...INDEX FUNDS.. FM n FS PROJECT Active and Passive Management Before we get into the details of index funds, it's important to understand the two different styles of mutual-fund management: passive and active. Most mutual funds fit under the active management category. Active management involves the art of stock picking and market timing. This means the fund manager will put his/her skills to the test trying to pick securities that will perform better than the market. Because actively managed funds require more hands-on research and because they experience a higher volume of trading, their expenses are higher. Passively managed funds, on the other hand, do not attempt to beat the market. A passive strategy instead seeks to match the risk and return of the stock market or a segment of it. You can think of passive management as the buy-and-hold approach to money management. Defn- An index fund a collective investment scheme that aims to replicate the movements of an index of a specific financial market, or a set of rules of ownership that are held constant, regardless of market condition. An index fund is a mutual fund which merely invests in the securities in the index. It is passive, in the sense that absolutely no effort is made to produce results better than the index. HISTORY: Index funds haven't been around forever -- how did they come about? Long ago, there was a student at the University of Chicago who studied modern ideas of finance taught...
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...TITLE 2 CHAPTERS 1 Limitations on contractual stipulations * Law * Police power Classification of contracts according to its name or designation * Nominate contract * Innominate contract Kinds of innominate contract * I give that you may give * I give that you may do * I do that you may give * I do that you may do Rules governing innominate contracts * The agreement of the parties * Provisions of the Civil Code on obligations and contracts * Rules governing the most analogous contracts * Customs of the place Persons affected by the contract * General rule * Exceptions * By their nature * By stipulation * By provision of law Cases when strangers or third persons affected by a contract * Contracts containing a stipulation in favour of a third person * Contracts creating real rights * Contracts entered into to defraud creditors * Contracts which have been violated at the inducement of a third person Classes of stipulation pour autrui * Those where the stipulation is intended for the sole benefit of such person * Those where an obligation is due from the promise to the third person which the former seeks to discharge by means of such stipulation, as, for instance, where a transfer of property is coupled with the purchaser’s promise to pay a debt owing from the seller to a third person. Requisites of stipulation pour autrui * Contracting parties by their stipulation must have clearly...
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...agreeing to purchase a car with the 3.2 liter V-6 engine. What neither Josh nor the salesperson knew was that the manufacturer had already stopped manufacturing both the 3.2 liter and the 3.9 liter, and was equipping the cars with a newly designed 3.5 liter engine. What do you think about this situation? Should parties to a sales contract be able to rescind a contract because of mutual mistake of fact? Why or why not? Did either party act unethically in this case? Why or why not? What application does the UCC have here? Finally, in the overall context of contract law, are there any winners or losers when a contract is rescinded based on mutual mistake of fact? Why or why not? A mutual mistake is when both parties incorrectly believe an important fact to be true or the applicable law to be relevant. The important facts that affect or influence a parties decision are called material facts, and if there is mutual misunderstanding of these facts means contract can be void therefore without legal effect. (John Adamson, 2011) After looking at the facts it seems as though its is more of an error on behalf of the salesman and for me he should rescind the contract and take responsibility for the misunderstanding as it is not the consumers duty to know what engines are being manufactured. They both agreed to a contract that was created under the assumption that the 3.2 and 3.9 V6 engines were still being manufactured. If it were possible I would think that Mr. Hartly and the salesman...
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...Mistake Mistake exists where parties to a contract think that they have agreed when in actual fact they have not. For a party to be able to set a contract aside on the basis of mistake he has to establish the following. The mistake should be one of fact not law, the mistake must concern a material fact and it must be a reasonable mistake. The types of mistakes in the contract of law include unilateral mistake, mutual mistake and common mistake. Bilateral/common mistake This exists where both parties are mistaken .They would be thinking that they have agreed when in actual fact there is a common mistake on either side, courts have usually allowed both parties to set such a contract aside. The academic argument which is well founded is that such a contract should be treated as void because one of the requirements that is (consensus ad idem) is missing. An error on the part of both parties of a transaction regarding the same matter, such as if two people sign a contract under a certain understanding, while the contract actually conveys a different meaning than they each may have expected. That a mistake of law does not invalidate a contract was held in Ncube V Ndlovu 1985 (2) RLR 281. The appellant seduced a major daughter of the respondent. The appellant then signed an agreement undertaking to pay the respondent damages for seduction. He wanted to avoid the contract on the basis that he was mistaken as to the law that is he did not know that a father has no right to sue for...
