The Idea of Being a Leader Personal Statement Example | Topics and Well Written Essays - 750 words

The Idea of Being a Leader - Personal Statement Example Though these were just a few flashes in the pan did not matter at that time. They helped boost my ego which stayed inflated for a long, long time. The last day of the school had come. Suddenly the world seemed large, wide and menacing. I would be leaving all my dear friends with whom I had grown up, laughed, cried, argued, fought, made up, and in general just took life for granted. They had seen me besides studying, taking the active part in school functions, sports, dramas, elocution contests, and always been there for me and with me. I was not really sure what I was to do after school years. One said to go to college, another said it was not worth it. That my parents could not afford my college fees did not deter me. I simply did not have the will. I did not wish to go through some four grueling years just to prove to the world I was leadership material. This is when I learned the importance of following one's intuition when all else fails to convince. (Dr. Garfield, 322)1. It took me a couple of years to decide that I had better learn some skills and find a job. This led me to take up a course in shorthand and typing. I found some jobs and did a course in business management. But there was something else life had in store. I was not aware of it. But when I was 19, a Christian group met me and told me I need God to help me steer the course of my life. After some hesitation, I gave them a chance. Pilgrim's Progress Working in an auto dealers firm, I took an active part in church activities in my spare times. Evangelism and church planting could seem to be a raw deal in the beginning. But it yields fantastic returns and dividends. I found myself participating in campaigns, leadership meetings, seminars, and even began making my own speeches and presentations. My desire for writing found expression in 1976 when I got an opening to work for a religious magazine run by an American lady editor, Jane McNally, under whose leadership, I was able to polish up my grammar and even learn writing skills. I began participating in writing seminars and competitions and won prizes. Visions and Goals I was moving up in life. I found a job in a large, consumer goods manufacturing firm, and got set to buy an apartment flat. But the pay from my regular job, though decent, was not enough. This is when I decided to give a shot at teaching. My English was good and so was my shorthand. I got a part-time assignment to teach both these subjects at an institute after my regular office hours.

