Quantitative Methods for Finance and Investment Essay Example for Free

Quantitative Methods for Finance and Investment Essay University of Bristol School of Economics, Finance and Management QUANTITATIVE METHODS FOR FINANCE AND INVESTMENT (EFIMM005) Review Questions Question 1: Concepts a. Deï ¬ ne a stochastic process. Give an example in Finance of a quantity that can be modelled as a stochastic process. b. Deï ¬ ne a stationary stochastic process. c. Consider a stochastic process {Yt , t = 1, . ., T }. Deï ¬ ne the partial autocorrelation function (pacf) associated to this process. d. Explain the diï ¬â‚¬erence between estimator and estimate. e. Let {Ut , t = 1, .., T } be a mean zero white noise process. What is the value of pacf at lag 2 for the process Yt = .5Yt−1 + Ut ? f. Explain the diï ¬â‚¬erence between the autocovariance function and the sample autocovariance function. Question 2: Application The capital asset pricing model (CAPM) can be written as E(Rjt |Rmt , Rf t ) = Rf t + ÃŽ ²j (Rmt − Rf t ), where Rjt is the net return of security j at period t, Rmt is the return on a market portfolio proxy, and Rf t is the return on a risk-free proxy. The coeï ¬Æ'cient ÃŽ ²j is the CAPM beta for security j. Suppose that you have estimated ÃŽ ²j by ordinary least squares and found that the estimated value was 1.37 with standard deviation 2.6. based on 3665 observations. a. A city analyst has told you that security j closely follows the market, in the sense that security j is equally risky, on average, to the market portfolio. Perform a 5% signiï ¬ cance level test of hypothesis to determine whether data support the analysts claim. b. Are hypotheses tested concerning the value of ÃŽ ²j or its estimated values? Question 3: Techniques Consider the moving average process: Yt = ÃŽ µt + ÃŽ ¸1 ÃŽ µt−1 + ÃŽ ¸12 ÃŽ µt−12 with {ÃŽ µt }T a mean zero white noise process with variance ÏÆ' 2 0. t=0 a. Calculate the mean of Yt . b. Calculate the variance of Yt . c. Calculate the autocovariance function of {Yt }T . t=a T =120 d. Assume that {yt }t=1 represents the monthly tons of ice cream sold in the UK between Oct. 2001 and Oct. 2012. What type of dependence can the term ÃŽ ¸12 ÃŽ µt−12 capture? 1

Taras Shevchenko :: Art Artist Research Essays

Taras Shevchenko Taras Shevchenko was born to Hryhoriy and Kateryna Hrushivsky-Shevchenko on 25 February 1814. Growing up in poverty and misery, Taras managed to maintain his spirits and continue to be curious of the world and those around him (4). His father was a great influence to him. He was well known around the village for his practical knowledge and intelligence. Hryhoriy stressed the importance of literacy to his children during their school days. Despite the weekly beatings of the pupils, in agreement with the old academic tradition, Taras was an energetic student and a fast learner (4). Exploring his options, Taras realized his interests and talent for writing poetry and painting. In his early teens, Pavel Engelhardt took Taras to serve as a traveling house boy. Pavel was the first person notice his painting talents, and sent him to apprentice under V. Shiriaev (2). During those four years, he spent his free time sketching and painting images of the summer gardens. Through Engelhardt, Shevchenko met Ukrainian artist Ivan Soshenko, Ye. Hrebinka, Vasyl Hryhorovych, and Alexey Venetsianov. With the help and advice of the mentors, Shevchenko enrolled in the Academy of Fine Arts in St. Petersburg. On top of his general education, Taras pursued his love of art and poetry. In 1840, his first collection of poems was published. Kobzar was a collection of eight Romantic poems. It was through his life time of poetry works that the people of Ukraine were provided with original characteristics about their culture and history (4). Taras Shevchenko’s drive behind most of his paintings and poems was driven by his concern of the state that Ukraine was in. Each of his new projects was centered on the old historic ruins of the Ukraine that he remembered as a young boy. These sketching were collected in the album Zhivopisnaia Ukraina (4). Trouble began for Taras Shevchenko shortly after he joined Cyril and Methodius Brotherhood in 1864. An accusation to the arrest of several of the members, including Shevchenko (4).

