Integrity essays

Honesty expositions Honesty is characterized by Websters as a firm adherence to a code of particularly good or masterful qualities (INCORRUPTIBILITY,) a healthy condition (SOUNDNESS,) and the quality or condition total or unified (COMPLETENESS.) These are two or three instances of sorts of uprightness: respectability of character, proficient trustworthiness. How I would characterize uprightness is the means by which one handles themselves with obligation and the capacity to face the results welcomed on by the need there of. A pioneer is the good example or guide by which a gathering or individual that is under their order is most affected. Inevitably this will prompt an embellishment or displaying of this gathering or people conduct. This is the reason a pioneer must have and keep up the best quality of character and trustworthiness whether on or off the clock. Honesty of ones character will comprise of respect, excellence, faithfulness, and subjection. Without uprightness the pioneer can never assemble the regard and certainty of junior and senior individuals inside the gathering whether it be a group, crew, company, or troop. Presently I feel that respectability is a hard trademark to keep entire because of the verity of each viewpoint that is expected to misuse it. The nature of respectability isn't an attribute that we are brought into the world with; rather it is found out as we experience life. Not every single great pioneer have foundations that would demonstrate their degree of honesty either. Rather, during the way toward learning, respectability of the individual is created. Likewise with fingerprints, no two individuals have the specific worth framework that we live by. So this makes it hard two appointed authority one anothers respectability or need there of. The way toward learning honesty begins when we are extremely youthful and is set by people around us, for example, our folks, instructors, other relatives, just as companions. With this, the degree of respectability of everyone around us mirrors the degree of uprightness that we have. In the military our integr... <!

Case Synopsis Free Essays

The administration at Atlantic Computer had the issue of planning a valuing system for item packaging. This must be a remarkable valuing system since they were splitting ceaselessly from the business practice which was to offer programming devices for nothing. Anyway for this situation, the administration had ruled against this system as the utilization of the product device would prompt extensive investment funds with respect to the client. We will compose a custom exposition test on Case Synopsis or then again any comparable point just for you Request Now Hence the administration accepted that if new item promoting and deals carried out their responsibility right, clients could be convinced to pay an extra rate for the PESA programming instrument. Along these lines the focal point of the issue was plainly to build up the correct valuing technique which would mull over the product’s benefits and the current serious weights in the market. This was the assignment given to Jason Jowers, the most youthful item director at Atlantic Computer. The technique that Jason created would be tried at the SME public expo. Contingent upon the test outcomes, the estimating structure could be incorporated. Organization outline Atlantic Computer has a long record of working in the top of the line execution servers advertise. It had been offering Radia to enormous undertaking purchaser servers throughout the previous thirty years. Anyway the administration had moved the vital concentration to essential servers in light of the fame of the Internet innovation. This was the explanation that Atlantic Computer was presenting Tronn. The leader of the server division accepted that clients would no longer think about elite servers and fundamental servers as substitutes. In this way, the market had impressive development potential as far as essential servers. Atlantic Computer previously had a significant brand notoriety in the market from selling superior servers and the organization would have the option to underwrite upon this notoriety by selling fundamental servers. The organization additionally had gained notoriety for responsive post-deals help. This depended on client relationship the board and item separation. Subsequently, the organization had a generous existing client list which could be promoted upon to enter the market for fundamental servers. In this regard the technique of item separation was being actualized through packaging equipment with programming. Item diagram Atlantic Computer had been selling superior servers throughout the previous 30 years. Presently it was entering another market with essential servers the functionalities of which were extended by packaging the equipment with the PESA programming apparatus. The business practice was that product instruments were parted with for nothing. Anyway the administration at Atlantic Computer had ruled against this technique in light of the fact that the clients would have the option to diminish their working costs significantly by utilizing the PESA programming instrument. Essential servers are utilized to perform straightforward, repeatable capacities while programming devices are utilized to screen the wellbeing of a server or to upgrade the presentation of the server. Clients in the web-server and record sharing applications section would profit most from the recommended item packaging The most effective method to refer to Case Synopsis, Papers

Genie the Wild Child Essay Sample

Genie the Wild Child Essay Sample Genie the Wild Child: Victim of Science It is the cruel and heartbreaking story of an abused child, filmed by Nova Prods. It grounds on the true events that took place in the early 1970s in the Southern California. Secret of the Wild Child” is an hour of poignancy which tells us about Genies sad life. Despite the best intentions of the scientific team, she got hurt due to the research. Learn the horrible truth about Genie, the wild child, who fall a victim of the unsuccessful scientific experiment. Meet Genie: Secret of the Wild Child A social worker discovered a child tied to a potty chair in a tiny room. She had been locked here for all her miserable life. Who and why did this to the suffering child? Believing that the girl is mentally ill, her father, Clark Wiley, decided to keep her separate from society. The native father had abused the girl. Genie never allowed hearing a word as her blind mother, and 6-year-old brother occasionally spoke to her, and the father addressed girls mostly in growls and barks. Every time she tried to make a sound, he beat the child with a wooden stick. As a result, Genie deprived minimal human contact was unable to talk. The girls only environment was bare walls and her bed. Having been isolated and abused for over a decade, the girl spent her entire childhood locked in the bedroom, often