Loss Aversion Essay Sample free essay sample

Decision-making is a complex activity. Decision-making can be defined as the procedure of taking a peculiar option from a figure of options. Choosing from the options is the most important challenge faced by the investors is in the country of investing. The chief aim of an investing is to do money. Investment determination doing involves the procedure of placing. measuring. and choosing among undertakings that are likely to hold a important impact on the expected future income. Every investor differs from others in economic background. educational attainment degree. age. race and sex. To confront this challenge. one needs better penetration. and apprehension of human nature in the bing planetary position. plus development of all right accomplishments and ability to acquire best out of investings. Loss antipathy is an of import psychological construct which is having increasing attending in economic analysis. It has foremost been proposed by Kahneman and Tversky ( 1979 ) in the model of prospect theory. We will write a custom essay sample on Loss Aversion Essay Sample or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This peculiar consequence of behavioural economic sciences explains why people are more motivated to avoid a loss than to get a similar addition. Itis the wiring that makes us experience more down at the loss of Rs. 100 than elated at winning the same sum of money. In a nutshell â€Å"Loss antipathy shows that losingss loom larger than additions ; that is. persons weigh losingss more to a great extent than the additions. † What does loss antipathy mean for investors in the class of portfolio planning? Investors seek to accomplish a certain degree of return. They like it when they earn positive returns. but they hate it even more when the returns go negative. What causes this systematic dissymmetry between an investor’s response to derive and loss—and how investors should cover with it when be aftering their investing schemes? Based on the asset’s return and volatility features. how much could the investor potentially stand to lose. in existent pecuniary footings? It is when investors are confronted with the world of cold difficult hard currency that loss antipathy sets in. By understanding the deductions of big losingss. investors can make up ones mind how much hazard they are willing to potentially prolong in chase of their long term return aims. Loss antipathy besides explains one of the most common investment errors i. e. investors measuring their stock portfolio are most likely to sell stocks that have increased in value. Unfortunately. this means that they end up keeping on to their depreciating stocks. Over the long term. this scheme is extremely foolish. since it finally leads to a portfolio composed wholly of portions that are losing money. Even professional money directors are vulnerable to this prejudice. and tend to keep losing stocks twice every bit long as winning stocks. Why do investors make this? Because they are afraid to take a loss it feels bad and selling portions that have decreased in value makes the loss touchable. We try to prorogue the hurting for every bit long as possible. The terminal consequence is more losingss. This research will be an effort to understand the behaviour of single investors in Madhya Pradesh as to how investors decide upon their portfolio for the investing. How far the investors are affected by the rule of Loss Aversion?

Marketing Myopia essays

Marketing Myopia essays Marketing Myopia is the failure to define an organization's purpose in terms of its function from the consumers' point of view. For example, railway companies that define their markets in terms of trains, rather than transportation, fail to recognize the challenge of competition from cars, airlines, and buses. It is therefore necessary to define the needs of the consumer in more general terms rather than product-specific terms. Marketing Myopia is the short sighted look of the managers in wrongly identifying the category and goals of the company, not looking at the whole industry of the product neglecting the fields of opportunities in their area of industry, not listening to the customer's real needs and expectations. Do not think bricks but think building materials. Do not think glass bottles, think containers. That way if building materials or containers change, the company can still be in business. More importantly, if the company thinks one level up and is in tune with the changes in its customer's needs, it has a chance to make changes in its production. Encyclopedia Britannica's temporary denial of the effect computers and CD-ROMs would have on its core business. The company thought that their business is to writing and selling books; they did not see the technological change and did not understand the meanings that something that was once priced at over $1,000 became a giveaway with most personal computers. Ouch! They should have realized they were in the business of selling Information and not just writing books. IBM - Thomas Watson, Jr., son of the IBM founder, tells in his book, Father, Son "We are in the business of supplying punch card machinery." The old-guard IBM making huge profits sellin ...

