“Optimal Versus Naive Diversification: How Inefficient Is the 1/N Portfolio Strategy” †a Critique

â€Å"Optimal Versus Naive Diversification: How Inefficient Is The 1/N Portfolio Strategy† – A Critique Title: The title of the paper â€Å"Optimal Versus Naive Diversification: How Inefficient Is The 1/N Portfolio Strategy† has been reasonably well phrased.However, it can be argued that the title is a little misleading as the principal objective of the paper is to test how efficient different optimal diversification strategies are using the 1/N portfolio strategy as the benchmark and not to try and elucidate the merits of the 1/N strategy, which the authors are certainly neither advocating for practical purposes nor seemingly seeking to foster greater intellectual attention on the simplistic strategy. The title could have simply been â€Å"How Efficient Really Are Today’s ‘Optimal’ Diversification Strategies? But, care has to be taken before coming to the above conclusion that the authors might have appreciably so, intentionally used the tit le they have in order to attract further attention to their paper by stressing the obvious irony and possible iconoclasm in their conclusions. Abstract: The abstract has been very well written. It captures the essence of the study and conveys the crux of it lucidly to the reader. However, it would have augured better to start the abstract by stating the objective of the study in addition to it being mentioned in the text of the article just as the authors have.That way, the abstract would have had greater clarity. Motivation: The inherent motivation behind the study is laudable and the implied motivation derived from the conclusion is obvious. However, the motivation itself has unfortunately not been sufficiently expressed. Apart from a one-sentence objective, nothing else has been explicitly written about why the study was undertaken. There is one other sentence, which could be construed as the motivation. But, the authors themselves have not given the sentence the same attribute. The sentence itself is a reference to a revious study that found that many investors used the 1/N diversification strategy ignoring several other sophisticated theoretical models and is stated to only justify their usage of the 1/N diversification strategy as the benchmark. It could have been elaborated upon with additional related facts and further evidence supported by literature. Also, a separate paragraph with a heading called â€Å"Motivation† would be desirable to the readers. Introduction: The topic covered by the article has been adequately introduced. The brief description of the various asset allocation models and how they are related to each other is commendable.The introduction has also carefully introduced the methodology, the observations and the results and the conclusions in a logical and concise manner such that readers might understand the study by just reading this part. However, the literature on the Bayesian and non-Bayesian approaches has only been brief ly mentioned in one paragraph. Considering how significant the contribution of the stated articles to the current study might be, it would have only been fitting to include a section called ‘Literature Review’ elaborating on them substantially more than the authors have.That way, they could have been able to make a clearer connection on how the previous studies relate to the motivation and methodology of their study. However, it should be noted that word limits might have been a constraint. In addition, the introduction must be a definite section that is called ‘Introduction’. Methodology: The authors have adopted a robust methodology to evaluate the performance of the diversification strategies discussed. They have been explained in great detail with sufficient appendices in an easily understandable format.There is not much scope for improvement in the methodology and the authors must be greatly appreciated for it. Data: The data has been obtained from hig hly reliable sources, thereby implying that there is hardly any margin for error in the data. No bias or subjectivity is evident. The data has been properly classified and well presented. Results: With well-defined methodology and credible sources, the results of the study are factually accurate even though it can be argued that conclusions from the same are a function of their interpretation just as in every other study. However, there is a drawback concerning the same.The authors have only limited themselves to comparing the performance of models of optimal asset allocation that consider moments of asset returns and not other characteristics of the assets. The authors could have included a section within the discussion of their results in which they could have compared their results with that of other similar studies, even if they involved the analysis of fewer diversification strategies, and sought to establish a reasoning behind how the possible differences between the results o f the studies might be related to variations in their respective methodologies or data.They could have also sought to describe how their study and the underlying methodology have helped overcome previous voids in relevant literature. It might have even been advisable to express why their study is more accurate and hence superior to the others if they did think so. In case the study was known, to their knowledge to be unprecedented and unrelated to any comparative study of portfolio diversification strategies, it should have been explicitly stated as the reason why the above-said was not done.But, it has to be noted that the authors have indeed done the above-said, but only with respect to two of their important assumptions, i. e. , Brandt et al (2007)’s approach to constructing the optimal portfolio using cross-sectional characteristics of equity returns and the dynamic asset allocation models of Campbell and Viciera (1999; 2001) and Campbell et al (2003). Conclusions: The co nclusions of the study are definitely iconoclastic and have huge repercussions for the research community.It points out how inefficient the numerous theoretical models that have been developed on portfolio diversification are clearly indicates that an enormous amount of research has to be undertaken to address this serious shortcoming. The conclusions have been expressed concisely and the limitations of the study have been stated. Their recommendation on the direction for further research is well thought out and justified by their findings and is hence highly commendable.

