Capital Asset Pricing Model Essays - Mathematical Finance, Beta

Capital Asset Pricing Model The theory of the Capital Asset Pricing Model - CAPM is pretty basic. This theory though it seems very small is a very important part of the business world. The expected return on a long futures position depends on the Beta of that individual futures contract. If the Beta is greater than 0, the futures price should rise over time. If the Beta is equal to 0, the futures price should remain the same over time. If the Beta is less than 0, the futures price should decline over time. The Capital Asset Pricing Model - CAPM shows risk in a particular asset. With the Capital Asset Pricing Model - CAPM, traders can avoid much of the risk they receive because this broadens their chances. Therefore, only unavoidable risk should or will be compensated. Nevertheless, even after a trader expands his portfolio, some risk will remain. Because some risk is associated with the market as a whole, this risk cannot be countered through expanding. In other words, no matter how hard a trader tries to avoid risk, some risk will remain. This is just a fact of a matter and will not and cannot be changed. DeNarius Thomas Business Finance October 30, 2000 Beta Coefficient The Beta measures the risk associated with one particular asset in relation to the overall market. Beta also measures how much a stock tends to change in price relative to the market as a whole, based on the last 60 months of market. Therefore, with a Beta of zero, the return should be zero. A Beta above zero should bring a positive return to a long position. And a Beta below zero should bring a negative return on a long position. For example, a beta coefficient of one would mean that the market and the given stock tend to move the same. So, a five percent move in the market should produce a five percent move in the stock. A beta coefficient of two will fluctuate twice as much as the market. Beta is used is used in many different modes. One of the modes is low relative mode. This is used to find stocks that fluctuate less than the market. But, if you think that the market is moving up and down and you want to find stocks that will move up faster than the market, you would use the high relative mode. Absolute mode is another mode used by Beta. This mode is used when you want to find stocks that move. If the stocks are faster than the market you use 1.5 as the minimum and 10 as the maximum. If they are slower than the market than you would use 0 as the minimum and .50 as the maximum. DeNarius Thomas Business Finance October 30, 2000 Market Risk and Diversifiable Risk Market Risk descends from market-wide factors and these factors affect all businesses and the economy as whole. These factors include things such as interest rates, inflation rates, currency exchange rates, unemployment rates. Not only are these factors but another factor is the risk of natural disasters such as earthquakes, floods, fire, etc. It is generally not possible to diversify away from this risk. The only possible exception to this statement is where an investor chooses to reposition from a domestic market to an international market. Risks previously thought of as Market Risks may now become Specific Risks. For example, a Japanese investor who only operates on the Tokyo markets may think of Market Risks in a Japanese context. By moving to world markets, some risks, previously thought of as Market Risks now become Specific Risks, in other words specific to the Japanese markets and, therefore becomes diversifiable. The difference in Market risk and Specific risk (diversifiable risk) is that Specific risk only affects specific businesses not general ones as Market risk does. Specific risks apply to an individual company, a company with a particular industrial sector, and companies in a specific geographical of country region. They can be managed by using the Modern Portfolio Theory. This tells us that by combining assets whose returns are not associated with one another, we can determine combinations of assets that provide the least risk for each possible expected return.