Modern Portfolio Theory and Capital Asset Pricing Model

Modern Portfolio Theory and Capital Asset Pricing Model Introduction The Capital Asset Pricing Model developed by William Sharpe has significant similarities with Harry Markowitz’s Portfolio theory. In fact, the later is rightly considered as the next logical step from the latter, with both based on similar foundations. There are also differences in how each model/theory is calculated, pertaining to risk considerations. This paper’s main objective is to identify these differences while highlighting the similarities as well to put things into perspective. The report will open with an overview of Markowitz’s portfolio theory and explain it further by means of describing the efficient frontier, the Capital Market Line, risk free asset and the Market Portfolio. The report will then switch its attention to the Capital Asset Pricing Model and explain it further through the Security Market Line. The report will then close by outlining the differences between the two with a view of answering the main objective. What will come through in this report is that Markowitz’s portfolio theory uses standard deviation as its risk measure and takes into account all risk in an efficient portfolio, while the Capital Asset Pricing Model uses the beta co-efficient to measure risk and takes into account both efficient and non-efficient portfolios – further more it measures the risks of individual assets within the portfolio. Modern Portfolio Theory Modern Portfolio Theory (MPT) was introduced by Harry Markowitz, way back in 1952. At a high level it proposes how rational investors use diversification to optimise their investment portfolios and give guidance on pricing risky assets. MPT assumes that investors are risk averse, i.e. given two assets A and B offering the same expected return, investors will opt for asset A if it is less risky. In effect, an investor who expects higher returns would need to accept more risk. The expected trade-off between risk and return depends on the individual’s level of risk aversion. The implication of this is a rational investor (a risk averse investor) will not invest in a portfolio if another one exists offering a better risk-return profile (Fabozzi Markowitz, 2002). For any given level of risk, investors will opt for portfolios with higher expected returns instead of those with lower returns. Another assumption under MPT is that investors are only interested in the expected return and the volatility of an investment, as measured by the mean and standard deviation respectively. Investors do not consider any other characteristics, for example, charges. In effect, based on the assumptions above, investors are concerned about efficient portfolios. To explain portfolio theory further, let us consider the formula for the expected return and risk of a portfolio under MPT. Suppose two assets A and B formed a portfolio in proportion (X) each, the expected return for that portfolio would be: R(p) = X(a)R(a) + X(b)R(b), where: R(p) = expected returns from portfolio R(a) = expected returns from asset A R(b) = expected returns from asset B The standard deviation or risk of that portfolio would be: SD(p) = √(XÂ ²aSDÂ ²a + XÂ ²bSDÂ ²b + 2XaXbRSDaSDb), where: SD(p) = standard deviation of expected returns of portfolio SDa = standard deviation of expected returns of asset A SDb = standard deviation of expected returns of asset B R = correlation coefficient between the expected returns of the two assets The efficient frontier Under MPT, Markowitz examined the efficient frontier curve. The efficient frontier curve gives a graphic presentation of a set of portfolios that offer the maximum rate of return for any given level of risk (McLaney, 2006). According to Markowitz, an efficient investor will opt for an optimum portfolio along the curve, based on their level of risk aversion and their perception of the risk and return relationship (Fabozzi Markowitz, 2002). Figure 1: Efficient Frontier Source: www.riskglossary.com The curve in the diagram above illustrates the efficient frontier. Portfolios on the curve are efficient – i.e. they offer maximum expected returns for any given level of risk and minimum risk for any given level of expected returns. The shaded region represents the acceptable level of investments when risk is compared against returns. For every point on the shaded region, there will be at least one portfolio that can be constructed and has a risk and return corresponding to that point (www.riskglossary.com) As aforementioned, each portfolio on the efficient frontier curve will have a higher rate of return for the same or lower level of risk or lower risk for an equal or better rate of return when compared with portfolios not on the frontier. It is important to note that the efficient frontier is really made up of portfolios rather than individual assets. This is because portfolios could be diversified, i.e. investors can hold assets which are imperfectly correlated (Fabozzi Markowitz, 2002). This will help to ensure that investors can reduce their risks associated with individual asses by holding other assets – a kind of set-off. The Capital Market Line The Capital Market Line (CML) is a set of risk return combinations that are available by combining the market portfolio with risk free borrowing and lending (www.lse.co.uk/financeglossary). The CML defines the relationship between risk and return for efficient portfolios of risky securities. It specifies the efficient set of portfolios can investor can obtain by combining the portfolio (which contains risk) with a risk free asset. The formula for CML is: E (r_c) = r(f) + SD(c)*[E(r_m)-r(f)]/SD(m) Where: E(r_c) = expected return on portfolio c R(f) = risk free rate SD(c ) = standard deviation of portfolio c E (r_m) = expected return on market portfolio SD(m) = standard deviation of market return The CML indicates that the expected return of an efficient portfolio is equal to the risk-free rate plus a risk premium. Both risk and return increase in a linearly along the CML. Figure 2: Capital Market Line Source: www.riskglossary.com In Figure 2 above, the CML is the line touching the efficient frontier curve. It passes through the risk free rate (assumed to be 5%). The point where the CML forms a tangent with the efficient frontier curve is the point called the super-efficient portfolio. The Risk free asset, Sharpe ratio and the Market Portfolio The risk free asset pays a risk free rate and has a zero variance in returns, e.g. government short-term securities. When combined with a portfolio of assets the change in return and risk is