The role of temporary works in civil Engineering Construction Assignment

The role of temporary works in civil Engineering Construction - Assignment Example For example when setting up a scaffold it is advisable that your scaffold is supported by the ground but if that is not possible one can make it to hang above the ground or water using the hanging scaffold (Webster 1997). A good scaffold should also be able to have a safety mechanism in order to avoid injuries in case the scaffold fails thus in constructing a bridge one can chose to attach himself to the bridge to be safe incase the scaffold is failing. Formwork In his contribution Blackledge (1977) refers to formwork as the process that involves the addition of base material and also the addition of concrete that is in retaining wall so that they can be used as slabs during the construction of a bridge. Formwork is very essential since it helps to make the concrete last for long due to the fact that it makes it strong (Blackledge 1977). The strength property of formwork guarantees the much needed support that is needed in construction of the bridge. Formworks is used by making that needed shape using steel or aluminum so that the concrete is then poured into it so that a desired shape is produced. This is then allowed to harden. When it’s all dry the fabrications are removed and the formwork remains in place in that desired shape. Formwork is used to guarantees the strong support for the bridge during construction which always has to remain strong to avoid collapse (Blackledge 1977). Falsework In his book Webster (1997) talks of falsework as a term that is used to refer to the activity of supporting arches and spans in the process of constructing a bridge by using temporary support structures. This is a very essential practice in construction of bridges since it helps support the bridges from below in order to ensure that the bridges do not collapse as the construction is still continuing and can also be used to create a strong work base for the workers during the process of constructing a bridge. This always has to remain intact to the construction unt il that time when the bridge can self support itself without collapsing which in the long run helps to keep the bridge in position (Webster 1997). Temporary Support of Excavation During construction of a bridge it might involve excavating various sections of the work site so as to achieve a certain level of ease during the construction of bridge (Hummell 2011). For example during construction when the building is to start like two stories below the ground then excavation will have to be done in order to achieve this. Also good to notice is that sometime exaction is done for example when gravel is need for construction so that it is dug from a place. After excavation it’s a good practice to always support the excavations in order to avoid collapse of the walls during construction according to Hummell (2011). There are two types of excavation that can be used in supporting an excavation walls; this can either be flexible support or rigid excavation support. When one uses Flexib le support then it would take sheet pilling, soldier pile and lagging walls. On the other hand rigid support entails slurry walls, secant piles or even tangent pile (Hummell 2011). Construction Dewatering In his deep insight on dewatering Hummell (2011) talks of this process as a way that is used to achieve a certain degree of ease at the work site by ensuring that the water that may cause difficulty during the

US Energy Consumption Research Paper Example | Topics and Well Written Essays - 1000 words

US Energy Consumption - Research Paper Example Unfortunately, there has been a relatively stagnation in the number of energy resources that the US and other governments rely on. In order to ensure sustainability of the current energy resources, policies have been formulated to guide the process of exploration of the resources (Korporaal 2012). In most cases, the policies have been developed to guide the process of energy consumption to ensure that it happens with efficiency. In addition to such policies, there have been other strategies formulated to ensure that new sources of energy are made available to the country’s energy sector. The formulation of such policies has, however, attracted different opinions with some people or groups of people opposing them, either wholly or partially. The varied opinions have and continue to contribute to the status of energy consumption in the United States of America (Korporaal 2012). The current status of energy consumption in the US As stated earlier on, there has been an increasing amount of energy consumed by the US population. Specific forms of consumption have been experiencing different growths. In fact, the energy consumed by the industrial sector has experienced very little increase in the past 4 decades. However, the energy consumed in other sectors such as residential, commercial and transportation has experienced growth, in the same period, of about 8000 trillion Btu on average. According to the Energy Information Administration (EIA), there will be a general increase in energy demand in the United States in the next 20 years. This will be as a result of the dramatic shifts in people’s lifestyle. Most of the energy demand will be due to the ever-increasing need for energy to be used in the generation of power to run commercial investments and industries. In the US today, it has been found that about half of the total electricity generated is fro m the use of coal in steam engines. Coal is a fossil fuel subject to depletion in the near future. In addition to this data it has been determined that of all the green house gases emitted in the United States, 85 % of them result from activities or processes supported by the consumption of fossil fuel. This, therefore, means that a reduction in the amount of fossil fuels consumed in the country can result in reduced emission of green house gases emission (Anonymous 2012). The future of energy consumption in the United States According to forecasts done by specialists in the energy sector, the global energy demand will grow in the next 25 year to reach a value of approximately 57%. This will affect the US energy demand in some aspects because it will see it rise by about 30% within the same period. In addition, more than half of the energy used all over the world will occur in the Asian continent by the year 2030 (Katakey 2012). At this particular time the US will have experienced a bout 40% growth in the demand for electricity energy. All these forecasts and estimations indicate the importance of having efficient energy policies in place to put countries of the world, including the US, in a better position to embrace the future together with its challenges. Policies surrounding energy consumption in the US have been formulated in the direction of addressing the state of future energy consumption. The most common policies have included making legislations to guide the development and distribution of renewable energy to cater for the increasing demand, and address the fact that

Victims’ Rights and Vengeance Essay Example for Free

Victims’ Rights and Vengeance Essay I believe that current state of victims’ right in America is better than it has been in the past thirty years. Thirty years ago, victims had few legal rights to be informed, present and heard within the criminal justice system. Victims did not have to be notified of court proceedings or of the arrest or release of the defendant, they had no right to attend the trial or other proceedings, and they had no right to make a statement to the court at sentencing or at other hearings. Moreover, victim assistance programs were virtually non-existent. Today, every state has an extensive body of basic rights and protections for victims of crime within its statutory code. Victims rights statutes have significantly influenced the manner in which victims are treated within the federal, state, and local criminal justice systems. 2004 Crime Victims’ Rights Act I believe that the 2004 Crimes Victims’ Rights Act has been effective to some extent. The CRVA helps victims assert and encourage enforcement of victims’ rights. It promotes compliance with victims’ rights laws. Funds grant programs and other activities to implement provisions. Provides an enforcement mechanism for rights delineated in the Act. The CRVA may legitimately consider to go too far and give victims undue rights at the expense of a fair trial. For instance, it allows them to â€Å"be heard at any proceedings related to the offence, regardless as to whether or not their input is relevant or appropriate. It is based on a very naive view of crime and criminal procedure; it assumes that all victims are innocent people attacked by dangerous criminals. However, a lot of crime victims dont fit  that category- many crimes have no clear victim, some victims are large corporations, and in a very large percentage of cases, the victims are criminals themselves. This amendment isnt necessarily appropriate for all cases and shouldnt be so. Vengeance Personally I do believe that vengeance does fix anything. Punishment should be a form of vengeance but a form of deterrence, detainment, and rehabilitation of the offender so that he or she will not cause any more harm to others. Vengeance does not bring the people that have been lost back. Fixing the issues can prevent more casualties from happening. The American tough on crime stance taken by elected officials from across the political spectrum has not halted the resurgence of crime in the last few years, nor has it helped prevent ex-inmates from once again ending up behind bars. The criminal justice system needs to spend more money in the parole, probation, and rehabilitation structure because clearly â€Å"punishment† alone isn’t working. Survivors Network of those Abused by Priests (SNAP) I agree with the actions of Survivors Network of those Abused by Priests because it is an organization that specializes in helping women and men wounded by religious authority figures such as priests, ministers, bishops, deacons, nuns and others. Before SNAP many sexual abused cases were not reported or taken to court. The SNAP organization helps the victims of a sexual abuse crime by a religious authority get the information, support, and psychological help that they need. Its claims have been validated, and a few though hardly all of its recommendations have been implemented by the church hierarchy. SNAP’s advocacy on the Catholic scandal also helped push the reality of sexual abuse into the public consciousness to the point that victims can regularly win in courts and get a hearing in the media, and they are much more likely to come forward to tell their stories, whether they were abused by clergy or by athletic coaches or Boy Scout leaders. References: Crime Victims Rights Act http://www.justice.gov/usao/eousa/vr/crime_victims.html Survivors Network of those Abused by Priests http://www.snapnetwork.org/resources Crime Victims’ Rights http://www.ovc.gov/rights/legislation.html Crime, Punishment and Vengeance in the Age of Mass Imprisonment http://www.alternet.org/story/50464/crime,_punishment_and_vengeance_in_the_age_of_mass_imprisonment

