Tuesday, August 25, 2020
Question: Talk about theSocial Marketing for ACOSS. Answer: Presentation: Social advertising is another methodology consolidated by todays associations to arrive at the mass. It is normally pressed with data about the association, which draws people groups consideration towards the items, the association is advertising. The social advertising requires a limited time message that normally leaves an effect on the crowd. Australian Council of Social Service is a backing gathering, which centers around the social government assistance in the nation. The association plans social arrangements for those associations and people, which are engaged in social government assistance. The motivation behind this report is to break down the social showcasing plan for the Australian Council of Social Service. Another arrangement for crusading will be dissected here with the assistance of an exhaustive writing. A limited time plan will be remembered for the report alongside a SWOT examination for the association. The crusades adequacy will be examined with the assistance of the 4Ps promoting model. Foundation of the Organization: As indicated by the perspectives given by Lawrence (2016), Australian Council of Social Service was established in the year 1956 for giving assistance to the people and associations, which works, for social government assistance causes. It gives government disability and a few sorts of administrations intended for the upliftment of the destitute individuals in the nation. The individuals who are jobless, crippled, destitute, and confronting social burdens are the focal point of the projects of the association. The current CEO of the association Dr. Cassandra Goldie was formerly working with the Australian Human Rights Commission. Australian Council of Social Service tends to the social issues of the nation for the most part within the sight of the Australian government. The association helps numerous different associations with similar perspectives with creating plans and arrangements. Writing Review: Australian Council of Social Service has among numerous different objectives, creating experience-based arrangements. The association gives hearty and comprehensive discussion component for the partners. As expressed by Martinez-Harms et al. (2015), Australian Council of Social Service works together scholastics and specialists for the creation of reports, which adds to open comprehension of themes like neediness, its effects and arrangements. It draws universal and national exploration experience for growing new strategies, which have the capability of lessening destitution and imbalance in the nation. The arrangements are pertinent for different nations too. As expressed by Dobson et al. (2015), the study had done by the association shows feature destitution rate tumbled from 13.9 percent in 2013 to 13.3 percent in 2014. In most recent ten years youngster neediness in the nation expanded by two percent. 57.3 percent of the individuals having a place with the underneath destitution line depends on the government managed savings as their fundamental pay source. These outcomes drawn by Australian Council of Social Service helped the legislature and different associations too in tending to the neediness in the nation, which in any case got away from the necessary concentration from the administration. Crusade Focus: The investigates by the Australian Bureau of Statistics have indicated that the wellbeing condition in the nation has decayed altogether because of consistent increment of nervousness and misery. Around forty-five percent of the all out populace is experiencing these side effects. 2,000,000 Australians experience the ill effects of tension issues and one million Australian individuals experience the ill effects of misery. As indicated by the perspectives on Newburn and Stanko (2013), the reasons of gloom have expanded fundamentally in the nation over the most recent couple of years. The reasons are situational. Nervousness issues are increasingly regular in the nation. Following the perspectives on Williams and Smith (2014), it very well may be said that, it would profit numerous people just as associations, if Australian Council of Social Service could concoct crusade intends to battle this emotional wellness issues saw by numerous Australians in a conscious manner. The battle will make customized answers for people just as for gatherings. Proficient therapists will help making the projects. The projects will be exceptional. For instance, the experts will assist numerous establishments with incorporating fun exercises in their week after week schedule. SWOT Analysis: To comprehend the inner circumstance of the association and decide how the crusade will play out, the accompanying SWOT examination is finished: Qualities: Not at all like benefit making associations Australian Council of Social Service is charge excluded. Offer items at a low cost because of the nonappearance of duties. Colossal number of effective volunteers is accessible in the association. Having such a significant number of volunteers lessens the expense of the association. Shortcomings: The association can't offer significant compensations like benefit making associations. Business visionaries have no enthusiasm for putting resources into Australian Council of Social Service as it won't make any benefit. Budgetary deficiencies are regular issue in the association. Openings: Individuals award good cause abundantly with no desires for financial returns. The administration gives appropriations and different aides through arrangements. Many benefit causing associations to give assets to advance Australian Council of Social Service. Dangers: The association is defenseless against monetary emergencies. High notoriety must be brought out all through so as to get noble cause and gifts. Table 1: SWOT investigation for Australian Council of Social Service. Source: As made by the creator. The SWOT investigation shows that Australian Council of Social Service being a philanthropic association has a lot of solidarity which benefit making associations miss. As per the thoughts of Baum et al. (2013), ACOSS can find support from the legislature in the hour of need. The shortcoming of the association is regularly it goes through shortage financing. It makes issues for paying the workers. It demoralizes individuals from landing into the positions offered by the Australian Council of Social Service. The gifts make open doors for the association to set and accomplish the objectives. The legislature likewise assumes a significant job in making open doors for the association and its battles. During financial emergencies, the gifts evaporate. It hits the associations spending plan and objectives adversely and fundamentally. Target Market: The objective market for the Australian Council of Social Service for the battle is engaged to the age bunch with lower limit of sixteen years. There is no furthest breaking point for the age, as the issue is appeared to increment with more age. Following the perspectives on Sanders (2017), distinctive age bunches have various purposes for discouragement and tension, which requests diverse age gatherings to be considered with determined models. As expressed by Bloch et al. (2017), the downturn level relies upon the age gatherings. Henceforth, the association needs to make redid programs for the clients, which will suit the planned age gatherings. As g The association additionally requires help from specialists with sound mental ideas who will help in building up the projects. Diverse age gatherings and their characteristics must be thought of while making the altered projects. 4Ps of Marketing: The accompanying business sector examination is required to break down and search for the correct way to present the projects. It will show how the battles will address the downturn and nervousness issues in various age gatherings. Product:The item in concern is the crusade tending to the downturn and tension in the Australian populace. The crusade will be created by the age bunches in nation. The battle will be isolated into two classes. Following the thoughts of Lawrence et al. (2015), it very well may be said that, the primary classification will require arriving at the objective populace independently with the assistance of expert therapists. The subsequent class will be planned to arrive at the huge gatherings of individuals through mass contemplation and week by week fun exercises in workplaces, schools, and other working spots. This will help individuals both exclusively and all things considered. The uniqueness of the items will draw consideration of the individuals and help them concentrating on the reason for the crusade. Price:The cost of the crusade will be immense as it addresses nearly the entire populace both altogether and exclusively. Thus, the association needs to create assets from various sources. For this reason, the association needs to give an away from of the battles objectives and the advantages that the general public can profit by. The perspectives given by Rickwood et al. (2014), states that, the administration of Australia can help for this reason with planned approaches. Place:The introduction procedure will be begun in Tasmania. Different schools, workplaces, and different organizations will be drawn closer to pick up the consideration from the blended age gatherings. The battle will at that point spread everywhere throughout the nation. Advancement: To contact individuals from all age bunches the correspondence forms must be picked cautiously. Following the perspectives on Baldwin (2016), it very well may be said that, the correspondence forms must be cost proficient and all encompassing. Different online life stages will be utilized for this reason like Facebook, Instagram, YouTube, and others. Different mediums like the printing and video media may likewise be utilized after the instatement procedure. Eye catching Message: An eye catching message is required by the association to contact every one of those individuals, who need the assistance from this battle. The message requires an appealing and centered appearance to contact the proposed individuals as given beneath: Try not to let misery and uneasiness remove your joy. Allow us to help Viability of the Message: The message given above is basic and spotlights on the aftereffect of sorrow and tension. It makes desperation against the issues of sadness and uneasiness.
Saturday, August 22, 2020
interconnected both monetarily and socially. Globalization is really the procedure of monetary, mechanical, political and socio-social powers I. e. globalization alludes to the adjustment or advancement of qualities, information, innovation and conduct standards across various social orders and nations around the globe. The attributes of globalization are for the most part connected with worldwide systems administration (I. e. web, electronic correspondence or innovation and so on. ) with interflow of data in the financial, social, political and social learning regions, interflow between worldwide partnerships and contenders, universal coordinated effort and multi-social combination and worldwide town and innovation. There are four measurements to globalization and they are 1) Building the worldwide economy, 2) Formation of world sentiment, 3) Democratization, or the production of a worldwide network and 4) The development of worldwide political establishments. (Globalization) The beneficial outcomes of globalization in any economy is that, it has opened a more extensive idea of correspondence all through the world, it helps on getting interest in a nation, with the assistance of globalization individuals and organizations presently approach various results of different nations, there is a steady progression of capital and money in the creating nations, there is likewise an expansion in the creation segment of the organizations because of interest for their items around the world. The administrations around the globe are attempting to take care of natural issues with the assistance of globalization. The individuals are getting progressively social and open towards one another and all the more significantly there has been an expanded improvement in the region of innovation, which has caused a decrease in the cerebrum channel for instance, the individuals of Asia are currently working in the own nations however for remote organizations (as opposed to traveling to another country for work), these individuals are making outside trade for their particular nations. There is likewise an expansion in the progression of correspondence inside the world; the worldwide market has the opportunity to trade merchandise and capital. Another beneficial outcome of globalization is that there is an expanded rivalry between the organizations to bring down costs which will profit the end buyer. Globalization gives expanded media inclusion. Because of globalization the natural issues can be settled with conversations. Another beneficial outcome of globalization is that there are unhindered commerce zones and the nations need to pay less duties and amounts. Another impact of globalization is that universal equity frameworks and courts have been propelled and overall budgetary markets have been made also. Furthermore, letÃ¢â¬â¢s not overlook migration between the nations have expanded ten times. (Points of interest of globalization, 2007) Globalization has favorable circumstances as well as there are a few impediments to it too. The principal drawback of globalization is that nearby organizations are presently been taken over by the remote worldwide organizations. Because of globalization there is an expansion in human dealing, another detriment is that the advantages of globalization are not widespread which implies that the created nations are turning out to be more extravagant step by step and the creating nations are not progressing rapidly and poor people nations are getting more unfortunate as the time increments. Another negative impact of globalization is that there has been abuse of work worldwide and the created nations have begun to re-appropriate assembling and office employments, which implies that the quantity of occupations has diminished. What's more, letÃ¢â¬â¢s not overlook because of globalization the costs continue expanding in light of the fact that the administrations don't be able to keep up social government assistance conspires inside the nations. Also, to wrap things up because of globalization, psychological oppressors would now be able to get refined weapons effectively for mass decimation. (Upsides and downsides of Globalization) Different kinds of globalization As we realize that globalization is the procedure of financial, innovative, political and socio-social powers. There are various types of measurements to globalization. What's more, they are as per the following:- Ã¢â¬ ¢ Economic Ã¢â¬ ¢ Sociology Ã¢â¬ ¢ Anthropology Ã¢â¬ ¢ Psychology Ã¢â¬ ¢ Cultural Ã¢â¬ ¢ Communication Ã¢â¬ ¢ Political Ã¢â¬ ¢ Geographic Economic Globalization: monetary globalization can be characterized as accelerating of the between connectedness between all the perspectives. Monetary globalization connects the occupation to the creation of products and enterprises. The making of worldwide commercial center was finished with the assistance of monetary globalization. Monetary globalization for the most part relies upon the positive and negative marvel. As of late with the assistance of financial globalization the created nations like UK are coordinating with the creating nations like India through remote venture, it assists with decreasing the exchange obstructions and by westernizing their societies. (Monetary Globalization) Political Globalization: political globalization can be characterized as the rise of a world government (like World Bank and IMF), which helps in controlling the connection between the administrations. With the assistance of globalization the created nation can appreciate a solid and sound economy for instance, USA. USA appreciates being the force to be reckoned with and having a solid and an affluent economy and development because of globalization. Land Globalization: topographical globalization really implies that with the assistance of globalization the geological separations are decreased. As we realize that separation is estimated in time accordingly separation normally experiences pressure or obliteration when discussing topographical globalization. With the assistance of globalization data can reach to remote areas of the world. Social Globalization: social globalization can be characterized as the transmission of culture around the world. The transmission is finished by the development of individuals, items, images and signs. The things that are viewed as significant in social globalization are correspondence and transportation. The worldwide culture markets are for the most part determined by innovation and these business sectors are for the most part ruled by UK, US, Japanese and Chinese organizations. Radio and music industry is viewed as the most ideal method of speaking with the world; it is the significant wellspring of correspondence in the creating nations like India. Music is viewed as profoundly good with globalization since it doesn't want to be interpreted. Film and TV are likewise viewed as one of the significant ways for conveying around the world. Brain research of Globalization: it is presently being contended that these daysÃ¢â¬â¢ individuals around the world, with the assistance of globalization are currently creating bicultural personality, which is a mix of neighborhood character and worldwide culture. That sort of personality makes disarray among the young people of non-westernized societies. The impact of globalization is that it has made character gives that is there are a few people who themselves select their own way of life which isolates them from the worldwide culture.
