An Exploration Of Life Orientation Teachers Role

An Exploration Of Life Orientation Teachers Role The literature review in a research study accomplishes several purposes: It shares with the reader the results of other studies that are closely related to the study being reported. It relates a study to the larger ongoing dialogue in the literature about a topic, filling in gaps and extending prior studies (Coopera, 1984; Marshall and Rossman, 1999). In this chapter, the concept of career skills with particular focus on 21st century careers and their accompanying 21st century skills will be explored, using as reference the work of a number of pioneers in the field of educational research today. The theoretical framework upon which this literature study is based will be introduced; and the role of the educator in developing these 21st century skills will then be explored, with specific focus on the FET life orientation teacher, and the preparation of learners for work and careers in the 21st century. Professional teacher development will also be discussed looking at both local and global initiatives in training teachers as a means to adequately prepare their learners for the 21st century. An in-depth exploration of the Life Orientation Learning area will then be demonstrated, with specific focus on the Life Orientation teachers role in preparing learners in the FET band of the secondary school private learning institutions in Sout h Africa, as intended by the national curriculum statement, for life and careers in the 21st century. In accordance with The Norms and Standards for Educators(2000) all teachers are expected to take on various roles in ensuring the adequate development of their learners (see section.); however, this study has been delimited to life orientation teachers in particular as it is recognised that this learning area makes specific accommodation for these teachers to engage learners in essential 21st century skills and development. In addition, though it is also expected that these skills be introduced to learners in the foundation phase and developed throughout their schooling career, for the purpose of this research study, the FET band (Grades 10-12) will be referred to specifically, as these learners are steadily approaching the world of work and careers in the 21st century, and are in what Erikson (1950,1959, 1968) originally described as the process of identity formation where these individuals consolidate earlier roles, identifications, skills, values, beliefs and talents, both consci ously and unconsciously, in order to successfully prepare for the social roles, relationships, and responsibilities of adulthood (Mahler pg 17). The FET band is therefore deemed by the researcher as a critical phase in career choice, and the most appropriate for the purposes of this study. Theoretical Framework Theories describing career behaviour have been in existence for the past 75 years, and provide the conceptual glue for, as well as describe where, when and for what purpose, career counselling, career education, career guidance and other career interventions are to be implemented. (REF) Various disciplines such as Personality, Sociology, Developmental Psychology, and Differential Psychology have contributed to the development of these theories, the most prominent being the Career Development Theory (Super 1957; 1996). This theory provided a more developmental perspective to the traditional individual differences view of occupations which, according to Super, ignored the longitudinal vantage point from which one can observe how individuals improve their vocational coping repertoires and move into jobs which provide increasingly better opportunities to use their abilities and gratify their needs (Super, 1953 in Savickas 2001:2). It then evolved in accordance with the theorists comprehension of careers, and can be traced in its name changes from the original Career Development Theory to the Development Self-Concept Theory and then to the current Life-Span, Life-Space Theory (Savickas adaptability pg 2). Each name change signified an elaboration of the theory to address more completely the complexity of vocational behaviour in manifold settings across diverse groups (Savickas adaptability pg 2). The life stages highlighted in this theory are as follows: Growth Stage: learning about occupations and developing work habits and attitudes Exploration Stage: learning tasks that will assist in crystallizing and specifying occupations Establishment Stage: developing skills to consolidate and advance in a job Maintenance Stage: decisions are made about whether to remain in a job or move to another job or occupational field Disengagement Stage: planning for retirement (Maree and Ebersohn, 2002 pg 157) Unfortunately Super passed away before integrating the major segments in his own life-span, life-space theory. His work was however continued by his student, Mark Savickas (1989, 1993, 2000), who elaborated on Supers previous work and developed it further, integrating the segments of the life-span, life-space theory and placing more focus on the developmental tasks necessary to master career stages, as opposed to the linear progression across the stages. Such tasks include career exploration, career decision-making, career adaptability, and overcoming perceived career barriers (Maree Ebeersohn, 2002: 158). These challenge assumptions of stability of personal characteristics and secure jobs in bounded organizations No matter how stable individual characteristics might be, the environment and consequently traditional work ethic is rapidly changing. Insecure workers in the information age must become lifelong learners who can use sophisticated technologies, embrace flexibility rather t han stability, maintain employability, and create their own opportunities. These new conceptions of work life recognize that career belongs to the person not the organization (Duarte, 2004). (Savickas et al 2009; pg 239 webpage NEW article). In addition, career stages as defined in extant theories such as Supers Career Stage Theory (1957; 1996 listed above) are mainly shaped by societal needs, and these needs are changing with the rapidly changing environment (Savickas et al 2009; pg 240 webpage NEW article) and the changing nature of work, rendering these stages unrealistic in the order in which they are presented. These changes require workers to develop skills and competences that differ substantially from the knowledge and abilities required by 20th century