In what way did the invention and accessibility of nuclear weapons Essay

In what way did the invention and accessibility of nuclear weapons affect the post World War II peace cycle - Essay Example In order to assure these fundamental targets are met, the nations of the world formed the United Nations which was a global organization with the obligation of protecting individual rights and the need for people to get a good life wherever they lived4. The United Nations formed a framework through which nations could deal with each other peacefully and eschew violence and widespread human rights abuses. Unlike its predecessor [the League of Nations], the United Nations was made up of two main tiers: the General Assembly and the Security Council5. The Security Council was made up of five permanent members who were allied nations that had worked together to defeat Nazi Germany: Britain, China, France, United States and the Union of Soviet Socialist Republics6. Currently, global peace revolves around the United Nations and the negotiations between nations and their neighbors. The scope of destruction that the atomic bomb created was unprecedented. Due to this, ammunition like the atomi c bomb, collectively classified as weapons of mass destruction (WMD) has become an important aspect of global security. This paper examines the ways through which nuclear weapons and its proliferation by nations have affected the peace cycle in the world after World War II. Nuclear Diplomacy The period after World War II led to a phase that has been described as the era of nuclear diplomacy. This is because the use of nuclear weapons have created the framework within which rivalry between nations have been formed. The nuclear weapons have guided the kind of discussions and tensions that have existed around the world to-date. â€Å"Since the dawn of the nuclear age at Hiroshima in 1945, states have conditional diplomacy in the shadow of the bomb†7. In actual fact, a major war was ended through the use of the atomic bomb. Due to this, it is used as a potential for bargaining. This is because the possession of nuclear weapons seems to present a nation as a strong nation that can not be challenged. In other words, the possession of nuclear weapons creates a bargaining leverage for nations which enables them to bargain on the backdrop of the risk of planetary destruction8. This is because any attempt to launch a Third World War could lead to the launching of nuclear weapons which could destroy the entire planet. US Monopoly Throughout history, the United States is the only country that has ever used a weapon of mass destruction in war. After World War II, the United States wielded a monopoly over nuclear weapons until the Soviet Union came to overtly possess nuclear weapons. Fearing the abuse and the proliferation of nuclear weapons, the United States was the first nation that sought to control the use of nuclear weapons for military purposes. â€Å"In his first attempt to bring nuclear weapons under control, Eisenhower emphasized the potential benefits of nuclear energy rather than its destructive potential†9. Eisenhower launched the Atoms-For-Peace c ampaign in 1953 with the hope of creating an atomic energy bank which will enable nations to pursue nuclear energy in place of nuclear weapons. This was to lead to cooperation with friendly nations. However, the Soviet Union rejected this initiative. They were not satisfied with the idea of the United States

Is the Use of the Death Penalty Justice and Is It Fair Essay Example for Free

Is the Use of the Death Penalty Justice and Is It Fair Essay It is fair to say that capital punishment is under attack, particularly in the South where it is most commonly practiced. Not only have serious criticisms been raised by scholars in criminal justice, criminology and related disciplines, but newspapers have published scathing news reports suggesting that innocent people have been sentenced to death and even executed, and alleging racial discrimination in capital punishment practice. According to Robinson (2011), four basic facts establish the realities of American capital punishment. The first is that capital punishment is practiced in most but not all United States jurisdictions. Specifically, there are 34 states with the death penalty, and 16 without. The federal government also maintains capital punishment, as does the military, but the District of Columbia does not carry out executions. However, of these death penalty jurisdictions, only nine regularly carry out an execution, meaning they have averaged at least one execution a year since 1976 when capital punishment was reinstated; thus only about one-quarter (26%) of death penalty states (nine of 34) and 18% of all states in the country (nine of 50) average one or more executions per year. Further, only one state has carried out at least ten executions per year since 1976, Texas. In fact, only about 10% of counties with the death penalty imposed a death sentence between the years 2004 and 2009. Justice is typically defined as administering and maintaining what is just or right. Robinson (2011) says that there are three broad issues discussed and debated by scholars of justice theory: freedom, welfare, and virtue. Some justice theorists argue that what matters most for deciding what is right or just is freedom; whether individual rights are respected and protected. Another school of thought is the egalitarian libertarians. These scholars suggest that what matters most for justice is equality of opportunity in society and taking care of the least advantaged citizens. Other justice theorists focus on welfare, or general well-being and happiness of people in society. They argue that what matters most for justice is the welfare of society, or its overall happiness. Finally, other justice theorists argue that what matters most for justice is virtue, or moral goodness and righteousness. The purpose of the death penalty is incapacitation, deterrence, and retribution. Incapacitation is understood as removing the ability of offenders to commit future crimes. Incarceration is the typical form whereas execution is the ultimate form. Deterrence refers to creating fear in would be offenders through punishment to prevent future crimes. Capital punishment can only be aimed at preventing crime by would-be murderers, general deterrence, since it cannot create fear in murderers who have already been executed, specific deterrence. Retribution refers to righting or rebalancing the scales of justice through punishment in order to achieve justice for crime victims. Executions are often depicted as retribution for the crime of murder, as well as a source of closure for murder victims’ families. Robinson (2011) claims that criminologists and capital punishment scholars overwhelmingly indicate that the death penalty fails to achieve these goals, mostly because of the rarity of death sentences and executions. Logically, if death sentences and executions were more common, capital punishment would be more likely to achieve these goals. Yet we also know that the more frequently the death penalty is used, the greater the costs associated with the policy, including not only additional financial costs but also a greater risk of convicting, sentencing to death, and executing the innocent. This ultimately has great significance for the â€Å"justice† of capital punishment. Van Den Haag (1986) says that the death penalty is an effective form of deterrence because it is feared more than life imprisonment. Many of the convicts under death sentence appeal their sentence and try to get it reduced to life imprisonment. Van Den Haag argues that even though there is no factual evidence that the death penalty deters would be criminals more than life imprisonment, the fact that more people fear the death penalty makes it a better deterrent. Reiman (1985) agrees with Robinson’s view that the use of the death penalty is not successful as a deterrent. He gives four main reasons that refute Van Den Haag’s argument. His first reason is that although people fear the death penalty more than life in prison, nobody wants to spend life in prison either. People do not have the mentality that they can commit a crime because they will â€Å"only† get sentenced to life in prison. Although the person will be alive, they will have all freedom taken from them, which after awhile, can be seen just as horrible, if not worse, than death. Reiman’s second point is that if a person is contemplating committing a crime, they are already facing an enormous risk of being killed in the process. Roughly 500 to 700 suspected felons are killed by police in the line of duty every year and many Americans own their own guns. When taking that into account, it does not seem very likely that the would be criminal will be able to commit the crime without at least being injured by the police or the would be victim. His third reason against Van Den Haag’s view is that using the death penalty is hypocritical. The law states that a person cannot take the life of another, but when they do, their punishment could be death. It is not possible to say murder is illegal and then have it as a possible punishment. He argues that not having the death penalty better exemplifies that idea that murder is wrong. His last point is that it is illogical to practice the death penalty simply because it is feared more than life imprisonment. He says that people would fear death by torture more than lethal injection, so does that mean we should begin the practice of death by torture because more people are afraid of it? Unless it can be proven that the death penalty is a better deterrent than life in prison, Reiman (1985) argues that the death penalty should be abolished. Robinson (2011) says that as for the issue of innocence, there is little doubt that people are wrongly convicted of murder every year and that a handful are even sentenced to death. More than 130 people have been freed from death row during the era of â€Å"super due process† that began in 1976 when the US Supreme Court reinstated capital punishment. Wrongful convictions often occur due to honest errors such as mistaken eyewitness testimony and faulty forensic evidence, but when they occur due to issues such as: false confessions, lying informants, government misconduct, and ineffective defense counsel. There is also little doubt that innocent people have even been executed, although most of the known cases are from prior to the era of super due process in capital sentencing. There remain at least eight widely known cases where men have been recently executed despite serious doubts about their actual guilt. On the issue of executing the innocent, Van Den Haag (1986), makes the argument that the advantages of using the death penalty as a punishment outweigh the unintended losses. He states, â€Å"Miscarriages of justice are offset by the moral benefits and the usefulness of doing justice (139). His argument is that mistakes have and do occur in innocent people being sentenced to death, but the benefits of using it are more important. It would be more of a detriment to society to stop the use of the death enalty than it is when an innocent person is executed. In regards to race, America’s death penalty has always been plagued by serious racial biases. Little evidence remains of the historic discrimination by race of defendant, although state-specific anecdotal evidence suggests blacks are still occasionally discriminated against, especially when accused of killing whites and when juries are overwhelmingly white. Robinson (2011) says that most experts now point to a â€Å"race of victim† effect, whereby killers of whites are far more likely to be sentenced to death and executed than killers of other races and. For example, a comprehensive study of race and the death penalty in North Carolina showed that killers of whites were more than three times more likely to receive death sentences than killers of blacks. In the state, 80% of those people executed since 1976 killed white people; only about 40% of North Carolina homicide victims are white. Further, a study of capital punishment practice in the state from 1999 to 2006 found that blacks who killed whites were 14 times more likely to be sentenced to death than whites who killed blacks. Also, there were six executions of blacks who killed whites during the time period, yet zero executions of whites who killed blacks. Van Den Haag’s (2011) stance on the distribution of the death penalty being discriminatory is that â€Å"punishments are imposed on persons, not on racial or economic groups† (138). The death penalty is not specifically issued to certain races. It depends on the crime that the person committed. Van Den Haag also says, â€Å"Justice requires that as many of the guilty as possible be punished, regardless of whether others have avoided punishment. To let these others escape the deserved punishment does not do justice to them, or to society. But it is not unjust to those who could not escape it† (139). Van Den Haag does not view the fact that black people or other minorities receive the death penalty more than whites as being unjust. However, what is unjust is the white people who were not sentenced to death when they should have been. Given these important empirical realities of the death penalty, the next issue to address is which of them are relevant for the â€Å"justice† of capital punishment practice. As noted earlier, it depends on which theory of justice is being referred to. Libertarians ask whether capital punishment respects liberty or freedom. The most important question for egalitarians is whether capital punishment practice is equal or applied in an equal fashion. For utilitarians, the most important question is whether capital punishment increases overall utility or happiness in society. Finally, for virtue-based theorists, the question is whether capital punishment respects and promotes our values, our moral goodness, and whether it is the right thing to do. The questions above do not have universal answers. Everybody will have his or her own opinions on whether the death penalty respects a person’s freedom or whether it is the right thing to do. Reiman, Robinson and Van Den Haag all made successful and convincing arguments so it is hard to determine one view as more convincing than the other. It comes down to a personal choice and what a person chooses to believe as to whether the death penalty is fair and a proper form of justice.

