Applying the EMH Evaluate the Role That Government Played In Economic Essay

Applying the EMH Evaluate the Role That Government Played In Economic Recovery Using Recent Real-life Examples - Essay Example because of the market volatility due to the different government policy and the detailed study would tend to give a great learning opportunity about this adverse scenario. Efficient Market Hypothesis (EMH) Theory Efficient market hypothesis implies that, if any new information about a company is revealed it will be immediately incorporated into the share price rationally and rapidly, with respect to the direction of the share price movement and its size. In an efficient market except by chance, no trader will get an opportunity to earn abnormal return on a share or a return which is greater than the fair return for the risk associated to that share. The possibility of absence of abnormal profits arises because the past and current information is immediately reflected in the current share prices. The prices are affected only by the new information. EMH is concerned with under what conditions an investor can gain abnormal profits or excess returns in a stock. EMH claims that all the in formation available readily reflects in the price of the stock. According to EMH abnormal positive returns are not possible by any trader using the information available to public. Many people think that market efficiency means that it is impossible to outperform the market at any given point of time which is incorrect. Efficiency does not mean that prices will not apart from true value: At any point of time it is expected that prices will deviate from their true value, majorly because value depends on the future and future is unpredictable. Efficiency does not mean that no investor will be able to beat the market in any single time period. In an efficient market approximately one half of the shares purchased subsequently outperform not because of the skill but due to the fact that prices... This report stresses that market efficiency has been tested over a long period of time and it has been observed that movement of the stock prices follow a random walk. The random walk theory states that an investor can have a good chance of beating the market if they throw darts on New York Times stock listing pages. Investors who adhere to the random walk theory believe that searching for undervalued shares or predicting the future stock price is just a waste of time. Any new developments of government like restructuring the tax legislation, controlling the financial crisis and the inflation etc reflect in share prices of the different corporation. Followers of random walk theory believe that is impossible to predict future events and they are left with no other choice but to accept the efficient market hypothesis. This essay makes a conclusion that it cannot be denied that the government interventions play a crucial role in stabilizing the economies that were overturned due to the financial crisis as result of devaluation of properties or inability to service the debt obligations. Due to the global crisis, the investor confidence eroded which had adverse impact on the stock prices. The fluctuation in the stock prices was also due to drift in the present market condition. As a result of revised regulations and containing policies by the government, the economies started to revive and the interest of the investors were protected. This resulted in the decrease in volatility of share prices which reflects belief of the investors from their anticipation of future events in the economy. This follows the efficient market hypothesis.