Final Exam Essay Example | Topics and Well Written Essays - 1000 words - 14

Final Exam - Essay Example According to Long, there are many factors that act as sources of power of an administrator, and he claimed that legal authority and budget allocations are not sufficient bases of administration. More so, he claimed that the top hierarchy while structuring administration based on power is not relevant claiming that hierarchical power flows downwards. Long stated that â€Å"the political power flows in from organizational sides and also flows up the organization to the center from the constituent parts† (Stillman 2010, p.107). Therefore, long provided a structure of interests, which to him was an essential factor in determining the scope of possible action. Notably, the administrative power and political power greatly differ; first, the administrative power can be referred to as the ability to cover up the fund embezzlement whereas political power is the ability to order a cover up of embezzled fund. In administration, the power is limited whereas in politics, the power is unlimited due to the decision made by the majority via elections. There are many problems that public administrators face today, some of which include hierarchical order and the flow of power, coping with the expectations of the public, achieving technical competence, and behaving ethically among others. As long stated, the top hierarchy of the administration is not relevant but in reality, power and hierarchical positions truly affects public administrators. Many scholars have argued that power is the most important element in administration and this power is a significant challenge faced by administrators. Secondly, public administrators have trouble in trying to e ffectively satisfy public interest and coping up with the expectations of the public. In addition, public administrators always focus on how to effectively perform the tasks assigned to them by supervisors and

Brown v. Board of Education of Topeka Case Study

Brown v. Board of Education of Topeka - Case Study Example They went to court based on the principle in the Fourteenth Amendment that offered equal protection to all American citizens (Patterson, 2002). In many prior instances, the court denied relief on the ground of the Plessy v. Ferguson ruling. The case of Plessy v. Ferguson resulted in a ruling that offered for separation of whites and blacks in the public sphere while offering equal facilities and opportunities to all. In Brown v. Topeka, the plaintiffs argued against the principle of segregated and equal protection. They argued that the segregation of schools could never allow for any equality and reduced the protection due to one group of people. The legal issues in the case of Brown v. Board of Education were with regard to the rights of all people as provided for all people under the 14th Amendment. Another legal issue under the determination of the court was whether the principles of Plessy v. Ferguson are applicable to Brown v. Board of Education. The Fourteenth Amendment asserts that all persons are under the equal protection of the law (Sitkoff, 2008). This amendment effectively entails that, all persons in the United States regardless of color, race or creed, deserve equality of protection and privilege in all aspects of American public life. The intention of the ruling in Plessy v. Ferguson was to legalize segregation in public transport. The issue of equality arises in that; provision of equality may be possible in public transport. In the realm of education, it would be hard to maintain equality since it is inevitable that skewed funding would occur against some of the segregated schools. Another aspect of the US Co nstitution is that it provided freedom of choice to any person to make use of any public facilities and institutions of their choice. The application of the rule in Plessy v.  Ferguson was erroneous in that it restricts access to any American to public facilities based on skin color (Miller, 2004).

Materiality in Auditing Essay Example | Topics and Well Written Essays - 2000 words - 6

Materiality in Auditing - Essay Example Materiality levels of organization are often undisclosed to avoid fraud that may be conducted by the parties involved in preparing financial statements. Analysis of the fundamentalism and the secrecy of materiality are essential in understanding how this concept is applicable in the auditing profession. Materiality is a concept that describes discrepancies in the financial statements that may mislead the decision making process of users of those records (Stuart, 2012). The discrepancies may be included or omitted in the financial statements intentionally or as a result of errors in recording. If users of accounting records would not change their decision after the correction of the discrepancies, the misstatement are said to be immaterial. However, if users of financial statements would change their decisions after the corrections, then the discrepancies are said to be material (Messier, Martinov-Bennie, & Eilifsen, 2005, p. 5). Materiality in the financial statements may be individual or collective. Individual materiality is the one that occurs when a record in an account is recorded wrongly. Collective materiality, on the other hand, is the one that arises when the total discrepancies in two or more accounts of a similar classification mislead decision makers (FRC, 2013). Auditors have to determine the level of discrepancies that they will find to be immaterial and those that are material at the planning stage. The materiality level is usually stated in quantitative figures such as percentages. For example, the auditors may state that a misstatement of the income before tax by 5% and below is immaterial while the error is material of it exceeds this allowance (Lessambo, 2013). Examiners use professional judgement to determine the materiality allowances because there is no formula of calculating the amount. Auditors make their judgements based on their understanding of the factors that influence the decisions of users of financial reports (IAASB, 2009).