Irving Textual Analysis of The Legend Of Sllepy Hollow Essays

Textual Analysis of "The Legend of Sleepy Hollow" 1.) Romantic Description: a. pg. 715 - "there is a little valley, or rather lap of land, among high hills, which is one of the quietest places in the whole world.   A small brook glides through it, with just a murmur enough to lull one to repose; and the occasional whistle of a quail, or tapping of a woodpecker, is almost the only sound that ever breaks in upon the uniform tranquility." Irving describes nature as an untouchable force.   He ignores the realism of nature and reveals only the beauty it holds.   It is the stereotypical description of Mother Nature.   Irving makes it sound so tranquil as if this place doesn’t exist in this world. c. pg 731 - "Its limbs were gnarled, and fantastic, large enough to form trunks of ordinary trees, twisting down almost to the earth, and rising again into the air. The tree is almost created into somewhat of a creature.   With the limbs twisting out and rising into the air.   Irving takes ordinary earthlike objects and changes the perspective of them into imaginary matter. 2.) Avoidance of Controversy/Digressions: a. pg 717 - "...some little, tough, wrong-headed, broad-skirted Dutch urchin, who sulked and swelled and grew dogged and sullen beneath the birch.   All this he called "doing his duty by their parents;" and he never inflicted a chastisement without following it by the assurance, so consolatory to the smarting urchin, which "he would remember it, and thank him for it the longest day he had to live."   When school hours were over..." Irving constantly made fun of the Dutch, and this is one of those examples.   He calls them wrong-headed and mocks their appearance by criticizing their  broad-skirted dress.   Then to avoid the controversy he changes the subject and goes straight into the next thing. b. pg 728 - "The musician was an old gray headed Negro, who had been the itinerant orchestra of the neighborhood for more than half a century.   His instrument was as old and battered as himself." Here, Irving tries to avoid the subject of slavery and human rights. He tries to stay neutral on the issue.   He described the black man as battered and old showing the inequality of the two races, in a sense avoiding the whole slavery situation during that time period.   3.) American Character Types: a. pg 722... ...cts women as a bit lazy because in the passage they jut sit around talking, eating, and having a good time and have no work to do. Therefore, implying that men do all the work and the women just lounge around. 8.) Use of American History: a. pg 719 - "He was, moreover, esteemed by the women as a man of great erudition, for he had read several books quite through, and was a perfect master of Cotton Mather's history of New England Witchcraft, in which, by the way, he most firmly and potently believed. Irving refers to an actual historical event by mentioning that Ichabod was a firm believer in Cotton Mathers writing about the Salem witch trials. Irving is pretty accurate because it is actually a real book and was commonly read.   He references to the literary works of the time and the thoughts that people had about the world during the time. b. pg 728 - "The British and American line had run near it during the war; it had, therfore, been the scene of marauding, and infested with refugees, cow-boys, and all kinds of border chivalry." Irving does use an historical American setting, America and the British were engaged in war at the time and had battles around that.  

Hitlers Gain of Power :: Papers

Hitler's Gain of Power When Hitler came to become chancellor in January 1933 his powers were relatively weak. Hitler had been appointed chancellor by the president, Hindenberg. Hindenberg had the power to appoint any chancellor he wishes, and can get rid of Hitler at any time. This means that Hindenberg controlled all of Hitler's power. The Nazi politicians were in the minority in the cabinet and in the Reichstag - only 3 in the first cabinet. Hitler only won 33% of the vote in 1932. Without this support it was hard to gain much support for Hitler. Also, the Generals had no loyalty to him. The German army, the Wehrmacht, were very powerful and had the power to overthrow Hitler is they wished. They were afraid that Hitler would replace the army with his own SA - which had increased in size dramatically since it was first created. Hitler managed to achieve complete control by 1934 by establishing a one-party state where he would have full control. He did this in several ways. The Reichstag building was burned down on 27 February 1933. This helped Hitler to gain a majority in the upcoming March election. The Nazis blamed the fire on the communists, specifically Van der Lubbe - and they claimed that he intended to spark a communist uprising in Germany. It is debatable as to who really caused the fire. Although Van der Lubbe confessed to it, some historians claim that the Nazis started the fire themselves deliberately to increase their chances of success. It is undeniable that Hitler did use the fire to help win the election. He launched a propaganda campaign to whip up fears of a communist uprising. This was hoped to frighten the middle-classed landowners into voting for them. The day following the fire, the "Reichstag fire decree" was introduced. This gave the Nazis the power to arrest a number of communists and socialists and hold them for unlimited periods of time without having to appear in court. The Nazis still failed to gain a majority in the Reichstag, receiving