occupations. Today, occupational prospects seem far less definable and predictable, with job transitions more frequent and difficult (Savickas et al 2009; pg 240 webpage NEW article). As the career becomes more internally defined, stage theory will focus more on internal, individual decision-making processes rather than the relationship of the individual to an employer (Wrobel et al, 2003), with modern theoretical models emphasizing human flexibility, adaptability, and life-long learning. (Savickas et al 2009; pg 240 webpage NEW article). The theoretical framework upon which this study is based is that of Mark Savickas, who termed his approach Career Construction Theory which is rooted in post-modern social constructivism. Social constructivism, strongly influenced by Vygotskys (1978) work, suggests that knowledge is first constructed in a social context and is then taken up by individuals (Bruning et al., 1999; M. Cole, 1991; Eggan Kauchak, 2004); a theory which informs the way in which learners acquire information in the classroom and learning environment. Constructivism is a psychological approach that has developed out of post-modernism, a philosophical stance emphasising the idea of no fixed truth. Followers of this theoretical construct believe that individuals create and perceive their own reality or truth, relflecting a multiculturally diverse world in which different individuals can have their own view of what is real for them (Richard S. Sharf: pg 263) Constructivism in essence implies that: There are no fixed meanings or realities in the world, there are multiple meanings and multiple realities. Individuals create or construct their own meaning/reality of the world through the experiences they have. People construct themselves and the world around them through the interpretations they make and the actions they take. These constructs or perceptions of events may be useful or may be misleading. Individuals differ from each other in their construction of events. Two people may participate in the same or similar event and have very different perceptions of the experience. People are self-organizing and meaning-makers. Their lives are ever evolving stories that are under constant revision. An individual may choose to develop new constructs or write new stories in their life. To be an empowered or fulfilled person requires critical reflection of the assumptions that account for our daily decisions and actions. [Big Picture View of Career Development Theory http://www.ccdf.ca retrieved 26/11/12] Career construction theory provides a way of thinking about how individuals choose and use work. This theory is an extension of Super;s career stage theory, where there is an acknowledgement of how our environments affect our realities and the life role we find ourselves in; yet at the same time, a recognition that we can, and do, occupy various life roles at various stages of our lives. This is not a linear or stable progression, but rather a fluid transition from role to role it is what Savickas refers to as life-long learning. Like Super (1957; 1996), Savickas ( 1989, 1993, 2000) presents a model for comprehending vocational behaviour across the life-cycle (Savckas carrer construction article), but emphasizes flexibility and mobility rather than the traditional vocational models view of careers as representing commitment and stability. While Supers career stage theory proved to be useful at the time, with many people entering jobs and organizations hoping to progress up the corp orate ladder (Maree Ebersohn, 2002:158), the rungs of that metaphorical ladder are fast disappearing in response to deregulation, fewer trade barriers, destabilization, continual technological innovation, organizational downsizing, outsourcing, and flatter governance structures (Mahler, 2008:1). The new job market in our unsettled economy calls for viewing career not as a lifetime commitment to one employer but as selling services and skills to a series of employers who need projects completed. (Savckas carrer construction article) In Western societies, we witness a growing diversity of individual realities, far from the traditional pathways During a major part of the 20th century, individual careers were shaped by prevailing societal norms: first education, then work, and finally family. Social integration and recognition were mainly based upon these systems of reference. Today, people at all ages return to school, obtain training, lose their jobs and get divorced, without necessarily losing social recognition. Co-existence of multiple identities and subjective realities therefore seems to be a natural consequence of such societal evolutions. Savickas is particularly interested in investigating how to live a life in a postmodern world shaped by a global economy and supported by information technology (Life Design Article webpage). His theory focuses attention on adaptation to a series of transitions from school to work, from job to job, and from occupation to occupation. Career construction theory views adaptation to these transitions as fostered by five principal types of behaviors: orientation, exploration, establishment, management, and disengagement. As each transition approaches, individuals can adapt more effectively if they meet the change with growing awareness, information-seeking followed by informed decision making, trial behaviors leading to a stable commitment projected forward for a certain time period, active role management, and eventually forward-looking deceleration and disengagement. (Savckas carrer construction article). In the learning context, this theory emphasizes the importance of the learner being actively involved in the learning process, unlike previous educational viewpoints where the responsibility rested with the instructor to teach and where the learner played a passive, receptive role. According to the social constructivism approach, instructors have to adapt to the role of facilitators and not teachers (Bauersfeld, 1995 in WIKIPEDIA). It is also important for instructors to realize that although a curriculum may be set down for them, it inevitably becomes shaped by them into something personal that reflects their own belief systems, their thoughts and feelings about both the content of their instruction and their learners (Rhodes and Bellamy 1999 in WIKIPEDIA). They are required to be flexible and adaptable, and create a collaborative learning environment known as collaborative elaboration (Meter Stevens, 2000 in WIKIPEDIA), which results in learners