Stock Market Volatility Around Market Shock 2005-09

Stock Market Volatility Around Market Shock 2005-09 Stock Market Volatility around market shocks event analysis during 2005-2009 ACKNOWLEDGEMENT The Project titled Stock Market volatility around market shock event analysis during 2005-09 is an effort to throw light on Performance Analysis. I have completed this project based on research, under the guidance of name of faculty, my faculty guide. I owe enormous intellectual debt to her as she augmented my knowledge in the field of volatility around market shocks and helped me learn about the topic and gave me valuable insight into the subject matter. My increased spectrum of knowledge in this field is the result of her constant supervision and direction that has helped me to absorb relevant and high quality information. I would like to express my profound gratitude towards COLLEGE NAME for giving me the opportunity to undertake the above research. Last but not the least, I feel indebted to all those persons and organizations which have helped me directly or indirectly in successful completion of this study. DECLARATION I Ghayasuddin a student of MBA of College Name respectively hereby declare that the Project Report on Stock Market volatility around market shock event analysis during 2005-09 is the outcome of my own work and the same has not been submitted to any other University/Institute for the award of any degree or any Professional diploma. OBJECTIVE OF THE STUDY To find out the stock market volatility. To analyze the volatility measure To understand the stock market and its importance To find out the reasons behind the downfall. EXECUTIVE SUMMARY A common problem plaguing the low and slow growth of small developing economies is the swallow financial sector. Financial markets play an important role in the process of economic growth and development by facilitating savings and channeling funds from savers to investors. While there have been numerous attempts to develop the financial sector, small island economies are also facing the problem of high volatility in numerous fronts including volatility of its financial sector. Volatility may impair the smooth functioning of the financial system and adversely affect economic performance. Similarly, stock market volatility also has a number of negative implications. One of the ways in which it affects the economy is through its effect on consumer spending (Campbell, 1996; Starr-McCluer, 1998; Ludvigson and Steindel 1999 and Poterba 2000). The impact of stock market volatility on consumer spending is related via the wealth effect. Increased wealth will drive up consumer spending. However, a fall in stock market will weaken consumer confidence and thus drive down consumer spending. Stock market volatility may also affect business investment (Zuliu, 1995) and economic growth directly (Levine and Zervos, 1996 and Arestis et al 2001). A rise in stock market Volatility can be interpreted as a rise in risk of equity investment and thus a shift of funds to less risky assets. This move could lead to a rise in cost of funds to firms and thus new firms might bear this effect as investors will turn to purchase of stock in larger, well known firms. While there is a general consensus on what constitutes stock market volatility and, to a lesser extent, on how to measure it, there is far less agreement on the causes of changes in stock market volatility. Some economists see the causes of volatility in the arrival of new, unanticipated information that alters expected returns on a stock (Engle and Ng, 1993). Thus, changes in market volatility would merely reflect changes in the local or global economic environment. Others claim that volatility is caused mainly by changes in trading volume, practices or patterns, which in turn are driven by factors such as modifications in macroeconomic policies, shifts in investor tolerance of risk and increased un certainty. The degree of stock market volatility can help forecasters predict the path of an economys growth and the structure of volatility can imply thatinvestors now need to hold more stocks in their portfolio to achieve diversification(Krainer, J, 2002:1). This case is more serious for small developing economies like Fiji who is attempting to deepen its financial sector by developing its stock market. Unlike mature stock markets of advanced economies, the stock markets of less developed economies like Fiji began to develop rapidly only in the last two decades and are sensitive to factors such as changes in the levels of economic activities, changes in the political and international economic environment and also related to the changes in the macro economic variables. Therefore, in this paper, we examine if Fijis Stock market is volatile and if so, then what is the role of interest rate being one of the most important macroeconomic variables on the volatility of stock returns. This article benefits from developments in the measurement of volatility through econometric techniques. Here, the regime-switching- ARCH model introduced by Engle (1982) and its extension, the GARCH model, (Bollerslev, 1986) is used to estimate the conditional va riance of Fijis daily stock return from January 2001 to December 2005. This method allows for an objective determination of the presence of volatility. The results of estimates of stock return volatility is then related to changes in the interest rates. The second section of the paper provides an overview of Fijis stock market. The third section of the paper provides an exposition of the methodology used in this study. The fourth section provides a summary of the results and its discussion. The last section provides a summary and conclusion. INTRODUCTION TO THE INDIAN ECONOMY India has struggled financially since independence, experiencing slow economic growth and economic setbacks due to climatic extremes or political disturbances. The country has been gradually transforming its economic base from agrarian to industrial and commercial. Under British rule in the 19th century, Indias cottage industries and thriving trade were virtually destroyed to make way for European manufactured goods, paid for by exports of agricultural products such as cotton, opium, and tea. Beginning in the late 19th century a modern industrial sector and an extensive infrastructure of railways and irrigation works were slowly built with British and Indian capital. Nevertheless, Indias economy stagnated during the last 30 or so years of British rule. At independence in 1947 India was desperately poor, with an aging textile industry as its only major industrial sector. Economic policy after independence emphasized central planning, with the government setting goals for and closely regulating private industry. Self-sufficiency was promoted in order to foster domestic industry and reduce dependence on foreign trade. These efforts produced steady economic growth in the 1950s, but less positive results in the two succeeding decades. By the early 1970s India had achieved its goal of self-sufficiency in food production, although this food was not equally available to all Indians due to skewed distribution and occasional shortfalls in the harvest. In the late 1970s the government began to reduce state control of the economy, making slow progress toward this goal. By 1991, however, the government still regulated or ran many industries, including mining and quarrying, banking and insurance, transportation and communications, and manufacturing and construction. Economic growth improved during this period, at least partially as a result of development projects funded by foreign loans. Indias low average growth rate up to 1980 was derisively referred to as the Hindu rate of growth, because of the contrasting high growth rates in other Asian countries, especially the East Asian Tigers. The economic reforms that surged economic growth in India after 1980 can be attributed to two stages of reforms. The pro-business reform of 1980 initiated by Indira Gandhi and carried on by Rajiv Gandhi, eased restrictions on capacity expansion for incumbents, removed price controls and reduced corporate taxes. The economic liberalisation of 1991, initiated by then Indian prime minister P. V. Narasimha Rao and his finance minister Manmohan Singh in response to a macroeconomic crisis did away with the Licence Raj (investment, industrial and import licensing) and ended public sector monopoly in many sectors, thereby allowing automatic approval of foreign direct investment in many sectors. Since then, the overall direction of liberalisation has remained the same, irrespective of the ruli ng party at the centre, although no party has yet tried to take on powerful lobbies like the trade unions and farmers, or contentious issues like labour reforms and cutting down agricultural subsidies. Liberalization in India paved the way for lots of foreign companies to come and setup heir base in India and for investors across the globe to invest money in Indian stock Market. Buoyant Indian Economy really raised eyebrows of many and investment in India keeps on surging high year after year touching new height. Since liberalization the foreign investors are on a spree of investment in India both in the form of FDI and FII. Stock Exchange being the only route for FIIs to come into India has been has been spearheading the task of giving investors a bright picture of the economy leading to brining more and more investment into the state. Hence, the vital role of Stock Exchange and the association of Stock Exchange with Foreign Investment can not be undermined. In the later part of the study, we will look into the details of how the Stock Exchange is associated with FIIs and vice versa.   ABOUT STOCK MARKET AND STOCK EXCHANGES A stock exchange or bourse is a corporation or mutual organization which provides the facilities for stock brokers to trade company stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities, as well as other financial instruments and capital events including the payment of income and dividends. In other words, Stock Exchanges are an organised marketplace, either corporation or mutual organisation, where members of the organisation gather to trade company stocks and other securities. The members may act either as agents for their customers, or as principals for their own accounts. Stock exchanges also facilitates for the issue and redemption of securities and other financial instruments including the payment of income and dividends. The record keeping is central but trade is linked to such physical place because modern markets are computerised. The trade on an exchange is only by members and stock broker do have a seat on the exchange. The securities traded on a stock exchange include shares issued by companies, unit trusts and other pooled investment products as well as bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of speed and cost of transactions. Trade on an exchange is by members only; a stock broker is said to have a seat on the exchange. A stock exchange is often the most important component of a stock market. There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Such trading is said to be off exchange or over-the-counter. This is the usual way that bonds are traded. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. Increasingly all stock exchanges are part of a global market for securities. 200 years ago in front of Trinity church in East Manhattan in U.S oldest stock exchange called New York stock exchange emerged, when there were no paper money changing hands and there was not even the idea of stock, people trade silver for papers saying they owned shares in cargo .The trade flourished. During American Revolution, the colonial government needed money to fund its wartime operations. By selling bonds they did this. Bonds are pieces of paper a person buys for a set price, knowing that after a certain period of time; they can exchange their bonds for a profit. Along with bonds, the first of the nations bank started to sell parts or shares of their own company to people in order to raise money. Thus they sell the part of the company to whoever wanted to buy it. This led to the emergence of the modern day stock market. The concept of stock markets came to India in 1875, when Bombay Stock Exchange (BSE) was established as The Native Share and Stockbrokers Association, a voluntary non-profit making association. BSE is the oldest in Asia. Presently India has about 10,000 listed companies, the largest number of listed companies in the world. Stock exchanges in India can be categorized as: 1) Voluntary Associations such as Bombay, Indore and Ahmedabad, 2) Public limited companies such as Calcutta and Delhi, and 3) Guarantee companies such as Hyderabad, Madras and Bangalore. Besides BSE, Indias other major stock exchange is National Stock Exchange (NSE) that was promoted by leading financial institutions and was established in April 1993. Today, these global stock exchanges have become premier institutions and are highly efficient, computerized organizations that have fostered the growth of an open, global securities market. Today India boasts 23 regional Stock Exchanges along with BSE and NSE. RESEARCH METHODOLOGY The research has been done by selecting the companies which are the representative of a particular sector on the basis of overall market capitalization, stocks having the highest liquidity and turnover both on the NSE and BSE. A caution was thus taken and by thorough approach the best companies were selected so as to portray a genuine picture of the sector. With the help of SPSS Package and using the quantitative techniques, the statistical analysis has been done. The following analysis has been done for all the 8 companies: Fundamental analysis. Future growth and earnings analysis. Statistical analysis. Technical analysis. ROLE OF STOCK EXCHANGES IN THE ECONOMY The Stock Exchange provides companies with the facility to raise capital for expansion through selling shares to the investing public. Mobilising Savings for Investment When people draw their savings and invest in shares, it leads to a more rational allocation of resources because funds, which could have been consumed, or kept in idle deposits with banks, are mobilised and redirected to promote commerce and industry. Redistribution of Wealth By giving a wide spectrum of people a chance to buy shares and therefore become part-owners of profitable enterprises, the stock market helps to reduce large income inequalities because many people get a chance to share in the profits of business that were set up by other people. Improving Corporate Governance By having a wide and varied scope of owners, companies generally tend to improve on their management standards and efficiency in order to satisfy the demands of these shareholders. It is evident that generally, public companies tend to have better management records than private companies. Creates Investment Opportunities for Small Investors As opposed to other businesses that require huge capital outlay, investing in shares is open to both the large and small investors because a person buys the number of shares they can afford. Therefore the Stock Exchange provides an extra source of income to small savers. Government Raises Capital for Development Projects The Government and even local authorities like municipalities may decide to borrow money in order to finance huge infrastructure projects such as sewerage and water treatment works or housing estates by selling another category of shares known as Bonds. These bonds can be raised through the Stock Exchange whereby members of the public buy them. When the Government or Municipal Council gets this alternative source of funds, it no longer has the need to overtax the people in order to finance development. Barometer of the Economy At the Stock Exchange, share prices rise and fall depending, largely, on market forces. Share prices tend to rise or remain stable when companies and the economy in general show signs of stability. Therefore the movement of share prices can be an indicator of the general trend in the economy. With countries moving away from socialistic approach and towards globalization of their economies, the role and importance of Stock Exchanges has gone up considerably. Today Stock Exchanges   depict the financial position of the economy of a country. INVESTMENST SCENAREO In closed economies only the Govt. has the sole responsibility and discretion of investment in various projects in the country. No private parties were allowed to invest in any venture. However, countries where mixed economy exist are liberal to the extent of giving permission to some private parties for investment in some selected sectors. However, countries which adopted globalization made their policies liberal enough to give private players permission to invest and run in any sector of their wish. Globalization has made the world boundary less where free flow of labour, capital exists among member countries. Interdependence among countries has given the drive a real momentum. Seeing the robust growth that some of the Asian countries registered really stunned the other nations which had closed economy. These nations which adopted globalization being the first runners were termed as Asian Tigers. Many followed the suit. Few countries followed the path of economic reforms with an anticipation of the prospective growth while the others due to some economic compulsions. A few countries like India were in real soup with acute financial crisis and were not in a position of running the socialistic approach anymore. A balance of payments crisis at the time opened the way for an International Monetary Fund (IMF) program that led to the adoption of a major reform package. It went ahead with globalization and reform process in a step by step approach. Countries realizing that only domestic investments and resources can not be relied upon for rapid growth in industrialization and economy, red carpet treatment was given to foreign investors. Opening up of economies unseals the doors to the investors from other countries to invest in each others countries. These investments come in two forms, i.e, FDI (Foreign Direct Investment) and FII (Foreign Institutional Investment. FII (Foreign Institutional Investor) is an investor or investment fundthatis from or registered in a country outside of the one in which it is currentlyinvesting. Institutional investorsinclude hedge funds, insurance companies, pension funds and mutual funds. They invest in various companies through Stock Exchange. The term is used most commonly in India to refer to outside companies investing in the financial markets of India. International institutional investors must register with the Securities and Exchange Board of India to participate in the market. One of the major market regulations pertaining to FIIs involves placing limits on FII ownership in Indian companies. Sub-account includes those foreign corporates, foreign individuals, and institutions, funds or portfolios established or incorporated outside India on whose behalf investments are proposed to be made in India by a FII. Where as FDI (Foreign Direct Investment) is a component of a countrys national financial accounts. Foreign direct investment is investment of foreign assets into domestic structures, equipment, and organizations. It does not include foreign investment into the stock markets. Foreign direct investment is thought to be more useful to a country than investments in the equity of its companies because equity investments are potentially hot money which can leave at the first sign of trouble, whereas FDI is durable and generally useful whether things go well or badly. Foreign Investors always prefer FII route than FDI route since, the route of investing in stocks is easy and more liquid with less risk involved. Investors can take away their money as and when they need by making short term bucks. If we see from govts perspective, FII means incoming of a lot of foreign exchange into the country which boosts the Forex reserve. Where as Govt. is inclined to get more FDI than FII as FDI helps setting up manufacturing or service industry thereby bringing foreign exchange, employing people, business by ancillary industries and tax to govt treasury. Countries across the globe are formulating policies to attract more FDI and FII. Countries like India have modified its investment policies to make it conducive for foreign investment. REGULATORY MECHANISM FOR FII INVOLVEMENT Following entities / funds are eligible to get registered as FII: Pension Funds Mutual Funds Insurance Companies Investment Trusts Banks University Funds Endowments Foundations Charitable Trusts / Charitable Societies Further, following entities proposing to invest on behalf of broad based funds, are also eligible to be registered as FIIs: Asset Management Companies Institutional Portfolio Managers Trustees Power of Attorney Holders The parameters on which SEBI decides FII applicants eligibility. Applicants track record, professional competence, financial soundness, experience, general reputation of fairness and integrity. (The applicant should have been in existence for at least one year) whether the applicant is registered with and regulated by an appropriate Foreign Regulatory Authority in the same capacity in which the application is filed with SEBI Whether the applicant is a fit proper person. As the FIIs take the route of investing in Stocks etc through stock exchange, they have to be abide by the SEBI guidelines. SEBI generally takes seven working days in granting FII registration. However, in cases where the information furnished by the applicants is incomplete, seven days shall be counted from the days when all necessary information sought, reaches SEBI. In cases where the applicant is bank and subsidiary of a bank, SEBI seeks comments from the Reserve Bank of India (RBI). In