Capital Market Theory Rsm 332 – Week 2

CAPITAL MARKET THEORY RSM 332 – Week 2 Week 1 – Introduction – Financial Accounting (Review) Week 2 – Financial Markets and Net Present Value Week 3 – Present Value Concepts Week 4 – Bond Valuation and Term Structure Theory Week 5 – Valuation of Stocks Week 6 – Risk and Return – Problem Set #1 Due Week 7* – Midterm (Tuesday*) Week 8 – Portfolio Theory Week 9 – Capital Asset Pricing Model Week 10 – Arbitrage Pricing Theory Week 11 – Operation and Efficiency of Capital Markets Week 12 – Course Review – Problem Set #2 Due Contact: otto. [email  protected] utoronto. ca CAPITAL MARKET THEORY RSM 332 – Week 2AGENDA 1. 2. 3. 4. 5. Announcements Financial Markets and Net Present Value Survey Results Optional Material (e. g. Cases, Practical Knowledge, News, etc. ) Suggestions/Practice for Exam(s) Contact: otto. [email  protected] utoronto. ca Extended Office Hours Friday , October 19th (11:00am-3:00pm) †¢ Room 6 – TZ6 (Tanz Neuroscience Bldg – 6 Queen’s Park Crescent West) TBD – Saturday, October 20th †¢ Depends if there is enough demand Thursday, October 25th (5:00pm-7:00pm and 7:00pm-9:00pm) †¢ During regular timeslot †¢ Cover optional material (e. g. cases, practical knowledge, etc. ) Contact: otto. [email  protected] utoronto. ca Exams Midterm (Tuesday, October 23rd – 8:00pm-10:00pm): †¢ EX 100 (Examination Facility – 255 McCaul Street) †¢ 2 Hours Final (TBA): †¢ 2 Hours Preparation: †¢ Problem Sets 1 & 2 †¢ Crib Sheet (Start Early and 1-Sided) †¢ Calculator (Silent) Contact: otto. [email  protected] utoronto. ca Tutorials †¢ Starting – September 19/20/21 †¢ Wednesday (6:00pm-8:00pm) †¢ TZ6 (Tanz Neuroscience Bldg – 6 Queen’s Park Crescent West) †¢ Thursday (11:00am-1:00pm) †¢ RW 110 (Ramsay Wright Laborat ories – 25 Harbord Street) †¢ Friday (5:00pm-7:00pm) †¢ RW 110 (Ramsay Wright Laboratories – 25 Harbord Street) Review: †¢ Midterms and Finals (2008-2011) Xiaofei Zhao (xiaofei. [email  protected] utoronto. ca) †¢ http://332ta. raykan. com †¢ Contact: otto. [email  protected] utoronto. ca Outside of Lecture Office Hours (Drop-In): †¢ Wednesdays: 4:00pm-6:00pm †¢ 105 St. George Street – Rotman (North Building) Room 413 or 417 Office Hours (Other Days/Times): †¢ Extended Hours †¢ By Appointment Contact: otto. [email  protected] utoronto. ca Corporate Finance: What is Going On? 3) Firm’s Financial (5) Investors (4) (Financial Institutions, (1) Individuals, Other Firms) (1) (2) (3) (4) (5) Cash raised from investors by selling financial assets Cash invested in real assets (some are intangible) Cash generated by operations Cash reinvested in the firm (retained earnings) Cash repaid to investors (interest, divi dends, etc. ) Operations (2) Decision Maker Reference: Alex MacKay Financial Markets: What is Going On? Firms (Users of Capital) Initial Public Offering (IPO) Secondary Offerings (SEO) Borrowing (Loans, Bonds)Dividends, $ Repurchases, Interest Payments $ Market Mechanisms or Market Makers (Stock Exchanges, Banks, Investment Funds, †¦) $ $ Firms Issue Stock Certificates and Bonds $ $$$ Invested in Stocks and Bonds Investors (Providers of Capital) Investment Banks help firms make transactions Brokers/Dealers help investors make transactions Reference: Alex MacKay Financial Theory and Corporate Policy Chapter 1 (Copeland, Weston and Shastri) Course Reserve FINANCIAL MARKETS AND NET PRESENT VALUE Consumption Plan and Investment RuleConsider 1 period problems Assumptions: †¢ No uncertainty †¢ One period (two dates), consumptions occur on date 0 and date 1 †¢ A consumer is endowed with initial wealth (Y0) on date 0, and will receive income (Y1) on date 1 †¢ Simple interest rate (r) Date 0 Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Date 1 Consumption Plan and Investment Rule 4 CASES †¢ Case I: †¢ Case II: No Capital Market, No Production Opportunities With Capital Market, No Production Opportunities †¢ Case III: No Capital Market, With Production Opportunities †¢ Case IV: With Capital Market, With Production OpportunitiesReference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Consumption and Investment without Capital Markets C1 U2 U1 U0 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 Slope of the Tangent (-ve) = (Marginal Rate of Substitution) (MRS) MRS = ? C1 ? C0 U1 U(C0, C1) MRS = ? U / ? C0 ?U / ? C1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Poli cy) 4 th Edition 2004 Consumption and Investment without Capital MarketsC1 Production/Investment Opportunity Set C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 Rate at which a dollar of consumption today (C0) is transformed by productive investment into a dollar of consumption (C1) tomorrow. C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 Marginal Rate of Transformation (MRT) MRT = ? C1 ? C0 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 U1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 Y1 U1 Resource Bundle: (Y0, Y1) Y0Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment without Capital Markets C1 Increase investment until MRT = MRS U1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 U2 U1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital MarketsC1 MRT = MRS U2 U1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment without Capital Markets C1 U2 U1 (Increase Investment) Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1 Slope = -(1+r) Borrowing and Lending opportunities (Capital Market Line) (at market interest rate r) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets C1 Interest plus Principal (Invest/Lending) Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1 Interest plus Princip al (Borrowed Amount – Principal) Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1 U1 C0Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets C1 Y1 U1 Endowment: (Y0, Y1) Y0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1 (Invest) Y1 U1 Y0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1Market rate of return > Subjective Time Preference (1+r) > (1+rtime preference) Y1 U1 Y0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1 U1 (Consume Less) Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1 U1 (Invest) Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0Edition 2004 Consumption and Investment with Capital Markets C1 U2 Y1 U1 Y0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets C1 Market Interest Rate = Subjective Time Preference U2 Y1 U1 Y0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th C0 Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 U1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] toronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 C0 Reference: Copeland, W eston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 U3 = (production and capital market) U2 = (with production alone) U1 = (initial endowment) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption Plan and Investment RuleConsider 1 period problems Assumptions: †¢ No uncertainty †¢ One period (two dates), consumptions occur on date 0 and date 1 †¢ A consumer is endowed with initial wealth (Y0) on date 0, and will receive income (Y1) on date 1 †¢ Simple interest rate (r) Date 0 Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Date 1 Consumption Plan and Investment Rule 4 CASES †¢ Case I: †¢ Case II: No Capital Market, No Production Opportunities With Capital Market, No Production Opportuni ties †¢ Case III: No Capital Market, With Production Opportunities †¢ Case IV: With Capital Market, With Production Opportunities Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Consumption Plan and Investment Rule CASE I – No Capital Market, No Production Opportunities †¢ Consumer can consume Y0 on date 0, and Y1 on date 1 Date 0 Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Date 1 Consumption Plan and Investment Rule CASE II – With Capital Market, No Production Opportunities The set of consumption plans is broadened 1. 2. Consumer can save from Y0, invests in financial assets, and consumes more on date 1 Borrow against Y1, consume more on date 0, pay back loan with interest on date 1 from Y1, and consume less on date 1 Date 0 Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Date 1 Consumption Plan and Investment Rule CASE II – With Capital Market, No Production Opportunitie s †¢ Denote C0 and C1 as date 0 and date 1 consumption respectively †¢ Constraint on them is: C1 = (Y0 – C0) (1+r) + Y1 Consumption Budget Line (Constraint) C0 + C1 = Y0 + Y1 1+ r 1+ r Y Date 0 Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Date 1 In general, the consumer will be better off with capital markets Consumption Plan and Investment Rule CASE II – With Capital Market, No Production Opportunities Present Value †¢ For any cash flow, C0, C1, define its present value as: PV = C0 + C1 + r †¢ Budget constraint can be restated as: †¢ The present value of consumption equals the present value of income Date 0 Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Date 1 Consumption Plan and Investment Rule CASE II – With Capital Market, No Production Opportunities Example: †¢ Assume an investor has a wealth of $1. 5M on date 0, and will have an income of $0. 55M on date 1 †¢ The intere st rate is 10%. †¢ The present value of total income is: $2M = $1. 5M + $0. 55M (1+ 0. 10) Date 0 Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Date 1 Consumption Plan and Investment RuleCASE III – No Capital Market, With Production Opportunities Physical Investment †¢ Suppose the consumer is also an entrepreneur who identifies a physical investment opportunity †¢ Initial investment requires $0. 5M on date 0 †¢ Return of $0. 85M on date 1 †¢ Should this consumer/investor take this project? †¢ Without a capital market, it depends on her/his utility function Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Consumption Plan and Investment Rule CASE IV – With Capital Market, With Production Opportunities †¢ By investing $0. 5M in a financial asset, receive $0. 55M in return (i. . 10% return) †¢ By investing $0. 5M in a physical asset, receive $0. 85M in return (i. e. 70% return) †¢ Consumer/Investor should take this project †¢ Interest rate is also called the opportunity cost of capital †¢ i. e. Return foregone by investing in a project rather than in comparable investment alternatives Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Consumption Plan and Investment Rule CASE IV – With Capital Market, With Production Opportunities Net Present Value (NPV) †¢ Is the project’s net contribution to wealth (i. e. present value minus initial investment) NPV = C0 + C1 1+ r In the above example, the NPV of the project is: NPV = -$0. 5M + $0. 85M = $0. 2727M (1 + 0. 10) Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca Consumption Plan and Investment Rule CASE IV – With Capital Market, With Production Opportunities NPV Rule †¢ States that: †¢ If a project has a positive NPV, we should accept it †¢ If a project has a negative NPV, we should reject it Equivalent Rules †¢ NPV Rule – Accept positive NPV projects †¢ Rate-of-Return Rule – Invest in projects which offer a rate higher than the cost of capital Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca A Separation Theorem You are at a Honda (HMC) shareholders’ meeting †¢ Three shareholders are quite vocal about what the company should do Shareholder #1 – Old Lady †¢ Wants money right now †¢ Wants HMC to invest in sports cars which will yield a quick profit Shareholder #2 – Representative of a Little Boy’s Trust Fund †¢ Wants money a long way in the future †¢ Wants HMC to invest in building electric cars Shareholder #3 – Young Professional †¢ Wants money at some specified time in future (i. e. 10 years) †¢ Wants HMC to build smaller cars because of an expected oil crisis Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca A Separation TheoremWhat do you think Honda manag ers should do? Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca A Separation Theorem What do you think Honda managers should do? MAXIMIZE VALUE Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca A Separation Theorem In general, each shareholder may want: †¢ Maximum wealth †¢ Ability to transfer wealth across time into consumption †¢ Choose risk characteristics of consumption plan Each shareholder, however, can: †¢ Achieve own consumption plan through investments in financial assets †¢ Achieve risk characteristics of plan by investing in more or less risky securitiesEQUITY (CAPITAL GAINS, DIVIDENDS) Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca A Separation Theorem In general, each shareholder may want: †¢ Maximum wealth †¢ Ability to transfer wealth across time into consumption †¢ Choose risk characteristics of consumption plan Each shareholder, however, can: †¢ Achieve own consumption plan through investments in financial assets †¢ Achieve risk characteristics of plan by investing in more or less risky securities EQUITY (CAPITAL GAINS, DIVIDENDS) DEBT (INTEREST) TAX AGENCY COSTS Reference: Raymond Kan Contact: otto. [email  protected] utoronto. ca A Separation Theorem In general, each shareholder may want: †¢ Maximum wealth †¢ Ability to transfer wealth across time into consumption †¢ Choose risk characteristics of consumption plan Each shareholder, however, can: WHAT TYPE OF INCOME DO YOU PREFER? †¢ Achieve own consumption plan through investments in financial assets †¢ Achieve risk characteristics of plan by investing in more or less risky securities EQUITY (CAPITAL GAINS, DIVIDENDS) DEBT (INTEREST) TAX AGENCY COSTS Reference: Raymond Kan Contact: otto. [email  protected] utoronto. caConsumption and Investment with Capital Markets (With Production Set) C1 U3 = (production and capital market) U2 = (with producti on alone) U1 = (initial endowment) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 Choose the optimal production decision by taking on projects until the marginal rate of return on investment equals the objective market rate) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 (Choose the optimal consumption pattern by borrowing or lending along the capital market line to equate your subjective time preference with the market rate of return) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] toronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 (Production/Investment Decision) (Consumption Decision) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 (Production/Investment Decision) (Consumption Decision) (Fisher Separation Theorem) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004Consumption and Investment with Capital Markets (With Production Set) C1 (Fisher Separation Theorem) Given perfect and complete capital markets, the production decision is governed solely by an objective market criterion (represented by maximizing attained wealth ) without regard to individuals’ subjective preferences that enter into consumption decisions C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 (Production/Investment Decision) (Consumption Decision) Fisher Separation Theorem) C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 (Production/Investment Decision) (Consumption Decision) (Fisher Separation Theorem) MRS = MRT = 1+r C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Consumption and Investment with Capital Markets (With Production Set) C1 ALL INDIVIDUALS USE THE SAME TIME VALUE OF MONEY (i. e. ame market interest rate) IN MAKING THEIR PRODUCTION/INVESTMENT DECISIONS (Fisher Separation Theorem) MRS = MRT = 1+r C0 Reference: Copeland, Weston, Shastri (Financial Theory Contact: otto. [email  protected] utoronto. ca and Corporate Policy) 4 th Edition 2004 Example Ronald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). Contact: otto. [email  protected] utoronto. caReference: Don Brean Example Ronald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 1. 2. 3. Which investment should Ronal d invest in, AAA or BBB? How much should he invest? If Ronald makes investment describe his cash flows? (i. e. Consumption spending divided equally in present value terms) Contact: otto. [email  protected] utoronto. ca Reference: Don Brean ExampleRonald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 1. Which investment should Ronald invest in, AAA or BBB? Contact: otto. [email  protected] utoronto. ca Reference: Don Brean Example Ronald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today).Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 1. Which investment should Ronald invest in, AAA or BBB? Contact: otto. [email  protected] utoronto. ca Reference: Don Brean Example Ronald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 1. Which investment should Ronald invest in, AAA or BBB? 2. How much should he invest? Contact: otto. [email  protected] toronto. ca Reference: Don Brean Example Ronald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 3. If Ronald makes investment describe his cash flows? (i. e. Consumption spending divided equally i n present value terms) Contact: otto. [email  protected] utoronto. ca Reference: Don Brean Example Ronald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother.Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 3. If Ronald makes investment describe his cash flows? (i. e. Consumption spending divided equally in present value terms) PV of Wealth = PV of Consumption PV (C0) = PV (C1) (i. e. C0 = C1 / (1+r) ) NPVBBB Ronald’s PV of Wealth = $400 + $1,000 + $87. 27 = $1,487. 27 $1,487. 27 = C0 + C1 / (1+r) = C0 + [C0 (1+r)] / (1+r) C0 = $743. 64 and C1 = $818 Contact: otto. [email  protected] utoronto. ca Reference: Don Brean ExampleRonald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest r ate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 3. If Ronald makes investment describe his cash flows? (i. e. Consumption spending divided equally in present value terms) C0 = $743. 64 Investment in BBB Cash Flow Requirement (CF0) = ($743. 64 + $300) = $1,043. 64 Borrowing Requirement = CF0 – $400 = $643. 64 Contact: otto. [email  protected] utoronto. ca Reference: Don Brean ExampleRonald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). 3. If Ronald makes investment describe his cash flows? (i. e. Consumption spending divided equally in present value terms) C1 = $818 Return from BBB Cash Inflow (next year) = $1,100 + $426 = $1,526 Cash Ou tflow (next year) = $818 + $643. 64 + $64. 36 = $1,526 Loan Repayment Interest on Loan @ 10% Contact: otto. [email  protected] utoronto. a Reference: Don Brean Example Ronald, a finance student, has $400 cash-on-hand and has $1,100 in trust from his grandmother. Ronald will receive the trust funds next year. (Market interest rate is 10% or trust funds worth $1,000 today). Ronald has 2 mutually exclusive investment opportunities (i. e. AAA and BBB rated investments). CONCLUDING THOUGHT Ronald’s optimal investment decision (i. e. $300 in BBB) is independent or separate from his decision as to how he inter-temporally allocates his consumption (i. e. C0 and C1) The independence of those two decisions is referred to as the Fisher Separation Theorem. Contact: otto. [email  protected] utoronto. ca Reference: Don Brean â€Å"GET TO KNOW YOU† SURVEY (Name: Optional) Question #1: †¢ What has occurred in your other courses that you were happy about and would like to be i ncorporated into this course ? †¢ What has occurred in your other courses that you were NOT happy about? Question #2: †¢ Anything specific you would like to learn? What are your learning goals in this course? †¢ Any specific requests from the instructor, TAs, program, other support staff, etc? Question #3: †¢ Are you thinking of pursuing further education in Finance, if not then what do you have in mind? And/or†¦ What job(s) are you interested in?Question #4: †¢ Tell me more about yourself (e. g. goals, program concentration, 2nd or 3rd year, etc†¦ ) Question #5: †¢ Any other comments, requests, suggestions, etc? TAKE ~3 MINUTES INDIVIDUALLY TO FILL OUT SURVEY TAKE ~ 5 MINUTES TO TALK TO 5 CLASSMATES WHOM YOU HAVEN’T MET YET (write down initials) SURVEY RESULTS (SUMMARY) †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Real world experiences, practica l (real-world) examples, cases†¦ Relevant news (where to find news), Current issues in the market Relate course material to real world Exam tips/techniques Applications and excel models used in the real world Interactive class, games, videos†¦Extended office hours (availability) to address questions Humour Practice questions and solutions; Past exams and solutions Capital markets (high-level overview) Typical jobs in finance, Leading finance organizations Additional tutorial time Stock picking, portfolio allocation/analysis, investment tools/strategies, trading tips Learning topics that can be applied in real life Relate designations/roles to course material and applications Better understanding of financial instruments (e. g. Mortgages, bonds, etc†¦ ) View of finance from other functional areas (e. g. Marketing) 13 Popular Case Studies (Failures) 1. 2. 3. 4. 5. . Barings (Bank) – Operational Risk (Trading Activities – From arbitrageur to speculator) Nat ional Australia Bank – Operational and Market Risks (Currency Trading) Bankgesellschaft Berlin (Bank) – Credit and Operational Risks (Loans to Property Developers) Taisei Fire and Marine Insurance Co – Insurance & Governance Risks (Uninsured exposure – Lack of understanding) Washington Mutual (Bank) – Credit, Regulatory and Governance Risks; Stress and Scenario Testing (Low lending standards and bad quality acquisitions) Fannie Mae and Freddie Mac – Credit, Market, Operational, Regulatory Governance and Moral Risk; Politicians vs.Financial Risk Management (Sub-prime loans) Long-Term Capital Management – LTCM (Hedge Fund) – Market & Model Risks (Short liquid vs. Long Illiquid Investments (e. g.Bonds) – Russia Defaulted) Bankers Trust (Bank) – Operational Risk (Misled clients on derivatives sold to them) Orange County – Market and Interest Rate Risks (Wrong way bet on interest rates – Borrowing Short a nd Investing Long – Interest Rates Increased) Northern Rock (UK Bank) – Portfolio, Capital Funding, Operational and Reputational Risks; Stress and Scenario Testing (Sub-prime mortgages – Bank Run) Metallgesellschaft AG (Energy Group) – Market Risks (Cash Flow Issues from Written Forwards) Worldcom (Telecom) – Operational Risks (Accounting Fraud – Massive cquisitions & Debt) China Aviation Oil (Singapore) – Market and Governance Risks (Misreported oil futures trading losses, Un-hedged open short positions, Oil Prices Increased) Source: PRMIA 7. 8. 9. 10. 11. 12. 13. SURVEY AND BREAK 13 POPULAR CASE STUDIES Midterm 2011 – Q3 Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part A – Assume that there is no capital market, which investment, A or B, will Jack choose? Justify your answer with calculations (6 marks) Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part A  œ Assume that there is no capital market, which investment, A or B, will Jack choose?Justify your answer with calculations (6 marks) †¢ If Jack does not invest, his utility is zero †¢ If Jack makes investment A (Utility is ? ) †¢ If Jack makes investment B (Utility is ? ) †¢ Y0 = $500 and Y1 = $0 †¢ Savings = Investment = Y – C Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part A – Assume that there is no capital market, which investment, A or B, will Jack choose? Justify your answer with calculations (6 marks) †¢ Investment A †¢ UA = (500-244)1/4 (400)1/2 = 80 Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Contact: otto. [email  protected] utoronto. caPart A – Assume that there is no capital market, which investment, A or B, will Jack choose? Justify your answer with calculations (6 marks) †¢ Investment B †¢ UB (I) = (500-I)1/4 (50(I)1/2)1/2 †¢ UB (I) = (5 0)1/2 [(500-I)I]1/4 †¢ Find I* by differentiating UB (I) wrt I (set to zero) †¢ dUB(I) = (50)1/2 (1/4) [(500-I)I]-3/4 (500-2I) dI I* = 250 Derivatives (Review) Reference: Martin J. Osborne http://www. economics. utoronto. ca/osborne/MathTutorial/CLCF. HTM Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part A – Assume that there is no capital market, which investment, A or B, will Jack choose?Justify your answer with calculations (6 marks) †¢ Investment B †¢ UB (250) = (50)1/2 [(500-I)I]1/4 †¢ UB (250) = 111. 80 †¢ UB > UA Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part A – Assume that there is no capital market, which investment, A or B, will Jack choose? Justify your answer with calculations (6 marks) †¢ Note: Two methods to calculate I* †¢ 1st method (take derivative of Utility Function) †¢ What’s the 2nd method? Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Alternatively – Investment B Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) (Assume a perfect capital market for borrowing and lending exists and the market interest rate is 20%) Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) †¢ Jack will choose the investment with the highest NPV †¢ Calculate NPVA and NPVB Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) †¢ NPVA = -$244 + ($400)/(1+0. 20) = $89. 33 Contact: otto. [email  p rotected] utoronto. ca Midterm 2011 – Q3 Contact: otto. [email  protected] utoronto. ca Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) †¢ To solve for NPVB †¢ Need to find optimal investment (I*) †¢ set MRT = -(1+r) = -1. 20 I* = $434. 03 †¢ MRT = – dF/dI = -25/(I1/2) = -1. 20 †¢ F = 50 ($434. 31/2) = $1041. 67 †¢ NPVB = -$434. 03 + ($1041. 67/1. 20) = $434. 03 Midterm 2011 – Q3 Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) †¢ To solve for optimal consumption plan (i. e. C0*and C1*) Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) †¢ To solve for optimal consumption plan (i. e. C0*and C1*) †¢ Total Wealth = $500 + $434. 03 = $934. 3 (set equal to C0 + C1/(1+r)) †¢ PV Wealth = PV Consumption †¢ C1 = 1120. 84 – 1. 2C0 Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Contact: otto. [email  protected] utoronto. ca Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) †¢ To solve for optimal consumption plan (i. e. C0*and C1*) †¢ Total Wealth = $500 + $434. 03 = $934. 03 (set equal to C0 + C1/(1+r)) †¢ U(C0, C1) = C01/4 (1120. 84 – 1. 2C0 )1/2 †¢ dU/dC0 = (1/4)C0-3/4 (1120. 84 – 1. 2C0)1/2 – 1. 2 x (1/2)C01/4(1120. 4 – 1. 2C0)-1/2 †¢ Setting it equal to zero: 1120. 84 – 1. 2C0 = 2. 4C0 C0* = $311. 34 †¢ C1* = 1120. 84 – 1. 2C0 = $747. 22 Midterm 2011 – Q3 Part B – Which investment, A or B will Jack choose? What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) (Assume a perfect capital market for borrowing and lending exists and the market interest rate is 20%) †¢ Alternatively: To solve for optimal consumption plan (i. e. C0*and C1*) Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part B – Which investment, A or B will Jack choose?What is his utilitymaximizing investment I* and the optimal consumption plan? (6 marks) †¢ Alternatively: To solve for optimal consumption plan (i. e. C0*and C1*) †¢ MRS = – (1+r), which leads to †¢ – (C1/2C0) = 1. 2 C1 = 2. 4 C0 †¢ Budget constraint: C0 + C1 / (1+r) = Total Wealth = $934. 03 C1 = 1120. 84 – 1. 2C0 C0* = $311. 34 C1* = $747. 22 Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part C – Jack can hire a worker to supervise one investment for him. As a result, he can now invest in both production opportunities if he wants.If he hires a worker, he has to pay wages in equal instalments (i. e. Same wage today and next period). What maximum wage per period would Jack be willing to pay? (4 marks) Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part C – Jack can hire a worker to supervise one investment for him. As a result, he can now invest in both production opportunities if he wants. If he hires a worker, he has to pay wages in equal instalments (i. e. Same wage today and next period). What maximum wage per period would Jack be willing to pay? (4 marks) †¢ NPVA = $89. 33 = W + (W/1. 20) †¢ W = $48. 3 (i. e. Maximum wage per period) Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part D – Jill earns an income of $250 today and $250 next period but has no access to any production opportunities. She can, however spend some money today to purchase investment opportunity B. Her utility function is: U(C0, C1) = C0 + 2C1 + min(C0, C1) What is the highest price that Jill is willing to pay? (4 marks) Contact: otto. [email  protected] utoronto. ca Midterm 2011 – Q3 Part D – Jill earns an income of $250 today and $250 next period but has no access to any production opportunities.She can, however spend some money today to purchase investment opportunity B. Her utility function is: U(C0, C1) = C0 + 2C1 + min(C0, C1) What is the highest price that Jill is willing to pay? (4 marks) †¢ With a perfect capital market, the Fisher Separation Theorem applies †¢ So the maximum amount she will pay is $434. 03 (i. e. NPVB) Contact: otto. [email  protected] utoronto. ca FINANCIAL MARKETS AND NET PRESENT VALUE (TO SUCCEED – PRACTICE, PRACTICE, PRACTICE) Week 3 – Quick Review (Self-Evaluation) of Week 2 â€Å"GET TO KNOW YOU† SURVEY (Name: Optional)Question #1: †¢ What has occurred in your other courses that you were happy about and would like to be incorporated int o this course ? †¢ What has occurred in your other courses that you were NOT happy about? Question #2: †¢ Anything specific you would like to learn? What are your learning goals in this course? †¢ Any specific requests from the instructor, TAs, program, other support staff, etc? Question #3: †¢ Are you thinking of pursuing further education in Finance, if not then what do you have in mind? And/or†¦ What job(s) are you interested in? Question #4: †¢ Tell me more about yourself (e. . goals, program concentration, 2nd or 3rd year, etc†¦ ) Question #5: †¢ Any other comments, requests, suggestions, etc? TAKE ~3 MINUTES INDIVIDUALLY TO FILL OUT SURVEY TAKE ~ 5 MINUTES TO TALK TO 5 CLASSMATES WHOM YOU HAVEN’T MET YET (write down initials) SURVEY RESULTS (SUMMARY) †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ Real world experiences, practical (real-world) examples, cases†¦ Relevant news (where to find news), Current issues in the market Relate course material to real world Exam tips/techniques Applications and excel models used in the real world Interactive class, games, videos†¦Extended office hours (availability) to address questions Humour Practice questions and solutions; Past exams and solutions Capital markets (high-level overview) Typical jobs in finance, Leading finance organizations Additional tutorial time Stock picking, portfolio allocation/analysis, investment tools/strategies, trading tips Learning topics that can be applied in real life Relate designations/roles to course material and applications Better understanding of financial instruments (e. g. Mortgages, bonds, etc†¦ ) View of finance from other functional areas (e. g. Marketing) http://www. explorefinancialservices. om/Options http://www. explorefinancialservices. com/ Financial Markets: What is Going On? Firms (Users of Capital) Initial Public Off ering (IPO) Secondary Offerings (SEO) Borrowing (Loans, Bonds) Dividends, $ Repurchases, Interest Payments $ Market Mechanisms or Market Makers (Stock Exchanges, Banks, Investment Funds, †¦) $ $ Firms Issue Stock Certificates and Bonds $ $$$ Invested in Stocks and Bonds Investors (Providers of Capital) Investment Banks help firms make transactions Brokers/Dealers help investors make transactions Reference: Alex MacKay 113 Hedge Fund Strategies Dedicated ShortSource: AIMA Canada Further Reading Hedge Funds – Emerging Market Strategy †¢ Emerging Markets (American Depository Receipts – ADRs vs. Foreign Securities) http://www. sec. gov/pdf/ininvest. pdf (Page 12) (SAP) Hedge Fund – Quants †¢ Jim Simons (Renaissance Technologies) – Commodities/Futures – (Rapid Fire Trading) – (computer and system specialists, researchers and traders) (computational linguists–speech recognition/investing) †¢ http://chinese-school. netfir ms. com/abacus-hedge-funds-Jim-Simons. html †¢ †¢ Kenneth Griffin (Citadel Investment Group) – Convertible Bonds –> Long-Short †¢ http://money. cnn. om/2008/12/08/news/companies/citadel_vickers. boyd. fortune/index. htm The Quants (Scott Patterson – Wall Street Journal Reporter) †¢ †¢ http://www. businessweek. com/magazine/content/10_09/b4168070829612. htm http://online. wsj. com/article/SB10001424052748704509704575019032416477138. html Steven Palmer (AlphaNorth Asset Management Inc) (Microcap – Tech) †¢ http://www. theglobeandmail. com/globe-investor/funds-and-etfs/funds/top-hedge-fund-manager-turns-to-techmicro-caps/article1884049/ House Dems propose taxing equity trades to fund new federal programs †¢ †¢ †¢ Financial transaction tax on all stock (0. 5%), bond (0. %) and derivatives (0. 005%) trades Protects financial markets from speculation Make high-frequency trading â€Å"unprofitable† http://thehi ll. com/blogs/floor-action/house/249893-house-dems-propose-taxing-equity-trades-to-fund-new-federal-programs Harsh HFT curbs could sneak into MiFID †¢ †¢ †¢ †¢ Introduction of minimum resting times between trades Could force HFT firms out of the market, widening spreads and making trading more costly Meetings held with the European Parliament’s Economic and Monetary Affairs Committee (ECON) MiFID (Markets in Financial Instruments Directive) – European Union Law http://www. hetradenews. com/news/Regions/Europe/Harsh_HFT_curbs_could_sneak_into_MiFID_II. aspx CAPITAL MARKET THEORY RSM 332 – Week 2 Week 1 – Introduction – Financial Accounting (Review) Week 2 – Financial Markets and Net Present Value Week 3 – Present Value Concepts Week 4 – Bond Valuation and Term Structure Theory Week 5 – Valuation of Stocks Week 6 – Risk and Return – Problem Set #1 Due Week 7* – Midterm (Tuesday*) We ek 8 – Portfolio Theory Week 9 – Capital Asset Pricing Model Week 10 – Arbitrage Pricing Theory Week 11 – Operation and Efficiency of Capital Markets Week 12 – Course Review – Problem Set #2 DueContact: otto. [email  protected] utoronto. ca THANK YOU SEE YOU NEXT WEEK! OFFICE HOURS WEDNESDAYS – 4:00PM-6:00PM ROOM 413 OR 417 105 ST. GEORGE STREET ROTMAN (NORTH BUILDING)