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...PART II - CONTRACTS -meeting of minds bet 2 parties whereby one binds himself with respect to other to give something or render some service PRINCIPAL CHARACTERISTICS: 1. Autonomy of wills – parties may stipulate anything as long as not illegal, immoral, etc. 2. Mutuality – performance or validity binds both parties; not left to will of one of parties 3. Obligatory Force – parties are bound from perfection of contract: a. fulfill what has been expressly stipulated b. all consequences w/c may be in keeping with good faith, usage & law 4. Relativity – binding only between the parties, their assigns, heirs; strangers cannot demand enforcement EXCEPTION TO RELATIVITY: a. Accion pauliana b. Accion directa c. Stipulation pour autrui REQUISITES OF STIPULATION POUR AUTRUI (1) Parties must have clearly and deliberately conferred a favor upon a 3rd person (2) The stipulation in favor of a 3rd person should be a part of, not the whole contract (3) That the favorable stipulation should not be conditioned or compensated by any kind of obligation whatsoever (4) Neither of the contracting parties bears the legal representation or authorization of 3rd party (5) The third person communicates his acceptance before revocation by the original parties d. Art 1312 e. Art 1314 REQUISITES OF ART 1312: (1) Existence of a valid contract (2) Knowledge of the contract by a 3rd person ...
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...Supplementary Material Professor: Daniel Egger October 14, 2015 1 1.1 Binary Classification Diagram of Confusion Matrix with Basic Definitions In the confusion matrix, you have two classifications, “Positive” or “Negative,” with the underlying, true conditions being either “+” or “-”. Examples of Binary Conditions: Radar - Enemy Bomber/No Enemy Bomber Diagnostics - Cancer/No Cancer Credit Scoring - Borrower defaults/does not default Outcome Y Table 1: Confusion Matrix. Classification/Test,X “Test Positive” “Test Negative” c d “+” a e f “-” b g h Where, (a,b) is the Marginal Probability Distribution of Condition p(Y ). Note that the rarer of the two is traditionally assigned to “+” and the probability p(a) is called the “incidence” of a. (c,d) is the Marginal Probability Distribution of the Classification p(X) (e,f,g,h) is the Joint Probability Distribution of the Condition and the Classification, p(X, Y ). Another way of representing the confusion matrix is: 1 Outcome 1.2 Table 2: Confusion Matrix, another representation. Classification/Test,X “Test Positive” “Test Negative” c d ”+” a ”True Positive” (TP) ”False Negative” (FN) Y ”-” b ”False Positive” (FP) ”True Negative” (TN) Important Measures of the Confusion Matrix True Positive (TP) Rate: The conditional probability that someone with the condition has a positive test. e = p(T estP ositive|+) a False Negative (FN) Rate: The conditional probability that...
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...13 Agent-Oriented Novel Quantum Key Distribution Protocol for the Security in Wireless Network Xu Huang, Shirantha Wijesekera and Dharmendra Sharma University of Canberra Australia 1. Introduction Wireless security is becoming increasingly important as wireless applications and systems are widely adopted. Numerous organizations have already installed or are busy in installing “wireless local area networks” (WLANs). These networks, based on the IEEE 802.11 standard, are very easy to deploy and inexpensive. Wi-Fi allows LANs to be deployed without cabling for client devices, typically reducing the costs of network deployment and expansion. As of 2007 wireless network adapters are built into most modern laptops. The price of chipsets for Wi-Fi continues to drop, making it an economical networking option included in ever more devices. Wi-Fi has become widespread in corporate infrastructures, which also helps with the deployment of RFID technology that can piggyback on Wi-Fi. WiFi is a global set of standards, unlike mobile telephones, any standard Wi-Fi device will work anywhere in the world. Other important trends in wireless adoptions are including the introduction of wireless email with devices such as the Blackberry and The Palm VII, rampant digital cell phone use, including the use of short message service (SMWS), and the advent of Bluetooth devices. But the risks associated with the adoption of wireless networking are only now coming to light. A number of impressive attacks...
