...Economist Richard Thaler developed the concept known as mental accounting which contends that individuals divide their current and future assets into separate, non-transferable portions. By subscribing to this theory, individuals assign different levels of utility to each asset group, which affects their consumption decisions and other behaviors. The importance of this theory is illustrated in its application towards the economic behavior of individuals, and thus entire populations and markets. Rather than rationally viewing every dollar as identical, mental accounting helps explain why many investors designate some of their dollars as "safety" capital which they invest in low-risk investments, while at the same time treating their "risk capital" quite differently. (Investopedia) Money is fungible, meaning that it is all the same. When budgets are not fungible, their existence can influence consumption in various ways. Frequently, retailers take advantage of consumers’ mental accounting by utilizing the principle of segregate gains which allows a sellers multi-dimensional product to be evaluated separately. In addition, several bonus items are included. One example of the segregate gains principle that comes to mind for me is the Montel Williams’ juicer called the Healthmaster. The product was advertised on television and included the following benefits: one year subscription to company for recipes (for an additional fee), payment over three months for the product...
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...and Portfolio Management Behavioural Finance This is referred as a field of study that combines behavioural and cognitive psychological theory with conventional economics and finance to explain why people tend to behave in unpredictable and irrational manner. It tries to explain how investors often tend to differ from the traditional and rational economic assumptions because misrepresentation, over-confidence, biases aversion to ambiguity etc. Prospect Theory This theory states that investors pay attention to change in each transaction than the total value and have a tendency to get more distressed by the prospective losses than the happiness from prospective gains in an investment. 1. Frame Dependence: Example: 2. Mental Accounting: It explains how current and future assets are divided into different groups and therefore differently treated which explains the change in their investment decision and behaviour. Example: If given an option to buy either a piece of land at Rs.1000000 and save Rs.50000 on the deal or a car at Rs.500000 and save Rs.50000, most people will buy the car. Even though the savings is the same in both the cases, the amount saved on car is a more powerful motivator than the savings on the piece of land. 3. House money effect: This effect was given by Thaler and Johnson. Example: A set of twenty investors are given Rs.25000 and given a chance to toss where they either win Rs.10000 or lose Rs.10000 and another set of twenty investors...
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...Chapter 9 Behavioral Finance and Technical Analysis The effiecient market hypothesis makes two important predictions. First, it implies that security prices properly reflect whatever information is available to investors. Second, active traders will find it difficult to outperform passive strategies such as holding market indexes. A relatively new school of thought dubbed behavioral finance argues that sprawling literature on trading strategies has missed a larger and more important point by overlooking the first implication of efficient markets-the correctness of security prices. Behavioral finance are models that emphasize potential implications of psychological factors affecting investor behavior. Its premise is that conventional financial theory ignores how real people make decisions and that people make a difference. A growing number of economists have come to interpret the anomalies literature as consistent with several “irrationalities” that seem to characterize individuals making complicated decisions. 2 Broad Categories: 1. Investors do not always process information correctly and therefore infer incorrect probability distributions about furture rates of return. 2. Even given a probability distribution of returns, they often make inconsistent or systematically suboptimal decisions. Information Processing Errors in information processing can lead investors to misestimate the true probabilities of possible events or associated rates of return. Forecasting errors...
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...Dr. Stephanie White, is concerned about the dilemma of coping with reduced budgetsd and demand for services. In order to plan for reduced budgets, she must first identify where costs can be cut or reduced and still keep the agency functioning. Below data from past year. Program Area Costs Administration Salaries: Administrator 60,000 Assist 35,000 2 Secretaries 42,000 Supplies 35,000 Advert & promotion 9,000 Professional meetings/dues 14,000 Purchased Services:Acct & bill 15,000 Custodial 13,000 Security 12,000 Consulting 10,000 Community Mental Health Services Salaries (two s w) 46,000 ;Trans 10,000 Outpt mental health tx Salaries:Psychiatrist 86,000 2 SW 70,000 Give a Give a dollar range of costs to reduce budgets (worst and best case analysis). You need to cut $94,000 in cost. Prioritize those cuts that can be made withwithout impacting the operation or quality care of the organization.How would you advise Dr. White to prepare for reduced budgets? excel spread sheet Solution To be able to answer the questions and decide on costs that could be cut, we must divide costs into discretionary and committed costs. Discretionary Fixed Costs (also known as Managed Fixed Costs) usually arise from annual decisions by management to spend in certain fixed costs. There are basically 2 differences between Discretionary and Committed Fixed Costs; 1) The planning horizon for Discretionary Fixed Costs is fairly short-term, usually a single year; and 2) Discretionary Fixed Costs can...