Saturday, August 1, 2020
One Giant Leap Im up early. Im up REALLY early, and its not because I stayed up, its because I woke up . . . to go study. Finals are coming up! You see, theres this little class called 2.006 also known as Thermal Fluids Two and its a wee bit difficult. Difficult in that since Friday morning at 7 Ive been studying pretty much non-stop. The final is on Monday, that gives me 1.5 more days to learn everything. The good part? I think Im almost there. I actually think Ill be ready for Monday *crosses fingers* But, I digress. I walked out of the dorm this morning at 6:20 AM. As I ritually do, I check the dome before I head down dorm row towards campus, just because the dome is so visible and Im more likely to see a hack in the morning than in the afternoon or evening. So, step 1, check dome. Step 2, get really excited and head back inside for my camera. Step 3, photograph dome from afar to share on blog. YAY! They put a BUMP on the dome. Obviously, from this distance, whatever was up there wasnt quite as impressive as I think it was supposed to be, so I detoured from my studying route and headed over to Killian. Now, I dont have some fancy SLR or tripod or anything, Ive got a cybershot throw-in-your-pocket camera. BUT it loves taking pictures outside and the digital zoom is pretty good, so Ive got two more pictures for you, one from farther away and then the same picture zoomed in really close. Ive played with the brightness and contrast in order to make things a bit more visible. Ahhhhhhh, ok, I get it now. Its a lunar lander! Apollo 11 probably, since the 40th anniversary is coming up. Yeah, that looks similar! From the distance I could see that white circle above the ladder blinking, so there are at least some onboard electronics. Im guessing theyre not solar powered but it does add a nice touch. So thats that! Happy soon-to-be 40th Birthday Apollo 11, MIT remembers you!
Friday, May 22, 2020
A reading of Ã¢â¬Å"Song of MyselfÃ¢â¬ Ã¢â¬Å"Song of myselfÃ¢â¬ is one of Walt WhitmanÃ¢â¬â¢s excellent poetry of the Leaves of Grass. Referring to the word Ã¢â¬Å"myselfÃ¢â¬ from title, it is presumable that the poem is talking about Whitman himself. Moreover, in this poem, he uses several times the word Ã¢â¬Å"youÃ¢â¬ . To some extents, Ã¢â¬Å"youÃ¢â¬ can be referred to his beloved readers. This poem is like a conversation between the speaker and the readers. He tells the readers about his passion to the world and asks us to find him. In addition, to other degrees, Ã¢â¬Å"youÃ¢â¬ also can be regarded as American people. In the poem, he addresses his passion to his nation, to American people. He wants them to read his poem and it will bring them benefits. Overall, this is a poem to praise Whitman himself, to set free his human passion and to address his beloved readers. In the first stanza, Whitman tells us that he sees a hawk Ã¢â¬Å"accusesÃ¢â¬ and Ã¢â¬Å"com plainsÃ¢â¬ him. His response is to feel immensely humbled as he sees elements of himself in the hawk. In particular, the comparison between himself and the hawk is based on the elemental power within it and the fact that his voice is untranslatable and described as a barbaric yawpÃ¢â¬ , which leaves us with an echo in the air. He uses similes to make himself be a hawk, to show his confidence and unruly voice. He is under no restraint whatever. Then, he started to say goodbye. The day seems to wait for him to get ready to move on and it leadsShow MoreRelatedEssay about Walt Whitman as a Voice for the People1185 Words Ã |Ã 5 PagesWalt Whitman as a Voice for the People The proof of a poet is that his country absorbs him as much as he absorbs his country. This brilliant quote from Walt Whitman thus ends his preface to Leaves of Grass, and thereafter begins the poem Song of Myself. To many, upon their first reading, this was a crude, shocking and distasteful piece of work. but to me...this was a celebration of life. And not just a celebration of his own life, but of every life, of the American life. WaltRead MoreSong of Myself by Walt Whitmas Essay1045 Words Ã |Ã 5 Pagesbecome one with it. By all means, these few can be called Ã¢â¬Ëidle city menÃ¢â¬â¢ or, according to Charles BaudelaireÃ¢â¬â¢s 1863 essay Ã¢â¬Å"The Painter of Modern LifeÃ¢â¬ , they are flÃ ¢neurs. I believe a worthy example of a man such as this, is the persona in Walt WhitmanÃ¢â¬â¢s Ã¢â¬Å"Song of MyselfÃ¢â¬ . He is a flÃ ¢neur in all ways but one. In Ã¢â¬Å"The Painter of Modern LifeÃ¢â¬ , Baudelaire gives a very extensive and profound description of what aspects one needs in order be considered or labeled a flÃ ¢neur. For example, he explains how theRead MoreWalt Whitman s Life That Changed The Way Of Life1690 Words Ã |Ã 7 Pages Corey Haldiman Goulette Research Paper Walt Whitman Walt used creativity, personal experiences and different ideas in his writing. He moved various times through his childhood, and that may have moved his personality to become slightly neurotic. He has done a lot of things in his life that has changed the way that future poets will write. Walt Whitman entered this world on May thirty-first, eighteen-nineteen in West Hills, New York. He was the second son among nine other children inRead More walt whitman Essay1383 Words Ã |Ã 6 Pages nbsp;nbsp;nbsp;nbsp;nbsp;Walt Whitman nbsp;nbsp;nbsp;nbsp;nbsp; nbsp;nbsp;nbsp;nbsp;nbsp;Walt Whitman was a follower of the two Transcendentalist Ralph Waldo Emerson and Henry David Thoreau. He believed in Emerson and ThoreauÃ¢â¬â¢s Trascendentalist beliefs. Whitman believed that individualism stems from listening to oneÃ¢â¬â¢s inner voice and that oneÃ¢â¬â¢s life is guided by oneÃ¢â¬â¢s intuition. The Transcendentalist centered on the divinity of each individual; but this divinity could be self-discoveredRead MoreThe Song Of Myself By Walt Whitman And Howl1353 Words Ã |Ã 6 PagesBoth Ã¢â¬Å"Song of MyselfÃ¢â¬ by Walt Whitman and Ã¢â¬Å"HowlÃ¢â¬ by Allen Ginsberg are important pieces of American poetry. Ã¢â¬Å"Song of MyselfÃ¢â¬ was written in the 1850Ã¢â¬â¢s and Ã¢â¬Å"HowlÃ¢â¬ was written about a century later. Both poets were part of groups that wanted to change America Ã¢â¬â the Transcendentalists and the Beats. Transcendentalists believed in the goodness of people and nature. They believe that people are at their best when they are truly independent. The Beats rejected standard values and materialism. They experimentedRead MoreLeaves of Grass by Walt Whitman Essay1248 Words Ã |Ã 5 PagesLeaves of Grass by Walt Whitman In the twentieth century, the name Walt Whitman has been synonymous with poetry. Whitmans most celebrated work, Leaves of Grass, was the only book he ever wrote, and he took a lifetime to write it. A large assortment of poems, it is one of the most widely criticized works in literature, and one of the most loved works as well. Whitman was unmarried and childless, and it has been noted that Leaves of Grass consumed him greatly; James E. Miller Jr. writes: #8230;heRead More References to Homosexuality in Walt Whitmans Song of Myself1210 Words Ã |Ã 5 PagesReferences to Homosexuality in Walt Whitmans Song of Myself WHITMAN WAS MORE MAN THAN YOULL EVER BE, said a student of Louisiana State University. When asked questions of your sexual preference or thoughts on the issue of sex, I would venture to say it makes most people uncomfortable. This is an age-old topic that people know about, yet do not want to talk about. He was particularly reticent about his issues regarding sex and his particular sexual preference. In fact, of WhitmansRead MoreSong Of Myself By Walt Whitman1795 Words Ã |Ã 8 Pagesduring sex and eating. In his gutsy poem to America, Song of Myself, Walt Whitman uses repetition to make music that will bring pleasure to his readers and also shape how they perceive the world. Whitman begins his poem by boldly stating that he celebrates himself. Like the chorus to a song he repeats the word Ã¢â¬Å"IÃ¢â¬ throughout the entirety of the poem. The meaning of the word transitions from Ã¢â¬Å"IÃ¢â¬ being Whitman himself, to the people reading his book, and then ending with the reader realizing that Ã¢â¬Å"IÃ¢â¬ Read MoreEzra Pound, Whitman, And Crudity1081 Words Ã |Ã 5 Pages Pound, Whitman, and Crudity Walt Whitman was born in 1819 in Long Island but moved to live in New Jersey where he spent most of his life. He was known as an American poet and journalist. He expressed himself in poetry by describing his life and American lives as a poem. His first published poem was Leaves of Grass in 1855, which later became known as Song of Myself. Ezra Pound was born in 1885 and died in Venice Italy, 1972. He was an American poet that criticized other poems and worked with otherRead MoreUnity Of The American Culture Essay2018 Words Ã |Ã 9 Pagesfound in coming together. American Poet, Walt Whitman captures the strength in the unity of the American people. Through Walt WhitmanÃ¢â¬â¢s Ã¢â¬Å"Song of Myself,Ã¢â¬ he demonstrates the value of unity in the American culture. He celebrates the individuals who make up the United States, whether they are the common worker or the very rich. Ã¢â¬ Song of MyselfÃ¢â¬ invites readers to see the hope and praise he had for all people in the Ameri can Culture. Walt WhitmanÃ¢â¬â¢s Ã¢â¬Å"Song of MyselfÃ¢â¬ shows the unity of people found in the
Sunday, May 10, 2020
Ending Saturday mail delivery would save the beleaguered U.S. Postal Service, which lost $8.5 billion in 2010, lots of money. But how much money, exactly? Enough to make a difference and stop the bleeding? The answer depends on who you ask. The Postal Service says stopping Saturday mail, an idea that has been floated several times, and moving to five-day delivery would save the agency $3.1 billion. The Postal Service does not take this change lightly and would not propose it if six-day service could be supported by current volumes, the agency wrote. However, there is no longer enough mail to sustain six days of delivery. Ten years ago the average household received five pieces of mail every day. Today it receives four pieces, and by 2020 that number will fall to three. Reducing street delivery to five days will help re-balance postal operations with the needs of todays customers. It also will save about $3 billion a year, including reductions in energy use and carbon emissions. But the Postal Regulatory Commission says ending Saturday mail would save far less than that, only about $1.7 billion a year. The Postal Regulatory Commission also projected that ending Saturday mail would result in larger mail volume losses than the Postal Service predicts. In all cases, we chose the cautious, conservative path, Postal Regulatory Commission Chairwoman Ruth Y. Goldway said in March of 2011. Our estimates, therefore, should be seen as the most likely, middle ground analysis of what could happen under a five-day scenario. How End of Saturday Mail Would Work Under five-day delivery, the Postal Service will no longer deliver mail to street addresses - residences or businesses - on Saturdays. Post Offices will remain open on Saturdays, though, to sell stamps and other postal products. Mail addressed to post office boxes will continue to be available Saturday. The Government Accountability Office has raised questions about whether the Postal Service could realize $3.1 billion in savings by ending Saturday mail. The Postal Service is basing its projections on eliminating city- and rural-carrier work hours and costs through attrition and involuntary separations. First, USPSs cost-savings estimate assumed that most of the Saturday workload transferred to weekdays would be absorbed through more efficient delivery operations, the GAO wrote. If certain city-carrier workload would not be absorbed, USPS estimated that up to $500 million in annual savings would not be realized. The GAO also suggested that the Postal Service may have understated the size of the potential mail volume loss. And volume loss translates into revenue loss. Impact of Ending Saturday Mail Ending Saturday mail would have some positive and plenty of negative impacts, according to the Postal Regulatory Commission and GAO reports. Ending Saturday mail and implementing a five-day delivery schedule, the agencies said, would: save the Postal Service an estimated $1.7 billion a year, nearly half as much as the $3.1 billion projected by the agency itself; reduce mail volume and result in net revenue losses of $600 million a year, far more than the $200 million in lost revenue projected by the Postal Service; cause a quarter of all First-Class and Priority mail to be delayed by two days; negatively impact business mailers, local newspapers that rely on Saturday delivery, residential mailers who would be affected by longer mail transit times, and other population groups, such as rural residents, the homebound, or the elderly; reduce the advantage that USPS has over competitors that do not offer Saturday delivery, particularly delivering postal parcels on Saturdays at no additional charge; and diminish USPSs image, in part by reducing public contact with carriers. Ending Saturday mail would improve USPSs financial condition by reducing costs, increasing efficiency, and better aligning its delivery operations with reduced mail volumes, the GAO concluded. However, it would also reduce service; put mail volumes and revenues at risk; eliminate jobs; and, by itself, be insufficient to solve USPSs financial challenges.