linear. The Sharpe Ratio is a measure of the additional return to be obtained about a risk free rate for a given portfolio compared with its corresponding risk. On the efficient frontier the portfolio with the highest Sharpe Ratio is known as the market portfolio. The CML is the result of a comparison between the market portfolio and the risk free asset. The CML surpasses the efficient frontier with the exception of the point of tangency. The Capital Asset Pricing Model While the CML focuses on the risk and return relationship for efficient portfolios, it would be useful to consider the relationship between expected return and risk for individual assets or securities. The Capital Asset Pricing Model (CAPM) would be used for this. CAPM is an extension of Markowitz’s Portfolio Theory or MPT. It introduces the notions of systematic and specific risks. Let us define each: Systematic risk – this is the risk associated with holding the market portfolio of assets Individual assets are affected by market movements Specific risk – this risk is unique to an individual asset and represents that portion of an asset’s return which has no correlation with market movements. CAPM assumes the following (McLaney, 2006, 199): Investors are risk averse and maximise expected utility of wealth The capital market is not dominated by any individual investors Investors are interested in only two features of a security, its expected returns and its variance or standard deviation There exists a risk free rate at which all investors may borrow or lend without limit at the same rate There is an absence of dealing charges, taxes and other imperfections All investors have identical perceptions of each security This lends credence to the assertion that CAPM follows a natural progression from MPT. The assumptions are identical with the main difference being how risks are categorised and treated. This will be explored in detail in a later section. Under CAPM, the market place will compensate an investor for taking a systematic risk but not a specific risk. The rationale for this is that specific risks can be avoided or minimised through diversification. The formula for CAPM is as follows: r = Rf + Beta x (RM-RF), where: r = expected return on an asset Rf = rate of risk free investment RM = return rate of the appropriate asset class Beta is the relative risk contribution of an individual security to the overall market portfolio. It measures the security risk relative to the market portfolio and ignores the specific risk. The beta equation is as follows: Cov (i,M)/(SDm)Â ², where: Cov (i,M) = covariance between market portfolio and security i (SDm)Â ² = variance of the market’s return The betas for all assets are measured in relation to the market portfolio beta which is 1. In effect, if individual beta is greater than 1, then individual asset has a higher risk than the market risk. If individual beta equals 1, then individual asset risk and market risk are the same. If individual beta is less than 1, then the risk of that individual asset is less than the market risk. The value of beta provides an idea of the level or size of the change in an asset’s return when a corresponding change in the returns of an overall portfolio is experienced (McLaney, 2006). Beta has come under criticism from academics and investors who do not appreciate the value of beta as an appropriate risk measure. However, this is somewhat challenged by actual performance of the betas of portfolios and mutual funds. These are regarded as stable and can be used to predict future betas. Security Market Line CAPM can be applied by using the Security Market Line (SML). SML is a graphical representation showing the linear relationship between systematic risk and expected rates of return for individual assets. In the case of the SML, risk is measured by beta. It plots the expected returns on the y axis and the risk as denoted by beta on the x axis. In other words, the SML expresses the linear relationship between the expected returns on a risky asset and its covariance with market returns. Its formula is: Figure 3: CAPM and SML The line in the diagram above is the SML. Differences relating to MPT (CML) and CAPM (SML) To explain the differences, it is useful to consider the relationships between risk and return in the perspective of CML and SML. CML compares the relationship from an MPT perspective, while SML does from a CAPM perspective. The main difference pertaining to MPT’s relationship with CAPM is pertaining to risk. Under Portfolio theory, CML gives an indication of expected returns in comparison with risk. Here the risk is measured in terms of standard deviation of returns. The rationale for this is CML represents the trade-off for efficient portfolios, i.e. the risk is all systematic risk (McLaney, 2006). The SML on the other hand, indicates the risk/return trade-off, using beta as the measure of risk. In this case, only the systematic risk element of the individual asset is taken into consideration. The reason why CML shows no individual security’s risk profile is because all individual securities have an element of specific risk, implying that they are inefficient. CML only looks at efficient portfolios. The table below summarises the main differences between CML and SML Table 1: Tabular difference between CML and SML Summary As has been shown above, CAPM has been developed along the lines of Markowitz’s Portfolio theory. They both use expected returns and risk as the investor’s main determinant of their investment decisions. They both assume that investors are risk averse and do not consider anything else other than risk and returns. However, there are some subtle differences which will now be summarised below: Under Portfolio theory, the CML measures risk by standard deviation or total risk. The SML measures risk by beta or systematic risk under CAPM – it ignores specific risks The CML graph is interested in providing information on efficient portfolios only. The SML graph on the other hand provides insight into both efficient and non-efficient portfolio and securities REFERENCES AND BIBLIOGRAPHY Books Bodie, et al (2006) ‘Investments’ (7th edition), McGraw-Hill/Irwin, London Elton, E et al (2003) ‘Modern Portfolio Theory and Investment Analysis’, Wiley, London Fabozzi, F. Markowitz, H. (2002) ‘Theory and Practice of Investment Management’, Wiley, London McLaney, E. (2006) ‘Business Finance – Theory and Practice’ (7th edition), Prentice Hall, London O’neill, W.J. (2002) ‘How to Make Money in Stocks’, (3rd edition), McGraw-Hill, London Internet Sources www.lse.co.uk www.riskglossary.com www.wikipedia.com

