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Friday, September 4, 2020
Presentation of a Research Article Essay Example | Topics and Well Written Essays - 500 words - 1
Introduction of a Research Article - Essay Example that medical attendants and specialists accepted that their fundamental design was to raise the issue of weight, yet that the obligation regarding rewarding it is with the guardians. Another significant point in the article was that the specialists and medical attendants accepted that in view of time limitations, an absence of preparing, and not well characterized jobs they couldn't help youngsters with heftiness issues. Still a third significant point was that the youngster and clinical expert relationship could be undermined or endangered if the issue of heftiness was raised, as they perceived the issue of corpulence was a touchy issue. The significant point was that these people accepted they were sick outfitted to manage the issue as they thought rearranging educating the patient to take part in more eating routine and exercise would be insufficient. These aggregate viewpoints framed the foundation of acknowledgment and comprehension inside the examination discoveries. There are various further concerns. As far as generalizability the investigation is a subjective report and as such is commonly considered as just being pertinent to the set populace gathering (Creswell 2003, p. 40). In any case, Creswell (2003, p. 42) demonstrates that subjective investigation structures may hold a similar degree of generalizability as outer examinations. This thought shows that this investigation might be considered as demonstrate of more extensive running specialist and medical attendant points of view on the idea of heftiness treatment. As far as legitimacy, it appears to be clear that the examination followed the acknowledged rules for subjective exploration. In any case, it is extremely unlikely to decide whether the investigation absolutely recorded the meeting respondents answers or led the meetings in a substantial and fair manner. At last, it appears that the examination holds an incredible level of value. In such matters, the examination recognized a huge and squeezing hole in research. To be specific, clinical experts viewpoints on rewarding corpulence. As there are an assortment of inadequacies in this treatment approach, the worth
Tuesday, August 25, 2020
Heres Why Your College GPA Matters
Here's Why Your College GPA Matters In secondary school, you likely centered around getting passing marks and, subsequently, having a high evaluation point normal (GPA)- since you needed to get into to school. However, presently that youve done that, you might be pondering, Does GPA matter in school? While this may appear to be a basic inquiry, it doesnt have a clear answer. In certain circumstances, your school GPA can matter a considerable amount; then again, a GPA can make no difference past whether you can graduate. Why Your GPA Matters in College There are numerous reasons you will need to keep up a decent GPA in school. At last, you should get through your classes so as to get your degree, which is the purpose of heading off to college in any case. From that point of view, the appropriate response is clear: Your GPA matters. On the off chance that your GPA dips under a specific edge, your school will send you a notification youve beenâ placed on scholastic probationâ and mention to you what steps to take so as to recoup from it. Similarly, you may need to keep it at or over a specific level to keep your grants, other monetary honors or advance qualification. Furthermore, things like scholastic distinctions, research openings, entry level positions, and a few classes have GPA prerequisites. Its consistently a smart thought to get some information about any GPA necessities you ought to know about, so you dont discover youre in a tough situation after its past the point where it is possible to fix it.â Do College Grades Make a difference for Jobs? Your GPA could conceivably assume a significant job in your life after school it relies upon your post-graduate plans. For instance, Graduate school confirmations are serious, and youre required to put your GPA on an application. In the event that youre keen on facilitating your instruction however the harm to your GPA is as of now done, dont fret: Good scores on the GRE, GMAT, MCAT or LSAT could compensate for a below average GPA. (Obviously, getting into graduate school will be significantly simpler in the event that you center around keeping up a decent GPA from the beginning of school.) Regardless of whether youre not considering more school, you should realize a few bosses will approach you for your GPA when you go after a position. Indeed, there are organizations for the most part, huge organizations who expect candidates to meet the essential GPA requirement.â Past the previously mentioned circumstances, theres a decent possibility your GPA may never again come up after graduation. By and large, businesses center more around your degree of instruction, not the evaluations that got you there, and theres no standard that says youâ needâ to put your GPA on your resume. The main concern: Your school GPA is just as significant for what it's worth for your likely arrangements. While you may not feel strain to concentrate on keeping up a high GPA as you did in secondary school, theres no motivation behind why you shouldnt buckle down in your classes and prevail as well as can be expected scholastically. You never know, all things considered, what employments or graduate school programs you may wind up applying for quite a long time after you graduate.