Wednesday, May 6, 2020
Daphnia died on day seven in trial two. In a pH of five the Daphnia survived for six day s In trial one and six days in trial two. Len the pH of twelve the Daphnia survived for five days in trial one and in trial two the Daphnia survived for six days. We will write a custom essay sample on Data Analysis And Discussion Science Fair or any similar topic only for you Order Now ; The Daphnia survived less than a week under the strong acids and bases because Daphnia can easily become stressed under different conditions like t he pHs. The water tanks had an increase in Compounds that form H+ ions in the water ankhs (acids; pH of three and five) and an increase Compounds that form OH ions (basis; pH of twelve) as our classed has learned about this in the biochemistry unit. The reason why people would care about our data results and experiment is t hat the Daphnia and the the different pHs are just a representation of what can happen in the real world as aquatic habitats and ecosystems can be critically impacted as different forms Of acids, such as acidic rain and bases and can kill not just Daphnia but also other aquatic organism due to human activity. As w as inform people how vital pH can affect an entire habitat and even ecosystem Our hypothesis was valid because we proved that testing Daphnia in a strong pH (three and five) and a strong acid (twelve) the survival rate of the Daphnia would drop, which did as the Daphnia continued to day from day to day as the e acids and bases caused it harm. The relationship between the Daphnia and the level of independent variable was seen as we put the Daphnia in different pHs and saw that died in different WA How to cite Data Analysis And Discussion Science Fair, Papers
Wednesday, April 29, 2020
Mughal Empire Mughal Empire The greatest flourishing of northern Indian culture, art, and imperial strength undoubtedly took place during the reign of the Mughal monarchs of the 16th and 17th centuries. The Mughals were Central Asian descendents of the great Mongol warriors Ghengis Khan and Timur. The Mughals seized power and held on to it by using various methods. The system of government used by the Mughals was also efficent in helping the Mughals to hold on to their power. But the Mughals didn't flourish too long, after the new ruler Auranzeb took control. The Mughal's gained power and were able to hold on to it by Akbar's expert use of diplomacy. Akbar added new territory to the Mughal empire. Along with new territory came diverse ethnicity and problems. To prevent problems Akbar secured the allegiance of the diverse populations within his empire. At the height of his political power, Akbar ended the taxes on non-Muslims and permitted Hindus to build new temples, creating religious tolerance. He also secured Hindu support by negotiating peace treaties. The system of government used by the Mughals was very effcient in holding on to their power. Akbar divided his empire into provinces and districts, giving local governors salaries instead of land grants. This way if the officials were dependent on the central government for income, they would probably not rebel. Akbar set up an efficient tax collecting system and made an effort to ensure that it was applied fairly. Later years however, when Akabar's son and grandson ruled they increased taxes to support military campaigns. However, the Mughals decline set stage rapidly when Auranzeb took leadership. Religious intolerance was at it's height during Auranzeb's rule. His policy caused tension between Hindus and Muslims. Hindu rulers challenged Auranzeb, he reacted by reinstating a tax on non-muslims and destroying many Hindu temples. There was constant warfare which weakened the empire. Along with constant warfare, corruption grew. The treasury was being drained by corrupt officials. The empire had no money to support a strong military, so they required heavy taxes. Which increased problems with peasants. He tried to cut non-military expenses by dismissing artists, architects, and historians. By doing this the growth of the Mughal culture stopped. Many Indian states withdrew their support or declared their independence. Auranzeb died in 1707 leaving his decendants to rule a weakend empire.
Friday, March 20, 2020
An Investigation of the Influence of Organisational Culture on Project Management The WritePass Journal
An Investigation of the Influence of Organisational Culture on Project Management Research Objectives An Investigation of the Influence of Organisational Culture on Project Management Research ObjectivesIntroductionExtra References:Related Research Objectives To explore the link between organisational culture and project management. To evaluate the impact of organisational culture on innovation and project management success. To formulate recommendations on the impact of organisational culture on the management of projects. Introduction This literature review explores the main issues surrounding the influence of organisational culture in the management of projects within the National Health Service and financial institutions (banks). The literature review will also review the available guidelines that assist project managers in tackling the identified issues. To this end, this review will draw on a series of landmark studies in the current body of literature in order to facilitate a structured and critical analysis of the ways in which organisational culture influences project management. Firstly, in order to address this question, the term Ã¢â¬Å"organisational cultureÃ¢â¬ needs to be defined. The enquiry into Ã¢â¬Å"cultureÃ¢â¬ first began at the end nineteenth century (Deshpande and Webster, 1989; Reigle, 2003; Bertho et al., 2001). However, there has been no single, universal definition of organisational culture. Marshall and Marshall (1993) define organisational culture as a melting pot of beliefs, rules, actions, regulations, and attitudes that guide behaviour in an organisational context. In this way, every organisation has its own organisational culture that is formed by its members (Cleland Ireland, 2006). An organisationÃ¢â¬â¢s culture can also be formed through the different rites, rituals and the expected patterns of communication and behaviour within the organisation (Mullins, 2007). Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã A more conventional way of defining culture, however, is the procedure by which things are carried out and achieved in a given organisation. For example, Atkinson (1990) offers a definition of organisational culture as a set of underlying processes that influence the way in which work is performed. Researchers such as Kilman et al., (1985) and Sackman (1991) corroborate this view and see culture as Ã¢â¬Å"the way we do things around hereÃ¢â¬ . In this way, every organisational culture carries its own modus operandi tha t has positive and negative aspects. For the purposes of this project, this will be the definition that shall guide the literature review and following study. Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Considerable research has suggested a significant influence of organisational culture on project performance, and the subsequent success of organisations (Yazini, 2009; Brown, 2008; Andersen et al., 2009). For example, a number of studies have shown that organisational culture influences specific project organisational culture, such as goal planning, employee commitment to project goals, and the performance of project teams (Stare, 2011). Organisational culture can also exert its influence on organisational processes that include decision-making, design, structure, motivation, job-s atisfaction and management control (Pheysey, 1993). Moreover, organisational culture has also been found to influence the Ã¢â¬Å"sub cultureÃ¢â¬ of a project team as indicated in research by Kerzner (2001) who found that organisational culture can impact the trust, connection and co-operation within a project team. Organisational culture can also critically influence innovation, group effectiveness and achievement, and the overall success of an organisation (Reigle, 2001).Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã However, project management has also been found to play a critical role in an organisationÃ¢â¬â¢s success. For example, Tidd and Bessant (2009) found that the commitment level of top management is linked with the innovation of an organisation. Moreover, project management is important in maintaining a balance between a teamÃ¢â¬â¢s culture and an organisa tional culture. In the current times of economic instability, project management is needed to allow individuals to accomplish their individual goals and aspirations as well as the objectives and goals of a project. Moreover, whilst an organisational culture can change, adapt and evolve over time, individuals are often more resistant to change, especially if organisational changes have not been adequately explained to them and they are ignorant of the benefits to the organisation (Cleland Ireland, 2006). In these cases, a project manager is needed to step in and motivate his/her team so that the change takes place smoothly. Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Given the importance of both organisational culture and project management on the success of an organisation, a limited amount of research has indirectly drawn links between organisational culture and project management. For example, Shore (2008) hypothesised that the way in which projects a re carried out is deeply influenced by both the project leader, but also the way in which the organisation performs its work. Schein (1991) also suggested that individuals within an organisation cannot create a new organisational culture, but can contribute to its evolution over time. Consequently, an organisation can learn to embrace a completely different modus operandi and adopt a novel way of doing things. However, these kinds of transformations demand high degrees of tolerance and acceptance of change. These changes also often require organisations to be open to deviating from traditional norms and operating in flexible and adaptive ways. In such cases, the role of effective project management is essential, as it is needed to equip others with skill-sets in which they can face changes in the organisational culture. Similarly, Mullins (2007) noted that every organisational culture differs from one region to another, and therefore, the project management must be formulated in suc h a way that it is able to adjust to these changes and explore opportunities for development. Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Moreover, for an organisation to be successful in the management of projects, the project team culture must hold values, principles, procedures and management philosophies that are in line with the organisationÃ¢â¬â¢s culture (Cleland Ireland, 2006). In other words, there must be equality within the organisational culture. Cultural equality ensures that the management of projects is consistent with the organisational culture that supports a projectÃ¢â¬â¢s advancement and success. However, this consistency will not exist unless senior managers are able to develop and communicate a vision that effective project management is important, worth doing, and actively supports the use of resources to accomplish project objectives, (Cleland Ireland, 2006). Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Due to the aforementioned strong links between organisational culture and project management, some researchers have modified the definition of organisational culture to be a reflection of management authority (Cartwright, 1999). In other words, this definition proposes that an organisational culture that is widely accepted, can help employees alig n themselves with their organisation, internalise the organisationÃ¢â¬â¢s beliefs as their own and motivate employees to achieve the organisationÃ¢â¬â¢s objectives (Cartwright, 1999).Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã This research therefore, begs the central question of whether organisational culture impacts the management of projects.Ã In line with this question, research by Pinto (2010) has revealed four different ways in which organisational culture can influence project management. Firstly, culture impacts the ways in which teams and departments communicate and interact with each other when faced with tasks and goals. Secondly, organisational culture influences the attitudes that employees hold towards project goals. Thirdly, culture affects the planning that takes place in preparation for a project. Finally, culture impacts the ways in which managers evaluate project team performance and a projectÃ¢â¬â¢s success. Using this research as a grounding framew ork, the current study addresses the paucity of research on the impact of organisational culture on project management and aims to delve further into an understanding of the different ways in which culture exerts its impact using an inductive approach. The findings may, in turn, make significant theoretical and applied contributions. In the former case, the research will provide support for a previously under-studied topic. In the latter case, a greater emphasis on project managers in relation to the organisational culture may challenge the Ã¢â¬Å"not invented-hereÃ¢â¬ mind-set (Tidd Bessant, 2009) in which organisations resist change and fail to see the potential of new ideas and inventions. By understanding the relationship between organisational culture and project management, this research will point to the mechanisms such as training of the necessary staff and effective communication that will accommodate changes and bring about enthusiasm, commitment and a sense of involve ment for all employees and managers (Tidd Bessant, 2009). Extra References: Andersen, E. S., Grude, K. V., Haug, T. (2004). Goal directed project management: effective techniques and strategies. London: Konan Page. Brown, C. J. (2008). A Comprehensive Organisational Model for the Effective Management of Project Management. South African Journal of Business Management, 39(3), 1-10. Kerzner, H. (2001). Strategic Planning for Project Management: Using a Project Management Maturity Model. New York: John Wiley Sons. Pinto, J. K. (2010). Project Management: Achieving Competitive Advantage. New Jersey: Prentice Hall.
Wednesday, March 4, 2020
Difference Between Natural and Artificial Flavors If you read the labels on food, youll see the words natural flavoring or artificial flavoring.. Natural flavoring must be good, while artificial flavoring is bad, right? Not so fast! Lets take a look at what natural and artificial really mean. There are two ways to look at natural and artificial flavors. First, there is the formal definition of an artificial flavoring, as defined by the Code of Federal Regulations: ... a natural flavor is the essential oil, oleoresin, essence or extractive, protein hydrolysate, distillate, or any product of roasting, heating or enzymolysis, which contains the flavoring constituents derived from a spice, fruit or fruit juice, vegetable or vegetable juice, edible yeast, herb, bark, bud, root, leaf or similar plant material, meat, seafood, poultry, eggs, dairy products, or fermentation products thereof, whose significant function in food is flavoring rather than nutritional. Anything else is considered artificial. That covers a lot of ground. In practice, most natural and artificial flavors are exactly the same chemical compounds, differing only by their source. Both natural and artificial chemicals are processed in a lab to ensure purity. Safety of Natural Versus Artificial Flavors Is natural better or safer than artificial? Not necessarily. For example, diacetyl is the chemical in butter that makes it taste buttery. Its added to some microwave popcorn to make it butter-flavored and is listed on the label as an artificial flavoring. Whether the flavor comes from real butter or is made in a lab, when you heat diacetyl in a microwave oven, the volatile chemical enters the air, where you can breathe it into your lungs. Regardless of the source, this can cause health problems. In some cases, natural flavor might be more dangerous than artificial flavoring. For example, natural flavor extracted from almonds can contain toxic cyanide. The artificial flavor has the taste, without the risk of contamination by the undesirable chemical. Can You Taste the Difference? In other cases, you can taste a world of difference between natural and artificial flavors. When a single chemical (artificial flavoring) is used to mimic a whole food, flavor is affected. For example, you can probably taste the difference between blueberry muffins made with real blueberries versus muffins made with artificial blueberry flavor or real strawberry ice cream versus artificially flavored strawberry ice cream. A key molecule might be present, but the true flavor may be more complex. In other cases, the artificial flavor might not capture the essence of the flavor you expect. Grape flavoring is a classic example here. Artificial grape flavor tastes nothing like grapes you eat, but the reason is that that molecule comes from Concord grapes, not table grapes, so its not the taste most people are used to eating. Its worth noting a natural flavor must be labeled as an artificial flavor, even if it comes from natural sources if it is added to a product to impart a flavor that isnt already present. So, if you add blueberry flavor, from real blueberries to a raspberry pie, the blueberry would be an artificial flavoring. The Bottom Line The take-home message here is that both natural and artificial flavors are highly processed in a lab. Pure flavors are chemically indistinguishable, where you would not be able to tell them apart. Natural and artificial flavors diverge when artificial flavors are used to try to simulate complex natural flavors rather than one single chemical compound. Natural or artificial flavors may be safe or dangerous, on a case by case basis. The complex chemicals, both healthful and harmful, are missing from any purified flavoring compared with the whole food.