Babe Ruth :: essays research papers

Career Highlights Began his career as a left-handed pitcher with the Boston Red Sox in 1914, compiling a 78-40 record Converted to a hitter in 1919 because of his great hitting ability During the 1919 season, he set a new home run record (29) and led the league in runs, RBI's, and slugging percentage. That winter Ruth was sold to the New York Yankees He led the league in home runs in 8 of the next 10 years He bested his own home run record by hitting 60 in 1927. Quote about The Babe "... I've seen them; kids, men, women, worshippers all, hoping to get his name on a torn, dirty piece of paper, or hoping for a grunt of recognition when they said, 'Hi-ya, Babe.' He never let them down; not once. He was the greatest crowd pleaser of them all." - Waite Hoyt, teammate of Babe Ruth Career Totals During his illustrious career he: Played a total of 20 seasons. Led the league in home run 12 times, in runs 8 times, in RBI's 6 times, and in slugging 13 times. Ended with a lifetime batting average of .342 Is the all-time leader in home run percentages (1/8.5 AB), walks (2056), and slugging (.690). Is 2nd all-time in home runs (714), runs, and RBIs Quote from The Babe "The way a team plays as a whole determines its success. You may have the greatest bunch of individual stars in the world, but if they don't play together, the club won't be worth a dime." - Babe Ruth Did You Know? Babe Ruth is credited with the invention of the modern baseball bat. He was the first player to order a bat with a knob on the end of the handle. Louisville Slugger produced the bat which he hit 29 home runs in 1919. Babe Ruth was one of only two people (Reggie Jackson being the other) to ever hit three home runs in a World Series game and is the only one to do it twice (1926& 1928). Babe Ruth and Ralph Kiner ranked first and second respectively as the outfielders with the highest average home runs per at-bat. Babe Ruth led the American League in home runs 12 times. Babe Ruth holds the record for the longest complete game victory in World Series history. In 1916, as a member of the Boston Red Sox, Ruth went 14 innings to defeat the New York Giants 2-1.