Saturday, August 22, 2020
What is an Interest Group Free Essays
An intrigue gathering (likewise alluded to as support gatherings) is an association composed by an uncommon arrangement of individuals with explicit aptitudes to campaign possibly in support of a particular enthusiasm to profit their motivation. They as a rule entryway for at least one shared worries to control open arrangement and feeling particularly in the U. S. We will compose a custom article test on What is an Interest Group? or on the other hand any comparative theme just for you Request Now Congress to profit their motivation, supporters, or one section of society. They incorporate a huge range of associations, for example, altruistic associations, common right gatherings, companies, proficient and exchange associations, and so on. Their fundamental objective is to openly or watchfully advancing and making a favorable position for its motivation. Various sorts of Interest Groups There are an assortment of intrigue gatherings, for example, business/exchange association, agrarian gatherings, proficient gatherings, work gatherings, advance causes gatherings, advance the government assistance gatherings, strict gatherings and last however certainly not drives open intrigue gatherings. A business/exchange association is made by shippers, business personalââ¬â¢s or ownerââ¬â¢s and business associations to speak to both little and enormous business gatherings. A perfect case of these gatherings are the U. S. Office of Commerce, American Bankers Association, National Association of Manufacturers or N. A. M. (www. srvhs. organization. Aug 26th, 2012). The sole goal of a horticultural gathering is to sort and care for the enthusiasm of ranchers and cultivating arrangement. They speak to an assortment of ranchers in the agrarian division in the work power who have practical experience in journal, grain, natural product, animals an d so forth. Anything relating to cultivating and their specific items. Questionable the most realized horticultural gatherings are the National Farmers Union, The National Grange, and the National Farmers Bureau. Proficient gatherings are named occupations that require broad preparing through a testament or advanced education, for example, training, medication and law. They are made to advance and ensure their memberââ¬â¢s word related interests and security. Models incorporate The American Medical Association or AMA, The American Bar Associate (ABA) , and The National Education Association (NEA). One of the notable intrigue bunches is worker's organizations. It is an association of laborers who share a similar sort of occupations or work in a similar industry. (www. srvhs. organization. Aug 26th, 2012). They press the administration to figure strategies that will be useful to their individuals. The biggest and most notable trade guild is the AFL-CIO (The American Federation of Labor Congress of Industrial Organizations). Composed worker's organizations for the most part advocate with one voice on issues running from government assistance to Social Security, business and wages, and so on. Advance causes bunches are an enormous number of gatherings that either advance or backer against a particular their individuals request to be voiced upon. Models incorporate and not barring the American Civil Liberties Union (ACLU), The National Right-to-Life Committee, the National Wildlife Federation (NWF), Planned Parent and the National Rifle Association (NRA). Advance the government assistance bunches are characterized as intrigue bunches looking for advance enthusiasm of a specific section of the populace and its government assistance like minority gatherings. They incorporate the American Legion, Vetarens of Foreign Wars, American Association of Retired Persons (AARP), National Association for the Advancement of Colored People (NAACP). Strict gatherings are intrigue that attempt to convince approach in the kindness of strict issues. Models incorporate the National Council of Churches, the Christian Coalition, the National Catholic Welfare Council, the American Jewish Congress, and the Anti-Defamation League. Instructions to refer to What is an Interest Group?, Papers
Cybersecurity Coursework Example | Topics and Well Written Essays - 1750 words - 1
Cybersecurity - Coursework Example This is because of the explanation that the protection approaches help the people having a place with any association to keep up their self-sufficiency just as independence which thusly empowers them to embrace viable security arrangement related choices in a proficient way (Grant and Bennett, 1999). In this conversation, the examination of security strategies of Apple Inc., Microsoft Corporation and International Business Machines (IBM) alongside an itemized investigation about their authoritative crucial be taken into concern. In addition, the potential changes in the security arrangements of the previously mentioned associations that could give better insurance to the clients and adaptability inside their association will likewise be talked about. Brief