All About Exterior Paint Problems and How to Fix Them

All About Exterior Paint Problems and How to Fix Them What are the safest ways to remove paint? Does exterior paint need to be taken off down to the bare wood? Do heat guns really work? These are questions homeowners around the world face. You are not alone. Fortunately, the paint problems of one persons home are the same faced by other homeowners. Believe it or not, the  U.S. Department of the Interior has come to the rescue. It wasnt until 1966 that the U.S. became serious  about preserving its historic heritage. Congress passed the National Historic Preservation Act and charged the  National Park Service (NPS)  with supporting historic preservation programs and activities. Their handy series of preservation briefs are geared toward historic buildings, but the information is great professional advice that anyone can use. Exterior Paint Problems on Historic Woodwork,  Preservation Brief 10, was written by Kay D. Weeks and David W. Look, AIA for the Technical Preservation Services. Although written back in 1982 for historic preservationists, these recommendations are good starting points for homeowners to come to terms with what needs to be done. Here is a summary of the historic preservation guidance and expertise for painting exterior wood siding - with links to more information from the original brief. Selecting the Safest Method to Remove Paint Removing paint involves work - that is, the manual labor of abrasion. How much time and effort are put into paint removal (or paint preparation) is a judgment call and may be the most difficult decision you make. Basically, you can remove paint from your homes exterior siding by three methods: 1. Abrasive: Rubbing, scraping, sanding, and generally using friction. Use a putty knife and/or a paint scraper to dislodge anything loose. Then use sandpaper (orbital or belt sanders are okay) to smooth each area. Do not use rotary drill attachments (rotary sanders and rotary wire strippers), do not water blast or pressure wash, and do not sandblast. These abrasive methods may be too harsh to the siding itself. Pressure washing above 600 psi may force moisture into places where it should not go. A gentle garden hose for cleaning up is okay. 2. Thermal and Abrasive: Heating paint to a melting point and then scraping it from the surface.  For thick layers of built-up paint, use an electric heat plate, an electric heat gun, or a hot air gun that heats from 500 °F to 800 °F. The blow torch is not recommended. 3. Chemical and Abrasive: Using a chemical reaction to soften the paint to make it easier to scrape away. For many reasons, use chemicals only as a supplement to other methods of paint removal. They are too dangerous for you and the environment. Two classes of chemicals are solvent-based strippers and caustic strippers. A third category is biochemical, which may be marketed as bio- or eco- but its the chemical part that makes it work. Paint Removal Precautions Any house built before 1978 may have lead-based paint. Do you really want to remove it? Also, dont substitute speed for safety. Only use the recommended methods listed above. Keep yourself safe and your house in one piece. Paint Surface Conditions and Recommended Treatments Ask yourself why you want to paint your house. If there is no paint failure, adding another layer of paint may actually be harmful. When paint builds up to a thickness of approximately 1/16 (approximately 16 to 30 layers), say the authors of Preservation Brief 10, one or more extra coats of paint may be enough to trigger cracking and peeling in limited or even widespread areas of the buildings surface. Repainting buildings for cosmetic reasons are not always good reasoning. Sometimes you dont need to remove old paint at all, especially for these conditions: Dirt and Grime: Sometimes road dirt and salt can make siding look worse than it is. Clean it with l/2 cup of household detergent in a gallon of water with a medium soft bristle brush and then a gentle hosing.Mildew: Clean with a medium soft brush using one cup non-ammoniated detergent, one-quart household bleach, and one gallon of water. Try to open the area to the sun to avoid further mildew.Paint chalking is that white film on the surface of old paint that is breaking down. Clean the area with a medium soft brush using l/2 cup household detergent to one gallon of water.Stained paint occurs most often from metal or wood becoming moist and coloring the painted surface. Determine the cause of the stain, but its usually unnecessary to remove the paint. Limited paint removal can be considered for these conditions: Paint Crazing: Crazing is fine, jagged interconnected breaks in the top layer of paint. It happens when a house has many layers of paint that become hard and brittle, not allowing expansion and contraction with the wood. Sand off a layer and repaint.Paint Blistering: To distinguish between solvent blistering and blistering caused by moisture, a blister should be cut open.Wrinkled Paint: This happens when the paint has been put on incorrectly. The authors call this an error in application. In a historic building, leave a small out-of-the-way patch untouched for archival purposes. A record of all of the paint layers through the history of the house is useful for future historians. Unfortunately, some conditions require complete removal of exterior paint: Paint Peeling: Before painting, remove sources of moisture inside and outside, as described by the authors: Excess interior moisture should be removed from the building through installation of exhaust fans and vents. Exterior moisture should be eliminated by correcting the following conditions prior to repainting: faulty flashing; leaking gutters; defective roof shingles; cracks and holes in siding and trim; deteriorated caulking in joints and seams; and shrubbery growing too close to painted wood.Cracking and Alligatoring: These symptoms are advanced stages of crazing. General Paint Type Recommendations Paint type is not the same aa s paint color. The type of paint to choose depends on the conditions, and most old (historic) homes will have oil-based paint somewhere in the mix. Remembering that this article was written in 1982, these authors seem to like oil-based paints. They say, The reason for recommending oil rather than latex paints is that a coat of latex paint applied directly over old oil paint is more apt to fail. Justification for Paint Removal A major purpose for exterior paint is to keep the moisture out of your home. Often you dont need to remove paint down to the bare wood. To do so usually requires harsh methods that may damage the wood. Also, the layers of paint on a house are like the rings of a tree trunk - they provide a history that future owners may want to analyze in a laboratory during an architectural investigation. Painting a house every 5 to 8 years protects exterior wood siding from moisture penetration - and can add some zing to your homes curb appeal. Regular maintenance of a house will include mere cleaning, scraping, and hand sanding. Where there is a paint failure, determine and fix the cause before you even begin a painting project. Treating paint problems often means a total painting of the structure may be unnecessary. However, if you determine that you need to paint your house, keep two things in mind before you repaint: (1) only remove the top layer of paint down to the next sound layer; and (2) use the gentlest means possible. The authors summarize their findings by repeating their cautious approach to painting and paint removal. The bottom line is this: There is no completely safe and effective method of removing old paint from exterior woodwork. Learn More PDF Secretary of the Interiors Standards for the Treatment of Historic Properties With Guidelines for Preserving, Rehabilitating, Restoring, Reconstructing Historic Buildings by Kay Weeks and Anne E. Grimmer, 1995, revised 2017 by Anne E. GrimmerNotes: Headings are linked to the complete section of Preservation Brief 10 on the NPS website. Quotations are from that online version. The order of sections on this page may differ from the official version. A 12-page, black and white PDF version of Preservation Brief 10 is also available.

Concepts of Caring Essay Example | Topics and Well Written Essays - 1750 words - 1

Concepts of Caring - Essay Example The staff must look at the use of their body language as well. According to (Justice, 2006) the staff must watch how they use body language and more importantly the way the voice is used. â€Å"These are known as linguistic, non-linguistic and paralinguistic communication skills. The staff must watch their tone, pitch, and loudness. The staff must also watch their body posture, proximity and facial expressions. All of these features are very necessary to make sure that the staff comprehends what is going on in the case.† The staff must show that you know what you are doing right from the start or you will not make any progress with the patient. In your immediate observation of the patient the staff will notice that she is highly anxious. The other subjective signs could be that she could be holding the abdominal area. Emma could also be crying or yelling out. The staff has to build a rapport and gain trust with the patient in order to gain the basic information you need to gai n a diagnosis. The staff will need to feel confident in their decisions, for example if you would decide to call her parents about her location and her problem. The staff will have to decide about the issue of confidentiality and informed consent. Remember In the medical profession or any profession ‘Do No Harm’. Emma will need to be handled with care body, mind and soul. She needs to be told what to do to bring understanding of her physical and emotional health even if she doesn’t want to hear it. 5. Self-Actualization- The nurses can try to teach and tell her that it is not her fault that her parents separated, if that has happened. The nurse can also try to teach her that running away is not the answer to any problem. The nurse must try to talk to her about the abdominal pain she is feeling could mean. When she starts to calm down