Free Essays on Weber & Dahrendorf

Max Weber and Ralf Dahrendorf Contemporary and classical theorists Max Weber and Social Science Max Weber thought that statements of fact are one thing, statements of value another, and any confusing of the two is impermissible, Ralf Dahrendorf writes in his essay Max Weber and Modern Social Science as he acknowledges that Weber clarified the difference between pronouncements of fact and of value (Dahrendorf). Although Dahrendorf goes on to note the ambiguities in Weber's writings between factual analysis and value-influenced pronouncements, he stops short of offering an explanation for them other than to say that Weber, being human, could not always live with his own demands for objectivity. Indeed, Dahrendorf leaves unclear exactly what Weber's view of objectivity was. More specifically, Dahrendorf does not venture to lay out a detailed explanation of whether Weber believed that the social scientist could eliminate the influence of values from the analysis of facts. Did Weber believe that, even though facts are one thing and values another, soci al and economic facts could be evaluated without the analysis being influenced by values? And what is the relation of objectivity to values? Could objectivity, for instance, be used to show that one value is superior to another? Or does objectivity apply only to the analysis of facts? Do one's values or perspective stem from human nature, metaphysical views, personal identity, or is it just as likely that they are a mere construct of culture? These questions, and others like them, underlie much that has been considered ambiguous in Max Weber's writings: His methodology. Since his death, sociologists and political scientists have been disputing where Weber stood with regard to questions concerning the relationship of objectivity to facts and values. Most of Weber's commentators, Edward Bryan Portis writes, have assumed his advocacy of the fact-value dichotomy, despite his explicit and ... Free Essays on Weber & Dahrendorf Free Essays on Weber & Dahrendorf Max Weber and Ralf Dahrendorf Contemporary and classical theorists Max Weber and Social Science Max Weber thought that statements of fact are one thing, statements of value another, and any confusing of the two is impermissible, Ralf Dahrendorf writes in his essay Max Weber and Modern Social Science as he acknowledges that Weber clarified the difference between pronouncements of fact and of value (Dahrendorf). Although Dahrendorf goes on to note the ambiguities in Weber's writings between factual analysis and value-influenced pronouncements, he stops short of offering an explanation for them other than to say that Weber, being human, could not always live with his own demands for objectivity. Indeed, Dahrendorf leaves unclear exactly what Weber's view of objectivity was. More specifically, Dahrendorf does not venture to lay out a detailed explanation of whether Weber believed that the social scientist could eliminate the influence of values from the analysis of facts. Did Weber believe that, even though facts are one thing and values another, soci al and economic facts could be evaluated without the analysis being influenced by values? And what is the relation of objectivity to values? Could objectivity, for instance, be used to show that one value is superior to another? Or does objectivity apply only to the analysis of facts? Do one's values or perspective stem from human nature, metaphysical views, personal identity, or is it just as likely that they are a mere construct of culture? These questions, and others like them, underlie much that has been considered ambiguous in Max Weber's writings: His methodology. Since his death, sociologists and political scientists have been disputing where Weber stood with regard to questions concerning the relationship of objectivity to facts and values. Most of Weber's commentators, Edward Bryan Portis writes, have assumed his advocacy of the fact-value dichotomy, despite his explicit and ...

Joseph Gonzales Essays

Joseph Gonzales Essays Joseph Gonzales Essay Joseph Gonzales Essay Using the article you discussed in your first reading response, document the following:1) Introduce a direct quote from the text, and provide the authors name in parentheses or in a signal phrase. Place the page number in parentheses.On the issue of the two similar photographs with different captions taken after Hurricane Katrina that has ignited protests from the Black community, Chris Graythen, the man who took one of the snapshots and a photographer for Getty Images said that â€Å"Now is no time to pass judgment on those trying to stay alive. Now is no time to argue semantics about finding versus looting. Now is no time to argue if this is a white versus black issue† (Ralli).2) Paraphrase a sentence or two from the text, and provide the authors name in parentheses or in a signal phrase. Place the page number in parentheses.The two similar photographs with two opposite text captions were perceived by the public as a double standard for racial orienta tion wherein it produced fury against media practitioners as well as website administrators (Ralli).3) Summarize a paragraph from the text, and provide the authors name in parentheses or in a signal phrase. Place the page number(s) in parentheses.The image captured by Dave Martin of the Associated Press in New Orleans displays a black man traversing flood water in New Orleans holding tightly a soda pack and big plastic bag. Under this image is a controversial caption stating â€Å"looting a grocery store† (Ralli).4) Make a works cited entry for the articleRalli, Tania. â€Å"Whos a Looter? In Storms Aftermath, Pictures Kick Up a Different Kind of Tempest.† The New York Times. 5 September 2005. 2 March 2009.

