Financial Modelling Report Essay Example | Topics and Well Written Essays - 2000 words - 1

Financial Modelling Report - Essay Example Owing to the strong impact that 2008 financial crisis caused in the financial markets especially by exacerbating market volatility; this project will also compare the variable relationships before the crisis and after the crisis with the aim of finding out whether the crisis had caused any significant changes in the stock market dynamics. The analysis will primarily involve generation of line graphs, scatter plots, relationship tables, and use of regression analysis to compare the relationship between various variables. Analysis of regression statistics and scatter plots will be generated by SPSS while charts will be generated by Microsoft excel worksheets. The output generated from SPSS will be synthesized and presented in tables in a manner that is easy to read and understand. The dependent variable will be the return and the independent variables will include size of firm, book-to-market ratio, beta and three geographical regions including America, Asia and Europe. The three variables will be presented as dummy variables to enable multi-regression analysis. Consequently, number 1 will be assigned to the region that the sample has been obtained; and 0 will be assigned to the other regions that the sample has not been obtained. Beta is used in CAPM to measure systematic risk or volatility of a particular security relative to the market as a whole (Zhang, Shu and Brenner, 2010). Therefore, the securities with higher beta have more risk than the market and many investors would not want to invest in them. However, it is widely accepted that the securities that have high return will also have a high risk. As such, from the figure 1 and 2 below, the beta is directly proportional to the stock return, meaning that as the beta increases, the return on stocks will also increase and vice versa. The essence of a higher return in the stocks with a higher beta is to compensate the investors for the higher risk they are

Social Networking Sites Essay Example | Topics and Well Written Essays - 1750 words

Social Networking Sites - Essay Example Some people disagree, arguing that individuals should not use social networking sites as a forum of airing their opinions as these sites are not safe and have landed people in legal and personal problems. While these arguments are valid, people’s convictions should not be suppressed as voicing them out has created awareness on political subjects, thus revolutionizing politics. Social networking sites have been criticized as being ineffective in conducting political change as political activists form or join like-minded groups. They do not foster any action. Critics have also added that people join advocacy groups in sites like Facebook and ignore every message these groups send to them (Delany). However, these like-minded groups have taken things a step further. Levi Russell, a communications director of the Tea Party Express, said, â€Å"Facebook allows us to promote and organize events in a whole new way [...] it is one of the most targeted and flexible tools we use. Our su pporters are able to really take ownership of events in their area by sharing, discussing and inviting their friends in a very visual and tangible format (Unze o3a).† Furthermore, through social networking sites, protests have been arranged that have led parliaments to be dissolved and dictatorial leaderships to step down. One of the cyber organizers of the recent Egyptian protest, Wael Ghonim, said, â€Å"I am talking on behalf of Egypt [...] this revolution started online [...] this revolution started on Facebook (Smith).† Wael Ghonim demonstrated how instrumental social networking sites are in transforming politics. It has also been claimed that the state has a powerful means of monitoring or interdicting the tools on social networking sites, rendering them inactive as a tool of change in the political scenery and as such strengthening authoritarian regimes. These authoritarian regimes, apart from scrutinizing social networking sites, have also had them shut down (Sh irky 28-41). Notwithstanding, this does not stop individuals from stating their opinions about pertinent issues with their leadership. In fact, by the government shutting down these websites, the end effect achieved is that everyone is alerted to what is going on in the state, causing the news to spread faster. Also, internet shutdown allows people to be creative and use social networking sites to send coded messages, therefore still creating political awareness and enforcing political change in the long run (Feith 5). Furthermore, social networking sites like Twitter have an open API that allows other web service providers to insert a stream of tweets. This makes Twitter versatile even when there is an internet shutdown. For example, in Iran after the government shut down all internet sources people were still able to access Twitter. One tweet read â€Å"all internet & mobile networks are cut. We ask everyone in Tehran to go onto their rooftops and shout alaho akbar in protest #Ir an Election (Suvillan).† This characteristic of Twitter has ensured continued expression of political opinions. Many have argued that social networking sites have led to individuals being maimed, killed or even imprisoned by dictatorial governments for expressing their opinion (Leynne). However, without sacrificial lambs that are willing to voice their opinions, politics would be nonexistent. In fact, states that embrace freedom of speech were first formed by people speaking out. The opposition also argues that social networking sites have led people to be sued by posting defamatory and indecent messages on their status updates. Therefore, these social