The Role Of The Chorus In Sophocles English Literature Essay

The Role Of The Chorus In Sophocles English Literature Essay The Chorus plays a crucial role in the overall development of any Greek tragedy; they are responsible for providing the overall background and summary information of the play, alongside they interact with characters to develop the personalities of characters and drive the plot. However, both Sophocles and Aeschylus slightly adjust their attributes and overall significance in their plays. Through the explicit analysis of the function of the chorus, I hope to shed light on the similarities and differences in their duty within the respective plays. Right from the start in Antigone, it is clear that the chorus is composed mainly of male elders [that] represents the point of view of an average section of society, representing the extent of the patriarchal society in which the play is set and Antigone despised. However, it did automatically credit the chorus for the information and words of wisdom passed on because the elders themselves were once warriors and fought in battles in the past however with age they are limited to demonstrating their skills in words. As such, from the start of the play they can be seen to take on the role of advisors to King Creon. Throughout the play, the chorus can be seen responding to Creons actions as seen in line 204 when the Chorus states that No one is such a fool that he is in love with death, explaining to the King that no human would be foolish enough to defy the words of Creon, thus the act of burying must have been the God will. The Chorus is the first to suggest to Creon the religious implications of the dispute in regards to Polyneices and try to moderate between Haemon and Creon, however they are merely ignored and turned away from Creon; it is not only till Creon feels confused and distressed that the Chorus is able to uphold and be taken seriously. As such, the Chorus seems to prefer a cautious, discreet approach to matter, quite in contrast to the individualist, tragic heroism of the main character, Antigone in other words, the chorus has its continuous share in the drama, and has, in one way or another, its contribution to make, due regard being paid to its somewhat indefinite power. Indeed, this approach taken by the Chorus is vital in driving the plot of the play, as In addition, at first glance the chorus in Antigone may be misinterpreted as being fragile and feeble; indeed, it only seem to echo the commands and desires of King Creon, and does not stand up for themselves and take position with the rebellious Antigone. This is not an accident on Sophocles behalf. As observed throughout the play, the purposeful yielding as demonstrated by the chorus further enhances the impression of imperative nature of Creon against Antigone and the rest of the Greek population. From the above, it is clear that the Chorus plays a major role in the overall development of Antigone. Indeed, without the presence of the characteristic catalyst of the Chorus, Creon would never have changed is personality which would have led to the ultimate condemnation and death of Antigone the inevitable tragedy of the heroine. In Aeschylus Agamemnon, the Chorus can be seen to be acting as the narrative pendulum with time, interchanging between the past and present. This is in particular seen in the Parados where the Chorus creates a delaying effect; the storyline heads backwards rather than forwards in time, unlike the Watchmans speech which is substantially set in the present. The chorus in Agamemnon is composed mainly of old men fathers of sons who fought and died at the Battle Troy. The status of having fought in past battles and being able to recall the events bestows them with a form of credibility and ascendancy as old age leaves me fit for bravery only in song, which contracts their physical state physically unable to fight due to age. However, despite this physical disability they remain mentally strong and thus when it comes to advising Agamemnon the Chorus retains their confidence, unlike the Chorus in Antigone. However, quite in contrast, the Chorus in Agamemnon were born to sorrow. Indeed, such feeling of grief originates from the continuous agitation of their king, King Agamemnon. There are numerous reasons for the Chorus sorrow they believe that he has demonstrated disrespect and audacity against the Greek gods, know of the Kings refusal of an offer of alliance from his enemies from Argos and guiltily acknowledge that they themselves suggested adverse thoughts against Agamemnon. From such descriptions one can easily attest and justify the corruption and feebleness of the king. However, the victory in the expedition to Troy acted as a major counterweight against such negative portrayal and can be instead be seen as the agent of Zeus and the leader of a crusade to enforce Zeus justice. With such contradictions, it was inevitable for the chorus to become disarray when allegorizing and illustrating Agamemnon. Indeed, he was, in present, a national hero; his success in Troy has resulted in t he ever-increasing abundance and happiness for the Greek empire, almost as if Zeus himself showed respect to him. However, in his past, the wrongs which he has committed are too severe to be simply disregarded. Thus, the first difference between the role of the chorus appears: in Agamemnon, the chorus seems to, in addition to providing the basic historiography to set the scene, examine the happenings of the past and then make a general statement of the will of the gods as seen in these events in other words, they ponder on throughout the entire play as to whether Agamemnon is a good king or not. In addition, one may argue that their [the Chorus] wisdom seems apparent in their recognition of the justice inherent in the world. Indeed, throughout the novel Aeschylus purposely sets out the scenario such that an act of justice just further adds and enhances the injustice already present, where the narration and interpretation of such events affects the audience, urging them to consider the ethical conflict, engaging them into emotional involvement of the play. Aeschylus uses the Chorus to repeat several key words to help emphasize certain points to reveal the poets intent. As seen through the repetition of Zeus and telos two words which Clytamnestra continuously repeats in her prayers the theme of justice is integrated in the play. This adds to the tension, as to whether the ruling and authority of King Creon overrules that of the Gods. In comparison to Antigone, the Parados in Agamemnon is very long, but Aeschylus makes it vivid by using symbolism, similes and descriptive imagery. He divides the ode into chronological sections to help the audience focus on the narrative of the play, from the setting of the play, especially the abduction of Helen and the anger of the Gods to omens and sacrifice of Iphigenia. In varying the pace and rhythm of these sections Aeschylus highlights the choruss tone and their reaction to certain events; for example the metaphorical abduction of Helen and Zeuss anger over the betrayal of Menelaus hospitality. In conclusion, it is apprehensible that the role of the chorus in Antigone and Agamemnon share some similarities; they play crucial roles in enlightening the audience with the necessary background information thus setting the scene, and also developing the plot of the texts. Furthermore the Chorus in both texts reflects on many important aspects of Greek life Gods, omens, prophecies, sacrifices and justice this legal imagery is important in the play because it relates to Greek society. However, their roles differ in the two plays in such way that whilst in Antigone the chorus cowers from the King which in effect amplifies the tyrannical image of Creon and thus stirs up the audience sympathy with Antigone, whilst in Agamemnon the Chorus seem to analyze the good and bad of Agamemnon and provoke the audience to determine as to whether he is an honourable king.