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...Mental disorders are common in the United States and internationally. Mental disorders are health conditions that are characterized by alterations in thinking, mood, or behavior that are associated with distress and/or impaired functioning. Mental disorders contribute to a host of problems that may include disability, pain, or death. Mental disorders are among the most common causes of disability. The resulting disease burden of mental illness is among the highest of all diseases. According to the National Institute of Mental Health (NIMH), in any given year, an estimated 13 million American adults (approximately 1 in 17) have a seriously debilitating mental illness. Mental health disorders are the leading cause of disability in the United States and Canada, accounting for 25 percent of all years of life lost to disability and premature mortality. Moreover, suicide is the 11th leading cause of death in the United States, accounting for the deaths of approximately 30,000 Americans each year. (National Institute of Mental Health (NIMH). One celebrity that faces with a mental disorder is Mel Gibson. Mel Gibson born in Peekskill, NY on January 3, 1956. Mel Gibson moved to Australia during his youth and went on to pursue a film career. After appearing in the Mad Max and Lethal Weapon series, Gibson eventually directed and starred in the Academy Award-winning Braveheart and directed The Passion of the Christ. (Mel Gibson. (2012). The Biography Channel website) Mel Gibson...
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...governance practice and has shown that its programs and activities align with their mission. “Empowering youth to overcome barriers and strive towards healthy and self-sufficient lives” is the mission statement of Services, Inc. Services accomplishes their mission by providing integrated mental health, medical and family planning, and case management services in a manner sensitive to adolescents. They also offer a special prenatal program that offers services by a prenatal specialist, nurse midwife, and nurse practitioner. The program also offers nutritional counseling and an outreach program offers classes, support, and education. Mental health services provide individual, group, and family counseling either through their organization or at St. Paul schools that are designed to treat adolescent issues and problems such as depression, school issues, relationship problems, abuse, family problems, and stress. Services also offer a variety of support groups. In addition, they provide services specifically to homeless, runaway, and at-risk youth through . is a drop-in outreach center located in Downtown St. Paul that provides a variety of services including case management, counseling, mental health services, GED preparation, food, clothing, transportation, advocacy, and referrals to help them find housing...
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...Psychological Disorder Analysis Jamelle Martin Psy 270 December 2, 2012 Miles Castle The subject matter of this psychological disorder analysis is Marla. She is a forty-two old Hispanic female who came to the mental health clinic complaining of having trouble sleeping, feeling "jumpy all of the time," and experiencing an inability to concentrate. These symptoms are causing problems for her at work, where she is an accountant. Marla has been suffering with various symptoms for a long time and I feel that further questioning must be done in order to get an accurate reading of her symptoms and to determine what her disorder is along with a cause and treatment plan. The initial diagnosis for Marla is Dysthymic Disorder. In a typical clinical setting the following questions will be asked of Marla: 1. Have you ever seen a psychiatrist before? Marla states that she has not seen a psychiatrist before I ever her mother has seen one in the past. Marla also states that although she has never gone to see a psychiatrist she is well aware of the good work that they put in to help each patient with their individual needs. Marla also states that if she had sought help earlier she might not have gotten to the place she is today by being overwhelmed with everything around her. 2. Could you describe to me the symptoms you are feeling? Marla states that on a daily basis she is feeling tired and she has not been able to concentrate. Marla states that she has also become very jumpy...