Readers Response to Writing Badly Essay

In his essay, â€Å"The Importance of Writing Badly,† Bruce Ballenger encourages students to write freely and to not worry about finding the â€Å"perfect way of saying it.† I feel by saying this he means to not worry about what you’re writing and it may not necessarily be perfect, but that you write what you are thinking and continue writing even if it’s bad or may not make sense. He means to put all your thoughts down on paper and start from there. Ballenger gives his students permission to write badly. He expresses that â€Å"when the writing stops, so does the thinking.† He also states that he is far more interested in encouraging thinking than error-free sentences and concise, clear writing. Do I agree with Bruce Ballenger? I feel that I absolutely agree with him. If you would have asked me in High School if I agreed, I would have said no. My English teacher in High School was much like the teacher Ballenger describes in this essay as Mrs. Oâ⠂¬â„¢Neill. Every paper we had to write had nothing but red pen marks correcting bad sentences. Or as Ballenger put it â€Å"some high priest of good grammar whose angry scribbling occupied the margins of our papers.† She was much more critical of our grammar and punctuation then what we were writing. This was very discouraging to me and a lot of my fellow classmates. I then became more critical of myself as a writer and how I was writing and not what I was writing. I was paying more attention to other details instead of what I was thinking about writing, which ended up making it very stressful to write. So by the end of my English class, I was fairly decent with grammar. In fact friends and family of mine occasionally have asked me to proof read papers of theirs, and I find myself doing nothing but fixing grammar issues instead of actually reading the paper for the story it is. I agree with Ballenger when he says that clear writing matters and should be demanded, but that it should not be the first thing important when you start writing a paper. You can always go back a nd fix grammar and punctuation issues, but you sometimes may not get your thoughts or ideas back that you were thinking of to be able to express what you wanted to write after lifting the pen from the paper. Before reading the text, just looking at the title I thought this was just going to be about writing bad and not worrying about what you are writing. And really it is, but the text was more than that and made me realize that writing isn’t about how you write; it is more about what you write about. It’s about getting to what you are writing about and the process it takes to get there. More than just writing words down and making sure you use the words correctly. It’s about expressing what you are really thinking about and writing down your thoughts to begin with. I will take Ballenger’s advice because I feel I will have more to say after free writing and brainstorming my topics and by doing that I will have more effective essays. Ballenger ends this es say with â€Å"And what matters in this journey-at least initially-is not what kind of car you’re driving, but where you end up.† I think what Ballenger means by this is that it doesn’t matter how perfect you write. What matters is that you get the ideas you have and the point you are trying to make across in your writing. And in the end having your thoughts down, you will write the paper you are trying to write even if that means that the writing you initially write is not perfect.

Characteristics of the Modern Theories of International Trade Research Paper

Characteristics of the Modern Theories of International Trade - Research Paper Example Heckscher-Ohlin theory outlines the reasons for trade between countries based on the differences in resources. Comparative advantage in this case is dependent on the interaction between resources available in a certain country. According to this theory, the production technology influences relative intensity in utilization of different production factors. The theory presumes some factors in production of different goods and the implications when two countries involved in trade produce similar items (Gandolfo 1-98). This theorem explains the trade patterns with emphasis on variation of quality defining the variation in requirements. This theory has enhanced specialization where a country exports products that it  can produce rather than the products that are unsuitable for production. As a result, the countries involved will benefit from the trade within the international business environment (Gandolfo 1-98). The theory outlines two factors influencing the distribution of income. Firstly, immediate transfer of resources from a country without costs is impossible. Secondly, the difference in changes of production mix in relation to the production factors’ demand varies depending on the  industry. Another characteristic of the theory is that it points out that capital and territory are examples of specific factors, while labor acts as a mobile factor (Gandolfo 1-98). In modern business environment, any country with less land and high capital abundance is characterized by an increase in the manufactured goods and decrease in the food products because of the increase in the marginal productivity. Two countries in trade partnership have an integrated economy, and failure of one country to trade translates to equality in rate of production and consumption (Gandolfo 1-98). This theory outlines curve of relative supply that results from production possibility. On the other hand, the theory