tied naked, unable to move her feet and hands. The odd child barely walked and moved in a jerky way, holding her arms in front of her body. The truth about the child turned out when her mother escaped with the girl, then 13. Both parents were charged with child abuse. However, the girls father committed suicide the day before he was expected to appear in court. Being discovered, Genie was scarily skinny weighing about 60 pounds as her father fed the girl only milk and Pabulum. The speechless and silent child was spitting all the time and couldnt seem to use language or even to chew. The girl cannot recognize a word besides her own name. Now, the world calls her Genie, however, the real name remains uncovered to protect the privacy and identity. She is the most deeply damaged child world has ever seen. A Rat Lab: Failed Experiment Could a numb child develop language skills? Surrounding with a team of linguists and psychologists, Genie becomes the core of the scientific research. She lives in the house of the doctor, where she stays for the next four years. The girl is interested in drawing; she enjoys listening to classical music and doing well with the housemates. • Communication. People engaged in the experiment become attracted to the girl very soon. As they describe, in spite of Genies silence, she has a strange quality of connecting with persons around her. Within the first year, Genie makes rapid progression, for instance, swiftly learning how to dress. It seems the girl has a strong ability to communicate nonverbally. Genie frequently receives presents from strangers that understand her without any conversations. She vividly explores the world around her enjoying strolling outside the hospital. Now, her legs are stronger, she walks more confidently. Genies eyes shining as people tended to her. She likes to be stroked and soon learns how to hug back. The quiet girl begins to speak. • Language Progress. Fascinated linguists and psychologists have a unique opportunity to study the case. Upon her initial assessment, Genie scored at the level of a one-year-old child. However, she quickly begins adding words to her vocabulary. Eventually, she occasionally puts three words together as little kids do. It appears that the girl is completely capable of learning. However, she is stuck at the stage of language explosion unable to put the words in novel ways. Genie cannot apply grammatical rules to use her knowledge in a meaningful way. The progress of acquiring language is halted. Experiment Failure Due to the slow progress and lack of scientific findings, the funds have been withdrawn four years later after the launching of the test. The follow-up study without grant money is an insurmountable task for the scientists who have been caring for Genie since her extraction. The foster family decides to remove the girl from the house. The bond with the only people she attached and trusted to has been lost. Instead, Genie returns to her birth mother who has found it too difficult to take care of the girl. Instead, the girl is put into a foster home where she is often beaten. Genie has no prospects; the progress she has made within her first years of training dims. She has changed six foster homes since her studies. Eventually, Genies situation continued to worsen, and she regresses back into silence. Today Genie is under 60. She is mentally underdeveloped, speechless, depressed woman who lives in a private adult foster care. Conclusion After all the attention Genie had in the first place, she was abandoned and became lost in the scientific observation. The disappointed scientists turned back on the abused child when they run out of federal funding. Therapist and scientist combined in one person were a great mistake of the team. Genie’s mother put the right question: did the scientist interfere with the childs treatment? How did the research influence the poor girl? What was the matter of more importance, the scientific findings or Genies interests, her mental health, and well-being? It was the greatest tragedy of Genie who fall a victim of the forbidden experiment.

An Introduction to the Interquartile Range

The interquartile range (IQR) is the difference between the first quartile and third quartile. The formula for this is: IQR Q3 - Q1 There are many measurements of the variability of a set of data. Both the range and standard deviation tell us how spread out our data is. The problem with these descriptive statistics is that they are quite sensitive to outliers. A measurement of the spread of a dataset that is more resistant to the presence of outliers is the interquartile range. Definition of Interquartile Range As seen above, the interquartile range is built upon the calculation of other statistics. Before determining the interquartile range, we first need to know the values of the first quartile and third quartile. (Of course, the first and third quartiles depend upon the value of the median). Once we have determined the values of the first and third quartiles, the interquartile range is very easy to calculate. All that we have to do is to subtract the first quartile from the third quartile. This explains the use of the term interquartile range for this statistic. Example To see an example of the calculation of an interquartile range, we will consider the set of data: 2, 3, 3, 4, 5, 6, 6, 7, 8, 8, 8, 9. The five number summary for this set of data is: Minimum of 2First quartile of 3.5Median of 6Third quartile of 8Maximum of 9 Thus we see that the interquartile range is 8 – 3.5 4.5. The Significance of the Interquartile Range The range gives us a measurement of how spread out the entirety of our data set is. The interquartile range, which tells us how far apart the first and third quartile are, indicates how spread out the middle 50% of our set of data is. Resistance to Outliers The primary advantage of using the interquartile range rather than the range for the measurement of the spread of a data set is that the interquartile range is not sensitive to outliers. To see this, we will look at an example. From the set of data above we have an interquartile range of 3.5, a range of 9 – 2 7 and a standard deviation of 2.34. If we replace the highest value of 9 with an extreme outlier of 100, then the standard deviation becomes 27.37 and the range is 98. Even though we have quite drastic shifts of these values, the first and third quartiles are unaffected and thus the interquartile range does not change. Use of the Interquartile Range Besides being a less sensitive measure of the spread of a data set, the interquartile range has another important use. Due to its resistance to outliers, the interquartile range is useful in identifying when a value is an outlier. The interquartile range rule is what informs us whether we have a mild or strong outlier.  To look for an outlier, we must look below the first quartile or above the third quartile.  How far we should go depends upon the value of the interquartile range.