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...significant feature in making clients want to return to use the service. In a cross-cultural meta-analysis of therapy outcome literature, Asay and Lambert (1999) report that the single most vital aspect is that of the counselor and what he or she can influence, is the therapeutic relationship; this relationship describes 30 percent of the variance in treatment outcome. Technique and method, which counselors tend to concentrate on in their guidance, was only half as influential, accounting for just 15 percent of the outcome variance in therapy. The other factor that the therapist can influence, expectancy (the belief that things will improve or be sufficiently addressed), accounted for 15 percent of the variance—the same as technique and method. That leaves 40 percent of the variance to extra therapeutic factors relating to the client’s personal strengths and weaknesses, social supports and ecological resources. Too frequently, clinicians have presumed that clients with severe, persistent substance use and mental health issues are too compromised to benefit from the therapeutic relationship in the way healthier clients are. Where clients face overwhelming challenges, a respectful, continuing, supportive relationship with a health care provider not only helps people to get through hard times, but also to accomplish positive change. References Roth, D. (1999). Towards Best Practices: Top Ten Findings from the Longitudinal Consumer Outcomes Study 1999. Columbus, OH: Ohio Department...
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...intelligence testing indicates mental retardation visibility demonstrated by the child’s inability to cope with appropriate activities for everyday life. Even among the gifted children, there can be difficulties in learning attributed to language impairments and reading disabilities, called dyslexia. THE INTELLECTUALLY GIFTED There are educational alternatives for gifted children. Some of these are in the form of enrichment programs like, special activities designed to make their educational advancement more interesting and challenging. There are also special classes for the gifted where they are made to involved themselves in particular areas of their interest. In some schools, enrichment programs consist of special courses like creative writing, painting, and even dancing. The important consideration however, is to ascertain the particular inclination of the child. Since the knowledge about multiple intelligencers as espoused by Gardner, has come into practical application, more schools have begun to offer programs that are designed to harness the special talents of intellectually gifted. CHILDERNE WITH INTELLECTUAL DEFICITS Down syndrome is characterized by a district physical appearance, and physical and mental retardation. The most common physical characteristics are almond shaped eyes, folded eyelids, and short stature. Children with Down Syndrome are susceptible to respiratorial infections, heart disorders, leukemia, and pneumonia. Mental retardation can be moderate to...
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...Criminal activity due to mental instability has been a very hot topic recently and researchers are turning towards mental health facilities and budgets allocated for mental health as an answer to reduce the amount of these incidents. Though researchers have consistently found that traditional attacks are not largely motivated by and underlying mental disorder or condition, the same cannot be said of lone-wolf attacks. The presence of untreated mental illnesses and/or undiagnosed mental disorders allows for the progression of violence in these individuals and could lead to a potential catastrophe. An example of a mental illness causing a catastrophe would be the shooting in Newtown, Connecticut. Medical experts at Yale University had called for measures to help Adam Lanza, the offender, in the years prior to his attack at Sandy Hook Elementary School but nothing was ever accomplished. “Allowing ailments that are responsive to medication to go untreated and resisting other kinds of emotional support were missed chances for the parents to help their son.” Said by Dr. Julian Ford, an author of the report of the University of Connecticut’s Center for Trauma Recovery and Juvenile Justice. This incident, in which 20 students and 7 adults were shot...
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...How does employee hidden mental illness manifest adversely in workplaces? An employee hidden mental illness has become the most prevalent illness found in western societies today. It has widely emerged within many workplace organisations and surprisingly remains largest among the medical and health sciences fields. According to De Lorenzo and Mirella (2013), hidden mental illnesses effect between 17% and 20% of employees in a given twelve month period. The most common hidden mental illnesses are depression and anxiety, depression effecting 4% and anxiety 14% of employees in a twelve month period. The socio-economic impact of mental illness within the workplace is frightening, the loss of productivity and costs have already caused major damage, and serious consequences for the future when depression and anxiety within the workplace increase. Mental illnesses within the workplace can be worsened if the employee has poor self-management of their illness, which includes inconsistent medication use, and social factors such as low social support, discussed by Munir, Yarker, Haslam, Long, Leka, Griffiths and Cox (2007). Mental illnesses are not treated like physical illnesses by society. They are pushed aside and not seen as a real disease that impairs peoples abilities because it is an invisible illness. Stigma of mental illnesses within the workplace is a major reason why employees choose to conceal their issues. Employees can feel labelled, less capable and treated differently...