Organizational Analysis paper Assignment Example | Topics and Well Written Essays - 500 words

Organizational Analysis paper - Assignment Example The board of directors was however behind the scenes and the principal was the leader. The principal spent most of her time communicating with the parents, students and teachers about issues to do with the vision of the school as well as the policies. She was in charge of calling for faculty meetings in case of any miscommunication, indiscipline cases or other matters concerning the teachers that needed to be passed to the students. Her effective communication skills with the stakeholders of the school led to an increase in funding and donations to the school as a way to appreciate her work. Everything was not always smooth despite the effectiveness of the communication. This was evident in a few cases where there was failure in communication due to various barriers. The most common of these barriers were brought about by channels used to pass the information to the students and teacher as well as other staff in the school which at times proved to be problematic. Most of the time the communication to students was carried through the school’s public addresses system that was connected from the principal’s office to the hallways, classrooms, recreational schools and even the cafeteria. There are times the system failed and especially when there was power blackout as it was not connected to the backup generator. The leadership of the institution was very coordinated based on the fact that the information and decisions came from the board of directors to the principal who carried out the disbursements role very well that the board did not have to worry about finding another channel to pass the news. In fact the effectiveness of the leadership was obvious from the fact that not many people knew about the existence of the board or who were the board members as everyone dealt with the principal. The principal and the deputy principal who were the leaders were not managers but rather servants as well as

Values Essay Example | Topics and Well Written Essays - 750 words

Values - Essay Example However, there is a disparity when it comes to loyalty. I hold that loyalty should be kept only when it is necessary. For example, in case an agency is exploiting people, it significant to tell the truth (Kraemer, 2011). Describe how people acquire and change values Everyone is guided by values; the difference is that we vary on how intensely we hold each our values. This is linked to how our values have been molded during the course of our lives. Recurrent engagement of values is likely to reinforce them. Our lives offer frequent prospects for and restrictions on the detection and development of some values. In addition, practice ensures that values are instilled in our mind (Duggan & Cowburn, 2013). Our involvement with different features of culture and society helps acquire and strengthen certain values. Churches, trade unions, Community centers, and libraries are examples of establishments that we are part of and recognized as encouraging the mutual understanding in that they may surge to the significance we put on equality, friendship, or social justice. Our experience with parks and forests promotes our appreciation for nature and other intrinsic values (Kraemer, 2011). Our experience of particular institutions as well as guidelines can alter or strengthen our views of what is conceivable, wanted, and normal through a procedure identified as policy feedback. Exposure to the institutions of consumer culture may also represent a form of policy feedback. Through our day-to-day lives and interaction with others, we acquire certain values and change others. We encounter different experiences and different people who believe in different things from us and who hold different values from us (Howe, 1995). In the process of interacting with them, we may acquire some new values and therefore changing the values, we have. We also acquire new values form our different religions and cultures. Explain what values do to us and for us Values are those guidelines and prin ciples that guide our life. Our values provide an outline to our conduct even though we are uninformed of what values are. Understanding our values provides one with a superior awareness in behavior. Our decision-making ability depends on the value we have in that we can do something based on which values we hold. Appreciating the significance of our values offers transparency in that we are in a position to define and understand ourselves (Barkan, 2011). Values can also offer discernment into the nature of interactive relationship that one should engage in while relating with others. When we identify and comprehend the meaning and importance of our values, we are able to appreciate ourselves, our relationships and our view of the world. What is the nature and importance of human values at the workplace? Upholding values at the work place is important for any organization. Employees who uphold values are likely to perform well as compared to those who take them for granted.