Preparing an Outline for Research Articles and Thesis for Dummies

Preparing an Outline for Research Articles and Thesis for Dummies The best type of essay starts with the very best sort of topic, so take time to choose something which works for you. The conclusion also needs to be included in the prewriting practice. To put it differently, it should provide a last statement that touches on the key points which you have made in your essay. If your thesis is something which is normally agreed upon or accepted as fact then there's not any reason to attempt to persuade people. An outline will help to specify the way a student will build other critical sections including Literature Review. An absolutely free outline may be used by writers in writing. An excellent outline has become the most crucial step in writing a superb paper. It is an important element in writing a good paper. Rectify all the errors you are able to pinpoint and also attempt to acquire somebody else to read the paper you've written. There are a couple of suggestions on how to compose your abstract but the very best advice is that you look at some journals applicable to your research and attempt to format your abstract in a similar way. There are a number of reasons, but generally speaking, it could be beneficial to make an outline if you want to demonstrate the hierarchical relationship or logical ordering of information. Tell yourself that you have all of the thoughts, suggestions and words you require to compose great articles people will like to read. Facts, Fiction and Preparing an Outline for Research Articles and Thesis A research paper outline, though, will additionally have a hypothesis or thesis as a portion of the introduction. Make sure the topic you pick for your dissertation is one you're comfortable and familiar with. A methodological design has to be included in the discussion in a thesis outline. There are a lot of dissertation guides out there which contain chapters and chapters of information about how to compose an outstan ding dissertation. Next, it has to sum up the entire essay. Choosing a thesis doesn't arrive first. Make sure that your thesis is arguable. Observing the introduction the points required to demonstrate the thesis are provided. Whether you do an easy research or a complicated one for a larger project, a research outline can help you have the best outcomes. An outline is essential for all sorts of research papers. A critical part of any research paper outline is going to be a literature review. Utilizing a definitive outline to prepare a research paper can help you to concentrate on its key elements of the analysis. Writing a research paper is as vital as performing the true research or experiment itself and can seem to be an extremely daunting endeavor. Planning is undoubtedly a necessity, and all the very best research papers examples come from effective planning. Tell yourself which you can write articles. Good research papers are all over the net for one to read. When outlining your methodology, you would like to explain the critical steps you intend to take to collect information. Conducting a research isn't any doubt an elaborate affair and with all these tasks to do, it isn't uncommon to drop consistency if there is absolutely no outline. Outlines ought to be checked to create sure the points that you have covered have a logical flow. A thesis outline was designed to be certain that the plans for the inception of a thesis is put together in such a manner that all of the variables necessary to the range of the study are considered appropriately. Now you have a notion of what you w ould like to write about, the next step ought to be planning everything carefully. In some instances, some regions of the outline aren't written down due to some last minute alterations. To begin, you're going to want a great topic and a strong focus as a way to receive your paper outline rolling. If you take a look at research paper outline examples, you will observe we have several strategies to present the principal body.

The involvement of Northern NGOs with the developing countries Free Essays

In this research paper we look at the involvement of Northern NGOs with the developing countries. They are prime donors of most developing countries programs which are geared towards alleviating the welfare of the masses such as improve health and living condition. Local NGOs have been involved as intermediaries between government and the people. We will write a custom essay sample on The involvement of Northern NGOs with the developing countries or any similar topic only for you Order Now The northern NGOs serve their specific agenda and mandate contrary to what the poor rural urban expect. NORTHERN NGOS Northern NGOs represented international organizations who are donors to developing countries that are are donors such as World Bank and private agencies. Their relation with the south makes it the subject of this research paper. The relationship with governments and nongovernmental organization with them plays a critical role in understanding their mandates and objectives in helping the population in the rural and urban regions. The urban and rural populace has diverse needs ranging from health, unemployment, education, poverty and access to other services. In this respect governments have been unable to provide these services to their community in an effective and wider coverage manner. For instance, in South Africa, 30 % of the population are unemployed and for the 20% of the poorest households, 53% ere unemployed (Adato Haddad 2001, p.1). It is also reported that there is need for job creation in all regions inhabited by the poorest households i.e. urban, metropolitan and rural. Based on these facts the governments of countries in the developing world have focused their programs to alleviate these problems e.g. the welfare of the masses, improve living condition, health and service provision (Li 2005). The programs have achieved different success margins and limitations. Most of government programs are constrained in reaching the people because of bureaucracy, authoritarian rule and high cost of implementation. Since most of the programs are financed by international community (Northern NGOs) and governments. For instance, in Indonesia the World Bank has developed social development programs to help them achieve their mandate and objectives. In order to do these, they have used