Flannery O Conner :: essays papers

Flannery O Conner If you try to get more from a writer than what you seen on the page , usually depends on the writer and their ability to make you see, and of course your own imagination. When the writers stories are so different and the characters are so clear, you sometimes think you know something about that writer and who they were. People say that a writer can be found in their words. However, some writers are good writers not only because of their words and works. One writer that goes beyond words is a writer that we have recently read a story on. Flannery O’ Connor. The contradictions of violence and faith in her fiction distinguishes her among Southern writers and make one wonder who she was and where she was from. O’ Connor’s life greatly influenced her work. Born in Savannah, Georgia, O’ Connor was educated at the Georgia State College for Women and the State University of Iowa (now called the University of Iowa). Most of her life was spent in Milledgeville, Georgia, where she raised peacocks and wrote. O’Connor’s work , of two novels and two volumes of short stories, has been described as an unlikely mixture of southern Gothic , prophecy and evangelistic Roman Catholicism. In many of her stories she included rural settings from her homeland. For example â€Å"Good Country People† takes place in rural Georgia. Flannery used her well-known writing styles of grotesque humor in the stories she wrote , including â€Å"Good Country People†. Unlike most of the writers from the South Flannery probably would not have wanted to be found. She was rather quiet in her lifetime and enjoyed the solitude of her home in Milledgeville, Georgia. It seemed as if there were a part of her that wanted to remain mysterious and unfound. After reading some of her fiction like â€Å"Good Country People† you can see the humorous side she pokes at the world and herself. Her writing , often deep, dark and violent has a flip side it is also humorous. Flannery O’ Connor remains a powerful voice in literature today. Before her tragic death which claimed her young life at the age of 39, she had written two novels and thirty-two short stories. as well as commentaries and reviews. She died from Lupus, the same disease which shortened the life of her father. O’ Connor’s work has not always been understood completely and appreciated for her unique and powerful themes. Many critics did not like her first novel, Wise Blood , positively because of its seemingly strange themes and characters.