such cases, 7 working days would be counted from the day no objection is received from RBI. Which financial Instruments are available for FII investment Securities in primary and secondary markets including shares, debentures and warrants of companies, unlisted, listed or to be listed on a recognized stock exchange in India; Units of mutual funds; Dated Government Securities; Derivatives traded on a recognized stock exchange; Commercial papers. MACROECONOMIC FACTORS Economic growth and GDP: The countrys GDP at current market prices is projected at Rs. 46, 93,602 crore in 2007-08 by the Central Statistical Organization (CSO). Thus, in the current fiscal year, the size of the Indian economy at market exchange rate will cross US$ 1 trillion. At the nominal exchange rate (average of April-December 2007) GDP is projected to be US$ 1.16 trillion in 2007-08. Per capita income at nominal exchange rate is estimated at US$ 1,021. According to the World Bank system of classification of countries as low income, middle income and high income, India is still in the category of low income countries. The (per capita) GDP at purchasing power parity is conceptually a better indicator of the relative size of the economy than the (per capita)GDP at market exchange rates. There are, however, practical difficulties in deriving GDP at PPP, and we now have two different estimates of the PPP conversion factor for 2005. Indias GDP at PPP is estimated at US$ 5.16 trillion or US$ 3.19 trillion depending on whether the old or new conversion factor is used. In the former case, India is the third largest economy in the world after the United States and China, while in the latter it is the fifth largest (behind Japan and Germany).   GDP at factor cost at constant 1999-2000 prices is projected by the CSO to grow at 8.5 per cent in 2008-09. This represents a deceleration from the unexpectedly high growth of 9.4 per cent, 9.6 per cent and 8.7 per cent respectively, in the previous three years. With the economy modernizing, globalizing and growing rapidly, some degree of cyclical fluctuation is to be expected. Per capita income and consumption: Economic growth, and in particular the growth in per capita income, is a broad quantitative indicator of the progress made in improving public welfare. Per capita consumptionis another quantitative indicator that is useful for judging welfare improvement.The pace of economic improvement has moved up considerably during the last five years (including 2007-08). Since 2003, there has been a sharp acceleration in the growth of per capita income, almost doubling to an average of 7.2 per cent per annum (2003-04 to 2007-08).This means that average income would now double in a decade, well within one generation, instead of after a generation (two decades). The growth rate of per capita income in 2007-08 is projected to be 7.2 per cent, the same as the average of the five years to the current year. Per capita private final consumption expenditure has increased in line with per capita income. The growth rate has almost doubled to 5.1 per cent per year from 2003-04 to 2007-08, with the current years growth expected to be 5.3 per cent, marginally higher than the five year average. The average growth of consumption is slower than the average growth of income, primarily because of rising saving rates, though rising tax collection rates can also widen the gap (during some periods). Year to year changes in consumption also suggest that the rise in consumption is a more gradual and steady process, as any sharp changes in income tend to get adjusted in the saving rate. Per capita income and consumption (in 1999-2000 prices): Year Income Consumption 2007-08 Rs. Growth (%) Rs. Growth (%) 29,786 7.2 17,145 5.3 Income is taken as GDP at market prices. Consumption is PFCE. Per capita is obtained by dividing these by population. MARKET EFFICIENCY However, market efficiency -championed in the efficient market hypothesis (EMH) formulated by Eugene Fama in 1970, suggests that at any given time, prices fully reflect all available information on a particular stock and/or market. Thus, according to the EMH, no investor has an advantage in predicting a return on a stock pricebecause no one has access to information not already available to everyone else. (To read more on behavioral finance. The Effect of Efficiency: Non-Predictability The nature of information does not have to be limited to financial news and research alone; indeed, information about political, economic and social events, combined with how investors perceive such information, whether true or rumored, will be reflected in the stock price. According to EMH,as prices respond only to information available in the market, and, because all market participants are privy to the same information, no one will have the ability to out-profit anyone else. In efficient markets, prices become not predictable but random, so no investment pattern can be discerned. A planned approach to investment, therefore, cannot be successful. This random walk of prices, commonly spoken aboutin the EMH school of thought, results in the failure of any investment strategy that aims to beat the market consistently. In fact, the EMH suggests that given the transaction costs involved in portfolio management, it would be more profitable for an investor to put his or her money into an index fund. Anomalies: The Challenge to Efficiency In the real world of investment, however, there are obvious arguments against the EMH. There are investors who have beaten the market Warren Buffett, whose investment strategy focuses onundervalued stocks, made millions and set an example for numerous followers. There are portfolio managerswho have better track records than others, and there are investment houses with more renowned research analysis than others. So how can performance be random when people are clearly profiting from and beating the market? Counter arguments to the EMH state that consistent patterns are present. Here are some examples of some of the predictable anomalies thrown in the face of the EMH:the January effectis a patternthat shows higher returns tend to be earned in the first month of the year; blue Monday on Wall Street isasaying that discourages buying on Friday afternoon and Monday morning because of the weekend effect, the tendency for prices to be higher on the day before and after the weekend than during the rest of the week. Studies in behavioral finance, which look into the effects of investor psychology on stock prices, also reveal that there are some predictable patterns in the stock market. Investors tend to buy undervalued stocks and sell overvalued stocks and, in a market of many participants, the result can be anything but efficient. Paul Krugman, MIT economics professor, suggests that because of the mass mentality of the trendy, short-term shareholder, investors pull in and out of the latest and hottest stocks. This results in stock prices being distorted and the market being inefficient. Soprices no longer reflect all available information in the market. Prices areinstead beingmanipulated by profit seekers. The EMH Response The EMH does not dismiss the possibility of anomalies in the market that result in the generation of superior profits. In fact, market efficiency does not require prices to be equal tofair value all of the time. Prices may be over- or undervalued only in random occurrences, so they eventually revert back to their mean values. As such, because the deviations from a stocks fair price are in themselves random, investment strategies that result in beating the market cannot be consistent phenomena. Furthermore, the hypothesis argues that an investor who outperforms the market does so not out of skill but out of luck. EMH followers say this is due to the laws of probability: at any given time in a market with a large number of investors, some will outperform while other will remain average. How Doesa Market Become Efficient? In order for a market to become efficient, investors must perceive that a market is inefficient and possible to beat. Ironically, investment strategies intended to take advantage of inefficiencies are actually the fuel that keeps a market efficient. A market has to be large and liquid. Information has to be widely available in terms of accessibility and cost and released to investors at more or less the same time. Transaction costs have to be cheaper than the expected profits of an investment strategy. Investorsmust also have enough funds to take adva Stock Market Volatility Around Market Shock 2005-09 Stock Market Volatility Around Market Shock 2005-09 Stock Market Volatility around market shocks event analysis during 2005-2009 ACKNOWLEDGEMENT The Project titled Stock Market volatility around market shock event analysis during 2005-09 is an effort to throw light on Performance Analysis. I have completed this project based on research, under the guidance of name of faculty, my faculty guide. I owe enormous intellectual debt to her as she augmented my knowledge in the field of volatility around market shocks and helped me learn about the topic and gave me valuable insight into the subject matter. My increased spectrum of knowledge in this field is the result of her constant supervision and direction that has helped me to absorb relevant and high quality information. I would like to express my profound gratitude towards COLLEGE NAME for giving me the opportunity to undertake the above research. Last but not the least, I feel indebted to all those persons and organizations which have helped me directly or indirectly in successful completion of this study. DECLARATION I Ghayasuddin a student of MBA of College Name respectively hereby declare that the Project Report on Stock Market volatility around market shock event analysis during 2005-09 is the outcome of my own work and the same has not been submitted to any other University/Institute for the award of any degree or any Professional diploma. OBJECTIVE OF THE STUDY To find out the stock market volatility. To analyze the volatility measure To understand the stock market and its importance To find out the reasons behind the downfall. EXECUTIVE SUMMARY A common problem plaguing the low and slow growth of small developing economies is the swallow financial sector. Financial markets play an important role in the process of economic growth and development by facilitating savings and channeling funds from savers to investors. While there have been numerous attempts to develop the financial sector, small island economies are also facing the problem of high volatility in numerous fronts including volatility of its financial sector. Volatility may impair the smooth functioning of the financial system and adversely affect economic performance. Similarly, stock market volatility also has a number of negative implications. One of the ways in which it affects the economy is through its effect on consumer spending (Campbell, 1996; Starr-McCluer, 1998; Ludvigson and Steindel 1999 and Poterba 2000). The impact of stock market volatility on consumer