analysis of the needs of the regions to come up with the plan. Due to constraints in working with the government directly they have supported and strengthened the local NGOs and civil society organizations (CSOs) to advance their objectives (Li 2005). The rationale use includes improving transparency in village planning level, conflict resolution and step sponsorship of NGOs. However NGOs have their own limitations such as the leaders use as a vehicle for reformation of social and political life. The World Bank has used neo-liberal system to ensure ‘good governance’ by instituting a competitive process based on administrative and decentralized structures (Li 2005). More so in order for the region to be eligible for support from World Bank it had to proof that it is pro-poor and is supervised by the World Bank team. According to Arya (1999) he explains the role in which NGOs have worked with their government under the funding of donors (government agencies, private agencies and governments). The common objectives for the collaboration include; access to technical resources, gain legitimacy or recognition from the people, obtain appropriate solution and developmental problems, enhance people’s participation and provide   better accountability, transparency and public reform system (Arya   1999). Donors view NGOs as intermediaries or transitory to government links to people and use them to as instruments of improved service delivery and outreach to the government. The donors see their task as completed when NGOs are involved in the project programs with the government. Most private donors do not support or supervise the selection criterion even when there is resistance from the government. However, they can play a key role in establishing mechanism to bring NGOs so that they have a beneficial effect on service delivery, participation and decentralization (Arya 1999). Northern NGOs for the past decade have increased funding to southern NGOs with due to limitation effectiveness of delivery, reforms, cost efficiency, sustainability and participation from the government. DeGabriele (2002), when studying about improvement of community based management projects. He previewed the World Health Organization commitment to provide access to safe and clean water. But from the experiences gathered two challenges emerged; water accessibility could not be achieved with the rate of population growth and the intended improvements to health were not realized within 1980 – 1990 decade. This becomes the redefinition of the concept of community management within water sector. It was realized that water accessibility could only be achieved with participatory role implemented (DeGabriele 2002). AED (1998) elaborates on the participatory approach used to i.e. the participatory learning and Action approach which involves communities to analyze their needs, identify possible solutions and develop, implement and evaluate the plan of action. In contrast NGOs can have negative implication to the poor because they can use them to legitimize their existence, solicit funds and raise their profile for the disadvantage of the poor. Changes in their positive attitude will go way to bring positive results (AED 1998, Kaiser 2000, p. 6). CONCLUSION Northern NGOs play critical role in financing development programs to developing countries. They have been involved directly or indirectly with government depending on the nature and intensity of the resources used and the origin of the donor. Most private agencies finance the local NGOs who are viewed as intermediaries or transitory link between the government and people. The donors have used them to enhance their agenda and mandate to ensure good governance of project- programs they agree with the government. REFERENCE Adato, M.; Haddad, L, 2001, Poverty targets, community-based public works programs: a cross-disciplinary assessment in South Africa, International Food Policy Research Institute (IFPRI). Available from: http://www.ifpri.org/divs/fcnd/dp/papers/fcndp121.pdf [8 April 2008] AED, 1998, Empowering communities: participatory techniques for community-based programme development, Academy for Educational Development, Washington DC, Available from: http://pcs.aed.org/empowering.htm [8April 2008] Arya, V, 1999, Towards a relationship of significance: lessons from a decade of collaboration between government and NGOs in Rajasthan, India,   Agricultural Research and Extension Network (AgREN), Available from: http://www.odi.org.uk/agren/papers/agrenpaper_97.pdf [8April 2008] DeGabriele, J, 2002, Improving community based management of boreholes† a case study from Malawi Land Tenure Centre, University of Wisconsin-Madison, Available from http://www2.irc.nl/manage/debate/malawi.html [8April 2008] Kaiser, T, 2000, Participatory beneficiary-based approaches in evaluation of humanitarian programmes, Evaluation and Policy Analysis Unit (EPAU), UNHCR, Available from : http://www.unhcr.org/research/RESEARCH/3c7527f91.pdf [8April 2008] Li, T, 2005, The government through community; the World Bank in Indonesia, University of Toronto, Available from: http://www.law.nyu.edu/kingsburyb/fall05/globalization/Li_paper.pdf [8April 2008] How to cite The involvement of Northern NGOs with the developing countries, Essay examples

Volatility of Irish stocks

Table of Contents Introduction Rationale For The Study Relationship to previous studies Source of data Proposed methods Conclusion Reference List Introduction With the emergence of globalization, the world stock markets have become interdependent thereby if there is a change in one stock; the ripple effect is felt in other stocks in terms of volatility and returns. In this review we examine how the volatility of Irish stocks has evolved since 2000 to 2009 and the factors that have influenced them.Advertising We will write a custom report sample on Volatility of Irish stocks specifically for you for only $16.05 $11/page Learn More In focus are the main factors that influence the volatilities and how correlated the volatilities are in the different industries. In this review, we shall look at the influence of the U.S policies on the American stock market and in return the effect on the Irish stock market (Bredin et al, 2004). There several ways through which the information about expected changes in financial policies are conveyed to the investors. From past studies it has been shown that investors invest in stocks prior