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...2. The Consent (continuare) As you know the juridical act, is the expression of smbdy's will meant to produce legal effects. From a juridical point of view, the juridical will of the parties is a complex issue. It is composed by two elements: - the consent; - the consideration. The consent means the externalized decision or intent to conclude a contract. In order to be valid, the consent must fulfill several conditions as follows; 1. To be expressed by person who is mentally capable to conclude the act. It means that the parties must have judgment or discernment, must be able to understand the nature of the act and its consequences. A pers that has a full concrete capacity is presumed by law to have judgment or discernment. This legal presumption may be overruled by proving the temporary lack of judgment of the person in question, as for example for temporarily mental illness, or influence of drugs. You can find this in the civil code Art. 1205 paragraph 1 2. To be expressed by a pers. who has the intention to produce legal effects. This condition is not fulfilled when for example the pers. Is only kidding, he has no real intention to conclude a contract – informal bet. 3. To be externalized. It means that the consent must result from the words or even the actions of the parties. In this respect several problems arise in case of silence. Generally in our law the consent cannot be implied and therefore in case of silence it is considered that there is no consent...
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...Performance Evaluation of Finnish Mutual Funds 2014 TABLE OF CONTENT 1! ABSTRACT ............................................................................................... 1! 2! INTRODUCTION ..................................................................................... 2! 2.1.! Purpose ................................................................................................................. 2! 3! THE FINNISH FUND MARKET .............................................................. 3! 4! PREVIOUS RESEARCH ........................................................................... 5! 5! METHODOLOGY ..................................................................................... 8! 5.1.! Standard Deviation .............................................................................................. 8! 5.2.! Beta ....................................................................................................................... 8! 5.3.! Jensen Alpha ........................................................................................................ 9! 5.4.! Sharpe Ratio ....................................................................................................... 10! 5.5.! Treynor Ratio ..................................................................................................... 10! 5.6.! Hypothesis ........................................................................................................... 11! ...
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...[Provide an overview of stereotyping and whether it applies to the scenario.] It may seem that this case involves stereotyping—specifically, that Syd Gilman has stereotyped Rochelle Beauport. In fact, there is no apparent evidence of this stereotyping. From all accounts, Gilman is sincere in assigning Beauport to the marketing research coordinator job. He seems to be providing, or believes that he is providing a good career opportunity for further advancement. If stereotyping exists in this case, it involves Rochelle Beauport’s stereotyping of Syd Gilman as a typical sexist and racist white male. [Thoroughly discuss social identity theory and how it applies to the case study.] Social identity theory (McShane & Steen, 2012) applies to this case in that Rochelle Beauport has an explicit sense of her social identity as a woman and member of a visible minority in a management position. This likely occurs because these are distinctive features for someone in management. Rachel’s strong social identity may have contributed to her perception of her manager, Syd Gilman—namely, that she grouped him in with other men in management positions. In other words, Beauport may have engaged in categorization, homogenization, and differentiation (McShane & Steen, 2012). What other perceptual error is apparent in this case study? There is evidence of the false-consensus effect [define] (McShane & Steen, 2012). Syd Gilman overestimated the extent to which Beauport had beliefs and characteristics...
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...An "index fund" describes a type of mutual fund or investment trust whose investment objective typically is to achieve approximately the same return as a particular market index. An Exchange Traded Index Fund is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. ETIFs experience price changes throughout the day as they are bought and sold. ETIFs, commonly referred to as index-based ETFs, are designed to track the performance of their specified indexes or, in some cases, a multiple of inverses of their indexes. Some people will agree that international investments is good. It allows investors to reduce the risk of their portfolio, but still allowing them with additional profit potentail. If you have the money to spend you would suggest that you invest in international investments. The return and the risk of an investment will depend on the actual currency that was used. The exchange Traded Funds passive nature is a necessity: the funds rely on an arbitrage mechanism to keep the prices at which they trade roughly in line with the net asset values of their underlying portfolios. For the mechanism to work, potential arbitragers need to have full, timely knowledge of a fund's holdings. ETFs are different from Mutual funds in the sense that ETF units are not sold to the public for cash. Instead, the Asset Management Company that sponsors the ETF (Fund) takes the shares of companies comprising the...