spending is related via the wealth effect. Increased wealth will drive up consumer spending. However, a fall in stock market will weaken consumer confidence and thus drive down consumer spending. Stock market volatility may also affect business investment (Zuliu, 1995) and economic growth directly (Levine and Zervos, 1996 and Arestis et al 2001). A rise in stock market Volatility can be interpreted as a rise in risk of equity investment and thus a shift of funds to less risky assets. This move could lead to a rise in cost of funds to firms and thus new firms might bear this effect as investors will turn to purchase of stock in larger, well known firms. While there is a general consensus on what constitutes stock market volatility and, to a lesser extent, on how to measure it, there is far less agreement on the causes of changes in stock market volatility. Some economists see the causes of volatility in the arrival of new, unanticipated information that alters expected returns on a stock (Engle and Ng, 1993). Thus, changes in market volatility would merely reflect changes in the local or global economic environment. Others claim that volatility is caused mainly by changes in trading volume, practices or patterns, which in turn are driven by factors such as modifications in macroeconomic policies, shifts in investor tolerance of risk and increased un certainty. The degree of stock market volatility can help forecasters predict the path of an economys growth and the structure of volatility can imply thatinvestors now need to hold more stocks in their portfolio to achieve diversification(Krainer, J, 2002:1). This case is more serious for small developing economies like Fiji who is attempting to deepen its financial sector by developing its stock market. Unlike mature stock markets of advanced economies, the stock markets of less developed economies like Fiji began to develop rapidly only in the last two decades and are sensitive to factors such as changes in the levels of economic activities, changes in the political and international economic environment and also related to the changes in the macro economic variables. Therefore, in this paper, we examine if Fijis Stock market is volatile and if so, then what is the role of interest rate being one of the most important macroeconomic variables on the volatility of stock returns. This article benefits from developments in the measurement of volatility through econometric techniques. Here, the regime-switching- ARCH model introduced by Engle (1982) and its extension, the GARCH model, (Bollerslev, 1986) is used to estimate the conditional va riance of Fijis daily stock return from January 2001 to December 2005. This method allows for an objective determination of the presence of volatility. The results of estimates of stock return volatility is then related to changes in the interest rates. The second section of the paper provides an overview of Fijis stock market. The third section of the paper provides an exposition of the methodology used in this study. The fourth section provides a summary of the results and its discussion. The last section provides a summary and conclusion. INTRODUCTION TO THE INDIAN ECONOMY India has struggled financially since independence, experiencing slow economic growth and economic setbacks due to climatic extremes or political disturbances. The country has been gradually transforming its economic base from agrarian to industrial and commercial. Under British rule in the 19th century, Indias cottage industries and thriving trade were virtually destroyed to make way for European manufactured goods, paid for by exports of agricultural products such as cotton, opium, and tea. Beginning in the late 19th century a modern industrial sector and an extensive infrastructure of railways and irrigation works were slowly built with British and Indian capital. Nevertheless, Indias economy stagnated during the last 30 or so years of British rule. At independence in 1947 India was desperately poor, with an aging textile industry as its only major industrial sector. Economic policy after independence emphasized central planning, with the government setting goals for and closely regulating private industry. Self-sufficiency was promoted in order to foster domestic industry and reduce dependence on foreign trade. These efforts produced steady economic growth in the 1950s, but less positive results in the two succeeding decades. By the early 1970s India had achieved its goal of self-sufficiency in food production, although this food was not equally available to all Indians due to skewed distribution and occasional shortfalls in the harvest. In the late 1970s the government began to reduce state control of the economy, making slow progress toward this goal. By 1991, however, the government still regulated or ran many industries, including mining and quarrying, banking and insurance, transportation and communications, and manufacturing and construction. Economic growth improved during this period, at least partially as a result of development projects funded by foreign loans. Indias low average growth rate up to 1980 was derisively referred to as the Hindu rate of growth, because of the contrasting high growth rates in other Asian countries, especially the East Asian Tigers. The economic reforms that surged economic growth in India after 1980 can be attributed to two stages of reforms. The pro-business reform of 1980 initiated by Indira Gandhi and carried on by Rajiv Gandhi, eased restrictions on capacity expansion for incumbents, removed price controls and reduced corporate taxes. The economic liberalisation of 1991, initiated by then Indian prime minister P. V. Narasimha Rao and his finance minister Manmohan Singh in response to a macroeconomic crisis did away with the Licence Raj (investment, industrial and import licensing) and ended public sector monopoly in many sectors, thereby allowing automatic approval of foreign direct investment in many sectors. Since then, the overall direction of liberalisation has remained the same, irrespective of the ruli ng party at the centre, although no party has yet tried to take on powerful lobbies like the trade unions and farmers, or contentious issues like labour reforms and cutting down agricultural subsidies. Liberalization in India paved the way for lots of foreign companies to come and setup heir base in India and for investors across the globe to invest money in Indian stock Market. Buoyant Indian Economy really raised eyebrows of many and investment in India keeps on surging high year after year touching new height. Since liberalization the foreign investors are on a spree of investment in India both in the form of FDI and FII. Stock Exchange being the only route for FIIs to come into India has been has been spearheading the task of giving investors a bright picture of the economy leading to brining more and more investment into the state. Hence, the vital role of Stock Exchange and the association of Stock Exchange with Foreign Investment can not be undermined. In the later part of the study, we will look into the details of how the Stock Exchange is associated with FIIs and vice versa.   ABOUT STOCK MARKET AND STOCK EXCHANGES A stock exchange or bourse is a corporation or mutual organization which provides the facilities for stock brokers to trade company stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities, as well as other financial instruments and capital events including the payment of income and dividends. In other words, Stock Exchanges are an organised marketplace, either corporation or mutual organisation, where members of the organisation gather to trade company stocks and other securities. The members may act either as agents for their customers, or as principals for their own accounts. Stock exchanges also facilitates for the issue and redemption of securities and other financial instruments including the payment of income and dividends. The record keeping is central but trade is linked to such physical place because modern markets are computerised. The trade on an exchange is only by members and stock broker do have a seat on the exchange. The securities traded on a stock exchange include shares issued by companies, unit trusts and other pooled investment products as well as bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of speed and cost of transactions. Trade on an exchange is by members only; a stock broker is said to have a seat on the exchange. A stock exchange is often the most important component of a stock market. There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Such trading is said to be off exchange or over-the-counter. This is the usual way that bonds are traded. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. Increasingly all stock exchanges are part of a global market for securities. 200 years ago in front of Trinity church in East Manhattan in U.S oldest stock exchange called New York stock exchange emerged, when there were no paper money changing hands and there was not even the idea of stock, people trade silver for papers saying they owned shares in cargo .The trade flourished. During American Revolution, the colonial government needed money to fund its wartime operations. By selling bonds they did this. Bonds are pieces of paper a person buys for a set price, knowing that after a certain period of time; they can exchange their bonds for a profit. Along with bonds, the first of the nations bank started to sell parts or shares of their own company to people in order to raise money. Thus they sell the part of the company to whoever wanted to buy it. This led to the emergence of the modern day stock market. The concept of stock markets came to India in 1875, when Bombay Stock Exchange (BSE) was established as The Native Share and Stockbrokers Association, a voluntary non-profit making association. BSE is the oldest in Asia. Presently India has about 10,000 listed companies, the largest number of listed companies in the world. Stock exchanges in India can be categorized as: 1) Voluntary Associations such as Bombay, Indore and Ahmedabad, 2) Public limited companies such as Calcutta and Delhi, and 3) Guarantee companies such as Hyderabad, Madras and Bangalore. Besides BSE, Indias other major stock exchange is National Stock Exchange (NSE) that was promoted by leading financial institutions and was established in April 1993. Today, these global stock exchanges have become premier institutions and are highly efficient, computerized organizations that have fostered the growth of an open, global securities market. Today India boasts 23 regional Stock Exchanges along with BSE and NSE. RESEARCH METHODOLOGY The research has been done by selecting the companies which are the representative of a particular sector on the basis of overall market capitalization, stocks having the highest liquidity and turnover both on the NSE and BSE. A caution was thus taken and by thorough approach the best companies were selected so as to portray a genuine picture of the sector. With the help of SPSS Package and