to release of policy news which they hope will serve to their advantage. Therefore after the policy information has been past, the investors react accordingly, and this phenomenon is referred to as â€Å"the calm before a storm effect†. Bredin et al. (2005) found evidence of a calm before the storm effect and of an asymmetric response to unexpected US policy changes, in that a higher than expected policy rate rise increases ISEQ volatility by significantly more than a lower than expected rise. Kearney (1998) stated that the Irish stock market is â€Å"highly integrated with the important international stock market in London†. He finds that a predominant cause of volatility in the ISEQ is volatility in the FTSE. He also states that â€Å"Ireland’s membership in the European Community and the European Monetary System ensures that its financial and real business sectors are also closely linked to international developments†. Finally he finds that interest rate volatility is a less significant determinant of volatility in the index than exchange rate volatility. Due to the membership of Ireland to the European Union, the volatility of ISEQ has significantly reduced and also the effect has been the same in other member states. Also, during the survey of the ISEQ 20 index a number of methods were applied for example the CAPM theory that holds, the higher the security returns are equally proportional and that stock investors have equal price expectations, hence the investors who have diversified their stock portfolio have a less unsystematic risk.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Nevertheless it is normally occurs the returns in securities and different markets are not directly proportional. Kearney (1998) shall analyzes how the policies are made and by whom and the variables that they seek to change in the financial markets. Rationale For The Study Stock and financial researches conducted recently have shown a tremendous change in the way investors, both foreign and domestic, have changed their pattern of investing in the stocks. Since the global economic down turn, the volatility of the Irish stocks has increased drastically. This has been influenced by the number of economic and non economic variables. Due to increased awareness of the volatility of the stock market by investors, a number of them diversified their stocks options to avoid unsystematic risks that would normally occur in the stock markets. The graph below shows the performance for the past decade: (Davis, The World’s Worst-Performing Stock Market). There many theories used in the explanation of volatility of the Irish stocks. Bomfim (132) advocates for the Capital Asset Pricing Method (CAPM). This theory gives the assumption that asset returns are random variables that are distributed normally hence investors have diversified portfolios that assist them in eliminating risks. Due to the fact that equity returns in the market are not distributed normally, there s usually a standard mean deviation of 3-6 which occurs often. In addition, there are other external factors that influenced the volatility of the Irish stocks, for example the influence of the international policies that had a direct impact in the value and trading of the stocks. The simplified market model is shown as follows , = b +e = +h (1) Here, i t r , is the excess return on asset i at time t, m t r , is the excess return on the market portfolio, i  b is the asset’s beta coefficient,  i,t e is the usual CAPM idiosyncratic residual, and  i,t h is the market-adjusted excess return on asset i computed according to the simplified market model.Advertising We will wri te a custom report sample on Volatility of Irish stocks specifically for you for only $16.05 $11/page Learn More Letting i t w , denote the weight of asset i in the market portfolio, we can compute the weighted average of the variance of returns on the n stocks in the market portfolio.  t i t w Var r Var r w Var w Cov r , 1( ) ( ) (h ) 2 ( ,h ) (2) By substituting for i,t h from (1), noting that m t r , and i,t e are orthogonal, and recalling that the weighted average of the i  b coefficients is equal to 1, the last term on the right collapses to zero, and we are left with the Carrol (2007) variance decomposition. This decomposes the average excess return variance across all assets in the market portfolio (VARt) into two components; the variance of the excess return on the market portfolio (MKTt) and the average firm-level variance (FIRMt). It provides a CAPM-equivalent decomposition of average total risk into market risk and average idiosyncratic risk, with the considerable advantage that it by passes the need to estimate betas for each firm. Carrol (2007) note that rising average idiosyncratic risk, together with unchanged market risk, implies a decrease in the average correlation amongst the portfolio’s assets, but they do not provide a theoretical specification of this relationship. Although it is intuitive that average correlation must decline if the average idiosyncratic risk rises with a constant level of market risk, it is not trivial to predict what patterns in average correlation might emerge when, for example, average firm-level risk and market risk vary in the same direction but at different rates of change. To see the full set of possible configurations of market and idiosyncratic risk, we rewrite the MKT term by converting it to matrix notation. The equation tells us that, at least for an equally weighted market portfolio, we can interpret average correlation as the parameter that, for any given level of averag e total risk, divides the latter into market risk and idiosyncratic risk. By differentiating rt in respect to the ratio of average idiosyncratic variance to average total variance, we obtain  dr  d( FIRM / VAR ) t = -1 Equations show that the variation in average correlation is inversely proportional to the variation in the ratio of average firm-level variance to market variance. The larger the number of stocks included in a portfolio, the more it resembles an equally-weighted portfolio and the better is the approximation provided by the equation.