Human freedom and the ten commandments Essay Example for Free

Human freedom and the ten commandments Essay When Jesus was asked, What must I do to inherit eternal life? , he replied: You know the Commandments, keep these and you will live. It has been said, that the Ten Commandments are not simple rules mandated by God, but rather, this set of rules is considered as a gift given to men in order for them to live the life that God has promised. Although the word â€Å"commandment†, by itself, imports something mandatory and obligatory, it must be understood that God has granted each one of his people freedom and independence to choose how he or she will act, and hence, human freedom is an important topic to be discussed alongside the Ten Commandments. It will be seen, that the kind of life that men live is simply a reflection of how he uses the freedom that he has been gifted with. A person can either live a life full of one spent as a good follower of God. Although some would say that it is a question of fate, destiny, or maybe even luck, the truth is that, a person lives a life based on his own choices and decisions. As have been stated, men have been gifted with freedom, and it is up to him how he will utilize this gift. Every person has different forms of needs and wants that have to be dealt with in everyday life. This is where freedom sets in. In allowing absence of restriction, God permits every individual the opportunity to shape his life. It has been stated that this is one risk that God chose to take. â€Å"God risked much in creating us humans with the freedom, now, to unleash horrendous nuclear disaster or to love our fellows across all boundaries. † (Grider, 1994). It is the freedom that each one has been blessed with that enables him to understand and appreciate the life that he has and all the beauty that comes with it. On the other hand, if this freedom is abused, then the consequences that go with it, would also have to be dealt with by the individual concerned. Being free entails a lot of responsibility. It is believed that God granted every individual the gift of freedom, not for the sole reason that he be boundless or limitless. Man is given freedom for him to be responsible for all the things that he says, does or even thinks of. True enough, some philosophers believe that the things that happen to each individual can be traced to the actions and decisions that he chooses to take. Most of the times, it is not up to the heavens if a good or bad thing happens to one person. More of than not, everything that happens to a person can be traced to the course of action that he chose to take. The scriptures that God instructed to be drafted, in essence, are mere forms of guidance for men; but in the end, it is human freedom which will eventually dictate whether or not an individual will live his life by these guidelines. The concept of human freedom is more often discussed by mentioning the story of what happened to Adam and Eve in the garden of Eden. As has been aptly stated, â€Å"these questions as to the nature of human freedom arise especially when we turn our attention to the question of the origin of sin. Only consider how many times the origin of sin has been ascribed to this human freedom of choice, implying this twofold power of man’s nature and of his creaturely existence: to sin or not to sin; a good part and an evil part of his nature. † (Berkouwer, 1962). True enough, God could have stopped the serpent from interacting with Adam and Eve, but due to the freedom that he bestowed the two, they had the choice as to whether or not to take the apple that the serpent offered them. Ultimately then, it is this choice that they made which is the root cause of why they were banished from the garden of Eden. It would appear then that despite the Ten Commandments being set down by God to be sent to his people, the same is not precisely a set of obligatory rules imposed upon men. Rather, the Ten Commandments are considered as a guide as to how each person should live if he wants to experience the kind of life that God promised. This is a kind of life full of happiness, peace, beauty and love. A person’s freedom can lead to this if a person, in choosing paths to take, keeps in mind what the Ten Commandments speak of. Ultimately, it would depend upon the person if he will live the kind of life promised by God ever since the olden times, or if he will use his freedom to lead him to a kind of unspeakable and despicable kind of living. REFERENCE â€Å"The Ten Commandments†, http://www. whitestonejournal. com/tencommandments J. Kenneth Grider , â€Å"Human Freedom†, 1994, http://www. bibleviews. com/humanfreedom. html G. C. Berkouwer, â€Å"Human Freedom†, 1962, http://www. the-highway. com/freedom2_Berkouwer. html