building understanding together th at wouldnt be possible alone (Greeno et al., 1996 in WIKIPEDIA). The Partnership for 21st Century Skills (P21) (2006) provides a framework within which this 21st century skill preparation can take place. P21 was developed in the United States with the goal of positioning 21st century skills at the centre of 21st century education. P21 is an international organization formed in 2001 with the sponsorship of the United States government and several organizations from the private sector (e.g., Apple Computer, Cisco Systems, Dell Computer Corporation,Microsoft Corporation, National Education Association). P21 recommends the emphasis of a specific set of competences regarded by this framework as learning skills (i.e., information and communication; thinking and problem solving; interpersonal and self-directional skills) the acquisition of which can be best supported by specific pedagogic techniques, such as problem-based learning, cooperative learning, experiential learning, and formative assessment. (REF) This is rooted in social constructivism, a theory strongly influenced by Vygotskys (1978) work, which suggests that knowledge is first constructed in a social context and is then taken up by individuals (Bruning et al., 1999; M. Cole, 1991; Eggan Kauchak, 2004); a theory which informs the way in which learners acquire information in the classroom and learning environment. With emphasis placed on the importance of mentoring and facilitating learners in acquiring the necessary 21st century skills (P21), and ultimately empowering them through active and collaborative acquisition of information (Social constructivism) to navigate their way in a largely unpredictable 21st century work environment, the Career Construction Theory together with the the P21 framework will form the basic theoretical construct upon which this study is based. Careers in the 21st Century What are 21st century careers? In a narrative study defining career success in the 21st century, Elizabeth Mahler describes todays career world as complex and boundaryless (Mahler pg 8). Roles have shifted women are now a significant part of the workforce, in addition to being mothers and wives; entrepreneurs, non-profit workers, the self-employed, culturally diverse workers, and other nontraditional workers in nontraditional settings make up the 21st century workforce (Mahler pg 9). In addition, a longer life translates into extended time in the workforce, accompanied by additonal education, re-visiting of career goals and changing of career paths (Mahler pg 9). Todays life and work environments thus require far more than thinking skills and content knowledge. They require what is being referred to today as life-long learning. According to Renck Jalongo (1991), the highest purpose of teaching is to promote those types of learning that encourage children to continue to learn, not on ly inside the classroom but also outside the classroom and throughout life (Renck Jalongo, 1991:3 ROLE OF TEACHER BOOK) This is lifelong learning. Technology will continue to change the world in ways we cannot imagine; and in this increasingly complexworld, creativity and the ability to continue to learn and to innovate will count as much as, if not more than, specific areas of knowledge liable to become obsolete. (COMMISSION ARTICLE PG 5). Employees no longer remain in the same job/position for forty years. Secure lifelong employment in a single job is a thing of the past (Robinson, 2011:6). The ability to navigate the complex life and work environments in this globally competitive information age requires students to pay rigorous attention to developing adequate life and career skills. Technology and the ease with which new skills can be acquired create a need for more career flexibility and innovation. From an economic perspective, workers are now required to command a new set of aptitudes Mere survival today depends on being able to do something that overseas knowledge workers cant do cheaper, that powerful computers cant do faster, and that satisfies one of the non-material, transcendent desires of an abundant age (Pink pg 51). Workers are reacting to these changes by shifting their focus away from organizational careers to more personal roles, more localised and portable sites for vesting the self (Ashforth, 2001 in Mahler pg 1). According to Mahler, this shift in career focus requires an increased capacity for self-direction, the ability to adapt to constantly changing circumstances, and an understanding that identity will continue to evolve as an individual navigates multiple work roles over the course of a career (Ashforth et al in Mahler pg 2). In accordance with the principles of the Chaos Theory which, along with The Partnership for 21st Century Skills (P21) serves as the theoretical framework for this study (see section), individuals are defini ng their career paths within an unpredicatable and changing environment: Workers are increasingly finding that they have to manage their own careers, become more flexible in the sort of work they seek, and be willing to learn new skills throughout their lives (Maree and Ebersohn 2002 pg 155). P21 recognises that in order to ensure the development of these skills and attitudes, learners should be exposed to the following: FLEXIBILITY AND ADAPTABILITY The ability to be flexible and adaptable is an essential skill in the culturally diverse and nontraditional 21st century workplace. the predictable and stable boundaries of a single organization career are evolving into a less secure, and often boundaryless series of shorter, portable, and transactionally based work roles and relationships (Mahler pg 4). Thus the ability to work in a climate of ambiguity and the ability to adapt to varied job roles in multi-cultural environments [(http://www.p21.org) retrieved on 24/10/12] is an essential 21st century skill. This is emphasised in Savickass Career Construction Theory, and his focus on Career Adaptability This concept was introduced by Savickas approximately three decades ago, with the intention to replace Supers career maturity stage. This is still a relatively new concept that is still being explored and refined (pg 120) yet Iit has been described by Savickas as the readiness to cope with the unpredicatable tasks of preparing for and participating in the work role and with the unpredictable adjustments prompted by changes in work and working conditions (Savickas, 1997 in Maree 2010 pg 120). It also requires the need to engage proactively