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Average correlation is strongly influenced by the extent to which firms diversify internally. The more the average firm diversifies (the more it resembles the market portfolio), the higher will be the average correlation for each given level of covariance risk in the economy (MKTt). The opposite is true for average firm-level variance. Stock values are usually determined by use of their net present values therefore should a change in policy affect the expected net present value; the effect will be reflected in the value of stock returns in several ways. Through the use of arbitrage, new policy changes will change the market rates of stocks hence affecting the opportunity cost for an investor in continuing to hold such stocks. Therefore it will affect inversely the NPV of future cash flows from the stocks against the discounting factor. In addition change in international policy will affect the productivity of the stock in the short to medium term. The U.S monetary policy changes hav e also contributed to the volatility of the Irish stock through policies that impact the supply of money, non- borrowed money in reserves, the discounting rate and the targeted rate set by the federal reserve. Monetary policies are usually undertaken by the central bank over a given period in time which they find suitable. The policies made usually take into account the time or period of interest and the variable that the central bank wishes to control. Early studies estimated the following model: _Pt = a + b(_Mat − _Met ) + _t (1) Where: _Pt is the percentage change in the stock price; _Mat is the announced change in the money stock; _Met is the expected change in the money stock obtained from survey data; and _t is the error term. With the change in monetary policy regimes towards targeting short term interest rates, more recent studies examine the impact of changes in the policy rate target on asset prices. It still begs the question of how to decompose policy rate changes into (un)anticipated changes. With the advent of federal funds future contracts in the late 1980s researchers have focused on the information contained in the federal funds futures rate to identify expectations of changes in future policy. Changes in monetary policy decision have been including in the mean equation whereby the main focus is restricted to the days when the monetary policy decision was made. This is usually done in order to control other variable that might have occurred during those days. In addition it is also done in order to control other variables that influence the rate of returns of the assets. Real variable that have been included in the equation include the GDP and the unemployment figures in the region while nominal variable have included the rate of inflation, money supply and the interest rate decisions. Any policy announcements are usually made in two ways; there are policy changes that are usually fixed to be announced at a particular time thus one knows when the change takes effect on the calendar Campbell et al (2001), notices that the conditional volatility of the Irish stocks is greatly influenced by the integration of the international stock markets. Particularly, the London and the EC stock markets play a major role in the volatility of the Irish stocks hence whatever influence they face; its effect will be seen on the Irish stocks. In addition, the European stock market ensures that the financial and business policies in the region are implemented by all the members and ISEQ complied with the policies thus is subjected to the same forces as other stock markets in the region. However, there has been a controversy between the influences of the GARCH model on whether it affects the volatility of the ISEQ or not. The GARCH volatility model is used in getting the returns of equity since it is modeled in the belief that returns and volatility are interdependent. The return in equity is given by the following formulae: Rt = ln (St )/St−1 Where; St = closing level security of the day our proxy for the unanticipated change in the German policy rate between 1989 and 1998 is the first day change in the 3-month Euromark futures rate. With the introduction of the euro in January 1999, we proxy surprise changes in the ECB policy rate by the one day change in the 3-month Euribor futures rate.9 For the UK, our proxy for the unexpected change in the policy rate is the one day change in the 3-month sterling futures contract. Finally, we also analyse the impact of Irish interest rate changes on the ISEQ. Given our methodology, an obvious problem is the lack of a futures market for Ireland stock market. We attempt to circumvent this problem by defining the unexpected change in monetary policy as the one day change in the 1-month Dublin interbank offer rate (DIBOR).11 The DIBOR was closely related to the Short-term Lending Facility (STF), the rate at which the Central bank uses. Early studies estimated the following model: _Pt = a + b(_Mat − _Met ) + _t (1) Where _Pt is the percentage change in the stock price; _Mat is the announced change in the money stock; _Met is the expected change in the money stock obtained from survey data; and _t is the error term. With the change in monetary policy regimes towards targeting short term interest rates, more recent studies examine the impact of changes in the policy rate target on asset prices. It still begs the question of how to decompose policy rate changes into (un)anticipated changes. With the advent of federal funds future contracts in the late 1980s researchers have focused on the information contained in the federal funds futures rate to identify expectations of changes in future policy. When determining the volatility persistence of the Irish stocks, one looks at three key issues, mean reversion, volatility clustering and persistence, and the volatility half life. These three factors determine how long the volatility effect on a stock will last. There are numerous external factors that are considered in determining the volatility of Irish stocks. For the Irish stock market in the last decade, the stability of inflation and output has been greatly influenced by the significance of the monetary policy. The monetary policy affects the stock prices in various ways. First, alterations in the monetary policy significantly influence the output in the short and medium-term, and also the changes affect future cash flows by the alterations in markets. Secondly, through arbitrage, the change in the monetary policy rate also affects other market returns, thus determining the opportunity cost of investing in such stocks. Bredin et al (2004) studied the effect of changes in monetary policy on treasury stocks and