using the quantitative techniques, the statistical analysis has been done. The following analysis has been done for all the 8 companies: Fundamental analysis. Future growth and earnings analysis. Statistical analysis. Technical analysis. ROLE OF STOCK EXCHANGES IN THE ECONOMY The Stock Exchange provides companies with the facility to raise capital for expansion through selling shares to the investing public. Mobilising Savings for Investment When people draw their savings and invest in shares, it leads to a more rational allocation of resources because funds, which could have been consumed, or kept in idle deposits with banks, are mobilised and redirected to promote commerce and industry. Redistribution of Wealth By giving a wide spectrum of people a chance to buy shares and therefore become part-owners of profitable enterprises, the stock market helps to reduce large income inequalities because many people get a chance to share in the profits of business that were set up by other people. Improving Corporate Governance By having a wide and varied scope of owners, companies generally tend to improve on their management standards and efficiency in order to satisfy the demands of these shareholders. It is evident that generally, public companies tend to have better management records than private companies. Creates Investment Opportunities for Small Investors As opposed to other businesses that require huge capital outlay, investing in shares is open to both the large and small investors because a person buys the number of shares they can afford. Therefore the Stock Exchange provides an extra source of income to small savers. Government Raises Capital for Development Projects The Government and even local authorities like municipalities may decide to borrow money in order to finance huge infrastructure projects such as sewerage and water treatment works or housing estates by selling another category of shares known as Bonds. These bonds can be raised through the Stock Exchange whereby members of the public buy them. When the Government or Municipal Council gets this alternative source of funds, it no longer has the need to overtax the people in order to finance development. Barometer of the Economy At the Stock Exchange, share prices rise and fall depending, largely, on market forces. Share prices tend to rise or remain stable when companies and the economy in general show signs of stability. Therefore the movement of share prices can be an indicator of the general trend in the economy. With countries moving away from socialistic approach and towards globalization of their economies, the role and importance of Stock Exchanges has gone up considerably. Today Stock Exchanges   depict the financial position of the economy of a country. INVESTMENST SCENAREO In closed economies only the Govt. has the sole responsibility and discretion of investment in various projects in the country. No private parties were allowed to invest in any venture. However, countries where mixed economy exist are liberal to the extent of giving permission to some private parties for investment in some selected sectors. However, countries which adopted globalization made their policies liberal enough to give private players permission to invest and run in any sector of their wish. Globalization has made the world boundary less where free flow of labour, capital exists among member countries. Interdependence among countries has given the drive a real momentum. Seeing the robust growth that some of the Asian countries registered really stunned the other nations which had closed economy. These nations which adopted globalization being the first runners were termed as Asian Tigers. Many followed the suit. Few countries followed the path of economic reforms with an anticipation of the prospective growth while the others due to some economic compulsions. A few countries like India were in real soup with acute financial crisis and were not in a position of running the socialistic approach anymore. A balance of payments crisis at the time opened the way for an International Monetary Fund (IMF) program that led to the adoption of a major reform package. It went ahead with globalization and reform process in a step by step approach. Countries realizing that only domestic investments and resources can not be relied upon for rapid growth in industrialization and economy, red carpet treatment was given to foreign investors. Opening up of economies unseals the doors to the investors from other countries to invest in each others countries. These investments come in two forms, i.e, FDI (Foreign Direct Investment) and FII (Foreign Institutional Investment. FII (Foreign Institutional Investor) is an investor or investment fundthatis from or registered in a country outside of the one in which it is currentlyinvesting. Institutional investorsinclude hedge funds, insurance companies, pension funds and mutual funds. They invest in various companies through Stock Exchange. The term is used most commonly in India to refer to outside companies investing in the financial markets of India. International institutional investors must register with the Securities and Exchange Board of India to participate in the market. One of the major market regulations pertaining to FIIs involves placing limits on FII ownership in Indian companies. Sub-account includes those foreign corporates, foreign individuals, and institutions, funds or portfolios established or incorporated outside India on whose behalf investments are proposed to be made in India by a FII. Where as FDI (Foreign Direct Investment) is a component of a countrys national financial accounts. Foreign direct investment is investment of foreign assets into domestic structures, equipment, and organizations. It does not include foreign investment into the stock markets. Foreign direct investment is thought to be more useful to a country than investments in the equity of its companies because equity investments are potentially hot money which can leave at the first sign of trouble, whereas FDI is durable and generally useful whether things go well or badly. Foreign Investors always prefer FII route than FDI route since, the route of investing in stocks is easy and more liquid with less risk involved. Investors can take away their money as and when they need by making short term bucks. If we see from govts perspective, FII means incoming of a lot of foreign exchange into the country which boosts the Forex reserve. Where as Govt. is inclined to get more FDI than FII as FDI helps setting up manufacturing or service industry thereby bringing foreign exchange, employing people, business by ancillary industries and tax to govt treasury. Countries across the globe are formulating policies to attract more FDI and FII. Countries like India have modified its investment policies to make it conducive for foreign investment. REGULATORY MECHANISM FOR FII INVOLVEMENT Following entities / funds are eligible to get registered as FII: Pension Funds Mutual Funds Insurance Companies Investment Trusts Banks University Funds Endowments Foundations Charitable Trusts / Charitable Societies Further, following entities proposing to invest on behalf of broad based funds, are also eligible to be registered as FIIs: Asset Management Companies Institutional Portfolio Managers Trustees Power of Attorney Holders The parameters on which SEBI decides FII applicants eligibility. Applicants track record, professional competence, financial soundness, experience, general reputation of fairness and integrity. (The applicant should have been in existence for at least one year) whether the applicant is registered with and regulated by an appropriate Foreign Regulatory Authority in the same capacity in which the application is filed with SEBI Whether the applicant is a fit proper person. As the FIIs take the route of investing in Stocks etc through stock exchange, they have to be abide by the SEBI guidelines. SEBI generally takes seven working days in granting FII registration. However, in cases where the information furnished by the applicants is incomplete, seven days shall be counted from the days when all necessary information sought, reaches SEBI. In cases where the applicant is bank and subsidiary of a bank, SEBI seeks comments from the Reserve Bank of India (RBI). In such cases, 7 working days would be counted from the day no objection is received from RBI. Which financial Instruments are available for FII investment Securities in primary and secondary markets including shares, debentures and warrants of companies, unlisted, listed or to be listed on a recognized stock exchange in India; Units of mutual funds; Dated Government Securities; Derivatives traded on a recognized stock exchange; Commercial papers. MACROECONOMIC FACTORS Economic growth and GDP: The countrys GDP at current market prices is projected at Rs. 46, 93,602 crore in 2007-08 by the Central Statistical Organization (CSO). Thus, in the current fiscal year, the size of the Indian economy at market exchange rate will cross US$ 1 trillion. At the nominal exchange rate (average of April-December 2007) GDP is projected to be US$ 1.16 trillion in 2007-08. Per capita income at nominal exchange rate is estimated at US$ 1,021. According to the World Bank system of classification of countries as low income, middle income and high income, India is still in the category of low income countries. The (per capita) GDP at purchasing power parity is conceptually a better indicator of the relative size of the economy than the (per capita)GDP at market exchange rates. There are, however, practical difficulties in deriving GDP at PPP, and we now have two different estimates of the PPP conversion factor for 2005. Indias GDP at PPP is estimated at US$ 5.16 trillion or US$ 3.19 trillion depending on whether the old or new conversion factor is used. In the former case, India is the third largest economy in the world after the United States and China, while in the latter it is the fifth largest (behind Japan and Germany).   