Monday, February 17, 2020
Ethics and Social Responsiility of Corporations - Essay Example Also because there is such a flux occurring , in individuals mind sets regarding their values , norms and belief systems which build up the ethical responsibility list , that it seems as if no individual could ever reach a point where , he/she would be able to describe a perfect list of ethics , ethical responsibility. In the Author's views Schools don't aid students nowadays, in learning or sustaining proper ethical behaviors. So, that they would be able to cope with the global environment. There exists a blame game, which initiates at a point where the business schools are blamed by some. Blamed, for not grooming their students in the right manner in terms of ethical value realization, and responsibilities. When it is time to take responsibility, then we see this Blame hat shifting from individuals to individuals, organizations, teams and groups of individuals. Employees are observed blaming the management for their workload and pressure, the management on the other hand blames the external environment, the competitive forces which are global. There are larger organizations blaming the environment as they believe that, in failing to co ordinate and innovate with the changing trends and patterns of organizations globally would mean bringing the organizations on the brink of extinction. The managements cannot be blamed, neither can the employees, suppliers, or consumers .Globalization has enveloped us all rather quickly and so we all need to cope up with this notion in our individual ways, at our distinct levels. This era of Globalisation has changed a lot many do's and don'ts in the ethical value record book. Because every individual is part of this, the blame will eventually fall to all. Every organization, or an individual on their own have distinct roles in society. So, each is seen playing their parts. Arguments on, whether child labor is acceptable or not Does pollution in third world countries promote employment for individuals Is the meaning of good ethical behavior this that we justify all acts of ours through our views of what seems ethical If management set minimum employee wages, the organization can prosper because of the fact that the organization would be able to sell at cheaper costs thus increasing market shares rapidly. It seems that there is an erosion of the less privileged. This has further shifted our notions in the 'I' direction. We can see characters building up the set of individual ethical mindsets, and values and so we raise a question of whether characters can be built Characters those are responsible ethically. All these and many more arguments have now initiated at distinct forums. Organizations, researchers and individuals are now looking at another picture, how we can comprehend what these changing values, and characters, behaviors and ideas are mounting up to. The traditional views and arguments are all now being overseen by new values, perceptions and belief systems. And so we see that a fresher look is being given to Ethics and Ethical responsibility and education, at distinct levels.It is now, considered essential for all individuals, organizations o look at ethics and define our ethical culture, and value system in a manner that would aid us in critically evaluating our Positions at various levels i.e. of organizational, employee level etc. It is vital that all courses that are designed at
Monday, February 3, 2020
Corporate Income Taxes - Tax-Planning Client Letter on Irrevocable Trusts, Gift Tax, and Estate Tax - Research Paper Example n this case, he will have estate and tax considerations as the part of the asset under irrevocable trust will not be reflected in his tax obligations. By removing a part of the estate from all incidents of ownership, my client will effectively remove them from his taxable estate, Hosseini (2013). Furthermore, the client will be relieved from tax obligations emanating from that part of asset under irrevocable trust. Though tax law differs among jurisdiction, the granter will not be exempted from the aforementioned tax relief if he remains the trustee of the trust. The fact surrounding this case is that the irrevocable trust has both drawbacks and benefits in equal measures. On the part of the disadvantages, the trust cannot be revoked, as the name suggest. In addition, it cannot be amended to accommodate other inclusions or exclusions. On the other hand, the granter is exempted from various tax burdens including estate and income taxes. These facts are significant for my client so as to make a sound decision. The issue in this legal matter is that the granter is interested in establishing an irrevocable trust in favor of his two grandchildren. In this case, his interest is two have the beneficially receive the income from the estate to be distributed to the two children until they are 20 years of age. In this case, they are interested in knowing the benefits and drawbacks of taking this particular choice or rather to learn of other available channels that can be used to address their interests. Rules and regulations governing estate tax in America are enshrined in the estate and gift act of 2001 together with a multiple amendment to the same. The Act provides that estates are subjected to taxation that is gazetted in the government press in a given period of time. In this case, the tax is payable by the person to which the estate in registered or the trustee, Frischmann (2008). This implies that my client, as the registered owner, is supposed to remit both the
Sunday, January 26, 2020
Factors that Caused the Financial Crisis The world had faced two major financial disasters during 20th century. The first crisis happened during 1920-30, which mainly affected the developed countries like Europe and America. Second crisis started in 1997 and stayed till 1999, mainly affected developing economies of Asia pacific. The recent financial crisis which has awakened the whole world mainly resulted from unregulated financial market. It has created serious anxiety because it falls outwards from U.S, the starting point. Alan Greenspan recently called it a once-in-a-century credit tsunami, born of a collapse deep inside the US housing sector. In order to avoid complete meltdown, governments and central banks worked day and night. Trillions of dollars have been allocated to financial institutions by the governments to recover from the crisis in the United States alone Who were the culprits of financial crisis? It is impossible to held just single factor responsible for such a big mass in the absence of other factors. In my research i want to analyse the contribution of each factor but the questions arise in my mind is How did Lehman Brother, the fourth largest investment bank in USA failed? Why majority of financial institutions failed in compare to other institutions? This surly point towards irresponsible activities by financial institutions in their main business LENDING. So focus of my research is to find out the dominant role of easy lending in present crisis along with other factors. The effect of financial crisis 2008 was such sever that even allocating huge amount to address the issues proven insufficient to resolve it. Congress approved $700 billion in response to the problem. Federal reserve spend $1.3 trillion to bail out markets and institution that includes investments in risky assets, loans to bankrupt institutions, sharing such debt which were defaulting at faster rates (Morris, 2008). A further $900 billion were allocated as lending to large corporations (Aversa, 2008), reaching the total of nearly $3 trillion as bailout package so far, without even adding the big amount of corporate debt promised by the U.S government year before the crisis An understanding of the root causes of this colossal failure that has put the entire financial systemÃ ¢Ã¢â ¬Ã ¦ at risk (Woellert and Kopecki, 2008) is necessary to avoid such failures in the future. Number of factors can be held responsible for financial crisis which emerged over number of years. Causes propos ed include the following sub-prime mortgages/ easy lending Poor credit rating Failure of regulators Shadow banking Securitization Credit default swap Mortgage backed securities Assets backed commercial paper etc Aims and Objective Aim of this research is to understand the root causes of financial crisis particularly lending practises as a major factor. Objectives To explore the history of financial crisis To evaluate who were the victims and culprits of financial crisis Impact of financial crisis on other countries (UK, USA, India, Japan) What steps are being taken by government to overcome crisis What could be done to prevent repetition of crisis in future? Literature Review: How did we get to this point? Surprisingly it all started from residential mortgages in the U.S. It had become apparent from 2004 that mortgages issued to majority of consumers did not make any rational sense. Situation was more worsted by so called mortgage brokers who issued mortgages to many insolvent consumers in order to generate outsized fees. On other hand new financial vehicles called mortgage-backed securities (MBS) rated by well know credit rating agencies were introduced by Wall Street. These high yielding mortgage-backed securities were bought by investors from all over the world which increased funding for new mortgages. Appraiser ignored all rules to meet the increasing demand of mortgage applications. Federal Reserve board appointed by congress in 1994 to regulate mortgage lenders decided to watch the game from pavilion. Finally as the bubble accelerates, there is necessary reckoning Ã ¢Ã¢â ¬Ã¢â¬Å" house prices collapsed. This is how greediness and irresponsibility resulted into a biggest financial crisis (Schmudde, 2008). Sub-prime mortgages which are always blamed for financial crisis is only a component of the deeper problem. The value of credit default swaps, which was originally estimated to be $55 trillion by the securities and exchange ( 4 times higher then the actual figure) are totally unregulated and majority of them were contracted over the phone without any verification, is the root cause from which all the problems of crisis started (Simon, 2008). Regulators had forecasted the problem of present crisis years in advance were not taken seriously because of the successful business by the same financial institutions which are either bankrupt or funded by the government (Associated Press, 2008). According to Bernanke (2009) and Portes (2009) global imbalances are the fundamental cause of the crisis and it is not possible to fully understand present crisis without considering the issue of global imbalances. As per Jagannathan, Kapoor, and Schaumberg (2009) imbalances in labour supply can assist to understand the present crisis. Acharya and Richardson(2009), and Acharya and Schnabl (2009) argue that banks were suppose to transfer the risks to end investors while securitising, particularly in the case of asset-backed commercial paper and purchase of AAA-rated tranches but they never did which led them to huge pool of credit risks. Schmudde (2009) documents that no verification of consumers income were done while issuing sub-prime mortgages. Many of them were issued for or close to 100% of the house price. Even borrowers with bad credit history easily managed to get mortgages. This is one of the reasons for huge growth in subprime mortgages which increased from $35 billion to $8 07 billion between1995 to 2005. According to Bartlett (2008) decline of US subprime mortgage triggered the crisis, the impact of the down fall was tremendous; Mark-to-market losses on mortgage backed securities, collateralized debt obligations, and related assets through March 2008 were approximate $945 billion. He further said that it is The largest financial loss in history, in compared to $780 billion of 1990 Japans banking crisis, lost accrued from Asian crisis of 1997-98 about $420 billion. . While explaining the reason how did this crisis turn into a global crisis, Khatiwada and McGirr (2008) stated Many of these Sub-prime mortgages actually never made it on the balance sheets of the lending Institutions that originated them; and such mortgages by rating them high were made attractive to world investors, when sub-prime borrowers failed to repay their mortgages, the originating institution needed to finance the foreclosure with their own money, bringing the asset back on its balance sheet. This left many banks in a financially unviable situation, in a rather short, unmanageable timeframe. According to Mian and Sufi (2008) increased demand for mortgage backed securities led to lending boom which is the root cause of present crisis. Whalen (2008) argues that three main factors are at the root of the problem. First, many companies, banks, and government agencies were encouraged to increase the viability of affordable housing by introducing creative financing techniques. Second, big number of over-the Ã ¢Ã¢â ¬Ã¢â¬Å"counter derivatives and securities were issued by majority of financial institutions due to huge support by the regulators, led to a breakdown in safety and soundness at banks and securities lenders. And the last factor is fir value accounting an ill-advised by Securities and Exchange Commission (SEC) and the financial accounting standards board (FASB) to all public company to change the reporting standards. The nations biggest subprime lender, Ameriquest Mortgage co., gave more then US$20 million as a political donation. Other financial institutions like citigroup inc., wells Fargo co., donated huge amount on political side and on lobbying. This donation helped these institutions to persuade legislators to pass predatory-lending laws which might have contributed to present crisis to some extent (Simpson, 2007). According to Shiller (2008) the following factors played very big role in present crisis: Strategy of home ownership which encourage even those who could not afford one. The link between mortgage originator and receiver of payments broke due to mortgage securitization. Because of this there was no reason for mortgage originator to verify the solvency of borrowers. Many loans were issued at low interest rate or even at zero rates with the use of new financial techniques but afterwards rate were increased too high. Research Methodology Methodology plays a very crucial role in how research will be carried out. Methodology is an explanation of why you collected certain data, what data you collected, from where you collected it, when you collected it, how you collected it and how you analysed it (Collins, 2003). The researcher requires an interviewer or observer skills to gather data in the qualitative methods. This method requires collecting and analysing the data and applying the statistical tests (Riley, 2004). Qualitative research interprets opinion of the people in the sample, their way of looking at the subject, what they feel about subject and the dynamic interpret feeling on the subjects (Guari, 2005). The quantitative method mainly uses research instruments to gather, analyse and measure the data. Quantitative approach is more subjective approach. Quantitative approach includes analysing and reflecting on perception to understand social and human activities (Collins, 2003). The main purpose of this chapter is to explain and justify the primary research method which I have chosen to carry out my research. This chapter will also explain the significance of secondary data and state what sources of secondary data i will be using. Source of Acquisition of data Primary data Primary data collection means to collect new data of subjects for specific purpose. The different methods of collecting primary data are questionnaire, interview and sampling (Saunders, 2003). For my research it is very important to get some primary data to understand the topic in practical sense. By taking interview of the head of financial institution, will add extra value to my research and will broaden my understanding of topic as a whole. I will be collecting my primary data through interview with Mr Mitesh Sheth, Deputy Head of Henderson Global Investors. The main focus of interview will be to get their opinion about how did this crisis started, what was there response etc. I am also trying to contact few other key people but too early to mention anything about them yet. Secondary Data Secondary data means data collected previously for some purpose. The main sources of such data are library, internet, articles, business journals, research organization (Saunders, 2003). Methods of data analysis After collecting primary and secondary data the next stage is to evaluate or analyse the collected data. To convert data into graphs will be the easiest way to analyse the data. Hypothesis I will be analysing total amount of lending by US banks to solvent and insolvent borrowers and comparing their rate of default to conclude my research. Work Plan ÃâÃ Proposal submit 21st June literate review 31st July Preparation for interview 5th August Interview of selected person 10th August Analysis of data 20th August Start writing reports 15th September Draft report 10th October Final report October end On successfully completion of my dissertation I hope to come to a positive conclusion. I will utilise all the recourses available to me in order to draw out conclusion. Such as charts, graphs, historical data, interview, questionnaires etc.