Greek and Roman Architecture

Running Head: Greek and Roman Architecture Greek and Roman Architecture By: Michelle Garrotters Art 101 November 2nd, 2008 Head: Greek and Roman Architecture Compare the characteristics and innovation of each Greek and Roman Architecture. The Greek and Roman architecture is very impressive for not only their time but also in our time today. The Greek architecture uses the columns in almost all of their temples. The shapes of the columns were extremely important to the Greeks. They used three different types of columns. The â€Å"Doric†, â€Å"Ionic†, and the â€Å"Corinthian†.All of these columns have a center piece that would be for displaying their Greek God(s) with what ever decorations. The Temple of Olympian Zeus is an example of â€Å"Corinthian† columns. The Temple of Poseidon is an example of â€Å"Doric† columns, and Athens is an example of â€Å"Ionic† columns. The Greeks usually built with either mud, wood, plaster, and/or stone. M ost of their buildings have not stood the test of time. Only temples made with marble or limestone these were built as objects of art honoring their different gods. These have been able to withstand the damage that time brings.The Roman architecture used mostly arches in their works. Which held more weight than the columns. Yes they used columns but only as decoration because of the weight. The Pantheon in Rome is a great example of this architecture. This building housed two kings and is one of the biggest surviving building in Rome. Romans used the same materials as the Greeks especially the Marble and Limestone. But they perfected the use of concrete, which is what most of their structures are made with. Most of the Romans buildings that are still preserved today are amphitheaters, bathhouses, aqueducts, and public housing. Unlike the Greeks theRomans did their buildings with lots of ornate on both inside and outside reflecting the â€Å"Pursuit of Pleasure† which is an es sential part of the Roman culture. In summary, Greek architecture is more rectilinear and of â€Å"post and lintel† construction. Greek buildings usually rectilinear, consisted off pediment supported by columns on a plinth for a base. Romans mastered the arch and the dome. Concrete made it possible to have more complex forms. Columns were used in both with the Greek favoring the Doric and Ionic for the cleaner lines. While the Romans preferred to use the more ornate Corinthian style columns.

Islam and Europe Essay

In modern day Europe, people fail to see the many impacts Islam has had on one of the most powerful continents in the western world. To see these impacts, we have to go back in history, from about 1000 C.E. to 1750 C.E. The impacts made by the Islamic world during this time have shaped Europe to the power house it is now. Most of the political impact Islam made on Europe happened during the Crusades. The Crusades began in 1095 when Pope Urban II called for the nations in Europe in unite for one cause. Before Pope Urban’s calling, Europe was divided into civil wars, but he had called for a union. The Crusades were directed towards Muslims, concentrating on the city of Jerusalem. The Crusades brought power and recognition to the pope but as the Crusades became less successful, the pope lost this power and popularity. The Crusades also brought more power to the kings. Prior to the Crusades, the kings had little power because most of the land was owned by rich aristocrats who owned small armies. During battle, these aristocrats were killed without picking an heir. Because of the lack of an heir these aristocrats had, the land was given to the king, thus giving the kings more power. Trade brought to the Christian world by the Islamic world boosted Europe’s economy greatly. Before the Crusades, trade in Europe was almost nonexistent, causing a negative impact on its economy. The Crusades, however, created a large influx of Muslim goods and luxuries. Want for these goods became very apparent with the rich giving the merchants the idea to create trade with the Islamic world. Preceding the 12th century, much of the Islamic and European trade was one sided, Islam exporting to Europe. However, during the 12th century, the major Islamic trading hub, Andalusia, helped Europe expand its exportation. Also, Muslims introduced and banking and credit system into Europe. The cultural effect Islam had on Europe was very substantial considering the technological advancements made by the Islamic world at the time. Before 1400, the only schooling facilities in Europe were monasteries. The development of universities came to Europe when European scholars discovered  Muslim translation of long-lost Greek and Roman scholarship. Not only did Islam help establish schooling in Europe but it also gave new technology to the Europeans. For example in mathematics. Prior to the Islamic influence, Europeans used cumbersome roman numerals. After 1150, the Hindu-Arabic numeral system was introduced to Europe. Arabic nummerals, with an additional character for zero, gradually became standard, aiding in the development of math. They also made advancements in medicine. The European way to treat infectious disease was based on superstition. After the 1300’s, medicinal knowledge developed on medical schools based on the Arabic medical encyclopedia. These advances paved the way for modern practices. These impacts made in Europe by Islam also had an effect globally. Without the development of kings gaining more power, our government today would be completely different, as well as our social classes. This medieval trade to Europe from the Islamic world comes to today with the oil trade. The mathematical advancements made by Arabic Empires gave us our modern understanding of all types of math; same with medicine. These effects did not only impact Europe but the entire world, modern and historical.