Scenario Analysis In Finance Essay Example

Scenario Analysis In Finance Essay Example Scenario Analysis In Finance Essay Scenario Analysis In Finance Essay Finance Scenario Analysis Introduction Scenario 1: Increased expenses used in financing Increasing the level of expenses alongside increased revenues in the overall leads to a decrease in the EBIT. The increase in the amount of expenses happens to be at a higher rate than that the increase in the revenue and this depreciates the level of operating income obtained after deducting expenses. Expenses such as advertising, sales and distribution as well as administration expenses have a heavy weight on the income level and this leads to the reduction in the profits level of the company. From the analysis, it is clear that the increase in the amount of corporate expenses as well as the selling, general and administrative expenses from (2.2M, 12.9M) in 1997 to (4.2M, 30.7M) in 1999 significantly affects the operating income. Ideally, selling, general and administrative expenses take a significant portion of the expenses. Irrespective of the tax amount charged, the net profit after taxes will always decrease with increase in the variable and fixed expenses. In the above scenari o, EBIT decreased from $157,501 in 2001 to $252,034 in year 2004. Scenario 2: Financing assets through significant capital expenditure Ideally, increasing the amount of capital allocated to making capital expenditures through investment in assets is profitable and though leads to incurring of huge initial outlay, it results to increase in revenues especially when the items acquired are used in the generation of additional cashflows. The assets purchased have different payback times and while others take a short time to generate revenues which cover the costs incurred in purchasing them, others have long payback times but the overall aim was to generate an incremental cashflow which in this case can be seen to have increased from $2.035M in 1997 to 18.6M in 2001 and finally to $138.7 M in 2004. Scenario 3: Increasing debt ratio and earning per share The increase in debt ratio which is brought about by increasing borrowings from external sources can be seen to have a negative effect on the cashflows mainly because it leads to the reduction in the equity level. Failure of the organization to generate enough cashflows from utilizing its assets efficiently and to be in a position to repay off its debts is what makes the cashflows adverse. One of the consequence of this is reduced earnings per share since more money is used to pay off debts and less is distributed to the shareholders.

Religion Assignment Example | Topics and Well Written Essays - 2000 words

Religion - Assignment Example The ultimate reality is the ultimate basis of every human problematic in every religion (Streng). In Christianity, for example, the human problematic is death and eternal torment in hell, and the ultimate reality, which is the God in the Christian Bible provides the basis and explanation for the existence of this human problematic. In the case of Christianity, death and eternal torment in hell is caused by sin, which has its roots in the original sin of Adam and Eve that led to the fall of man. On the other hand, the ultimate dimension is the way of changing the human problematic. Every religion or religious movement, after identifying the cause, seeks to find a solution to the human problematic and employs a number of solutions like rituals, prayer, consumption of organic foods, and other things. Ultimate dimension is supposed to inspire someone to change his current situation or to find a solution to the human problematic. 2. Cultural dimension is the actions that someone takes as a group in order to reinforce the community and to increase church attendance as well as to consider marriage and funeral rites. Whatever is personal must always go harmoniously with culture. One aspect of cultural dimension is the historical conditions upon which a particular belief or system of belief evolved (Streng). For example, during the time of Jesus, the political scenario was turbulent because of the conquest of Israel by the Romans, and that the Jews were persecuted by the conquerors. This was the time when Jesus rose and led the people into defiance of Roman authority. The transformative power that was evident in his preaching was the result of the cultural dimension of belief, which means that there was shared religious intent among the Jews who opposed Roman rule. This sense of unity somehow turned into a system of faith and belief. During the time of Muhammad, he was in a cave in a religious retreat when the A ngel Gabriel appeared to him in a dream, and

D&a-final paper Essay Example | Topics and Well Written Essays - 2250 words

D&a-final paper - Essay Example In Maurices words, his father, "made airplane parts and made money" (Official Barry Corbin Site). Maurice developed an early interest in flying because of a dinner guest who came to his home on Sundays and told stories of flying. Maurice talks favorably about his father but he does not have a lot to say about his mother. Not much is known about Maurices childhood because he did not talk about this in the first interview. He talks more about his accomplishments as though he was attempting to impress the counselor. He talks about his accomplishment in high school where he became an Eagle Scout and president of the Young Republicans Club. He also graduated as the Valedictorian of his class and began military training at Annapolis afterwards (Official Barry Corbin Site). He reports that he loved Boot Camp USMC, Parris Island because in his words, "you walked in one man and you walked out another" (Official Barry Corbin Site). Maurice has stayed the course of being a military man and this was a very important aspect of his life that gave him a structure that made sense to him. Maurice became a "fly boy" in the Korean War and is proud of the fact that he had 15 confirmed kills during that time. This was a very important period for him because he gained a level of self respect and became more of a man in his eyes. He eventually became an Astronaut and is now a multi-millionaire. Maurice had many endorsements and he had "plenty of women" because they liked to sleep with him because he was famous (Brand and Falsey, 1992). Maurice currently lives by himself in a large home outside Cicely. He has had a long-term relationship with a police officer, Barbara, who shares his love of the military and of guns. He has recently asked Barbara to marry him and she has accepted, though they have not set a date yet. Maurice states that Barbara is the only woman who he feels

Discussion Questions week 3 Essay Example | Topics and Well Written Essays - 500 words

Discussion Questions week 3 - Essay Example Some of the managers were using free or personal Email addresses in business communication and he felt that this was unprofessional. Consequently, he ordered that all employees were only allowed to use Email addresses that included the company domain name and instituted a policy whereby other sites such as MSN and Yahoo would be inaccessible through the company server for the purpose of checking Email accounts. The forces of influence used to make this decision included his business background – he had formerly worked for a software company in which all Email addresses for employees were simple and consistent, his education – with his marketing background he believed that the ability to consistently â€Å"brand† the company would be a benefit, and his fledgling management career – he had only been general manager of the company for several months when the change was instituted and felt the need to exert his power. The campaign to rid of the company of personal Email addresses was instituted in an effective manner. Informative bulletins were sent out for the month prior to the change with clear instructions on how to communicate the change in Email addresses to existing clients who were used to some of the managers’ personal accounts. The managers themselves tried to exert an opposing influence by stating that this new policy would cost them customers who would continue to use the old Email addresses and resist changing to the new ones. These concerns were dealt with in a professional manner and the managers soon realized, with a proper communication campaign before the change took effect, that their clients accepted the new Email addresses. Ultimately, the managers’ discomfort was overcome through a creative process by the general manager in which the communication aspect of the problem became a learning experience in new technology and marketing methods. In the example given above, the

Research Methods in Criminal Justice Essay Example | Topics and Well Written Essays - 250 words

Research Methods in Criminal Justice - Essay Example In this case, it is used in clarifying the idea behind a concept. Conceptualization, in criminal justice, can be changed by setting clear standards that can be universally recognized in order to cut back on the wide disparity found in research. In addition, the issue of accuracy of research in criminal justice comes in under changes to research. This is concerning discerning the accuracy and measures of variables used in crime and justice (Gibbs, 1989) One of the possible issues likely to arise from the definition of conceptualization is the variation found in research findings. This is in terms of different conceptualization strategies used by different researchers. In criminal justice, conceptualization of crime is difficult in that there are numerous variables to consider thus creating the wide, or rather narrow disparity. This is dependent on the influence of different variables since the issue of crime happens to be very wide (Gibbs, 1989). Influence of certain aspects may be overlooked, as there are no set standards to conceptualization. It also creates issues in terms of how to measure certain phenomena related to crime and justice. This is due to the presence of multiple methods of measuring similar concepts of

Environmental policies in USA Research Paper Example | Topics and Well Written Essays - 2000 words

Environmental policies in USA - Research Paper Example The issues of environmental conservation have become so serious that they can no longer be ignored by the current generation unless we want to do it when the danger of a global disaster becomes inevitable. To this regard, a number of studies has been conducted regarding environmental issues to come up with various solutions so that to impend danger of humankind extinction. Different governments globally, including the government of the United States, have formulated various legislations with an aim of safeguarding the environment. The issues regarding environmental policy of the United States are to be regulated the federal government. Activities having environmental impact according to the United States environmental policy provisions should be acted upon by the federal government. The main purpose of formulation of environmental policy is to that the current generations protect the environment for future generations. The United States environmental policy also tries to interfere as little as possible with the efficiency of commerce and tries to limit inequity in who is burdened with environmental costs. The government of United States has instituted legislations that regulate the environment. These laws are administered by the United States Environmental Protection Agency (EPA), which was formulated in 1970 and has been bestowed with the power to control pollution and the environment at large since its inception. The United States is without doubt the number one country that’s spends a greater portion of its GNP in cleaning up the environment. The United States residents have in many occasions demonstrated a great deal of concern when it comes to environmental problems. As a result both local and national political leaders in the United States talk about environmental issues in their campaigns (Kraft & Vig, 1990). Each year millions of United States tax payer money and donations are spent in environmental policies plan and in management of resources. The United States has managed considerably, in recent decades to reduce many types of pollution, environmental disasters and improved the quality of waters in many places. But that being said, The Unites States just as many other countries faces and is still struggling to use its God given recourses in an efficient way and to preserve its ecosystem (Bass, Herson & Bogdan, 2001). When the United States started to develop an active environme ntal policy, it was a sovereign nation state which possessed all the constitutional, institutional, economic, and political requirements to conceive and implement a coherent and consistent environmental policy home and abroad (Holt & Winston, 2002). Various studies in the field explain that until the 1960s water and air issues were mainly dealt with at the level of individual states within the United States. This lead to an increased public concern, that ended up prompting the Congress to adopt federal air pollution legislation in 1965 and 1967 which later was reinforced by the Clean air Act Amendments of 1970. This didn’t stop here as a similar development occurred in the water sector of 1972 (Bass, Herson & Bogdan, 2001). As of the 1970s, Environmental policy in the United States started experiencing a strong centralization. This included the adoption of federal legislation concerning air and ware pollution, industrial permitting, nature protection and soil cleanup policies ; and powerful enforcement mechanisms, in particular via the EPA during 1970s, EPA and other federal agencies pursued a vigorous and robust policy

Research Methods in Criminal Justice Essay Example | Topics and Well Written Essays - 250 words

Research Methods in Criminal Justice - Essay Example In this case, it is used in clarifying the idea behind a concept. Conceptualization, in criminal justice, can be changed by setting clear standards that can be universally recognized in order to cut back on the wide disparity found in research. In addition, the issue of accuracy of research in criminal justice comes in under changes to research. This is concerning discerning the accuracy and measures of variables used in crime and justice (Gibbs, 1989) One of the possible issues likely to arise from the definition of conceptualization is the variation found in research findings. This is in terms of different conceptualization strategies used by different researchers. In criminal justice, conceptualization of crime is difficult in that there are numerous variables to consider thus creating the wide, or rather narrow disparity. This is dependent on the influence of different variables since the issue of crime happens to be very wide (Gibbs, 1989). Influence of certain aspects may be overlooked, as there are no set standards to conceptualization. It also creates issues in terms of how to measure certain phenomena related to crime and justice. This is due to the presence of multiple methods of measuring similar concepts of