Friday, January 17, 2020
Leadership refers to a process through which a person influences others to accomplish a specific objective and directs the organization in a way such that it makes it much more cohesive and coherent. This process can be carried out by leaders through applying their leadership attributes which include beliefs, knowledge, values and skills.A position of someone as a manager, supervisor among others, may make one have the authority to accomplish some tasks and given set objectives in an organization, this however does not make one to be a leader. It may make one a boss. Leadership would make the followers aim to achieve much higher goals rather than just directing people around. What determines leadership is the character coupled with willingness to serve and sacrifice purely for the sake of the company or organization.There are various theories that explain how someone is likely to become a leader. Some of the basic theories are as follow:Trait theory.There are people who believe that leaders are born. The theory basically centers on this factor. There are specific traits that may be common among al the leaders. Therefore it is a belief that they are born with these characteristics. These characters are usually referred to as the qualities of a good leader. Therefore the theory defines what qualities that a good leader should have rather than looking at the quality of work that one has achieved. It only bases on the fact that if one is a leader then he should have these leadership traitsBehavioral TheoryHere the group of expert dwelt on what the leaders had done in relation to their followers. The theory groups various different forms of behavior that leaders possess towards their followers in sections which include:Participative leadership Directive leadership Task oriented People oriented Contingency theoryThe theory of contingency takes into consideration the weaknesses of the trait theory and the behavioral theory. Leadership is always a dynamic situation the refore it can only be logical to say that different traits and styles work in different situations. This theory puts into consideration the level of context. The basis to the approach is due to the variety of reasons that determine whether a leader can become active or not. Therefore defining ones leadership then a greater consideration on the style and traits are best within the given situation.Transformation theoryTransformation theory defines a leader as change agent.Ã a leader is vied Ã as someone who is likely to initiate change. A leader is looked through the follower. There are three ways through which a leader can make changes to the followers:Increasing the level of awareness about the value of work and how to attain the fitEnabling the team to be focused towards the bigger goals of a given unit and not just individual goals.Giving the followers the motivation into towards a higherÃ¢â¬âorder need, for instance, basing on MaslowÃ¢â¬â¢s Hierarchy of Needs.Charisma i s viewed as an important aspect of the theory. It is a belief that charisma is able to affect the followers through stirring their strong senses of emotion and enabling followers to associate with their leaders. Transformation leadership has got five pillars namely: stimulation, team building, inspiration, coaching and vision. When the five are combined then the results are always tremendous.Nahavandi (2003) similarly suggests that there are transformational leadership factors which include intellectual stimulation that compels one to generate new ideas coupled with empowerment, inspiration together with charisma to overcome any form of resistance to change. The other factors are individual incentives and the consideration to be able to motivate and give the followers the needed encouragement.Weaknesses of Trait TheoryResearchers are said to subjectively decide the type of traits that are important. So far there is no definitive list of trait that has been published. To add on that, traits have never been shown to give quality results that are desired in organizations therefore this has proved to be a major weakness. It is also hard to train future leaders due to the existence of the theory. There is always the acceptance of the belief that ability is bestowed upon someone at the moment of conception, a fact that can be misleading.Weaknesses of contingency theoryThe theory does not explain the reason as to why individuals are likely to be more effective in various situations than others. When there is a mismatch that might exist between the leader and the situation there has to be an explanation to this, the theory does not provide the explanation. Leaders who are more effective are likely to be promoted or moved to handle new roles which may not fit them basing on the strength and the level of performance in the roles they play.Weaknesses of Transformation theoryAccording to Vries (1994), this type of leadership is likely to fail due to Ã¢â¬Å"the Faust syndr omeÃ¢â¬ , a situation whereby the leader feels that he or she has already achieved almost everything and nothing more is left to be achieved, Ã¢â¬Å"the false connectionÃ¢â¬ whereby the followers are not able to respond appropriately to the reality of the fact. They become people who can only accept anything due to the leadership fear. Leaders are afraid of any form of betrayal response from the followers.Unrealistic expectations about a vision, depending too much on leaders, disenfranchisement of leaders of the next levels of managers because of the strong influence and the limitations of the leaders. Transformation theory also shows that effective leaders require charismatic leadership and instrumental leadership that mainly focus on the management teams, control and the mechanisms of rewards.The role of leadership in businessAn increase in the rate of change in the business sector is one of the main factors in the current emphasis on leadership. Sometimes back the managers w ere supposed to maintain the status quo to be able to move ahead. Increased levels of the new forces within the market place have made it necessary to broaden the narrow focus. Visionary leaders are the new leaders of tomorrow. They are both teachers and learners. These are the kind of individuals who are able to foresee paradigm changes but still have very strong sense work ethics and can easily build integrity within their organization.Raymond Cattell (1945) developed an equation known as Leadership Potential Equation which has used to date to determine the traits that determine some the traits that characterize an effective leader. They include the following:Emotional stability: Eligible leaders should be able to overcome stress and frustration. Generally, they have to be well-adjusted and psychologically mature to handle any form of task they are required to handle.Dominance: Leaders are to be competitive and decisive. They should enjoy overcoming obstacles. The generally need t o be assertive in thinking and posses good attitude when dealing with others.Enthusiasm: In most cases, leaders are supposed to be seen in active form, expressive and full of energy. They have to be quick and alert and inhibited.Conscientiousness: Leaders are usually possessed with a sense of duty and tend always tend to be exerting in their sense character. They posses high levels of excellence and an inward desire to perform to the maximum. Self-discipline is one other trait that they have.Social boldness: Great leaders are spontaneous takers of risks. They are socially aggressive and thin-skinned. Generally, they are responsive to others and usually they are very high in emotional stamina.Tough-mindedness: Effective leaders are highly practical in nature, logical and are usually to the point. To some extend they tend to be low in sentimental attachment and are not moved with criticism. They become insensitive to hardship and they are generally very much poised.Self-assurance: Res iliency and a sense of self-confident are some of the common traits of the leaders. They are very free of guilt and they tend to have little or even no need for approval. They tend to be generally free and quite free from any form of guilt and are generally unaffected because of past mistakes and failures.Compulsiveness: Leaders have to be controlled and highly precise in their social interactions. Generally, they have to be very much protective of their own integrity and that of the organization they serve. They have to jealously guard the reputation in addition being socially aware and careful, highly abundant in foresight and cautious when making decisions or even while determining some specific actions.Leadership and Gender perspectiveHistory has always tried to make many believe that leadership is a traditionally masculine activity. However observations have been made that if women in some organizations can emerge as leaders, it is crucial that they are perceived as influential and motivate individuals. Research carried out way back in 1970s indicated that there was too much gender bias regarding the achievement of women in the business sector. However, in contrast, Charles & Joel (1980) were able to observe that the likelihood that the female would be able to emerge as leaders increased steadily as the number of women increased.Currently leadership qualities can be possessed by any individual irrespective of the gender. What one needs is the ability to accomplish the challenges that are involved.Ã Other researches have shown that women amount to almost half of the labour force. Though they go to the Universities in large numbers, they fill disproportionately a very small percentage of the senior positions of leadership. According to Charles and Joel (1980), women can bring a very different perspective towards business problems through enhancement of creativity. It is for this reason that promoting women can be a vital and strategic move in fostering d evelopment. Many people have always assumed gender difference before making any form of research.Leadership EthicsLeadersÃ¢â¬â¢ conduct and character are always under a microscope. The aspect of influence of leadership refers to enacting on the lives of the followers. Leaders therefore have to be ethical enough. The values of a leader can always be equated to the values of the organization. It is always stated that the need for leadership morals are mandatory in the 21st century. This is actually an integral to leadership, and not just an optional add-on. The definitions of ethical leadership, however, rely on the perception of an individual and not on empirically tested theories this is because a concrete body of research has not been produced yet.Leadership, corporate culture and Personal valuesAny one that would wish to push for the organizational improvement must always deal with cultural and behavioral obstacles to change. The attempts to organizational change must consider t he three key features of the life of the organization:The culture of the firm Leadership of change effort The exiting network of power.In dealing with the organizational culture, the management must work with the present culture to be able to transform the organization. It does not matter whether the cultureÃ¢â¬â¢s changes is secondary; the most vital thing is to improve the level of performance of the company. Leadership plays an integral part in dealing with culture. Leadership has to take a given direction in order to be able to handle the culture of the organization. Based on the resent research, the top management must lead the effort of change. There are also key leadership actions that are likely to assist din helping those efforts to succeed. Goals can only be accomplished within the organizations mainly through the use of power and politics. So it is almost obvious that changing an organization requires some use of intelligence.Leadership and InfluenceMost efficient leade rs should be able to combine different forms of leading styles. They should not be bogged down by the thought and some of the related models they once learned but should continuously observe various changes I the environment together with the state of the organization. Through doing this they will be able to look for the best instruments of influence for each given situation.Ã With this kind of leadership, there is need for an open mind and the promptness to renew oneself on a basis that is very much continuous. The kind of leaders who are continuously developing themselves and are quick to find right channels to influence, are usually worth the weight in gold in any given networked society. These are the kind of individuals who constitute the highest element of competitiveness. However, it is, a little bit easier to encourage continuous learning coupled with the best application of novel approaches to any given situationReferencesCharles, T. & Joel Y. (1980). Leadership and Gend er perspective. Ondeo NalcoÃ Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Energy Services: Longman Publishers.Nahavandi, R. (2003). Leadership theories and Practices. New Jersey: Prentice HallÃ Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã PublishersRaymond, C. (1945). The role of leadership in business. University of Michigan: ClimaxÃ Ã Ã Ã Ã Ã Ã Ã Ã Ã Ã Molybdenum Company Publishers.Vries, D. (1994). Weaknesses of Leadership theories. Paris:Ã Barnes & Noble Publishers.