discovered that policy rate changes increase the treasury rates especially in the short term. Bredin et al (2004) says the introduction of a common European currency and the recent tendency of stock prices has shown the co rrelation between the monetary policy and security prices. The decomposition of the Irish policy rate changes into (un) anticipated parts also significantly affects the volatility of the market. However, with the emerging relevance of interest rates in future markets, investors can derive market expectations of policy variables. Also, the markets are driven by the expectations theory of the term structure of interest rates. Coval (2001) observes that changes in United States policy rate negatively influenced the volatility of the Irish stock market in the past decade. For the US, unexpected alterations in the federal funds target rate had an adverse effect on the ISEQ returns. Domestically controlled interest rates also have an influence on the Irish stock market. Kearney (1998) studies conditional volatility of shares and concludes that the asymmetric component there is a significant correlation between conditional volatilities and correlation estimates, and the dynamics of firm-le vel correlations. Relationship to previous studies A great deal of current literature regarding individual stock volatilities has been based on the findings of the 2001 paper by Xu, Malkiel, Campbell and Lettau. It had been previously assumed that unsystematic risk accounted for little in explaining the volatility of stock returnsMany studies done on the Irish stock market have been based on the findings conducted in 2008 by Carrol Collins. It had been assumed that unsystematic risk had no or less influence in the volatility of stocks but that investors had portfolios that were fully diversified and thus less prone to risks. In order to explain this issue, Campbell suggested that on industry level, volatility of the stocks was of interest to the investors since they had large stock holdings which may not have been diversified as suggested by other financial theories. Studies by Campbell have put forth a number of ideas to explain the various causes of volatilities for example, leve rage, financial innovation and changes in executive compensation. He also concluded that the U.S stocks were not as volatile as believed. Kearney et al (1998) studied the volatility of stocks found in the European market. They suggested that the European stocks trend moved in the same direction as the U.S stocks in such a way that majority of the stocks were diversified thus a positive idiosyncratic volatility. Bredin et al. (2004) studies showed a â€Å"calm before a storm† effect which he suggested that it resulted from unexpected US monetary and financial policy. Therefore if a higher rate policy is expected, the ISEQ volatility increases by a significant ratio. Source of data The data collected for this review was from the ISEQ 20. The data was analyzed from 2000- 2009 which gives a ten year period to effectively determine the factors influencing the volatility and correlation of the Irish stocks. The information gathered also looked into the international factors influen cing the volatility of the stocks. This information can be found in the following links: https://www.ise.ie/ http://www.finfacts.ie/irishfinancenews/article_1018725.shtml Proposed methods For the purpose of this study, I looked into the return on equity methods as put forth by Flannery Protopapakis (2002) where he divided his study into three issues, market level and idiosyncratic firm level. Campbell approach the matter by showing that returns will be decomposed without requiring the estimation of covariance’s or betas for industries or business. Campbell et al (279) defines this as follows: Rjit = excess returns of jth stock, in ith industry, at time t; Rit = ∑jei wjit Rjit = excess returns of ith industry at time t; Rmt= ∑iwit Rit = market excess returns at the time t. To measure the industries volatility, one can use CAPM which is defined as: Rit =ÃŽ ²im Rmt + eit. However in this case the variable, (eit ) that is estimated using the first equation, requires that one has the knowledge of ÃŽ ²im taking into assumption that the CAPM theory is the equilibrium model. Alternatively, one can use; Rit = Rmt + eit. However, Rmt and eit are not orthologonal, hence we shall use, Var(Rit = Var(Rmt ) + Var (eit ) +2Cov (Rmt, eit) Since the equation above contains the industries beta, the Var(Rit) will contain the covariance between the Rmt and eit. However it does not require for one to be aware of the covariance between Rmt and eit to estimate the weighted average industry risk. Secondly, Carrol Collins (325) looked into the different volatility models applicable to the ISEQ. Thus I plan to use econometrics tests in the application of data before making a final decision on the specific model and procedure to choose. Kuttners (2001) approached the issue with the following regression analysis of the ISEQ; _ISEQt = _0 + _1_FFet + _2_FFut + _t Where: _ISEQt = is the percentage change in the ISEQ index between t and t+1; _FFut is the first change in t he federal funds futures rate on day t of a change in the federal funds target rate; _FFet is the expected change in the federal funds target at date t. Thus the expected rate in change in the federal funds will be calculated as the difference between the federal fund rate target and the rate of change in the expected in the future. In addition, we shall look into the (un)expected changes occurring in the European stock markets. Since there are no financial instruments that keep check on the trends of the policies rates, we can use interest rates future contracts since they are influenced by the current market expectations. In addition the impact of the Irish domestic interest rates plays a great influence in the changes in the ISEQ. Due to lack of future markets in Ireland, we shall use the Dublin interbank offer rate which is used by the central bank in lending to banks and in turn the rate is reflected in the Dublin wholesale market (Gurkaynak Sack, 2002). Conclusion Coval (2001 ) studies put +forth have shown that the ISEQ, volatility has declined over the time. In particular there was a decline in volatility before announcements in change financial markets. Hence the Irish stocks appear to be dependent on the monetary policies made by the U.S. Bredin et al. (2005) shows that