Microsoft and Sun

The first problematical questions between Microsoft and Sun concerning the design and the sources of Microsoft Java implementation and Sun`s Java standards start back in 2000 or even earlier. When Sun’s more powerful and flexible standard of Java 2 arrived, due to different reasons (partially because of the legal troubles over Java)Microsoft was stuck in older JDK 1.1 mode. So it comes to the point, where you have to do something, or pass off. So Microsoft improved their JVM in the new version of Windows. And then Sun Microsystems, Inc. announced it has started an antitrust lawsuit against Microsoft Corporation. In its complaint (Press Releases, 2002), Sun alleges that Microsoft has engaged in extensive anticompetitive conduct, including the following: Fragmenting the Java platform; Flooding the market with incompatible Java Runtime Environments; Forcing other companies to distribute or use products that are incompatible with Java; Significantly limiting Sun's distribution channels for the Java Runtime Environment; Intentionally interfering with the development of Java-based applications for compatible runtimes; Copyright infringement resulting from Microsoft's distribution of an unlicensed implementation of the Java Runtime Environment; Intentional creation of incompatibilities between Microsoft software and competing technologies, thereby raising switching costs for consumers and reducing consumer choice. The other side of this long lasting conflict is trying to find a compromise between those standards (Microsoft’s own and Sun’s) and withstanding the lawsuits with more or less efficiency. Also Microsoft protesting against the sources of the lawsuits from Sun. Jim Allchin(Jim Allchin, 2002) from Microsoft wrote: This issue was addressed in detail during the liability phase of the trial. The Court of Appeals determined that it was not illegal for Microsoft to develop and distribute our JVM just because it was incompatible with Suns specification. Also on one of the Microsoft’s press conferences Steve Ballmer (2004) said about interchanges between their companies: So I'd say that's the elements and then if you take a look at the payment, some of the money is to resolve our antitrust lawsuit. Some of the payment takes a look back and says let's make sure we are clean with respect to one another on patents. Some of it is forward-looking in terms of how we work together from a patent perspective. And then some of it is forward-looking, us to Sun and Sun to us, in terms of the licensing of key intellectual property that relates to making these things plug together and interoperate well over the network. Press Conference Transcript: Steve Ballmer (Microsoft), Scott McNealy (Sun), retrieved February 18, 2007, from http://www.microsoft.com/presspass/legal/04-02-04SunPressConference.mspx Sun Press Releases, Sun files suit against Microsoft for antitrust violations, retrieved February 14, 2007, from http://www.sun.com/smi/Press/sunflash/2002-03/sunflash.20020308.1.xml Written Direct Testimony of Jim Allchin, retrieved February 18, 2007, from

Definition Of Behavior Modification The Field Of...

ïÆ'Ëœ Definition of Behavior modification : Behavior modificationis the field of psychologyconcerned with analyzing and modifying human behavior. Analyzing means identifying the functional relationship between environmental events and a particular behavior to understand the reasons for behavior or to determine why a personbehaved as he or she did. Modifying means developing and implementing procedures to help people change their Belvoir. It involves altering environmental events so as to influence behavior. Behavior modification procedures are developed by professionals and used to change socially significant behaviors, with the goal of improving some aspect of a person’s life following are some characteristics that define believermodification. ïÆ'Ëœ Indication: 1. Obsessissive-compulsive behavior (OCD) : Obsessive-Compulsive Disorder (OCD) is a common, chronic and long-lasting disorder in which a person has uncontrollable, reoccurring thoughts (obsessions) and behaviors (compulsions) that he or she feels the urge to repeat over and over 2. Attention deficit hyperactivity disorder (ADHD): is a brain disorder marked by an ongoing pattern of inattention and/or hyperactivity-impulsivity that interferes with functioning or development. †¢ Inattention means a person wanders off task, lacks persistence, has difficulty sustaining focus, and is disorganized; and these problems are not due to defiance or lack of comprehension. †¢ Hyperactivity means a person seems to move about constantly,