Thursday, January 9, 2020
Sample details Pages: 21 Words: 6429 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? CHAPTER 1 INTRODUCTION 1.1 Introduction The global crude oil price has been seen a sharp increase in recent years and has been widely reported in the daily newspaper or TV news. For example, popular business and financial US based website Bloomberg has been constantly providing breaking news headlines like Ã ¢Ã¢â ¬Ã âThe crude oil hits to level of $ 120 per barrelÃ ¢Ã¢â ¬? or Ã ¢Ã¢â ¬Ã âCrude Oil Increases to 25-Month High as Commodities GainÃ ¢Ã¢â ¬?. Besides, video clips are uploaded on the website with commentary by senior investment analyst on the last traded crude oil price with prominent TV host. DonÃ¢â¬â¢t waste time! Our writers will create an original "Increases In The Global Crude Oil Price" essay for you Create order It has been noted that rising crude oil prices has created jittery and uncertainty in the financial market. For example, any negative news on price increase or disruption to oil supply will cause stock market indices like Hang Seng Index, Nikkei 225, STI (Straits Times Index), Shanghai Composite, Seoul Composite, and others regional markets to fall sharply knee jerk reaction from the investors on panic selling . Theoretically, soaring of crude oil prices will cause inflation and inadvertently would cause interest rates to go up. Consequently, this would impact various segments of the financial market especially the stock market. It has been argued that continues rising on global oil price will eventually erode the company profit margin. Basher, Haug, and P. Sadorsky (2010) found that oil price can affect prices directly by impacting future cash flows or indirectly through an impact on the interest rate used to discount future cash flows along with in the absence of complete subst itution effects between the factors of production and rising oil price. For example, there would be an increase in the cost of doing business as cost of capital will increase. In financial terms, discounting the free cash flow with the higher discount rate (cost of capital) will cause the fair value of stock price valuation to decrease significantly from previous valuation. J.Happonen (2009) also highlighted that spiking high prices on crude oil will affect greatly the poor as fuel costs are most significant in food production and transportation cost. High oil costs also hit various economies on a macro-level. Commodity analysts employ various types of methodology e.g. fundamental or technical analysis to forecast the future trend of the crude oil price meanwhile investment bankersÃ ¢Ã¢â ¬Ã¢â ¢ start to develops and launches a new commodity mutual fund or unit trust products to attract attention on the public. As a precaution and in order to protect their investment, risk adver se investors are moving their assets into the safer assets like precious metal, e.g.; gold, silver and etc. According to Basher Sadorsky (2006), oil is the lifeblood of modern economies. When growth of Growth Domestic Product (GDP) of the countries are rapidly increasing like BRICÃ ¢Ã¢â ¬Ã¢â ¢s (Brazil, Russia, India, and China), total demand oil of the countries will increase significantly. There is a positive relationship between the crude oil price and global gold price trend in the market. The linkage of gold between the risings of crude oil price has been investigated and empirical studies show that the two commodities are correlated each others. P. Narayan, S. Narayan and Zheng (2010) examine the long-run relationship between gold and oil spot and futures markets at different levels of maturity and found a significant positive correlation between crude oil and gold price. The most oil producerÃ ¢Ã¢â ¬Ã¢â ¢s Organization of the Petroleum Exporting Countries (OP EC) members are from Islamic country such as Iran, Iraq, Saudi Arabia, Libya, and etc. Based on the Islamic historical studies, Islamic law is forbids the use of a promise of payment such as fiat money USD dollar acting as a medium of exchange. Thus, most of members try to diversify their vast US dollar revenue holding into precious metals e.g. trade in gold Dinar and Dirham. The concept of Gold Dinar System was mooted out by our former Prime Minister Malaysia Tun Dr. Datuk Seri Mahathir on year 2002 before. The purpose of adopted the gold Dinar and Dirham is to represent the solely currency for international trade and prevent the Asia currency crisis 1997 to happen again. Meanwhile, some of the members also refused to accept USD as currency trade on the crude oil like Iran and Venezuela have been pushing for a switch to the euro to protect the value from further losses. This caused by US government adopted the ease monetary policy on keep printing their money to curb the recession economy. Ultimately lead to USD dollar depreciated value relative with the Middle East oil producersÃ ¢Ã¢â ¬Ã¢â ¢ currency. 1.2 Problem Statement Oil has been an important commodity and influences the economic activities of the country. On the other hand, gold has been used as important hedging tools to hedge against inflation which among others has been caused by rising oil prices. At present, with the present escalating oil prices, the world economy is grappling to contain inflation and ensure that the economic growth is not derailed. As a result, commodities like crude oil and gold has been a subject of studies by academics in various countries. Gold has been used as a good indicator of expected inflation in the market while oil is a barometer for deflation. Thus, when inflation is expected, investors will divert their asset to the gold portfolio to protect their asset value. On the other hand, when deflation is expected investor will reallocate their funds and start to buy safer government bond. This reaction can partially be explained by behavioral finance whereby the investor is irrational and market is an imperfect . A large body of empirical research has been conducted on the impact of oil prices and other macro variables with relation to the stock market. Wang, CP. Wang, and Huang (2010) attempt to establish the relationships among oil price, gold price, exchange rate and international stock market. They investigated the fluctuations in crude oil price, gold price, and exchange rates of the US dollar against other various currencies on the stock price indices of the United States, Germany, Japan, Taiwan and China respectively, as well as the long and short-term correlations among these variables. G. Sharma, A. Mahendru, (2010) studies on the impact of macro-economic variables on stock prices in India. In Malaysia, Shaharudin and Hon (2009) extended the research to investigate the stock return in relation with firmÃ ¢Ã¢â ¬Ã¢â ¢s size and macroeconomic variables (Consumer Price Index, Industrial Production Index, Money Supply, Interbank Money Market Transaction, three months and six mo nths Treasury Bills Discount Rate and crude oil prices) and found that stock return were significantly influenced by selected macroeconomic variables. Based on the importance of two commodities prices and gold, this paper is attempt to investigate and address the significant level of relationship between the commodities and the selected 10 major sub-sector components indices in FBM Kuala Lumpur Composite Index (KLCI). There have been limited researches studies on the different degree of impact of the crude oil price, gold price, market return, and short-term interest rate against sub-sector components index. A small number of studies were mainly using stock index FBM Kuala Lumpur Composite Index (KLCI) as the general proxy for overall performance of stock market. However, the stock index consist a numbers of sub sector components index in FBM Kuala Lumpur Composite Index (KLCI) it may not be a true reflective of a particular contribution of a sector to the overall stock market in dex. Thus, in our research will studies on these and examine the degree of significant level for commodities impact to a particular sub sector composite index. 1.3 Objective of the Study The main objective of the study is to examine the relationship of majorsÃ ¢Ã¢â ¬Ã¢â ¢ sub-sector indices between the crude oil prices, gold prices, market return, and short-term interest rate. The study will includes the examination of correlation between sub sector indices and 4 other variables as mentioned earlier. A sub-analysis on the gold oil ratio will also be conducted. Gold oil ratio is a barometer of economic vibrancy and when times are good; the ratios indicator remains low and these reflect a relatively robust priceÃ ¢Ã¢â ¬Ã¢â¬ and demandÃ ¢Ã¢â ¬Ã¢â¬ for crude oil. When fear is pervasive or the economy slumps, the ratio is high, as gold is chased by investors looking for a safe haven. In other words, this would infer that when the current ratio is below the benchmark, gold price is either too cheap or crude oil is too expensive. When the ratio is greater than benchmark, it will mean otherwise. 1.4 Significance of the Study The economies of the world are now integrated in terms of trade and capital flows with formation of global network across different region. As such, when financial crisis occur, it will have systematic effect throughout the world. A clear example is the occurrence of U.S. Sub-prime crisis which happened in 2009 and present year Euro Zone Debt Crisis was created contagion effect to the global economy. With advancement of technology and innovation of financial product, risk adverse investors should be more alert on the important signals or indicators as a guide to monitor and time the market to avoid any unexpected risk. The aim of this paper is to study the relationship of oil prices, gold price, market return, and short-term interest rate on majors selected sub-sector index. The results on this study will add to the body of knowledge and assist policymakers like Bank Negara Malaysia as well as pratictioners such as corporate managers and investors to participate in the stock mar ket. It also enhance their understanding on the level of impact on the four (4) variables to the selected sub-sector indices. The Arbitrage Pricing Theory (APT) postulates that every investor believes that the stochastic properties of returns of capital assets are consistent with a factor structure. For the purpose on this study, the APT model was adopted in evaluating the major sub-sector components indices relationship with various macroeconomic risk factors. The conclusion of the study shall enrich investor understanding on some sub-sector industries relationships to macroeconomic risk factors. Thus, smart investors still have a chance to explore it and gain return on that sub-sector industries. 1.5 Definition of Terms KLSE (Kuala Lumpur Composite Index) The FBM Kuala Lumpur Composite Index (KLCI) is used as a proxy for the performance of the Kuala Lumpur Stock Exchange and comprises the largest 30 companies listed on the Main Board by full market capitalisation that meet the eligibility requirements of the FTSE Bursa Malaysia Ground Rules. The two main eligibility requirements stated in the FTSE Bursa Malaysia Ground Rules are the free float and liquidity requirements. London Bullion Market (LBM) (U$ Troy Ounce) price Index shows the performance of gold prices over time per troy ounce. The troy ounce is a weight measure for precious metals, which is still used in the Anglo-American zone. It is named for the French city of Troyes. Crude Oil WTI (West Texas Intermediate) Known as Texas light sweet, is a type of crude oil used as a benchmark in oil pricing. It is a light (low density) and sweet (low sulfur) crude oil. It is the underlying commodity of New York Mercantile Exchanges oil futures contracts. T-Bill band 4 T-Bill band 4 is type of money market instrument. The Malaysian Treasury Bills (MTB) issued by the Central Bank of Malaysia are tradable on yield basis (discounted rate) based on bands of remaining tenure (e.g., Band 4 = 68 to 91 days to maturity). The standard trading amount is RM5 million, and it is actively traded in the secondary market. This instrument represents the short-term interest rate in the Malaysia money market. The high or low interest rate will make bonds look more attractive than stock and consequently impact the stock price return. Sub-sector Price Index Major sub-sector prices index are the 10 majors sub-sector price index consist of Consumer, Plantation, Finance, Trading and Services, Industrial, Industrial Products, Construction, Mining, Properties, and Technology. Each index is representing overall performance instituted on sub-part of FBM KLCI index. CHAPTER 2 THEORETICAL FRAMEWORK AND LITERATURE REVIEW 2.1 Introduction This chapter provides a comprehensive review on the empirical evidences on four (4) variables and the theories on Arbitrage pricing Theory (APT) model and Efficient Market Hypothesis (EMH). It will provide a better understanding of the relationship between variables and sub-sector component indices performance. 2.2 Macroeconomic Factors Choo, Lee and Ung (2011) investigates the behavior of Japanese stock market volatility with respect to a few macroeconomic variables including gold price, crude oil price and currency exchange rates (Yen/US$). The authors using the performance of GARCH models and Ad Hoc methods to carried out a comparison study. Their results show that macroeconomic variables used in this study have no impact on the volatility of Japanese stock markets and the simplest GARCH (1, 1) model yields the best result. Maysami et al. (2004) study on relationship between macroeconomic variables and stock market indices: co-integration Evidence from Stock Exchange of SingaporeÃ ¢Ã¢â ¬Ã¢â ¢s All-S Sector Indices and based on the study concludes that the SingaporeÃ ¢Ã¢â ¬Ã¢â ¢s stock market and the property index form co-integrating relationship with changes in the short and long-term interest rates, industrial production, price levels, exchange rate and money supply. 