. For the social principles to apply to different people, the study of micro sociology, which is detailed research on reactions of people in different lives (Hughes and Kroehler, 2013). Therefore, the study of sociology helps understand the different sectors of human life and interaction with the surrounding .What I found most interesting in the chapters is that they all revolve around issues that affect human life whether directly or indirectly. The authors start with developing a sociological consciousness, which makes the reader, be aware of what sociology is and how it is important in their lives. The social structure and culture are the most contributing factors, and they determine all other areas of social life of the human beings. The social principles determine the family and its status in the society and their reaction to other factors such as social groups, formal organizations and gender inequalities. Other factors are explained which determine the operation of the society such as social stratification. Ranking the different groups such as high or low class explains issues such as gender inequality, crime, and deviance. It is interesting that the chapters explain each other and how each social principle affects the others.The new thing I learn from The Core is that social str atification determines economic and political power. Social stratification is the segregation in the society according to the social status of the people. There are those who are ranked as of low social class while others are of the high-class level. Economic and political power is mostly concentrated among the high-class people since they are recognized as capable of being able to take care of society much better and improve the situation. Deviance and crime is found among the low ...

The Role of the Antagonists in the Short Stories Where...

Like all great stories throughout time, a compelling villain is the key to making a story worthwhile. In short stories like, â€Å"Where have you been, where are you going,† and, â€Å"Love in LA,† a though provoking antagonist was used by the authors to really give the stories some depth. The antagonist of, â€Å"Where have you been†¦Ã¢â‚¬ Arnold Friend takes on the persona of temptation to the protagonist Connie and really emphasizes the theme of be careful what you wish for. Connie was a young girl who repeatedly met up with older more mature boys; but one day Arnold Friend arrives at her house and coerces her to leave with him. The story abruptly stops there leaving the reader hoping for more. The antagonist of, â€Å"Love in LA†, Jake, an unemployed dreamer,†¦show more content†¦Arnold could be the Devil, while Jake could be the snake, and Arnold resorted to premeditated stalking to win over Connie while Jake just unexpectedly met Marianna, and finally Arnold tried to coerce Connie to come with him by promising her love and cars, etc.. and Jake just flat out lied to win over Marianna. When first reading the book, â€Å"Love in LA†, the name Jake seemed reminiscent of snake, and snake could loosely be connected to the story of Adam and Eve, or temptation. Now many could also argue that in,†Where have you been†¦Ã¢â‚¬ , the character Arnold Friend could in fact be the devil himself. While describing Arnold Friend, the author said, â€Å" One of his boots was at a strange angle. It pointed out at the left, bent at the ankle.† (pg 90) In most depictions of the devil, the character usually has hooves, so instead of feet stuffed oddly into his boots, could they in fact be the hooves of the devil? Even though Jake wasn’t portrayed as the devil in, â€Å"Love in LA,† he could still be a biblical character. â€Å" He made up a last name and address and wrote down the name of an insurance company an old girlfriend once belonged to.†(63) Like the biblical snake in the Garden of Eden, Jake showcases his sly, untrustworthy side. Both of the characters take on the personas of temptation and mischief to finally get what they want in the end of their stories. In addition to having an underlying biblical meaning, both storiesShow MoreRelatedThe White Man s Burden By Rudyard Kipling10612 Words   |  43 Pages‘Since freedom is our natural state, we are not only in possession of it but have the urge to defend it’ Étienne De La Boà ©tie Take up the White Man s burden– Ye dare not stoop to less– Nor call too loudRead MoreDeveloping Management Skills404131 Words   |  1617 Pagesmymanagementlab is an online assessment and preparation solution for courses in Principles of Management, Human Resources, Strategy, and Organizational Behavior that helps you actively study and prepare material for class. Chapter-by-chapter activities, including built-in pretests and posttests, focus on what you need to learn and to review in order to succeed. Visit www.mymanagementlab.com to learn more. DEVELOPING MANAGEMENT SKILLS EIGHTH EDITION David A. Whetten BRIGHAM YOUNG UNIVERSITY Read MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 Pagesrequest to Pearson Education, Inc., Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458, or you may fax your request to 201-236-3290. Many of the designations by manufacturers and sellers to distinguish their products are claimed as trademarks. Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations have been printed in initial caps or all caps. Library of Congress Cataloging-in-Publication Data Robbins, Stephen P. Organizational