Description of the Organizations and their Mission Apple Inc. showed up in the business world during the time of right on time and center piece of seventies. The organization appeared with joint endeavors of the authors named Steve Jobs and Steve Wozniak. It structures just as sells different sorts of purchaser gadgets related items, PCs and PC programming to its huge base of clients all through the globe. The organization effectively figured out how to create huge incentive in this serious business showcase because of its steady foundation of imaginative items (Apple Inc., 2012). Apple is devoted towards moderating the earth, wellbeing just as security of its workforce and clients around the world. The crucial the organization is to create and convey mechanically imaginative items and administrations to its overall clients to achieve critical serious situation over its central business advertise contenders. Also, the other crucial Apple is to give excellent structured items and customized benefits so as to expand its client base levels by a noteworthy level (Environmental Health and Safety Policy Statement, 2006). Worldwide Business Machines (IBM) is a worldwide innovation business enterprise which fabricate s and sells expansive grouping of PCs, programming and smaller scale processors to its gigantic clients around the world. The organization built up in the year 1911 through the procedure of merger of different business elements specifically The Tabulating Machine Company, The Computing Scale Company and The International Time Recording Company (IBM, 2011). The mission of IBM is to give most extreme worth and commitment towards setting up creative items and construct compelling interrelation just as correspondence with the representatives so as to raise hierarchical adequacy by a more prominent degree. Besides, the other crucial the organization is to build up its overall ecological administration business approaches for the intention of shielding nature and stay a lot of submitted towards natural initiative (IBM, 2007). Microsoft Corporation is respected to be another driving American based worldwide business association which was established in the year 1975 by Paul Allen and Bill Gates. The enterprise creates, delivers, approves and helps wide combination of items and administrations that are identified with processing. The basic results of the organization incorporate program just as working frameworks, advanced mobile phones
Friday, August 21, 2020
Research Paper Outline
Research Paper OutlineFor any writer to be successful in the long run, research paper outline is very important. This means that the writer has to dedicate a lot of time and energy in gathering data and information about the subject in question. The research paper needs to be thorough so that it is able to answer all the questions of the test taker.The student should be able to understand the content of the paper. If the student is not comfortable with the material, the student should be given other material that will be enough to demonstrate the effectiveness of the research paper in the class or at the school level.The research paper should include as many details as possible on the topic of study. In addition, it is important that the writing of the research paper not be lacking or grammatically incorrect. It should be grammatically correct in its correct form so that the student can be able to read the whole assignment and be able to understand it.There are many types of essays o n essay research. A student should be able to choose the one that he or she thinks would be best suited for the course or the teacher. At times, a student might choose a category of the essay based on the difficulty of the reading or the subject matter.On the other hand, there are other students who might need to have their work reviewed by a professor or perhaps even an editor at a higher level than their basic academic level. The student can also request a co-editing of the essay for this reason. The professor would review the written material in order to evaluate its quality and other factors that the professor deems appropriate for a certain assignment.There are many types of reviewers who are available for reviewing the writing of the student. The following are examples of some of these reviewers:Co-editors can be a great help especially when there is a mismatch between the knowledge and the skill set of the student and the knowledge and skill set of the professor. The student can ask the professor for guidance and the professor can also be a major contributor in aiding the student in writing the essay. Often, the reviews can be taken from previous assignments that the student has already finished.The last but not the least - writing the research paper is one of the most daunting tasks that a student faces. However, a student should remember that he or she should not become too stressed out in writing the research paper. When there is any kind of doubt in the mind of the student, it is better to just drop it and continue with the written assignment.