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...America’s Homeless Veterans We see homeless people every day. We may choose to look at them or maybe we turn away and ignore their presence. We often label them as “Losers” or “Bums”. The one thing we can’t ignore is that we seem to see more and more of them each day and we now see women among their ranks. We rarely stop to think about the persons past, careers they may have had, families that love them, or don’t love them, and we never stop to consider that a lot of these people have served in our Armed Forces. The term, “Homeless Veteran” appalls most of us because we don’t want to think that the country they served, “The United States of America”, has turned its back on these individuals. Doesn’t that imply that “We” have turned our backs on them as well? If the Government is in charge of the care of our Veterans, and we as citizens vote for the people responsible for making decisions on our behalf, isn’t this a direct reflection of us as a society? We tend to vote in favor of the politician who cuts the funding of social programs in the name of saving tax dollars without considering the consequences. There are always consequences. The U.S. Department of Housing and Urban Development, HUD, estimates the number of Homeless Veterans at roughly 50,000 on any given night while other sources place that number at roughly 130,000. I have found that all statistics given by any U.S. Government source are always extremely low, perhaps to influence public perception. The...
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...This essay will focus on paranoid schizophrenia as a mental disorder and its various causes that include social withdrawal; cognitive dysfunction, genetics, psychological and biological considerations. It will briefly analyse the stress vulnerability model and the criteria for schizophrenic diagnosis used primarily to test the symptom of schizophrenia by physicians. During the demonstration of this topic the epidemiology, prevalence and prognosis will be discussed as well as the concepts of recovery and prevention. In addition, this essay will examine communication and professionalism together with the treatment and intervention process. The essay will discussed the use of drugs in treating or managing the condition and the effects upon the...
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...The world health organization reports that there is 80% of the population who are suffering with mental disorders belongs to low and middle income countries. The developed countries are accounting more prevalence of mental illness but the untreated mental illness burden is high in developing countries.(1) When we come to Asia, China and India as two large populated nations (38% of world population) drags the attention to understand this mental, neurological, and substance use disorders. From 1990-2013 there was 44% increase in MNS disorders in India and it has been estimated to increase by 23% between 2013-2025.(2) According to the Global Burden of Disease Study 2010 (GBD 2010), absolute disability-adjusted life-years (DALYs) because of MNS...
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...Mentally Ill Offenders Introduction Mental illness in prisons has been sort of a pandemic for correctional systems in the United States for over the last 10 years. The number of men and women who come to prison with some form of mental illness continues to grow by the day. Offenders who do not come to prison mentally ill, will most likely release from prison with some type of mental illness at the end of their prison sentence. This paper will discuss how this population of offenders adapts when they come to prison, and how there viewed by the community. This will be examined here along with some insights on what should be done along with why this topic was chosen. Schizophrenia Many mentally ill offenders come to prison with a variety of disorders schizophrenia, manic depression (bi-polar) or major depression (Schizophrenia.com - Crime, Poverty Violence., n.d.). Schizophrenic inmates probably account for the largest segment of offenders who enter the correctional system every day and have a difficult time adapting to the confines of a correctional environment. By definition schizophrenia is an inability to think, process emotions where people tend to behave in an unacceptable manner because their mind is not able to react to the stimuli from every day life; the name schizophrenia comes from the Greek root "split mind" (Skitzophrenia., n.d.). Hallucinations, hearing voices, paranoia are just some of the...
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