in a process of self-development in order to choose suitable opportunities and become the person you want to be (Maree, 2010 pg 120). This is an extension of Supers emphasis on self-concept and the importance of identity formation in vocational development. INITIATIVE AND SELF-DIRECTION The concept of life-long learning is emphasised here, again drawing attention to the shift in traditional career roles and opportunities: individuals today can expect to hold five to eight jobs within a working lifetime the traditionally recognised contract between an employee and employer no longer guarantees lifelong employment in exchange for loyalty and performance (Mahler, pg 5-6). Demonstrating both a commitment to learning as a lifelong process, as well as initiative to advance skill levels towards a professional level [(http://www.p21.org) retrieved on 24/10/12] is a skill necessary to develop self-direction and active management of work roles. The ability to work independently at ones highest level of mastery is also an essential 21st century skill, due to increased competition in the workforce as a result of continual technological innovation, organizational downsizing and outsourcing (Mahler, pg 1). SOCIAL AND CROSS-CULTURAL SKILLS Social and cultural skills such as conducting oneself respectably and professionally, and responding open-mindedly to different ideas and values [(http://www.p21.org) retrieved on 24/10/12] are critical life skills required for the 21st century. As discussed in section à ¢Ã¢â€š ¬Ã‚ ¦.. todays work environment is less predictable than it was traditionally and requires workers to be able to adapt and innovate and collaborate with others effectively. Collaboration requires respect in order to engage in open-minded discussion. PRODUCTIVITY AND ACCOUNTABILITY Being accountable for ones actions or decisions and behaving in a professional manner are skills that are difficult to teach. These are skills that should be role-modelled, by both parents and teachers. Todays generation of learners is in the throes of the technological era, where roles and values are shifting and changing. Identity formation for adolescents in particular requires dependence on and a critical connection to the social world, while also bestowing on the individual a sense of autonomy and self-determination (Mahler pg 17). It is therefore essential that they are provided with the guidance to find their career path and that they are shown how to manage themselves effectively in the world, displaying the abilities to: -Work positively and ethically -Manage time and projects effectively -Multi-task Participate actively, as well as be reliable and punctual -Present oneself professionally and with proper etiquette -Collaborate and cooperate effectively with teams -Respect and appreciate team diversity -Be accountable for results [(http://www.p21.org) retrieved on 24/10/12] LEADERSHIP AND RESPONSIBILITY Todays learners are our future leaders, and thus appropriate behaviours and skills such as acting responsibly, inspiring, influencing and guiding others, demonstrating integrity and ethical behaviour [(http://www.p21.org) retrieved on 24/10/12] need to be modelled for them so that they can enter the world of work as selfless role models and leaders. (http://www.p21.org)retrieved on 24/10/12 -21st century skills The skills outlined in the P21 Framework (above) reflect the changing realities of the 21st century , which is frames in the theoretical construct of social constructivism (in section.) and are echoed in the writings of a number of educational researchers and pioneers pertinent to this research, such as Sir Ken Robinson (2009; 2011), Daniel Pink (2005) and John Taylor Gatto (2010) who are the leading voices in 21st century skills and the transformation of the 21st century workforce. Their advocacy has been supported by thorough research in both the education and global economic spheres. Voogt (2008) for example, believes that through information and communication technology, our society has changed from an industrial society to an information or knowledge society, where learning requires collaboration and group work, directed by the learners themselves and facilitated by the teachers (see comparative table in appendix). While in the industrial society the main focus of education was to contribute to the development of factual and procedural knowledge, in the information or knowledge society the development of conceptual and meta-cognitive knowledge is increasingly considered importan t (Anderson 2008). Todays generation needs to be able to think critically and independently in order to function successfully in the 21st century individuals will have to be able to function comfortably in a world that is always in fluxpeople will be faced with greater individual responsibility to direct their own lives (Gato, pg xxxiv). This, Robinson believes, can be attributed to two main factors: the major advances in technology which is referred to by Voogt (2008), Gatto (2011), and Pink (2005) as well as the rapid growth of the world population: this great new mass of humanity will be using technologies that have yet to be invented in ways that we cannot imagine and in jobs that dont yet exist (Robinson, 2009:19). This change has inevitable implications for our education systems (voogt article pg 11) one of which is a need to change curricula so that students develop competences which are needed in the 21st century (Anderson 2008; Voogt Pelgrum, 2005). (VOOGT PG 2) Robinson believes that education has three core purposes: to develop individual talents and sensibilities, to deepen learners understanding of the world around them and to enable them to earn a living and be economically productive (2011, pg 249). In order to achieve this, certain skills need to be developed, namely, flexibility and adaptability (pg 6), entrepreneurship, innovation and creativity (pg 11) good communication skills, team work and collaboration, and self-confidence (pg 69). This corresponds with the skills highlighted by P21 (see table above), which is the theoretical framework upon which this study is based. Other educational researchers and authors, such as Mary Renck Jalongo (1991), agree that Collaboration, cooperation and teamwork, rather than individual achievement, will be the mark of an advancing society (pg 73). The ability to collaborate and effectively communicate with others is a crucial skill in the 21st century, yet the competitive nature of the school env ironment could possibly be