GDP at factor cost at constant 1999-2000 prices is projected by the CSO to grow at 8.5 per cent in 2008-09. This represents a deceleration from the unexpectedly high growth of 9.4 per cent, 9.6 per cent and 8.7 per cent respectively, in the previous three years. With the economy modernizing, globalizing and growing rapidly, some degree of cyclical fluctuation is to be expected. Per capita income and consumption: Economic growth, and in particular the growth in per capita income, is a broad quantitative indicator of the progress made in improving public welfare. Per capita consumptionis another quantitative indicator that is useful for judging welfare improvement.The pace of economic improvement has moved up considerably during the last five years (including 2007-08). Since 2003, there has been a sharp acceleration in the growth of per capita income, almost doubling to an average of 7.2 per cent per annum (2003-04 to 2007-08).This means that average income would now double in a decade, well within one generation, instead of after a generation (two decades). The growth rate of per capita income in 2007-08 is projected to be 7.2 per cent, the same as the average of the five years to the current year. Per capita private final consumption expenditure has increased in line with per capita income. The growth rate has almost doubled to 5.1 per cent per year from 2003-04 to 2007-08, with the current years growth expected to be 5.3 per cent, marginally higher than the five year average. The average growth of consumption is slower than the average growth of income, primarily because of rising saving rates, though rising tax collection rates can also widen the gap (during some periods). Year to year changes in consumption also suggest that the rise in consumption is a more gradual and steady process, as any sharp changes in income tend to get adjusted in the saving rate. Per capita income and consumption (in 1999-2000 prices): Year Income Consumption 2007-08 Rs. Growth (%) Rs. Growth (%) 29,786 7.2 17,145 5.3 Income is taken as GDP at market prices. Consumption is PFCE. Per capita is obtained by dividing these by population. MARKET EFFICIENCY However, market efficiency -championed in the efficient market hypothesis (EMH) formulated by Eugene Fama in 1970, suggests that at any given time, prices fully reflect all available information on a particular stock and/or market. Thus, according to the EMH, no investor has an advantage in predicting a return on a stock pricebecause no one has access to information not already available to everyone else. (To read more on behavioral finance. The Effect of Efficiency: Non-Predictability The nature of information does not have to be limited to financial news and research alone; indeed, information about political, economic and social events, combined with how investors perceive such information, whether true or rumored, will be reflected in the stock price. According to EMH,as prices respond only to information available in the market, and, because all market participants are privy to the same information, no one will have the ability to out-profit anyone else. In efficient markets, prices become not predictable but random, so no investment pattern can be discerned. A planned approach to investment, therefore, cannot be successful. This random walk of prices, commonly spoken aboutin the EMH school of thought, results in the failure of any investment strategy that aims to beat the market consistently. In fact, the EMH suggests that given the transaction costs involved in portfolio management, it would be more profitable for an investor to put his or her money into an index fund. Anomalies: The Challenge to Efficiency In the real world of investment, however, there are obvious arguments against the EMH. There are investors who have beaten the market Warren Buffett, whose investment strategy focuses onundervalued stocks, made millions and set an example for numerous followers. There are portfolio managerswho have better track records than others, and there are investment houses with more renowned research analysis than others. So how can performance be random when people are clearly profiting from and beating the market? Counter arguments to the EMH state that consistent patterns are present. Here are some examples of some of the predictable anomalies thrown in the face of the EMH:the January effectis a patternthat shows higher returns tend to be earned in the first month of the year; blue Monday on Wall Street isasaying that discourages buying on Friday afternoon and Monday morning because of the weekend effect, the tendency for prices to be higher on the day before and after the weekend than during the rest of the week. Studies in behavioral finance, which look into the effects of investor psychology on stock prices, also reveal that there are some predictable patterns in the stock market. Investors tend to buy undervalued stocks and sell overvalued stocks and, in a market of many participants, the result can be anything but efficient. Paul Krugman, MIT economics professor, suggests that because of the mass mentality of the trendy, short-term shareholder, investors pull in and out of the latest and hottest stocks. This results in stock prices being distorted and the market being inefficient. Soprices no longer reflect all available information in the market. Prices areinstead beingmanipulated by profit seekers. The EMH Response The EMH does not dismiss the possibility of anomalies in the market that result in the generation of superior profits. In fact, market efficiency does not require prices to be equal tofair value all of the time. Prices may be over- or undervalued only in random occurrences, so they eventually revert back to their mean values. As such, because the deviations from a stocks fair price are in themselves random, investment strategies that result in beating the market cannot be consistent phenomena. Furthermore, the hypothesis argues that an investor who outperforms the market does so not out of skill but out of luck. EMH followers say this is due to the laws of probability: at any given time in a market with a large number of investors, some will outperform while other will remain average. How Doesa Market Become Efficient? In order for a market to become efficient, investors must perceive that a market is inefficient and possible to beat. Ironically, investment strategies intended to take advantage of inefficiencies are actually the fuel that keeps a market efficient. A market has to be large and liquid. Information has to be widely available in terms of accessibility and cost and released to investors at more or less the same time. Transaction costs have to be cheaper than the expected profits of an investment strategy. Investorsmust also have enough funds to take adva

Measurement - Mathematic Reform :: essays research papers fc

Part A: Content Goals for Measurement in Grades 3-5   Ã‚  Ã‚  Ã‚  Ã‚  Most students enter grade 3 with enthusiasm for, and interest in, learning mathematics. In fact, nearly three-quarters of U.S. fourth graders report liking mathematics (NCTM, 143). This can be a very critical time in keeping children interested in what they are learning. If the work turns too monotonous and uninteresting it can have a negative effect on their perceptions of the subject later in life. If students in grades three through five are given mathematic material that is interesting it can help keep their enthusiasm toward the subject. One of the major content areas that is covered at this time is measurement. Measurement is one of the ways that teachers can introduce students to the usefulness and practicality of mathematics. Measurement requires the comparison of an attribute (distance, surface, capacity, mass, time, temperature) between two objects or to a known standard. Measurement also introduces students to the important concepts of precision, approx imation, tolerance, error and dimension. Instructional programs from prekindergarten through grade twelve should enable students to understand measurable attributes of objects and the units, systems, and processes of measurement. Also, apply the appropriate techniques, tools, and formulas to determine measurements (NCTM, 171). This paper will describe how those ideas are developed in grades three through five.   Ã‚  Ã‚  Ã‚  Ã‚  The first and most basic standard for measurement at this level is being able to understand measurement attributes that we use on a daily basis. Some of these attributes include length, area, weight, volume, and size of an angle. Knowledge of these variables is very important because they are ideas that will be used regularly throughout their lives. When students attain a better understanding of these measurement variables the next objective is to have them decipher the correct way to measure them. Choosing the appropriate unit to measure variables such as length, area, and weight can be just as important as knowing their meaning. For example, knowing that length is the distance between two points is irrelevant if a student tries to measure it with an angle or area. Knowing the proper way to measure a variable is very important. This idea also brings into perspective the standard of measurement that deals with understanding the need for standard units, or a basic way to describe an attribute. This requires students to become familiar with standard units in the customary and metric systems.

Culture and Technology - Tools to Aid in Survival Essay -- Sociology E

Culture and Technology - Tools to Aid in Survival Culture: â€Å"the predominating attitudes and behavior that characterize the functioning of a group†. Technology: â€Å"the body of knowledge available to a society that is of use in fashioning implements, practicing manual arts and skills, and extracting or collecting materials†. Technology aids in the functioning of a group: it is what enables â€Å"predominating attitudes and behavior† to be acted upon. Therefore, initially, a culture must provide incentive for the development/adoption of a technology. Once adopted, the technology must then be incorporated into the society, requiring cultural adjustments. Always, usefulness is the key determining factor. Cultural adjustments must be worth the effort, the technology must meet a societal need. The technologies that each society chooses to adopt are the ones that they find the most useful. Societies have not developed different technologies by accident: the criteria for determining â€Å"usefulness† is culturally based. The Near East is not a particularly fertile area. Dry land and large rivers that periodically flood characterize the landscape. Obtaining sufficient food was not easy. â€Å"The most vital need of early man in regions of scanty rainfall such as the Near East is water.† (Drower, 520). Because this was the most difficult challenge facing them, from an early stage the people who populated the area must have focused on developing effective farming practices. For them, there was probably little else that was as important as water. Because of this, the cultures of peoples in the area centered around the water. Everything was defined by the river. The oracle of Amen, for example, defined Egypt to be â€Å"The entire tract which th... ...ct. Everyone wants to survive: culture and technology both are merely tools to aid in survival. Usefulness is the governing factor for both. If part of a culture is no longer useful because of a change in the environment, that culture will change. If technologies may be developed to make an environment more hospitable, thus avoiding cultural change, then those technologies are focused on. What is most important to people is the maintenance of their culture. Sources Chant, Colin. Pre-industrial Cities & Technology. London: Routledge. 1999. Drower, M. S. A History of Technology, from Early Times to the Fall of Ancient Empires, Chapter 19: Water supply, irrigation, and agriculture. Edited by Singer, Holmyard, and Hall. Oxford Clarendon Press, 1958. Ehrlich, Paul R. Human Natures: Genes, Cultures, and the Human Prospect. Washington D.C.: Island Press. 2000.