there is a direct influence of international and domestic interest rates whish directly influence the volatility of the Irish stocks Our purpose in this paper has been to examine the trends in market and firm level volatility in European equity markets. Using over 2,300 daily observations from 2000 to 2008 on 6 European market indices and 42 stocks from the Eurostoxx50 index, we analysed the time series behaviour of market risk, idiosyncratic risk, and aggregate correlations between the indices and between the individual stocks. In addition to extending the Davis (2008) methodology to provide a full description of the relation between changes in market risk, aggregate idiosyncratic ri sk and return correlations, we also applied the asymmetric version of the DCC-MVGARCH model of Bredin (2004) and Kearney (1998) to capture the time series behaviour of the conditional correlations between the market indexes and between the individual stocks in the Eurostoxx50 index. In addition to the market risk in the U.S. and in Europe, we find that both market risk and aggregate idiosyncratic risk appreciate in our sample, and that the deterministic time drift at work in the latter is stronger than in the former. The rise in idiosyncratic risk implies that it takes more stocks to achieve a given level of diversification, and is consistent with the results reported by Davis (2008) for United States markets. We also find that aggregate firm-level return correlations are trended weakly downwards in the euro-zone. Part of this finding might be explained by the fact that our sample includes large stocks that have a significant degree of diversification built into the cash flows assoc iated with their businesses. In contrast to this, however, the average correlation amongst the 5 euro-zone stock market indices and the Eurostoxx50 index has risen significantly over our sample period. This, we argue, is not surprising in view of the ongoing process of economic and financial integration in the euro-zone area. In applying the DCC-MVGARCH model to further examine the behaviour of euro-zone correlations, we find that, consistent with Davis (2008) and Bom (2003), all our conditional correlation time series estimates display significant degrees of persistence. At the market index level, we can reject the restriction that the parameters of the correlation process sum to unity, but there is strong evidence of a structural break in the mean shortly before the introduction of the Euro. This explains both the strong persistence of the correlation time series and its significant rise over the sample period. We also find that the conditional correlation process is strongly asym metrical with a negative but very small deterministic time trend. The asymmetry of the stock returns correlation process also explains why the shiftiness of market index returns, as reported in Table 2, is always negative whereas stock returns have either negative or positive shift. Our finding that correlations amongst euro zone stock returns display a much weaker tendency to decrease than reported by Davis (2008) suggests the existence of different correlation dynamics in the euro-zone area and in the United States, at least over the portion of our sample period that overlaps (from 2000 to 2009). A number of explanations of this disparity can be tentatively advanced. Commensurate with a corporate culture in Europe that emphasis external capital markets somewhat less than in the United States, companies in Europe have probably pursued less diversification strategies than in the United States. Another possible explanation is that the tendency for companies to access the equity marke t at earlier stages in their life cycle is less pronounced in Europe than in the United States. Moreover, the level of average correlation in our sample, especially in the case of the DCC-MVGARCH estimates, is generally higher than in the Davis (2008). A higher ratio of market to total variance and a lower ratio of firm-level to total variance, this suggests that the portion of total risk represented by idiosyncratic risk in euro-zone equity markets might be smaller than in the United States, implying a lower benefit to diversification in the European markets. In other words, the opportunity-cost of not diversifying is relatively lower. Part of this difference might be explained by the fact that our sample comprises large stocks that have a significant degree of built-in diversification. Nevertheless, our results suggest that fund managers should think through the full ramifications of seeking more cost-effective diversification by adopting the passive strategy of investing in marke t indexes rather than a selection of stocks from each country. Reference List Bom, M.,(2003). Preannouncements news and volatility. Journal of banking and finance, Vol 27, 133-151. Bomfim, A.(2001). Making News: Financial Markets Effects of Federal Reserve Disclosure Practices, Manuscript. Federal Reserve Board, Vol 21. 121-132. Bredin, D. Caroline G., Gerard, O. (2004). The influence of domestic and international interest rates on the ISEQ. The Economic and Social Review, Vol. 34, 249–265. Bredin, D., Caroline G., Gerard, O. (2005). US monetary policy announcements and Irish stock market volatility. Applied Financial Economics, Vol. 15, 1243–1250. Campbell, J. (2001). Have Individual Stocks Become More Volatile? An Empirical Exploration of Idiosyncratic Risk. Journal of Finance Vol 56, 1-43. Carrol, T., Collins, J. (2007). Volatility models and the ISEQ index. Journal of financial report, Vol 23, 12-24. Coval,M. (2001).The Geography of Investment: Informed Trading a nd Asset Prices. Journal of Political Economy,Vol 109, 811-841. Davis, I. (2008). The World’s Worst-Performing Stock Market. The Growth Stock Wire, 8. Web. Flannery, M., Protopapakis, A. (2002). Macroeconomic Factors do Influence Aggregate Stock Returns. Review of Financial Studies, Vol 15, 751-782. Gurkaynak, R., Sack B.(2002). Market based measures of monetary policy expectations. Finance and economics Discussion series working paper, Vol 40, 658-721. Kearney, C. (1998). The causes of volatility in a small, internationally integrated stock market: Ireland, July 1975 – June 1994. The Journal of Financial Research, Vol. XXI, 85-104. This report on Volatility of Irish stocks was written and submitted by user Casey Carter to help you with your own studies. 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