preventing the future generation from developing the appropriate and essential collaborative and communication skills that are necessary for successful functioning in the 21st century. These skills, namely collaboration, communication, teamwork, require largely practical and reflexive competencies (see section) they are skills that cannot be studied and tested, but rather experienced, explored and facilitated. Hence the envisaged role of in the context of this study, especially Life Orientation teachers as mentors mediators of learning, interpreters and designers of Learning Programmes (DoE pg. 5) as opposed to deliverers of content and learning outcomes. No longer is it effective for the teacher to take on the role of the painter, who fills in the spaces on a blank canvas, synthetically, producing an image. The teacher needs to take on the role of the sculptor chipping away carefully and gently until the artwork is revealed. (Gatto, pg xxxiv). Daniel Pink (2005) is an advocate for empathy as a teaching strategy and essential 21st century skill in the learning and work environment. Empathy, says Pink, is an ethic for livinga universal language that connects us beyond country or culturean essential part of living a life of meaning (pg 165). Robinson concurs: students are simply not learning the personal skills they need to deal with modern life (2011; pg 78). According to Kathy Beland (2007:69 BOOK 1), social and emotional competence and skills are crucial to success in school, work, and personal life These skills include self-awareness and relationship skills, assisting the individual in recognizing and managing emotions. Education should not be knowledge-based but child-centered (Robinson, 2011:179). This means that the whole child should be developed, not just his/her academic abilities. According to Robinson (2011:179), education should engage [learners] feelings, physical development, moral education and creativity. These authors are emphasising again the shift in skill requirements for the 21st century, and the necessity for personal growth and development over and above content and curriculum knowledge acquisition. The lessons of school prevent children from keeping important appointments with themselves and with their families to learn lessons in self-motivation, perseverance, self-reliance, courage, dignity and love and lessons in service to others, too (Gatto, pg 19). This type of content-based curriculum, with a set body of information to be imparted to students is, Gatto believes, entirely inappropriate as a means of preparing children for their adult roles (Gatto, pg xxiv). What often hap pens in during the school lesson is that teachers tend to become overwhelmed by topic information, leading to lessons that often try to cover too much content, at the expense of depth (resource doc pg 29). The challenge therefore is for teachers to transform their roles. The curriculum is merely a vehicle with which teachers can drive transformation. The Life Orientation curriculum in particular is geared towards both critical and personal development of the learner, as is seen in the learning outcomes table in section it is the role of the teacher to ensure that this development takes place. The essential skill that teachers need to possess, is the ability to adapt the curriculum to the current social, economic and technological environment. As the above-mentioned researchers have demonstrated in their work, The 21st century is an environment that requires very different skills to that of the mid-20th century/Industrial Era, where individuals werlewe relegated to a more passive role , which required some decision making and knowledge of self to ensure an initial fit within an organization or profession, with the organization then actively defining the individuals roles and criteria f or career success (Mahler pg 21). No longer does our economy depend on the mass production of factory workers and craftsmen these positions are now being filled by the computer. No longer does our society require a generation of passive and loyal workers who are unmotivated, lacking in passion and creativity, and fearful of authority workers today need to be flexible, adaptable, creative and prepared for change; able to provide the work environment with skills and values that are unmatched by todays technology and outsourced skills and resources. These 21st century skills generally involve personal and ethical awareness, and motivation driven by passion. Skills that cannot be taught or tested, but rather role-modelled and facilitated by mentors. In order to assess the acquisition of these skills, as intended by the curriculum, the Life Orientation teacher is required to use various assessment methods, such as tests, examinations, projects and assignments (doe 2003, pg. 39), which form part of a continuous assessment (CASS) process  [1]  and are ultimately included in a final portfolio. Although the curriculum makes provision for practical exploration in the FET phase, the majority of tasks are written and content-based. School systems tend to be preoccupied with certain sorts of critical analysis and reasoning, particularly with words and numberschildren everywhere are under intense pressure to perform at higher and higher levels on a narrow range of standardized tests (Robinson, 2009:13). Students abilities to transfer their understandings

A Survey of Behavioral Finance Summary

A Survey of Behavioral Finance Nicholas Barberis and Richard Thaler In this handbook, Barberis and Thaler define the differences between traditional finance and behavioral finance. Traditional finance is rational. Rationality means two things; correct Bayesian Updating and choises consistent with expected utility. On the other hand behavioral finance assumes that market is not fully rational and analyzes the facts when the some of the princibles are loosen up. This essay also discusses about two main topics; limits to arbitrage and psychology.These two topics are known as the two buildings blocks of the behaviour finance. In the normal markets security prices equal to fundamental value. In this sitiuation. expected cash flows can be easily calculate with the markets’ discount rates. This hypothesis called Efficient Market Hypothesis. According to this hypothesis; as soon as there will be a deviation from fundemantal value and mispricings will be corrected by rational traders. An arbitrage is an investment strategy that offers riskless profits at no cost.The rational traders le became known as