Nature good or bad

This is partly because human nature can e regarded as both a source of norms of conduct or ways of life, as well as presenting obstacles or constraints on living a good life. The complex implications of such questions are also dealt with in art and literature, while the multiple branches of the Humanities together form an important domain of Inquiry Into human nature, and the question of what It Is to be human. Is It good or evil? The nature of humankind has been explored endlessly, with no definitive answers. What people believe the nature of humans to be is a very personal belief.That belief s shaped by the religion they follow, the culture they grew up in, and by their life experiences. What people believe has a large elm[act on the way they live their lives. It Is the pylons of this writer that people are Inherently good. This writer's pylons that people are Inherently good has developed gradually over time. One reason for this viewpoint is the fact that I believe we are all crea ted in God's image by God to serve him. If that is truly the case, then I feel that people would be inherently good, as God is. It is this writer's belief that God would not create someone who was inherently evil.People do sin, and some people could even be considered ‘evil,' but overall I feel that most people do try and lead a good life by being kind to others and helping those In need. Another reason for my belief Is the culture that I have grown up in. This may seem strange, since many people complain that our society is too filled with violence and other ‘bad' things. However, the very presence of such arguments about our society shows this writer that most people do not find violence at violent programming or acts, society tells people what it rely values: love and peace.If violence did not bother people, then there would not be the debate that exists today. Therefore, the belief that people are inherently good is supported by the culture that I grew up in. The exp eriences that one has throughout their life also shape their belief. In my life, I have had many experiences that reinforce my belief that people are inherently good. I have seen people unselfishly helping others in many circumstances. Many people give blood to save some stranger they will never meet.A woman Just donated part of her liver to a young girl she did not know so that the girl could live. Others donate millions to feed starving children , donate their time to teach people the bible so they could have a better life. These people undergo pain to help others; with no reward for themselves other than knowing they did a good thing. When people have tragedy strike them, the community will surround them with support. One example was the earthquake in 2010 that destroyed my country people came from almost every where to help with many different things, from food to clothing to shelter.In daily life, one can usually find many examples of people helping people, I my self donate my time regularly my time to teach the bible o others to help them bring changes it sir lives and I know more than 9 millions are doing the same thing, and this has been an important factor in shaping my belief. If people were not good, then I do not feel that one would be able to find these things occurring with such frequency. But why are we in that situation where we some times have a tendency of doing ABA things? What the scientist think?SCIENTISTS are hard at work to try to find genetic causes for alcoholism, homosexuality, promiscuity, violence, other aberrant behavior, and even for death itself. Would it not e a relief to find that we are not responsible for our actions but are merely victims of biology? It is human nature to blame someone or something else for our errors. If the genes are to blame, scientists hold out the possibility of changing them, eliminating undesirable traits through genetic engineering. The recent success in mapping the entire human genome has given such aspirations new impetus.This scenario, however, is based on the premise that our genetic endowment is, indeed, the villain responsible for all our sins and errors. Have the scientific detectives found enough evidence to make a case against our genes? Obviously, the answer will profoundly affect how we see ourselves and our future. Before examining the evidence, though, a look at mankind's origin will prove enlightening. How It All Started Most people are familiar with, or at least have heard of, the account about the fall of the first human pair, Adam and Eve, in the garden of Eden.Were they made with some intrinsic defect in the genes right from the start, a sort of design flaw that predisposed them to sin and disobedience? Their Creator, Jehovah God, whose works are all perfect, proclaimed that his crowning earthly creation was â€Å"very DOD. † (Genesis 1 :31; Deuteron 32:4) As further evidence of his satisfaction with his work, he gave the first couple his blessing and i nstructed them to be fruitful, to fill the earth with human creatures, and to take charge of his earthly creation?hardly the actions of someone uncertain of his handiwork. ?Genesis 1:28.Regarding the creation of the first human pair, the Bible tells us: â€Å"God proceeded to create the man in his image, in God's image he created him; male and female he created in physical appearance, for â€Å"God is a Spirit. † Noon 4:24) Rather, it means that human returns were endowed with godly qualities and a sense of morality, a conscience. (Romans 2:14, 15) They were also free moral agents, capable of weighing a matter and deciding on the action to take. However, our first parents were not left without guidelines. Rather, they were warned of the consequences of wrongdoing. Genesis 2:17) So the evidence indicates that when Adam was faced with a moral decision, he chose to do what to him seemed expedient or advantageous at the time. He followed his wife in her wrongdoing instead of con sidering his relationship with his Creator or the long-term effects of his action. He also tried later to shift the blame to Jehovah, saying that the wife He had provided misled him. ?Genesis 3:6, 12; 1 Timothy 2:14. God's response to the sin of Adam and Eve is revealing. He did not try to correct some ‘design flaw' in their genes.Rather, he carried out what he told them would be the consequences of their actions, which led to their eventual death. (Genesis 3:17-19) This early history sheds much light on the nature of human behavior. The Evidence Against Biology For a long time, scientists have been tackling the monumental task of finding genetic causes and cures for human pathology and behavior. After ten years of work by six teams of researchers, the gene linked to Huntington disease was isolated, although the researchers have no idea how the gene causes the disease.However, reporting on this research, Scientific American quoted Harvard biologist Even Balkan, who said that i t would be â€Å"almost infinitely harder to discover genes for behavioral disorders. † In fact, research attempting to link specific genes to human behavior has been unsuccessful. For instance, in Psychology Today, a report on efforts to find genetic causes for depression states: â€Å"Epidemiological data on the major mental illnesses make it clear that they can't be reduced to purely genetic causes. The report gives an example: â€Å"Americans born before 1905 had a 1 percent rate of depression by age 75. Among Americans born a half century later, 6 percent become depressed by age 24! † It thus concludes that only external or social factors can bring about such dramatic changes in such a short time. What do these and numerous other studies tell us? While genes may play a role in shaping our personalities, there clearly are other influences. A major factor is our environment, which has undergone addict changes in modern times.Concerning what today's youth are expose d to in popular entertainment, the book Boys Will Be Boys observes that it is unlikely that children will develop sound moral principles when they â€Å"grow up watching tens of thousands of hours of TV shows and films in which people are assaulted, shot, stabbed, disemboweled, chopped up, skinned, or dismembered, when children grow up listening to music which glorifies rape, suicide, drugs, alcohol, and bigotry. † Clearly, Satan, â€Å"the ruler of this world,† has shaped an environment that caters to man's baser desires. And who can deny the powerful influence that such an environment exerts on all of us? ?John 12:31; Ephesians 6:12; Revelation 12:9, 12. The Root of Mankind's Trouble As we have already seen, mankind's problems started when the first human pair sinned. The result? While generations of Dam's offspring are not responsible for Dam's sin, they nonetheless are all born with sin, imperfection, and death as their entered into the world and death through sin, and thus death spread to all men because they had all sinned. â€Å"?Romans 5:12. Man's imperfection puts him at a decided disadvantage. But that does not absolve him of all moral responsibility.The Bible shows that those who put faith in Jehovah provision for life and conform their lives to God's standards will have his approval. Out of his loving-kindness, Jehovah made a merciful provision to redeem mankind, to buy back, as it were, what Adam had lost. That provision is the ransom sacrifice of his perfect Son, Jesus Christ, who said: â€Å"God loved the world so much that he gave his only-begotten Son, in order that everyone exercising faith in him might not be destroyed but have everlasting life. â€Å"? John 3:16; 1 Corinthians 15:21, 22. The apostle Paul expressed his deep appreciation for this provision.He exclaimed: â€Å"Miserable man that I am! Who will rescue me from the body undergoing this death? Thanks to God through Jesus Christ our Lord! † (Romans 7:24, 25) Paul knew that if he succumbed to sin out of weakness, he could ask God's forgiveness on the basis of the ransom sacrifice of Jesus Christ. * As in the first century, today many who formerly led very bad lives or whose situation seemed hopeless have come to an accurate knowledge of Bible truth, made the necessary changes, and come in line for God's blessing. The changes they had to cake were not easy, and many still have to contend with harmful tendencies.But with God's help, they are able to maintain integrity and find Joy in serving him. (Philippians 4:13) we have in this society many example of people who started in a way with a bad life but turn around to do good things , have a complete change in their lives in order to please God or to have a better life for them self. Therefore Wearer Responsible Trying to pin the entire blame for our misconduct on our genes simply does not work. Rather than helping us to solve or overcome our problems, notes Psychology Today, ongoing so â⠂¬Å"may be teaching us a helplessness that is at the root of many of our problems.Instead of reducing the incidence of these problems, this seems to have fueled their growth. † It is true that we must contend with major adverse forces, including our own sinful tendencies and Satin's efforts to distract us from obeying God. (1 Peter 5:8) It is also true that our genes may influence us in one way or another. But we are surely not helpless. True Christians have powerful allies? Jehovah, Jesus Christ, God's holy spirit, his Word the Bible, and the Christian negotiation.Therefore the way one view the nature of human beings is very important as it shapes the way they look at their world. In this case, I must disagree with the â€Å"Theory that say people were born evil. † as I feel that people are inherently good. Most people will choose to be good over evil, and will help their fellow human beings without asking what they are to get from their actions. While there is evil in the world, it is the exception to the norm, and overall it is this my opinion that people can choose to be good . New world translation 2013 edition