2.3 Crude oil Based on the past study from Huang et. Al, (1996), they found that oil future returns do not have much impact on SP 500 Index. On the other hand, Al-Rjoub,Samer Am* (2005) investigated the effect of oil price shocks in the U.S. for 1985-2004 using VAR Mixed Dynamic and Granger Causality Approaches to study the whether the U.S. stock market react to the oil shocks, a big importer of crude oil. They found that from VAR suggests that oil shock affect the stock market returns in the U.S. oil price are important in explaining the stock market reactions. According to Basher Sadorsky (2006), oil is the lifeblood of modern economies and can have significant impact on the growth of a countryÃ ¢Ã¢â ¬Ã¢â ¢s economy. In addition, Driesprong, Jacobsen and Maat (2004) found that investors in stock markets under react to oil price changes in the short run. Recent study by Charles (2009) found that higher volatility in both gold price and oil price reduces volatility of stock price. Some studies directly tested the relationship between oil prices and stock values. Huang, Masulis and Stoll (1996) applied vector autocorrelation models to find the time-series relationship and concluded that crude oil futures lead stock prices of oil companies. However, they were unable to bring a conclusion for any significant relationship to other stock prices. In addition, the volatilities of crude oil futures lead the volatilities of oil industry stock index. A related study (Sadorsky, 1999) had different conclusion. It showed that oil prices as an important factor which predicts stock prices very well. Sadorsky (2003) used vector autocorrelation model to verify the importance of oil price, federal fund rate, CPI, foreign exchange as variables to describe the performance of technology stock prices. Hamilton (2008) examines the factors responsible for changes in crude oil prices and the statistical behavior of oil prices. The study includes the role of commodity speculation, Organ ization of the Petroleum Exporting Countries (OPEC), and resource depletion and found that although scarcity rent made a negligible contribution to the price of oil in 1997, the situation at present would be different and crude oil prices might play an important role. 2.4 Gold Melvin and Sultan (1990) consider a different approach of establishing the relationship between gold and oil markets. Their study was based on the implication of the gold prices through the export revenue channel. As gold is an integral part of the international reserve asset of several countries, including the oil producing countries, their finding reveal that stock shock will leads to expectations of official gold purchases and this in turn will make the expected future price of gold to soar higher. Sultan (1990) argue that when oil price rises, the oil exporters countries will benefit in terms of higher oil revenues. This in turn may have implications on the price of gold especially when the gold consists of a significant share of the asset portfolio of oil exporters (relative to other nations) and oil exporters purchase gold in proportion to their wealth. The impact on this will lead to an increase in demand for gold and subsequently rise in price of gold and ultimately an oil price rise leads to a rise in gold price. Ismail et al. (2009) develop a forecasting model for gold prices using Multiple Linear Regression Method to predict gold prices based on economic factors such as inflation, currency price movements and others. They argue that investor starts to invest their asset in gold because of depreciation of US dollar currency and gold as an important stabilizing role for investment portfolios. based on their findings, they conclude that many factors determine the price of gold and several economic factors such as Commodity Research Bureau future index (CRB); USD/Euro Foreign Exchange Rate (EUROUSD); Inflation rate (INF); Money Supply (M1); New York Stock Exchange (NYSE); Standard and Poor 500 (SPX); Treasury Bill (T-BILL) and US Dollar index (USDX) were considered to have influence on the gold prices. 2.5 T-bill (short term interest Rate) T-Bill rate is a benchmarking for short-term interest rate and is deemed as risk free. As such, T-Bill rate is normally taken into consideration for financial valuation purpose and widely used by financial institutions and academics especially to determine the fair value of stock pricing. Chan et al. (1992) reaffirmed that the short-term riskless interest rate is one of the most fundamental and important prices determined in financial markets. In referred to Damodaran (2002) published textbook Investment Valuation: Tools and Techniques for Determining the Value of Any Asset, Choice of risk-free security the returns on both Treasury bill (t-bills) and treasury bonds (t-bonds), and the risk premium for stocks can be estimated relative to each other. This was based on the yield curve in the US that has been on upward-sloping for most of the past seven decades. The risk premium is larger when estimated relative to short-term government securities (such as Treasury bills). Damodara n (2002) also stated that the risk risk-free rate chosen in computing the premium has to be consistent with the risk-free rate used to compute expected returns. So, if the Treasury bill rate is taken into consideration as a risk-free rate, the premium has to be earned by stock over that rate. This applies to the Treasury bond rate as well and premium has to be estimated relative to that rate. He also mentioned that for the most part, in corporate finance and valuation, the risk-free rate will be a long-term default free (government) bond rate and not a Treasury bill rate. Thus, the risk premium used should be the premium earned by stocks over Treasury bonds. 2.6 FBM Kuala Lumpur Composite Index (KLCI) The FBM KLCI is taken as a proxy to represent the market growth optimal portfolio. This research paper attempt to construct and compare various total-return world stock indices based on daily data. The data was collected from DataStream Advance cover the period from 01 January 1973 to 31 August 2006. Due to the diversification, these indices are noticeably similar. This proposed method of constructing a proxy for the growth optimal portfolio has specific advantages over the methodologies of diversity weighting and market capitalization weighting. The diversified world stock index has applications to derivative pricing and investment management. Petttengill et al. (1995) developed a conditional relationship between return and beta that depends on whether the excess return on the market index is positive or negative. When the excess return on the market index is positive (negative), there should be a positive (negative) relationship between beta and return. Their empirical results support the conclusion that there is a positive and statistically significant relationship between beta and realized returns. Furthermore, consistent with Hodoshima et al. (2000), the results are similar when the test is done on 20 beta sorted portfolios. However, it seems that the negative relationships during down market are steeper in Tokyo Stock Exchanges (TSE), which seems to have contributed to have negative rewards for holding beta risk in the long run. Consistent with the findings of Pettengill et al. (1995) in the USA and Hodoshima et al. (2000) in the Tokyo Stock Exchange (TSE), the result found that there is a significantly positive relationship between portfolio beta and portfolio return during up markets and the relationship is significantly negative during down markets. Moreover, the test of individual stock return shows that this conditional relationship can even be seen in individual stock returns. That is, there is a significantly positive (negative) relationship b etween individual stock beta and individual stock return up (down) markets. However, the results of the study suggest that the beta-return relation, in the Tokyo Stock Exchange (TSE), seems to be negatively steeper during down markets, which seems to have contributed to have a negative reward for holding beta risk even in periods where the average market excess return is positive. Therefore, in conclusion, the results suggest that, though the slopes during down markets seem to be steeper than up markets, there seems to have a conditional relationship between beta and return, which justifies the continued use of beta as a measure of market risk. 2.7 Arbitrage Pricing Theory (APT) The Capital Asset Pricing Method (CAPM) is a single factor model it specific risk as a function of only one factor, the securityÃ ¢Ã¢â ¬Ã¢â ¢s beta coefficient. CAPM has been considered as one of the main tools to study for the risk-return trade-off assets. CAPM has been widely referred and used in academic research and business financial studies. As long as the return for any asset is interrelated to one variable with its market beta, or the systematic risk, it is defined as the covariance of an assetÃ ¢Ã¢â ¬Ã¢â ¢s return and the market return. CAPM implies that expected returns and market beta exists, and only market beta that efficiently exanimate the time series and cross-sectional tests for asset returns. CAPM has its restrictions, assume investors are rational and based on several assumptions that were not practical in the real world. According to empirical studies by Fama and MacBeth (1973), there are several variables e.g. the market value of equity ratio (MVE ), the earnings to stock price ratio (E/P), and the book-to-market equity ratio that having greater influence compare to market beta. Another study was carried out by Ross (1976) on the Arbitrage Pricing Theory (APT) which was considered a new modeling for CAPM. Ross refute through Arbitrage Pricing Theory (APT) that market beta is not the only variable to measure the systematic risk. There are multiple variables that have an effect on the stock returns beside market beta. The study tested on systematic, unconditional, and positive trade-off between average returns and beta. Perhaps the risk-return relationship is more complex, with a stockÃ ¢Ã¢â ¬Ã¢â ¢s required return a function more than one factor. For example, what if investors, because personal tax rate on capital gain are lower than those on dividends, value capital gains more highly than dividends. Then, if two stocks had the same market risk, the stock paying higher dividend would have the higher required rate of re turn. In that case, required returns would be a function of two factors, market risk and dividend policy. The Arbitrage Pricing Theory (APT) can include any number of risk factors. So the required rate of return could function of two, three, four or more factors. The Arbitrage Pricing Theory (APT) is based on complex mathematical and statistical theory that goes far beyond the scope for discussion in this paper. Even though the Arbitrage Pricing Theory (APT) model is widely discussed in academic literature, the practical usage to date has been limited. The concepts of Arbitrage Pricing Theory (APT) which assume that all stocksÃ ¢Ã¢â ¬Ã¢â ¢ return depend on only three factors: Inflation, industrial productions, and the aggregate degree of risk aversion (the cost of bearing risk, it was assume that this will be reflected in the spread between the yields on Treasury and low-grade bonds). The primarily theoretical advantage of the Arbitrage Pricing Theory (APT) is that it permit s several economic factors to influence individual stock returns, whereas the CAPM assumes that the effect of all factors, except those unique to the firm, can be captured in a single measure fewer assumptions than the CAPM and hence is more general. Efficient Market Hypothesis (EMH) The Efficient Market Hypothesis (EMH) was developed by Professor Eugene Fama. He said that an efficient capital market theory is one in which security prices adjust rapidly to the arrival of new information and, therefore, the current prices of securities should be reflected all information about the security. In simple terms, it means that no investor should be able to employ readily available information in order to predict stock price movements quickly enough so as to make a profit through trading shares. If markets are efficient, stock price will rapidly reflected all available information. There are different types of information available to incorporate into stock prices. Financial theorist have been developed the three form of market efficiency. There are three common forms in which the efficient-market hypothesis is commonly statedÃ ¢Ã¢â ¬Ã¢â¬ weak-form efficiency, semi-strong-form efficiency and strong-form efficiency, each of forms has different implications for how markets work. In weak-form efficiency, future prices cannot be predicted by analyzing prices from the past. The abnormal return cannot be earned in the long run by using investment strategies solely depend on historical data share prices. Moreover, technical analysis techniques will not be able to consistently produce an abnormal profit, though some forms of fundamental analysis may still provide excess returns. In semi-strong-form efficiency, it is implied that share prices adjust to publicly available new information very rapidly and in an unbiased fashion, such that no excess returns can be earned by trading on that information. Semi-strong-form efficiency implies that neither fundamental analysis nor technical analysis techniques will be able to reliably produce abnormal return. However, in strong-form efficiency, share prices reflect all information, public and private, and no one can earn excess returns. If there are legal barriers to private information becoming public, as with insider trading laws, strong-form efficiency is impossible, except in the case where the laws are universally ignored. CHAPTER 3 RESEARCH METHODOLOGY This chapter provides an outline of the research process designed to investigate the relationship between economic variables and Sub-sector price index. 