Macroeconomic Essay Example | Topics and Well Written Essays - 3000 words

Macroeconomic - Essay Example In addition, BBC News Business (2011) asserts that there is a high rate of unemployment in the United Kingdom that requires the government to take comprehensive measures if the situation is to be reversed. The united kingdom government has taken some fiscal and monetary policy measures in an attempt to reverse the economic situation. According to Warrell (2012), the government has reduced its spending by outsourcing security and other services from private firms as one of the chief fiscal policies. However, several stakeholders claim that the government is not doing enough, and the Institute of Directors is calling for further cuts in public spending, and reduced taxation, which is the other approach to fiscal policy (O’Connor, 2012). In addition to the above mentioned fiscal policies, the United Kingdom government has taken key monetary policy approaches including inflation targeting and quantitative easing. According to BBC News Business (2012a), the central bank lowered the base lending rates in order to encourage banks to lend more to individuals and corporations; however, despite a low base lending rate of 0.5 percent, banks did not increase their lending and the central bank may raise the rates to 0.75 or 1 percent. According to BBC News Business (2012b), the Bank of England decided to use quantitative easing as the other monetary policy approach in order to reverse the economic situation. In early 2009, the bank injected  £75 billion into the economy, which had increased to  £200 billion by the end of that year. In October 2011 and February 2012, the bank added  £75 billion and  £50 billion respectively to bring the total amount injected into the economy using the quantitative easing approach to  £ 325 billion. The United Kingdom reduced its expenditure in an attempt to redeem the national economy and pay of its debts, which is a more preferable approach as compared to the other viable option of increasing taxation.

Physician Payment Reform Essay Example for Free

Physician Payment Reform Essay 1. The three goals of the Physician Payment Reform is to decrease medicare expenditures by promoting preventative care and preventing unnecessary hospital stays. The next goal is to Re-distribute physicians payments more equitably by ensuring that physicians receive a fair payment for services rendered. The last goal is to ensure quality health care at a reasonable rate. 2. Modifier -25 would be the appropriate choice, it is a separately indentifiable service that was provided by the same physician on the same day. 3. Medicare pays physicians for services based on three basic compnents called relative value units. The first is Physician work which is the time, skill, and training it takes to provide a particular service. The next is practice expense which is everything that goes into running a practice, like equipment, rent, supplies, etc. The last of these is malpractice, which covers the cost of professional liability expenses. 4. The three types of persons eligible for medicare are the elderly who are age 65 and older. The second are people who are disabled and drawing by social security disability The third are people who are in the stage of renal failure (ESRD). 5. The six basic location methods to find main terms in the index of CPT are; procedure/service, synonym, eponymous, anatomic site, condition of disease, and abbreviations. 6. 99253 is the appropriate E/M code of the initial impatient consultation. The consultation was with a detailed history, a detailed exam, and MDM of low complexity 7. The four elements of history are the chief complaint, the second is the history of present illness. The third is the review of systems, and the final is past, family, and/or social history. 8. The complexity of medical decision making is based off of the number of diagnoses, risk or morbidity (complication or death), and the amount of data (complexity). 9. The appropriate CPT code for this scenario is 99214. The re is a detailed history, a detailed exam, and a MDM of moderate complexity. 10. The three key components that are present in every patient case, (except counseling encounters or time-based codes) are  history, examination and medical decision making. 11. The correct CPT code for this clinic note is 99396. It is a 42-year-old female who is going for a routine physical exam, which is a preventative measure to ensure her health. 12. The appropriate CPT code would be 99341. This case is for a home visit with a problem focused history, a problem focused exam, as well as a straight forward MDM. 13. The four levels of history type are problem focused, expanded problem focused, detailed and comprehensive. 14. The appropriate CPT code is 99281, and the ICD-9 code is 918.1. 15. This scenario has a problem focused history, a problem focused exam and a straight forward MDM (or of low complexity.) Therefore the correct CPT code is 99231. 16. If a patient were discharged from the hospital with a diagnosis of probable myocardial infarction without a history of MI in the past, the coder would use the ICD-9 diagnosis code 410 for this stay. 17. The correct CPT code is 13160, and the correct ICD-9 code is 998.32. 18. The difference between outpatient and inpatient measures of time is that outpatient care is when a patient comes in and receives a medical procedure or treatment and goes home immediately. As where with inpatient care they will receive a medical procedure and stay at the hospital. 19. In this scenario the patient has a fracture of the distal radius, the appropriate CPT code for this is 25600. 20. Four of the five graft types in the musculoskeletal system are bone graft, tissue, fascia, and cartilage. 21. The procedure that was performed in this scenario is on the placement of a halo. The correct CPT code for this scenario is 20661. 22. Since the procedure in this scenario is a left heath catherterization with coronary angiography and left ventriculogra, the correct CPT code for this is 93452. 23. The correct CPT code for the placement only of a dual-chamber pacemaker is 33208. 24. In this scenario the proced ure is for the replacement of a pulse generator in an old pacemaker, the correct CPT code is 33228. 25. The correct CPT diagnosis code is 58558, and the correct ICD-9 code is 621.0. 26. This outpatient clinic scenario is for a bilateral screening mammogram, the correct CPT code is 77057. 27. The correct CPT code for this scenario, an MRI of the brain, is 70552. 28. This scenario is for a dialysis progress note, the correct CPT code is 90947. 29. The correct CPT code for a pulmonary walking stress test is 94620. 30. Physical status modifier P3 indicates a patient with severe systemic disease. 31. The correct CPT code  for a patient who receives anesthesia for revision of total hip arthroplasty is 01215. The physical status modifier would be P2, because the patient has mild systemic disease. 32. The main term in the diagnosis of fractured clavicle is fractured. 33. The main term in the diagnosis of globe adhesions is adhesions. 34. The main term in the diagnosis of urinary retention is retention. 35. The main term in the diagnosis of acute pneumonia is pneumonia. 36. The correct code for personal history of peptic ulcer is V12.71. 37. The correct code for family history of breast cancer (for a), female is V16.3. 38. The correct code for the preoperative evaluation is V72.83, the code for COPD is 496. 39. In this scenario it is for a simple repair of a superficial wound of the nose measuring 5.2cm, the correct CPT code for this is 12014. 40. To correctly code a lesion excision you must first know the size, location, and number of lesions. You must also know if it is malignant or benign to properly code. 41. The appropriate CPT code for an unlisted procedure of the neck or thorax is 21899.