arbitrageurs because of the belief that a mispriced asset immediately creates an opportunity for riskless profits. Behavioral finance argues that this is not true. According to behavioral finance â€Å"prices are right† and â€Å"there is no free lunch† statments are not equal. If the market value of a stock is not equal to fundemantal value of the stock, arbitrageurs can not enter the position easily. Because there are some risks and costs. First of all there is a fundemantal risk.If the negative shock occurs to the stock , there is not a prefect substitude to hedge theirselves. Second risk is about noisy traders. Noisy trader can be caused to decrease according to their pessimistic behavior. Noisy traders forces the arbitrageurs to liquidate their position early. This is called seperation of brains and capital. Trading in the same direction of noisy traders and arbitrageurs can also caused problems. Execution or implementation costs are also limitting to arbitragesuch as commisions, bid/ask spread; Price impact, short sell costs and identification cost.So far, we see how the difficult for the rational traders such as hedge funds to exploit market market inefficiencies. In Evidence part of the hand book they discuss if there is some evidence that arbitrage is limited. If arbitrage were not limited, the mispricing would quickly disappear. It is not easy to identify mispricings. when a mispriced security has a perfect substitute, arbitrage can still be limited if arbitrageurs are risk averse and have short horizons and the noise trader risk is systematic, or the arbitrage requires specialized skills, or there are costs to learning about such opportunities.Index ? nclusions are shown as a good example of evidence supporting limits to arbitrage in the handbook. It almost says that stock prices jups premanantly and gives examples fro m S&P. The theory of limited arbitrage shows that if irrational traders cause deviations from fundamental value, rational traders will often be powerless to do anything about it. In this part Barberis and Thaler summarize the psychology and summarize what psychologists have learned about how people appear to form beliefs in practice.Overconfidence, optimism and wishful thinking , representativeness, conservatism, belief perseverance, anchoring, availability biases are some of beliefs that explain in the book. The important thing of all these biases that according to observations when the bias is explained, people often understand it, but then immediately proceed to violate it again. On the other hand, people, through repetition, will learn their way out of biases; that experts in a field, such as traders in an investment bank, will make fewer errors; and that with more powerful incentives, the effects will isappear. Prospect Theory is explained in the book with some examples and for mulas. This section of the book gives answers to how prospect theory could explain why people made different choices in situations with identical final wealth levels. Ambigutiy aversion is defines risk as a gamble with known distribution and uncertainty as a gamble with unknown distribution, and suggests that people dislike uncertainty more than risk. The experiments about ambigutiy aversions shows that people do not like sitiuations where they are uncertain .Aversion changes based on preceived competence at assessing relevant distribution. US stock market is a good research area for the facts about its behaviour. The most three important behaviours are equity premium , high volality and predictable returns. Risk preium seems to high and possible explanations are under prospect theory. Rational approches must focus on changing risk aversion to explain volatility. Volatiliy explanations under beliefs are overreaction to dividend growth, overreaction to returns, confusion between real and nominal rates. All three of these facts are known as eqity puzzles.Both the rational and behavioral approaches to finance have made progress in understanding the three puzzles singled out at the start of this section. The advances on the rational side are well described in other articles in this handbook. Here, we discuss the behavioral approaches, starting with the equity premium puzzle and then turning to the volatility puzzle. Equity premium puzzle is that even though stocks appear to be an attractive asset investors appear very unwilling to hold them. In particular, they appear to demand a substantial risk premium in order to hold the market supply.Benartzi and Thaler are one of the earliest papers link prospect theory to the equity Premium. Their study is about how an insvestor allocate his portfolio between T-Bills and the stock market with the prospect theory acknowledge. Prospect theory argues that when choosing between gambles, people compute the gains and losses for e ach one and select the one with the highest prospective utility. In a financial context, this suggests that people may choose a portfolio allocation by computing, for each allocation, the potential gains and losses in the value of their.One possible story is that investors believe that the mean dividend growth rate is more variable than it actually is. When they see a surge in dividends, they are too quick to believe that the mean dividend growth rate has increased. Their exuberance pushes prices up relative to dividends, adding to the volatility of returns. holdings, and then taking the allocation with the highest prospective utility. this is a example of representativness. In the handbook they explains the cross-section of average returns.They document that one group of stocks earns higher average returns than another. These facts have come to be known as â€Å"anomalies† because they cannot be explained by the simplest and most intuitive model of risk and return in the fin ancial economist’s toolkit, the Capital Asset Pricing Model, or CAPM. This is explainin by the size Premium, long term reversals, the predictive of scaled ratios, momentum , event studies of earnings announcements,event studies of divident initiations and ommissions, event studies of stock repuchases, event studies of primary and secondary offerings.Barberis and Thaler clasify the behavioral models on whether their mechanism centers on beliefs or on prefences. the result of systematic errors that investors make when they use public information to form expectations of future cash flows. Conservatism and representativeness cause this. Behavioral finance has also discuss about how certain groups of investors behave, and what kinds of portfolios they choose to hold and how they trade over time. It is simply to explain the actions of certain investors, and these actions also affect prices.Some of the actions of nvestors and the behavioral ideas are insufficient diversifation, naiv e diversifation,excessive trading, the selling and buying decision. In the corporate finance part of the hand book; gives opinions to rational managers in a mispricing market and gives examples for â€Å"market timing†. On the conclusion of the hand book they mentioned that behavioral finance will be develop on coming years. This handbook publish on 2002 and it is valid nowadays. After I read this book I mentioned how important to analyszing the market as an investor by the view of the behavioural finance. PINAR TUNA 108621034