Legalizing marijuana for recreational use Speech or Presentation

Legalizing marijuana for recreational use - Speech or Presentation Example This can be put into a few basic facts. Both Washington’s Initiative 502 and Colorado’s Amendment 64 which legalized cannabis for people aged 21 and above, proposed a relatively heavy taxation on the drug. They called for a 25 percent tax rate to be imposed on the product three times; from grower to processor, from processor to retailer, and from retailer to customer, (Smith 1). While it is not clear the amount of revenue this would raise, estimates for this measure are out at about $500 million. According to a study carried out by the Colorado Center on Law and Policy, about 13 percent of people in Colorado use the substance. This translates to about half a million people. By legalizing this retail market, the regulation could raise about $46 million in combined local and state revenue between excise and sale taxes. In California, a similar measure in 2010 known as Proposition 19 was estimated to earn $352 million in tax revenue annually, (Smith 1). This revenue can go to a state fund where it can fund the construction of schools. Besides raising revenue, marijuana is used for medical purposes. It is commonly referred to as medical marijuana. According to Stone (1), marijuana has long been utilized in treating ailments that are associated with inflammation and pain. It is also used to relieve symptoms that are related to chronic illnesses such as cancer. For example, for many decades, cannabis has been used to treat glaucoma. It usually lowers the intraocular pressure when treating glaucoma symptoms, and is more effective when smoked, ingested, inhaled, or administered intravenously. Also, the National Cancer Institute (1) recognizes cannabis and its components as a treatment for individuals with cancer-related symptoms. Besides these, medical marijuana has been associated with the treatment of AIDS, multiple sclerosis, epilepsy, anxiety, and chronic pain. The legalization of marijuana could also significantly cut down on crime. On one hand, it i s illegal. On the other hand, the people demand and want to use it. This provides room for a middleman who carries out the illicit trade, and hence crime. Therefore, legalizing marijuana would mean that drug cartels will lose business, there will be less crime in borders since there is no need for trafficking, and crime will ultimately reduce in the streets and in the country. According to former Seattle police chief Stamper (1), this will free up police resources that can be focused on tackling other crimes such as robberies, burglaries, and sexual assaults. However, there needs to be guidelines that control the use of marijuana. These should be in form of legislations. One such legislation made in the California is the Medical Marijuana Regulation, Control and Taxation Act, which stipulates the guidelines for the use of cannabis for medicinal purposes. Other guidelines should include the amount of cannabis that a person can be in possession at any one time, or the number of mariju ana plants that one can plant at his or her backyard. These political guidelines need to be clearly set, implemented, and enacted. Without such guidelines, there would be a total mess with students even â€Å"puffing† on the school corridors just like cigarettes. Therefore, it means that once marijuana is legalized, society has to deal with it. Many opponents to the legalization claim that it draws the path to drug usage in the society. According to Citizens Against the Legalization of

Manifestation of Catholicism in colonial Brazil Essay

Manifestation of Catholicism in colonial Brazil - Essay Example Notably, even after the independence of the country, the 1824 constitution made catholic the official religion in the country. The imperial government then even paid salaries to catholic priests and influenced the appointments of the bishops in the country then, thus making the religion rather strong in the country than in any part of the world. The Brazilian hierarchy consists of four cardinals, thirty archbishops and 128 bishops. The region, divided into seventy-seven ecclesiastical provinces, has an additional one archdiocese, commonly known as Brasilia. Excepting for only a few exceptions of provinces such as the state of Sao Paulo, which has five provinces, minas Gerais with three provinces, and Rio de Janeiro with two, most of these provinces corresponds to the state boundaries. The vicars general were the, the reactors of the Jesuit College, as well as the priors of the Benedictine, Franciscan and Calamite converts were the highest local ecclesiastical officials. The tribunal of the Lisbon, having gained supremacy over Brazil in the year 1551, undertook the role of overlooking into the religious and moral practices of the Brazilian people. Headed by the inquisitor general who was the president of the general council, oversaw the activities of other tribunals ion his jurisdiction. However, in case of matters relating to the policies and procedures, the general and the general council reined supremacy, unless the pope decided to rule differently. Temporary tribunals visited Brazil, and with the help of the police, undertook their mandate of inquisition (Wadsworth 19). The Portuguese inquisition, having officially begun in the year 1536, Brazil inhabited then the only the extreme margins of the empire of Portuguese, thus eliciting little concern from the inquisitors in Lisbon. The backdrops of colonial history, which painted the pictures of inquisition in Spain in 1478, saw the expulsion of