Effect of the Media on Consumers

Effect of the Media on Consumers Do consumers shape media spaces or do they shape consumers. Discuss this notion alongside the concept of mobile lives. Introduction Nowadays, media spaces play an increasingly important role in shaping consumers in the digital age with the rapid development of media and advanced science and technology. This paper includes an exploration of how media space shape consumers in a modern way of life which is called mobile live. Technological revolution has hit the media industry in the world. During the past decade, the form of media has changed a lot. It is no longer confined to the traditional media like television and newspapers just unilateral transmit message to the public. The rise of new media provides the multiple media forms and the fast growing of media space. It is an undeniable fact that the advent of the mobile phone is a turning point for the development of media space. Especially media space brings a huge impact on the attitude or behavior of consumers, when mobile technologies and digital create a new kind of mobile life. Media spaces and the concept of mobile live Media spaces define new methods of communication, with novel and unforeseen uses and potentialities. Communication through a media space is more than an approximation of face-to-face communication — it has a richness and complexity all its own. Media is the most significant element of the information transmission. Media spaces can be seen as information spaces which can unlimited expansion. Media spaces including material spaces that shaped by traditional media and material conditions like schools, libraries, homes and so on, and also including the virtual spaces that shaped by multiple digital media forms. Nevertheless, traditional media were not meeting consumers’s need any more. Now the media space mainly developed by the virtual cyberspaces. Media spaces are established on the interactive connection between public and information of the new media. Electronic settings in which groups of people can work together, even when they are not present in the same place and ti me. In a media space, people can create real-time visual and acoustic environments that span physically separate areas (Stults 1986). In some ways, media spaces make people have new understanding toward time and space, which can across the distance between time and space. In the new media age, media more like a carrier in the virtual spaces to transmit information to the public. In fact, the virtual cyberspaces shapes the everyday life of people and real life with the mobile lives more than the traditional media in material spaces. According to Urry and Sheller (2003) â€Å"All forms of communication have been reconfigured by new technologies and the new spatio-temporal patterns of social life through which they are made effective.† Discuss the concept of mobile lives with media spaces, the development of mobile technologies influenced spatial and temporal distance and the boundary of private space and public space to create a new mobile life. Mobile lives are built on the advent of mobile phone, laptops or other latest digital technologies. Then the advent of wireless networks also pushed the development of networks and mobile technologies forward greatly. The good thing is Wi-Fi make computers no longer need to rely on cable broadband network and the phones also no longer need to spend lots of cost to supply network. Consumers are able to use the Internet become more convenient on the mobile phone and laptops because of Wi-Fi. Technology is implied as bringing modernity to any place and to anyone, no m atter how remote, serving as an equalizer of opportunities in an emerging and peaceful global civil society (Caletrà ­o 2012). In the digital mobile lives, the places have no longer as a reason to limit the use or search of the information in media spaces to public, whether you are at home, at school or on the way. Also people can get everything they want from the Internet in the current era of big data. Mobile technologies more yield the greatest effects on investment with the Internet. How media spaces shape consumers Mobile technologies have an intimate relationship with media spaces in everyday life. People can consider every smart phone as a media space and every smart phone has a consumer to some extent. Nowadays, it is incredible that how fast the messages transmit to consumers with cyberspaces. 1.0 Advertising and consumer behaviors Advertising is an indispensable part of media space, which is a propaganda to constantly transmit the messages to the public. Generally, advertising will impact or even change the behavior and attitude of consumers for the products or brands. Many consumers can feel that advertising is ubiquitous to occupy their space any time and anywhere, whether while they using any social Apps at home, play mobile games on the ways or surfacing the websites in working places. Although maybe sometimes you just ignore the advertising when you saw them. Nevertheless, advertising is the most important element to shape consumers in media spaces. 1.1 The encoding and decoding theory of Stuart Hall Stuart Hall is a sociologist and pioneer in the field of cultural studies whose work explored the concept of Britishness. Some people address him â€Å"godfather of multiculturalism†respectfully. In his notion of a mass communication theory Encoding and Decoding, encoding is the process of creating a meaningful message according to a particular code, while decoding is the process of using a code to decipher a message and formulate meaning (Brian Robert 2014). Hall define that encoder is the sender that can be seen as producer and the decoder is the receiver that can be seen as consumer. Every consumer maybe will have the different thinking with the same message which send from the same producer. According to Hall (1980) â€Å"The process in terms of a structure produced and sustained through the articulation of linked but distinctive moments production, circulation, distribution/consumption, reproduction †. This theory is appropriate for advertising. The occur of an advertising is able to shape the behavior of consumers. HM can be a good example to explain it. Production is the first step to create the advertising for the public. HM company start using many super model over the world to advertise their new style products in the world market, such as world-famous Chinese model Liu Wen. Circulation is how people receive the message. HM put the advertising on subway, Internet, television, billboards and many other media places to communicate the consumers. Also HM company will release some information about the new style products on the social media. The HM ads spread across the world market via those advertisements. And for distribution and consumption, individuals will have different understanding for the same information or advertisement. Hall suggested three hypothetical interpretative codes or positions for the reader of a text (Chandler 2014). Dominant readings are produced by those whose social situation favours the preferred reading. Negotiated readings are produced by those who inflect the preferred reading to take account of their social position. Oppositional readings are produced by those whose social position puts them into direct conflict with the preferred reading (Northumbria university n.d.). Linked to the example of HM, dominant is that some consumers will have interested in those HM new products and have a strong desire to buy them. Negotiated is that some consumers will maybe think those new products are looking good, but they should consider the price and if they have free time to shopping. And oppositional is that maybe some consumers will hate the design of those new produc t and they do not want to buy them. The last step is reproduction which is about the consumer’s action after they receive the message. Reproduction for HM is their advertising related to the sale of new products that decide consumers will take action to go to store browse and purchase or not. Consequently, this theory is described how advertising impact consumers behavior step by step. 1.2 Consumer capitalism Moreover, consumer capitalism is also an essential factor why advertising can affect the consumer behavior. Most commonly, consumer capitalism refers to the idea that consumption drives the capitalist economy through corporate manipulation of the consumer to purchase (and continue purchasing) material goods. The entire consumer capitalist framework is predicated on the idea that the value of a product is determined by the desire of the individual, regardless of the actual need of the product (Schrader n.d.). Propaganda means of Apple Inc is a very successful case as consumer capitalism. Apple enhanced their awareness through bombard users with advertising and word of mouth. It is made consumers believe the products of Apple are representing the top-class electronic products and top digital technologies. Apple succeed to lead a spending spree over the world to buy their IPhone, IPod and Macbook because of the consumer capitalism. Apple let most consumers believe that if you are use Ap ple’s products, you are the most fashionable people. It is certain that always media lead fashion instead of consumers lead fashion. 1.3 Dual coding theory Dual coding refers to information retained as conjoined being and words. This creates a stronger impression upon the reader of such information (Northumbria university n.d.). Generally for most people a product has images and slogans simultaneously are more help consumers to remember. For instance, the biggest Chinese micro-blogging Weibo typically use the dual coding theory. Every time if you close the app in the background on the phone, you will see the image and slogan of Weibo when you reopen this app. The image of Weibo is a icon represent people’s eyes and the slogan of Weibo translate to English is â€Å"find something new anytime and anywhere†. Although there are thousands of Apps on the smart phone now. But not too much Apps trying to do this. Weibo use the creative image and slogan simultaneously can catch up some consumers attention to some extent. 2.0 Mobile Lifestyle In the digital age, today’s society have already emerged a mobile life in the world. Most people even cannot imagine a life without mobile and the Internet. In the Educause Center for Applied Research (ECAR) conducts annual surveys and interviews in 2008, a student respondent illustrated the broader trends borne out of the data: I dont look at it as getting on the Internet. The Internet is a part of life. Its a lifestyle. Mobile lifestyle influences the everyday life of consumers in many ways in media spaces. 2.1 Relationships Media spaces have great influences to the interpersonal relationship. Particularly the mobile media spaces totally change the development of relationships between people. The interpersonal relationship can better develop and communicate through multiple media forms for mobile lifestyle, such as social media, email, phone call, SMS, video call and so on. It makes you keep in touch with your friends have no more need of face-to-face communication. Facebook always let you find some people who you have long time no see or long lost, even you can find your primary school classmates. It is good that Facebook build a more close connection with you and your friends or just people we know. Also the new media create many new interpersonal relationship. Some people are trying to date online, some people maybe have many online friend but never meet. Now the human relationships become more diversification because of media space. 2.2 Globalized Communication ways The advanced mobile technologies make the media spaces coming to globalization, which is a goal traditional media cannot accomplish. The almost all functions that consumers’ needs have included in a smart phone. Because media space is no longer have the distance of time and space, and the media communication ways remove the restriction of the region. For consumers, they can communicate everywhere over the world. Undoubtedly, media space is a space without borders that similar to the theory of cosmopolitanism. Cosmopolitanism is a western notion that epitomizes the need social agents have to conceive of a political and cultural entity, larger than their own homeland, that would encompass all human beings on a global scale. The Internet has brought about the possibility of a transnational imagined virtual community: a decentered cosmopolitan crowd, synchronized by cyberspace, interacting on real-time, and engaging in global commercial, cultural and political exchanges (Ribeiro 2001). If media spaces combine with the theory of cosmopolitanism, It will be different with the reality space that every consumer is equal and there is no nationality, regional or social class limitations. For instance, consumers of smart phone can use multiple social media to connect with the people in almost any countries in the world if they want. The lat est figures from Facebook suggest that the number of people actively using social media each month has now passed the 2 billion mark over the world (Kemp 2014). Those social media support a huge number of globalized social media users to exchange and transmit the information in media spaces. Furthermore, languages no longer be the biggest barrier of communication if you go to an unfamiliar environment with different language. The use of translation software is a good global communication ways. There was a report said an elderly Chinese couple, which cannot understand and say English, immigrate to Canada. They nearly have not felt any communication barriers. Because they said if they have some troubles when they going out, they always use the translation software to communicate with local people. It is a great example that the communication of consumers getting more simple and easy under the digital media space influences. 2.3 Online Shopping and Travel Online shopping also is a main activity for consumers in media spaces. The total monthly amount of trade on the large shopping website like Amazon, Ebay and Taobao is an incredible number cannot imagined. Consumers can buy everything you want in those shopping website whether clothes or any electronic products, new or old. Online shopping satisfies whatever needs of consumers. Sometimes It is spend too much time and cost shopping in the shopping mall. Online shopping is cheaper and fast than go window shopping. Online shopping has become a habit for many consumers and maybe it will become the mainstream way for consumption. In additions, the mobile lifestyle of consumers cannot be without travel.For many consumers, travel is a way to enjoy life. Media spaces make traveling more and more easy because of mobile lifestyle. Today travelers can finish it just use the computers or smart phone at home. Some traveling websites not only have traveling party services, but also provide the reservation for air tickets, railway tickets and hotel accommodation. And almost every airline has their own official website and official App to allow people booking online. Also if you use the smart phone, you can find many apps are providing travel strategies for each country. Media spaces offer lots of convenience for consumers. 3.0 Thoughts of consumers 3.1 Celebrity effects Companies usually use the media to shape the thoughts of consumers to achieve their goals. Celebrity effects are famous marketing tools in media spaces, which companies use the social influence of celebrity to promote their popularity and brand awareness. Celebrities also have an effect on the charity events and public service advertising. ALS Ice Bucket Challenge is a successful example take advantage of celebrity effects in 2014. This example can describe through the mass communication model of Lasswell. Lasswell was a well-known American political scientist and communications theorist. Lasswell’s model, one of the first communication models, is summed up in five questions: Who, Says what, In which Channel, To Whom, With what effect. Who: the person who formulates the message What: the content of the message Channel: the medium by which the message is being communicated Whom: the person or persons who receive the message Effect: the outcome of the message. The initiator of ALS Ice Bucket Challenge is a former Boston College baseball player Pete Frates who is a disease amyotrophic lateral sclerosis patient. The content is this activity is ALS Ice Bucket Challenge promote awareness of the disease amyotrophic lateral sclerosis (ALS) and encourage donations to research. The rules of the Ice Bucket Challenge are either donate $100 to an ALS charity, or dump a bucket of ice water on your head or both. After, you can challenge a few people to join in too (Lecher 2014). For in which channel, Pete Frates post the video first and it through the social media spreed very rapidly. Then many world-famous celebrities, athletes, and tech CEOs like Mark Zuckerberg, Kobe Bryant, Taylor Swift and even President Obama all taking part in this activity to post their video on Facebook, Youtube and Twitter or donate the money for the ALS association. ALS Ice Bucket Challenge is reported by various media forms and lots of countries. This activity became globalization and had a huge impact that the receivers are the people around the world. The outcome of this challenge is raising millions of dollars and let ma ny people pay attention to the disease amyotrophic lateral sclerosis. 3.2 hyperreality Baudrillard believed that a contemporary society, founded on media and technology, would see the spaces of imagery and reality merge. What follows is a world where the real is not layered with the imaginary. Rather that the world becomes a ‘simulation’ of imagery where the world favours the ‘more real, than real’ (Northumbia university n.d.). Media images, the Internet, online games, mobile games and virtual spaces are taking people usually spend time communicating with a hyper-real world. Many online games and mobile games use hyperreality enable people to be the characters they want to be. When consumers see the world through media spaces under the screen, they usually integrate the real world with the hyper-real world in their mind. Advertising sells the public through strong, desirable images, and many consumers buy into the brands point of view and products. The objective of hyperreality in the media is to shape the thoughts of consumers. Conclusion In conclusions, this paper explored that how media spaces shape consumers in mobile lives. Some theories show that advertising is constantly transmit the new information to consumers for shaping their behaviors and attitudes of consumption. Also the thoughts of consumers will influenced by the media. Definitely, media spaces changed the lifestyle of people. The exchange between people through mobilities become more and more fast and simple. And consumers have new lifestyles like online shopping and online dating. The rise of an intensively mobile society reshapes the self – its everyday activities, interpersonal relations with others, as well as connections with the wider world (ElliottUrry 2010). Media spaces always express as different forms all around us, make people feel like being a part of them, and mixed itself with social realities. In the future, media spaces will sustainable growth and keep playing the significant role to shape consumers in the society.