The Secret to 5th Grade Essay Writing Samples

The Secret to 5th Grade Essay Writing Samples Your son or daughter will also utilize commas to separate items in a collection. Provide as much information as possible concerning the animal you've chosen. Anyway, in the event the animals from the pound aren't adopted straight away, they may be put to sleep. Tell a story relating to this ring. 5th Grade Essay Writing Samples - Dead or Alive? For example, here is among the ideal place to purchase essays on the internet you can go to. The most frequently encountered paper writing service that the vast majority of our clients require is essay writing. The debut of each written work ought to have a very clear thesis statement or argument. The very first thing you ought to do is decide on an excellent topic for this essay and you wish to pick out a topic that's unique, relevant and that is going to interest readers but that's also in your teacher's guidelines. This resource will allow you to spend less time marking and supply yo u with a couple of hours of your day back! Be certain to highlight the advantages of the food which you bring! Just knowing the fundamental essay structure will help, and I will go over that today, together with giving you a lot of topic ideas which are fun and interesting that you write about. Use the assistance of true academic experts and receive the service you have earned! Things You Won't Like About 5th Grade Essay Writing Samples and Things You Will Anytime you need to compose a timed essay, you should start with a frame dependent on the parts below. Your thesis sentence should provide your particular assertion and convey a very clear standpoint. You would rather not manage the inconvenience of needing to struggle with writing a paper only to see your focus all through has been biased. Consider what might happen as an outcome. It is a great concept to make certain that you read through a sample paper at first to have the very best idea of the way to compose this kind of paper. The title which you choose to utilize for your paper will always determine so much about any of this, so considerably more than you may even know about. What are a few examples of very good attention grabbers for. With a tiny practice that next writing assignment is going to be a breeze. If you wrtiing a three 5th gradewhile you're drafting your grade you will likely will need to 5th back to a number of the references you. If you've already graduated from college or university and are looking for a great job, you want to get a persuasive resume to impress your future employer. As a discipline, writing requires a good deal of practice, particularly in the essential stages like 5th grade. In conclusion, at the present moment school is a significant stage of my life. Somebody works pa rt-time and doesn't have sufficient time to do all of the assignments. Write a story about a unique day you've had or imagine you may have. Write a story concerning this field trip. The Foolproof 5th Grade Essay Writing Samples Strategy So learning cursive is basically up to your kid's teacher. While teachers ought to be there to support your child, he should do the job. Every student demands help with homework from time to time. Imagine your teacher is really your parent. At JumpStart, an individual can come across worksheets specializing in individual topics, giving children the liberty to practice in accordance with their requirements. Interacting with the kid's friends Interacting and observing your kid's peer group might be quite rewarding. It is wise to talk about lots of topics to the kid and after that find out. Describe one vivid memory with that day. 5th Grade Essay Writing Samples Secrets Inventing good narrative essay topics sounds like it would be somewhat easy, but it isn't as easy as you might think. If you're interested in your topic, learning about it'll be more pleasurable and you'll write with increased passion, so select your topic thoughtfully. Students want to understand how to compose persuasive essaysthis skill is critical as it's often tested. Now, these young students should have topics to pick from, just enjoy the older students do. In fifth grade, students can write in an assortment of fashions. Review what your students have retained and determine any subjects in which they may need additional study utilizing self-assessment quizzes in every single lesson. Displaying all worksheets associated with literary essay. Not certain where to begin with your scholarship essay. The Hidden Truth About 5th Grade Essay Writing Samples By focusing on a few of these topics it becomes simpler for you to discuss and share your ideas in a way such that the teacher will have the ability to appreciate your hard work. Your instructor will be searching for the particular elements above when reviewing your introductory paragraph, so make sure to assess your very first paragraph to make certain it meets these 3 goals. In eighth grade, students utilize every phase of the writing procedure and continue to construct their understanding of writing conventions. Fifth grade students utilize every phase of the writing procedure and co ntinue to construct their understanding of writing conventions. You have to make sure the similarities or differences are clearly defined. If you're going to write a comparative essay, you want to get a notion of the impacts of distinct aspects to the result you may get at the conclusion of the writing activity. Don't be worried about a few of them being rather abstract their primary purpose is to reveal to you the basic principles that you'll have the ability to transfer to your own writing. It's possible for you to express your opinion about those strategies, too.