3.1 The Data In this section, we will summarize our modelÃ ¢Ã¢â ¬Ã¢â ¢s data and present the methodology of our model. The daily data for interdependent and dependable variables e.g. FBM KLSE (Kuala Lumpur Composite Index), T-Bill band 4, Crude oil WTI (West Texas Intermediate) price, London Bullion Market (LBM) (U$ Troy Ounce) price, and Sub-sector Price Index are collected from the DataStream and cover from period 17/04/2000 to 18/04/2011. There are 2610 daily observations obtained from DataStream. The data set is given in the Appendix of this paper. In relation on this, dependable variable are consists of ten (10) majorÃ ¢Ã¢â ¬Ã¢â ¢s price index e.g., Consumer Product, Plantation, Finance, Trading and Services, Industrial, Industrial Products, Construction, Mining, Properties, and Technology. As can be seen from figure 1, there is an increasing trend on global gold price and reached itÃ ¢Ã¢â ¬Ã¢â ¢s the highest point, $ 1,492.06, on 18th April, 2011. The gold price was tend ing to increased since year October, 2008. We believe this trend will continues increasing due to strong demand and short supply gold in the commodities market. Moreover, some expertise research firms like GFMS, a leading global precious metals consultancy, released its 2011 Gold Survey and GFMS expects that gold will reach $1,600 by the end of 2011. Another independent variable, Crude oil WTI (West Texas Intermediate) price known as Texas light sweet, is a type of crude oil used as a benchmark in oil pricing. As refer to figure 2, the oil price increase significantly during year 2007 and the reasons behind can be explained by the Asian growing demand on oil to sustain their economy growth. The past researchers also been reported, that oil consumption in India was increased approximately 8.7% according 1998 and 6.5% according to 2006. Mehmet Eryigit (2009) has studied and found that in year 2007, USA has been consumed the 23.9% of the total oil, however total share of the world o il consumption for China, India and Turkey in 2009 is only accounted 13.4% (China consumed 9.3%, India consumed 3.3%, and Turkey consumed 0.8%). Meanwhile, back to middle of year 2008 Sub-prime crisis was happened in U.S financial system and the crude oil price has reached to a minimum price $31, that is a minimum last trader price was reported since year 2004. After decreasing trend along the year 2008, early of 2009 crude oil price are at the recovery stages and maintained a reasonable price between $ 65 -$ 100 per barrels. We expect the crude oil price bullish will continue increasing. The next independent variable is Market returns FBM Kuala Lumpur Composite Index (KLCI). The Kuala Lumpur Composite Index (KLCI) is used as a proxy for the performance of the Kuala Lumpur Stock Exchange and comprises the largest 30 companies listed on the Main Board by full market capitalization. The last independent variable is T-Bill band 4. T-Bill band 4 is type of money market instrument. The Malaysian Treasury Bills (MTB) issued by the Central Bank of Malaysia Are tradable on yield basis (discounted rate) based on bands of remaining tenure (e.g., Band 4 = 68 to 91 days to maturity). This instrument are represents the short-term interest rate in the Malaysia money market. The high or low interest rate will make bonds look more attractive than stock and consequently impact the stock price return. Figure 1: London Bullion Market (LBM) (U$ Troy Ounce) Price Figure 2: Crude Oil WTI (West Texas Intermediate) Price 3.2 Conceptual Framework 1. Crude Oil WTI 2. London Bullion Market (LBM) (U$Troy Ounces) 3. KLSE (Kuala Lumpur Composite Index) 4. T-Bill Band 4 Sub Sector Price Index Consumer Product, Plantation, Finance Trading and Services, Industrial, Industrial Products, Construction, Mining, Properties, and Technology.The conceptual framework of this study was derived from literature review where proven macroeconomic variables like FBM Kuala Lumpur Composite Index (KLCI) are used as independent variables. The Crude oil WTI (West Texas Intermediate) future contract price, London Bullion Market (LBM) (U$ Troy Ounce) price, and T-bill band 4 had been widely used in evaluating a significant statistical relationship between dependent variables example on this research is sub-sector price index. Further to that, crude oil price is also proven to be a macroeconomic variable that direct impact to the conditional of the stock market. In fact, oil price can affect prices directly by impacting future cash flows or indirectly through an impact on the interest rate used to discount future cash flows. On the other hands, Gold is a long run eff ective hedging tool for hedge against inflation and political uncertainty. Fluctuation of gold price will send a signal to investors and theyÃ ¢Ã¢â ¬Ã¢â ¢re start to expecting the stock market will going down in future. 3.3. Design of Study The Arbitrage Pricing Theory (APT) is an expansion model of Capital Asset Pricing Model (CAPM) Single Ã ¢Ã¢â ¬Ã¢â¬Å"factor model. That is, it specifies risk as a function of only one factor, the securityÃ ¢Ã¢â ¬Ã¢â ¢s beta coefficient. In a reality, the risk / return relationship is more complex, with a stockÃ ¢Ã¢â ¬Ã¢â ¢s required return a function of more than one factor. For example, CAPM method is not suitable on this research because there are a various interdependent variables effect the dependent variables. Thus, we should adopt the APT (Arbitrage Pricing Theory) model to define and analyses these factors. In additional, the statistical technique that simultaneously develop a mathematical relationship between a single depend variable and two or more independent variables. With the four independent variables the prediction of Y is expressed by the following equation: Regression equation is; Multi-factor Regression Model: Rit = Ã ¢Ãâ ?+ BetaMRtMRt + Betaoil Oilt + BetaGoldGoldt+ BetaT-billT-billt (1) Indicators Ã ¢Ãâ ? = Intercept / Alpha Rit = Return on major sub sector MRt = Market Returns Oilt = Oil Returns Goldt = Gold Returns T-billt= T-bill Returns Where the Sub sector price index is a dependent variable and it shows the return on the Sub sector price index. Beta is constant term and we have four (4) independent variables; Gold price, Oil price, Market returns, and short-term interest rate respectively. We used Ordinary Least Squares (OLS) method to evaluate the relationships between the Gold price, Oil price, Market returns, and short-term interest rate against the ten (10) sub sector price index. The market return was benchmark to the FBM Kuala Lumpur Composite Index (KLCI) composite share price index. Time series of T-bill band 4 taken considerations as a short-term interest rate and same time this instrument consider as a risk -free interest rate. The first steps, we required to find out the return of each independent and dependent variables using below formula: Daily return formula is calculated using as per below: Ri,t = (Pi,t Pi, t-1)/ (Pi, t-1) (2) Where; Ri,t is the price return of ith variable on time t Pi, t is the closing price of day t for variable i. Pi, t-1 is the closing price previous of day t for variable i. Then daily returns are aggregated that are our preliminary input to run regression analysis. The sample period for our study extends from periods 17/04/2000 to 18/04/2011. Then after, used the input and the multi-factor regression model to run the regression analysis on each interdependent and dependent variable to examine whether each of them have any significant relationship. In additional, the sub-part of the analysis section will examine the Gold Oil ratio analysis, the purpose is to determining whether the current Gold Oil ratio is below the benchmark ratio is either too cheap, or crude oil is too expensive otherwise when ratio is greater than benchmark, oil is either too cheap or gold. The analysis on Gold ratio trend will cover from period 17/04/2000 to 18/04/2011. The mean of gold oil ratio as an indicator for investor to decide whether the gold price is expensive, crude oil prices is cheap or the gold price is cheap, crude oil price is expensive. Using below formula: Gold Ratio = Gold Price0, t / Crude oil Price0, t (3) Where; Gold Price0, t is the closing price of day t for Gold. Crude oil Price0, t is the closing price of day t for Crude oil. CHAPTER 4 FINDINGS AND DISCUSSION This chapter presents the findings of the study and provide a through discussion and analysis of the findings. 4.1 Data Analysis To observe the effect of crude oil price, gold price, market returns, and short-term interest rates, the regression is calculated by using Ordinary Least Square (OLS) estimation procedure. Results are presented in Table 1. Referring to the result obtained from Ordinary Least Square (OLS) analysis, the result found that gold and market return have a positive significant statistical relationship with consumer price index at 5% significant level. These also make a same result for plantation price index. The result implies that gold and market return have a positive significant statistical relationship with plantation price index. Between, the trading and services index shows positive significant relationship with market returns but negative statistical relationship with gold. It implies, when the trading and service price index increase 1% the gold price will decrease 0.011%. Moreover, the regression model is statistically useful in explaining the variation in the Finance, mining, and technology price index with 95% confidence level. The result shows positive significant relationships with market returns. In additional, the industrial, industrial product, and properties price index regression model analysis results shows that market returns have a positive significant statistical relationship with three sub-sector price index. On the other hands, the industrial price index show negative significant statistical relationship with crude oil price at 5% significant level but the industrial product and properties have a positive significant statistical relationship with crude oil price. Finally, from the regression model analysis result found that, only the construction price index has a negative significant statistical relationship with t-bill at 5% significant level and others sub sector price index donÃ ¢Ã¢â ¬Ã¢â ¢t have any statistical relationship with the T-bill. 4.2 Subpart Analysis Gold Oil Ratio Gold Oil Ratio is an expressed mathematically as the per-ounce price of gold divided by the cost of a barrel of crude oil, the ratio was telling us how many barrels of oil can be bought with an ounce of gold. Even though oil and gold are thought to be hedging on inflation, their price movements arent in lockstep. Since the 2001 launch of the current bull cycle, the correlation between U.S. benchmark West Texas Intermediate (WTI) crude oil and the London morning gold fix is only 23 percent. In fact, its the lack of a tight correlation that makes the gold/oil ratio meaningful. The ratio can fluctuated over time; since 2002, one ounce of gold could have bought between 11 and 16 barrels of oil. In midyear 2008, as oil prices surged, gold scraped a historic low at a 6x multiple (a 6-to-1 ratio). After half year later, the ratio had shoot to the 23x level after massive de-leveraging sent oil prices down $100 a barrel. The increasing trend of ratio kept continues from year 2009 unti l recent year. An article was written by Brad Zigler said; itÃ ¢Ã¢â ¬Ã¢â ¢s fair to ask if the 15:1 ratio is still an indicator of economic equilibrium. In his articles highlighted that the breakaway point for the gold multiple in 2008 was around 12x. Fear has pushed oil prices violently higher and, consequently, the ratio lower. Table 1: Minimum and Maximum Gold Oil Ratio Record during the Period. Ãâ 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Max 15,18 15,74 13,85 11,67 8,94 11,08 12,54 23,11 28,05 17,55 16,29 Min 9,14 10,56 9,35 11,67 6,96 8,22 8,33 6,52 13,15 13,69 13,98 Ãâ Ãâ Ãâ Ãâ Ãâ Ãâ Ãâ Ãâ Ãâ Ãâ Ãâ Ãâ Table 2: Summary Table Ãâ Consumer Product Plantation Finance Trading services Industrial Industrial Product Construction Mining Properties Technology Market return Ã ¢Ãâ Ã ¡ Ã ¢Ãâ Ã ¡ Ã ¢Ãâ Ã ¡ Ã ¢Ãâ Ã ¡ Ã ¢Ãâ Ã ¡ Ã ¢Ãâ Ã ¡ Ã ¢Ãâ Ã ¡ Ã ¢Ãâ Ã ¡ Ã ¢Ãâ Ã ¡ Ã ¢Ãâ Ã ¡ Oil ÃÆ'Ã¢â¬â ÃÆ'Ã¢â¬â ÃÆ'Ã¢â¬â ÃÆ'Ã¢â¬â Ã ¢Ãâ Ã ¡ Ã ¢Ãâ Ã ¡ ÃÆ'Ã¢â¬â ÃÆ'Ã¢â¬â Ã ¢Ãâ Ã ¡ ÃÆ'Ã¢â¬â Gold Ã ¢Ãâ Ã ¡ Ã ¢Ãâ Ã ¡ ÃÆ'Ã¢â¬â Ã ¢Ãâ Ã ¡ ÃÆ'Ã¢â¬â ÃÆ'Ã¢â¬â ÃÆ'Ã¢â¬â ÃÆ'Ã¢â¬â ÃÆ'Ã¢â¬â ÃÆ'Ã¢â¬â T-Bill ÃÆ'Ã¢â¬â ÃÆ'Ã¢â¬â ÃÆ'Ã¢â¬â ÃÆ'Ã¢â¬â ÃÆ'Ã¢â¬â ÃÆ'Ã¢â¬â Ã ¢Ãâ Ã ¡ ÃÆ'Ã¢â¬â ÃÆ'Ã¢â¬â ÃÆ'Ã¢â¬â Ã ¢Ãâ Ã ¡ = Significant at 5% ÃÆ'Ã¢â¬â = No significant at 5% Table 3: ANOVA Table: Components Consumer Product Plantation Finance Trading services Industrial Coefficient Intercept 0,0002420 0,0003258 0,0000982 (0,0000444) 0,0000733 KLCI PRICE INDEX 0,5623974 0,9784759 1,0645010 0,9994746 0,7729328 Crude oil (0,0054988) (0,0018498) 0,0025010 0,0026129 (0,0109819) Gold 0,0158866 0,0441310 (0,0037211) (0,0112407) 0,0098721 T-bil (0,0034387) (0,0048518) (0,0059951) 0,0023219 (0,0004433) Adjusted R Square 0,5606859 0,5041736 0,8081372 0,8927299 0,6798043 Ãâ P-value Intercept 0,00310016 0,04191723 0,24917804 0,43452323 0,39876364 KLCI PRICE INDEX Crude oil 0,0931 0,7729 0,4634 0,2512 0,0016 Gold 0,0258 0,0016 0,6160 0,0233 0,1922 T-bil 0,4479 0,5845 0,2042 0,4613 0,9267 Components Industrial Product Construction Mining Properties Technology Coefficient Intercept (0,0000330) (0,0001192) 0,0006207 (0,0000617) (0,0006292) KLCI PRICE INDEX 0,7928138 1,1884864 0,8354046 0,9573352 0,9419663 Crude oil 0,0092151 0,0029884 (0,0115321) 0,0112074 0,0049796 Gold 0,0145574 0,0093185 (0,0493598) 0,0059426 0,0372188 T-bil (0,0030311) (0,0202644) 0,0016072 (0,0024516) (0,0004453) Adjusted R Square 0,6357414 0,6109031 0,0462843 0,5468360 0,3246577 Ãâ P-value Intercept 0,73923273 0,44480430 0,30905151 0,66749650 0,00515217 KLCI PRICE INDEX 0,000000 0,000000 Crude oil 0,0203 0,6323 0,6369 0,0515 0,5801 Gold 0,0918 0,4929 0,3531 0,6349 0,0574 T-bil 0,5810 0,0191 0,9621 0,7582 0,9715 CHAPTER 5 CONCLUSION AND RECOMMENDATION 5.2 Assumptions and Limitation of the Study There are five important variables involved in this study which include four (4) independent variables and one dependent variable. In obtaining data for each variable, this study had outlined the research framework with several assumptions and limitations to enable data collection to be done. T-Bill band 4 considered to be the short-term interest rate (risk-free interest rate). KLSE (Kuala Lumpur Composite Index) represent as a benchmark for the market return. Using Crude oil WTI (West Texas Intermediate) future contract price, is a type of crude oil used as a benchmark in oil pricing and underlying commodity of New York Mercantile ExchangeÃ ¢Ã¢â ¬Ã¢â ¢s oil futures contracts. London Bullion Market (LBM) (U$ Troy Ounce) price. This index shows the performance of gold prices over time per troy ounce. The troy ounce is a weight measure for precious metals. Consists of 10 majors sub-sector price index e.g. Consumer, Plantation, Finance, Trading and Services, Indust rial, Industrial Products, Construction, Mining, Properties, and All research data are limited from period 17/04/2000 Ã ¢Ã¢â ¬Ã¢â¬Å" 18/04/2011.