Globalization is an ongoing process

Globalization is an ongoing process Globalization is a wide term and a difficult one to define. The definition that most people seem to agree upon is that globalization is an ongoing process of economical, social and cultural integration between countries all over the world through a global network of communication, transportation and trade. When used in economic context, globalization refers to the reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital, services and labor. Globalization became very important topic of discussion and concern in economic circles in the middle 1990s. Even though global common market promotes the freedom of exchange of goods and capital, the interconnectedness of these markets can mean that economic crisis in one country can impact other countries. The best evidence is recent global economic crisis. Also, thanks to the revolution in communication, transportation technology and improved availability of information companies now can produce goods and services in the countries where workers have the lowest wages and health benefits as well as least worker protection which can lead to job loses and sweatshops. A number of people argue that globalization has weakened the position of poor countries and exposed the poor to harmful competition so they demand additional reforms, be they institutional or economic. BODY OF THE TEXT: Its hard to prove that globalization is precisely what does or doesnt cause poverty since links between globalization and poverty are indirect. For example, poverty can be measured in a lot of different ways; from countrys average or overall well being. Also many people have been poor during the history for many different reasons that cant be attributed to globalization, but as developing countries became more integrated into the world trading process over the past 20 years, world poverty rates have steadily fallen. Despite this, many studies in this particular subject suggest that globalization has caused rising inequality, meaning that the poor do not always share in the gains from global trade. In general, global market competition rewards people with initiative and skills while poor people are handicapped by their lack of access to capital and so they have problems adjusting to the changing market. The fact that the GDP (Gross Domestic Product) of the 41 heavily indebted poor cou ntries is less than the wealth of the worlds 7 richest people combined is the best evidence of rising inequality. Export growth and incoming foreign investments have reduced poverty all around the world but at the same time currency crises have increased. Links between globalization and poverty dont depend solely on trade or financial globalization but on the interaction of globalization with the rest of the economic environment such as investments in human capital and infrastructure, worthy institutions, governance and macroeconomic stability that includes flexible exchange rates. World Bank proved in their research that besides openness to trade many other factors such as macroeconomic policies or investment climate affect one`s country economy. Usually, the hardest part is achieving that foreign capital flows unboundedly.A good example of opening to trade is China that made the most of foreign investments. Investment climate is one of the key points of successful trade for poor countries. It refers to regulations and environment in which a company operates. World Bank stimulated countries to measure investment climate and find the source of their problems that require urgent solutions. This kind of research was conducted in Bangladesh, China, India and Pakistan where they covered different types of companies like garment and electronic and discovered that the biggest problem concern weaknesses in governance. Also, indicators of investment climate are period that material is held on the custom and installation of a telephone line. In these areas, China came out as the best rated country so we may say that it used globalization for improvement. RICH COUNTRIES COULD HELP POOR ONES TO INTEGRATE Agriculture is a line of production where developed countries hold strong protectionism We mention it because it is a branch of production where poor countries could earn the most. For example, U.S. eliminates foreign producers by giving subsidies to their farmers. Annually they give 50 million dollars in subsidies while only thirty percent of that money goes to Africa through foreign aid. Pew research center conducted a survey which reveals that developing countries have problems with agriculture because rich countries refuse to break trade barriers. Even though living standards are advancing in the developing world it is not the case in the poor countries, especially in Africa. The differences between rich and poor are getting more obvious day by day. It is very sad that almost half of the world, over three billion people, live on less than 2,5 dollars a day while at least 80 percent of humanity lives on less than 10 dollars a day. According to UNICEF, 22 thousand children die every day due to poverty. They die quietly in the poorest villages on Earth. Apart from hunger, diseases that kill them are hepatitis A and B, malaria, cholera, AIDS, yellow fever and many other. . Also water problems are not rare, they affect half of humanity. About billion people entered 21st century unable to sign their names or read a book. The industrial countries have to make greater efforts to open their markets and develop country exports. In poor Asian economies like Bangladesh, Vietnam or Cambodia large numbers of women have to work in garment export factories at wages that are low by world standards but are much more higher than what they would earn in alternative occupations. In spite of that wealthy countries benefit the poor, their assistance isnÂÂ ´t enough to make them independent. Reasons why countries didn`t manage to set up are various according to IMF. They might be weakness of administration like corruption, spending money on irrelevant projects instead of investing in appropriate ones or suggesting projects that support interests of rich countries. Concerning this, market competition is practically unbearable for poor countries so they usually don`t profit from globalization. CONCLUSION: Globalization has reduced poverty especially by removal of barriers between national borders and raising awareness about global problems such as poverty, illness and hunger thanks to the revolution in communication but its also responsible for rising inequality since small businesses and third world countries are not capable to update their technology as often as their larger, wealthier counterparts but even the poor gain something from globalization. Most countries have moved ahead with trade and exchange liberalization. What rich countries should do is to support development of health and education, set aside as much money as possible and free up the trade. Apart from that, rich countries should concern aid as a part of their GDP ( Gross domestic Product) because it seems to be at its lowest points since it was instituted.To make poor countries benefit from globalization, actions at national and international level must be undertaken.

Revenge In The Odyssey :: essays research papers

The Greeks, as portrayed by Homer, are a very vengeful people. Throughout The Odyssey, a theme of vengeance is dominant. These displays of retribution come from different entities for fairly different reasons. So why is revenge such a factor in The Odyssey? Fear and the overwhelming feeling of payback are two answers. Homer gives numerous examples of how certain characters demonstrate their power in a fury of rage. He writes of the payback Zeus gives to those who break the rules, of Poseidon’s hatred towards Odysseus, and of Odysseus’s revenge to those who have dishonored his home.   Ã‚  Ã‚  Ã‚  Ã‚  Zeus is the most powerful of all gods. All the Greeks with sense know not to cross him. A major practice in their culture is to invite in visitors that come to their doorsteps. This practice involves caring for the visitor by bathing and feeding them. After the visitor has been cared for, the host and visitor discuss the lineage of the visitor. This is done with the fear of Zeus and those who don’t follow the practice are dealt with. Those who don’t follow this practice are considered barbarians. Homer gives a clue into the extent of the fear when he writes that Telemakhos was “irked with himself / to think a visitor had been kept their waiting…'; (5). One example in The Odyssey is when Odysseus comes to the home of the Kyklops. Odysseus states:   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  “We will entreat you, great Sir, have a care   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  for the gods’ courtesy; Zeus will avenge the unoffending guest'; (153). Kyklops just answers that, “We Kyklopes care not for your thundering Zeus…';(153). This is a big mistake because directly after this statement, the Kyklops eats some of Odysseus’s men. Zeus does avenge the men through Odysseus. Odysseus gets the Kyklops drunk and stabs out his eye, allowing an escape. One thing that is bad for Odysseus, though, is the fact that Kyklops is the son of Poseidon, god of the earthquake. This now spurs a new challenge for Odysseus: he must get home with Poseidon’s obstacles.   Ã‚  Ã‚  Ã‚  Ã‚  Poseidon has never really liked Odysseus. When Odysseus tries to make it onto the shore of Skheria, Poseidon “…calls up wind / from every quarter, and sends a wall of rain…'; (89). Consequently, it is a safe assumption that Poseidon will really have it in for Odysseus. He states, “I thought he should suffer all the way [home]'; (233). After Odysseus returns home, Poseidon talks to Zeus and says he wants to put a mountain ring around the city and crush the ship of the Phaiakians.