Should The Fed Raise Interest Rates Now - 1372 Words

Finally, the process of normalization has begun, and seven years of zero interest rate cycle came to an end in December 2015 with a hike of 25 basis point by the Federal Open Market Committee. It was a much anticipated move for a while, and now the debate is on the roadmap of future interest rate hikes. Several economist, analyst, and media personalities have expressed a variety of opinion on both ends of the rate hike. Should the Fed continue to raise interest rates now, is the question of global consideration. In my opinion, Fed should continue to raise interest rate now to help the economy grow more independently and build up consumer confidence. Some of my findings that support my opinion to raise interest rates now are below: Economic Indicator’s: The US economy has recovered considerably from the great financial crisis of 2008. We are currently in the seventh year of expansion, and the overall performance of the economy has been satisfactory. Most economic indicators have improved dramatically, and some of them are at the best level since then. A significant recovery in home prices, GDP, labor market, stock markets, auto sales, and consumer spending have fostered the economic growth and restored the confidence of market participants. Major stock market indices globally are trading near the high levels of 2007-2008. Some countries like India have surpassed the previous highs of 2008, and are trading comfortably higher (^BSE, Jan 2008: 20,000 approx.; May 2016: 25,000Show MoreRelatedNotes On Raising Interest Rates1369 Words   |  6 PagesEcon Macro Memorandum To: FOMC From: Nicholas W Gallo, LLC. Date: 12/1/2015 Subject: Raising Interest Rates To members of the FOMC, this is my proposal that you take action at your next meeting and gradually raise the interest rates to %1 within the first quarter 2016. †¢ Members o Janet L. Yellen, Board of Governors, Chair o William C. Dudley, New York, Vice Chairman o Lael Brainard, Board of Governors o Charles L. Evans, Chicago o Stanley Fischer, Board of Governors o Jeffrey M. Lacker,Read MoreNotes On Monetary And Monetary Policy935 Words   |  4 Pages The Fed hasn t raised the interest rate since the Financial crisis 2008 and it said that the interest rate would keep near zero for now, as expected, but it added an unusually explicit statement that it would consider raising rates at its final meeting of the year in mid-December. From the perspective of monetary restraint policy this essay will deal with if the interest rate would raise or not from the aspects of monetary restraint policy. My purpose is that Fed would definitely raise the interestRead MoreThe Effects Of Fed On The Global Economic Disturbances Shadow1278 Words   |  6 PagesFed Will Probably Raise Rates 1 Time This Year Due To The Global Economic Disturbances Shadow. Fed is not determined to go ahead with raising interest rates 4 times in 2016. Growth expectations have been continuously downgraded. Economists continue to lower interest rate estimates. A Brexit could seriously affect Fed’s stance. After seven years of the most accommodative monetary policy in the history of the US, on the 16th of December last year, the Fed decided to raise interest rates from 0.25%Read MoreUnited States : Interest Rate Hike1202 Words   |  5 PagesUNITED STATES: Interest rate hike UNITED STATES: Interest rate hike grows in uncertainty US interest rate hike grows in uncertainty Global volatility may delay the pace of the Federal Reserve s normalisation of monetary policy EVENT The Federal Open Market Committee (FOMC) of the Federal Reserve (Fed) meets on September 16 and 17, in what will be one of the most awaited meetings in recent years. SIGNIFICANCE The chance of a rates lift-off at this meeting has receded recently and currently standsRead MoreA Summary Of The US Monetary Policy : Peering Into 20181595 Words   |  7 Pages2017. Consequently, incoming Fed Chairman Powell may be forced to forge an appropriate monetary offset in 2018. US economic activity accelerated during 2017, partly due to a recovery in oil prices that helped to spur higher capital spending. Crucially, faster underlying growth has pushed the economy into above-trend expansion territory. The Federal Open Market Committee (FOMC) believes long-term potential GDP is merely +1.8% against a current backdrop of +2.3%. Fed policy conduct next year willRead MoreShould Feds Continue with Expansionary Monetary Policy or Exit Strategy?863 Words   |  4 PagesOver the past few years, the Fed had been trying to heal the economy from the recession by lowering the interest rate near zero in order to raise the inflation, increasing the price of housing and household wealth. This will encourage more people to buy products or services, causing an increase in consumers spending. Based on the data given by the U.S. Department of Commerce today, the economy is now healing from the recession with the expansionary monetary policy. However, some people argue thatRea d MoreEssay on Fed and Interest Rates1158 Words   |  5 Pages The Fed and Interest Rates nbsp;nbsp;nbsp;nbsp;nbsp;Dave Pettit of The Wall Street Journal writes a daily column that appears inside the first page of the journals Money amp; Investment section. If the headlines of Mr. Pettits daily column are any accurate record of economic concerns and current issues in the business world, the late weeks of March and the early weeks of April in 1994 were intensely concerned with interest rates. To quote, quot;Industrials Edge Up 4.32 Points Amid CautionRead More The Federal Reserve System Essay example1453 Words   |  6 PagesFederal Reserve System (Fed) was created by the Federal Reserve Act. According to Congress, the role of the Federal Reserve System is to promote maximum employment, stability and growth of the economy, and moderate long-term interest rates. The Fed employs Monetary Policy in an effort to manage both the money supply and interest rates while stimulating the economy to operate close to full employment. One school of thought called Monetarism believes th at the Federal Reserve should simply pursue policiesRead MoreUnconventional Monetary Policies for Central Banking1167 Words   |  5 Pagesdecades, most of the world’s Central Banks have widely used open market operations to influence the short term interest rates and achieve their main objectives of controling inflation and promoting economic growth. Recently, however, the short term interest rates in major developed economies have reached the so-called â€Å"zero lower bound† (i.e. they cannot be lowered anymore because with interest rate equal to zero people would simply prefer to keep their money as cash). Given the grim economic outlookRead MoreThe Federal Reserve And Central Banking System1109 Words   |  5 Pagesin the United States. It has 12 regional banks around the nation, its headquarters being located in Washington DC. The Federal Reserve (better known as the Fed) was established in 1913 by Congress in order to â€Å"provide the nation with a safer, more flexible, and more stable monetary and financial system† (federalreserve.gov). Although the Fed was created over a century ago, it is still a major influence in the banking systems today. The concept alone of a central banking system has been