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...Introduction People argue that Information Technology tools and techniques, in the form of crowdsourcing, is what will stop the next virus outbreak from spreading globally, not biology. Indeed, crowdsourcing provides mutual benefits to the countries that experience pandemic diseases and the world as it helps to combat the diseases and limit its spread. However, I disagree that crowdsourcing alone can stop the next virus outbreak due to three reasons. First, globalization improved the transportation resulting in lowering the barrier to spread disease as people travel while carrying diseases. Second, crowdsourcing requires not only platform but also secure connection. Lastly, physician that are participating in crowdsourcing platform might result in errors and...
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...ELSA B. REYES vs. COURT OF APPEALS, SECRETARY OF JUSTICE, AFP-MUTUAL BENEFIT ASSOCIATION, INC., and GRACIELA ELEAZEAR ------------------------------------------------- G.R. No. 120817 November 4, 1996 ------------------------------------------------- I. FACTS Elsa B. Reyes is the president of Eurotrust Capital Corporation (EUROTRUST), a domestic corporation engaged in credit financing. Graciela Eleazar, private respondent, is the president of B.E. Ritz Mansion International Corporation (BERMIC), a domestic enterprise engaged in real estate development. The other respondent, Armed Forces of the Philippines Mutual Benefit Asso., Inc. (AFP-MBAI), is a corporation duly organized primarily to perform welfare services for the Armed Forces of the Philippines. Reyes petitioned two resolutions. On the resolution dated January 23, 1992 for the complaint against Graciela Eleazar in which both parties entered into a contract of loan being Reyes as the creditor and Eleazar as the debtor with no collateral but with a higher interest amounting to P216.053,126.80 for the construction of Condominium and Gold Business Park of Eleazar. In return, Eleazar issued 21 postdated checks to cover payments of the loan packages. However, when those checks were presented for payment, the same were dishonored by the drawee bank, Rizal Commercial Banking Corporation (RCBC), due to stop payment order made by Graciela Eleazar. Despite Eurotrust's notices and repeated demands to pay, Eleazar failed...
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...1. In delivering a sales presentation, you are asked to deliver a follow-up sales letter which summarizes your presentation. Would this be a persuasive letter? Why? One of the best ways to follow up a sales call or meeting is to write your prospect the next day and thank him or her for their time. This is one of the simplest and most effective ways to stand out from your competition and reconfirm your interest in the relationship you’re building. The purpose of this letter in my opinion is to thank your prospective client for the meeting and to reinforce the potential relationship with you a valuable partner. The follow up letter is only to reinforce the relationship and the spirit of cooperation, I do not believe the letter should be an attempt to close with your prospect. Speak in terms of possibilities of a successful partnership and plans for a follow up meetings where you pour on the charm and persuasiveness to close the sale. 2. You are a Marketing Specialist who deals with clients on a daily basis. You have just received the following email: “Bob- We have just found out that the Accounting Department has overcharged Client ABC $12,023 in May 2008. Please contact Sue Smith in Accounting to figure out what the ramifications are, which other clients might be affected, and what the best way to resolve this issue would be. Regards, Tom Smith, President” You have Sue Smith’s email address, desk location, and office number. Decide which...
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...Medication errors are “the most common single preventable cause of adverse events in medical practice” [1]. According to the Institute Of Medicine report (IOM, 1999 ), as high as 98,000 patients die in hospitals each year as a result of preventable medical errors [2] which makes medical errors the second leading cause of death in US. . The report further estimates that, medical errors cost the nation approximately $37.6 Billion each year; about $17 billion of those costs are associated with preventable errors. Medication incidents are commonplace in healthcare [1, 2, 3, 4, 5]. In Australian study, out of over 14,000 admission records reviewed, 16.6% of admissions were associated with an "adverse event",[6]. A study by Ahmed E Aboshaiqah...
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