Bora Bora Hotel Pestle Economics

Economic factors Tourism and service industries are two biggest sectors in Bora Bora, French Polynesia, about 40 percent of employees work in the Service sector. In 1997, almost eighty percent of the whole GDP in this country was from service sector. During the end of the last millennium, there has been a huge economic decline in the whole French Polynesia, mainly in Tahiti and Bora Bora. But with the economic help of France and clearing the rumors of nuclear experiences the country’s economy started to grow.This country’s climate is very beneficial for hotels, because almost all year it’s warm and the exotic nature always attracts people. Lately, there has been a huge increase of tourists that travel to Bora Bora, because of the newly built hotels and airports. This is a huge factor for our chosen hotel, Hilton, because if more people will want to go to this area, there has to be more hotels for their accommodation.But other hotel chains are also interested in b uilding new hotels in Bora Bora, because of its newly found Brand recognition as a holiday resort and growing economy. Bora Bora does not produce a lot of goods, so they have to be imported. Which is mainly the Hotels problem, because the Levies  and excises on imported goods and licensing fees in the whole French Polynesia are the highest ones. The main objects that Bora Bora imports include food, fuel, building materials,  consumer goods  and automobiles.Because they are imported, these goods cost more for the hotel than the natively made ones. Their main importers are United States and France. In the world chart, French Polynesia is in the two hundred twelfth place, with the inflation rate of 1. 1, while for example, Denmark’s inflation rate is 2. 8, United States inflation rate is 3. 1. In 2008, the currency exchange was 16. 5 French Polynesian francs for one US dollar.

Decomposition of Sodium Bicarbonate - Balanced Equation

Decomposition of Sodium Bicarbonate - Balanced Equation The decomposition reaction of sodium bicarbonate or baking soda is an important chemical reaction for baking because it helps baked goods rise. Its also how you can make sodium carbonate, another useful chemical, also called washing soda. The Equation for the Decomposition of Sodium Bicarbonate The balanced equation for the decomposition of sodium bicarbonate into sodium carbonate, carbon dioxide, and water is: 2 NaHCO3(s) → Na2CO3(s) CO2(g) H2O(g) Like most chemical reactions, the rate of the reaction depends on temperature. When dry, baking soda doesnt decompose very quickly, although it does have a shelf life, so you should test it before using it as a cooking ingredient or in an experiment. One way to speed up the decomposition of the dry ingredient is by heating it in a warm oven. Baking soda starts to break into washing soda, carbon dioxide, and water at room temperature when mixed with water, which is why you shouldnt store baking soda in an open container or wait too long between mixing a recipe and putting it in the oven. As the temperature increases to the boiling point of water (100 Celcius), the reaction goes to completion, with the  decomposition of all the sodium bicarbonate. Sodium carbonate or washing soda also undergoes a decomposition reaction, although this molecule is more heat-stable than sodium bicarbonate. The balanced equation for the reaction is: Na2CO3(s) → Na2O(s) CO2(g) The decomposition of anhydrous sodium carbonate into sodium oxide and carbon dioxide occurs slowly at room temperature and proceeds to completion at  851 C (1124 K).