Friday, August 7, 2020
Think About This
Think About This Hi Everyone, I thought it was about time I wrote something interesting something outside of the bounds of routine admissions announcements. But where to add value? Right now were in a strange time. A time of delight for some, and anger and confusion for others. Guidance counselors are calling flabbergasted that the best students of their careers were denied admission. Mothers are dealing with despondent teenagers. And, as we know from message boards and emails, some kids are lashing out. But what you might not see, is that there is also a lot of positivity out there. Many of the questions that were getting are totally respectful, thoughtful, and in many cases difficult to answer. Especially for someone like me who is new to this business. When I think about it though, I think most of the issues Ive encountered this year, as they relate to decisions, can be answered by two things: having a little zen, and a much better understanding of some statistical concepts. Sounds like a weird coupling, I know. When I was in business school I had an introverted and very quirky stats professor. I remember the first day because he made a statement that seemed outside his personality. He said, In the years ahead, you will remember this class much more than the others youll take. It seemed a little bold for this quiet introverted type guy. But he was right. Because errors in statistical thinking happen every day. On the news, in magazines, at the watercooler it happens all day, and I do think of that class often. So, let me tell you it also definitely happens in terms of thinking about admissions. (Warning: some of the theorems below are probably Labs theorems more than they are actual statistical concepts.) So heres what I think is going on: 1.) Not understanding Independence: When you play roulette, the casino puts up a digital board above the game letting players know what numbers have hit recently. The idea being that if you look up there and see that 28 hasnt hit in like 30 spins, youll think, OMG, 28 is totally due. I need to put my entire savings on 28! This is what they want you to think. But because every roulette wheel spin is INDEPENDENT, your chances of hitting 28 are just as good as if it just hit 28 the spin before. The ball has no idea that it didnt land on 28 15 times in a row, its just spinning around following the laws of physics, not the laws of, I saw number 28 in a dream and now I see that it hasnt hit in 15 spins so now I know its going to hit. The first law is true, the second is a construct of your imagination. How this relates to admissions: Some kid says, I saw that your acceptance rate is 8.2% overall. Now, Im not the top kid in my school and I didnt build a rocket in my backyard, so Im extrapolating the 8.2%, giving myself minus 2 points for not being a valedictorian, another 4% for not building a rocket so I think my chances are 2.2%. This is too low a chance so Im not applying. Theres actually a number of problems with the above story. But lets just stay with independence for a second. 19000 kids applied, yes. Around 1500 got accepted, yes. Does that mean that everyone has an 8.2% chance of getting in? No! The 8.2% is the result after the fact. Your application is independent its not affected by the past, or constrained by some percentage. There is no way to know what any particular applications chances are. So dont do this. This ties into the next problem. 2.) Association is not causation. If you read only one part of this blog read this one. Its the big one. If you do a study correlating home prices and number of faucets in a home, you will find a strong correlation. You will not be making a mistake your study will be correct. Also, if you do a study correlating elementary school students test scores with the size of their shoes, you will find a strong correlation. You will not be making a mistake your study will be correct. What?! Its true. These things are definitely correlated. But obviously, their correlation stems from other reasons. (More faucets means more bathrooms, which probably means bigger house, which means more expensive house. Bigger shoes means older kid, which means better at tests.) So now you know they are correlated, but you would never make a mistake by saying one CAUSED the other would you? Putting a random faucet in your bedroom isnt going to increase your home value. Stretching your kids foot isnt going to make her smarter. Dont do this. How this relates to admissions: Some guidance counselor says, Hi Chris, I have four kids in my school who applied to MIT. Two got in. Both of them are xylophone players. This is good to know because now I can tell all the kids to play xylophone because thats clearly what youre looking for. Uh Oh. Dont find yourself constructing mental causation based on incomplete data. One thing that is sort of embedded in the association vs. causation problem is the confirmation bias, which is what the fictional guidance counselor above just did. Heres another example: MIT clearly only accepts people from (x Country) if theyve participated in an International Olympiad. (Because the two kids we picked did ignoring all of their other merits.) 3.) Constructing strange prejudicial opinions and then projecting them on a sample youre wholly unaware of. (Labs theorem) This one is interesting it could really be a cross department study in psychology and sociology. Its loosely related to problems with causation and the confirmation bias but then takes a sharp left turn to whatever particular opinions or issues people may have. It basically goes like this here are actual comments Ive heard this year: MIT has a clear preference for Asian students. MIT has a clear preference for Hispanic students. MIT has a clear preference for men. MIT has a clear preference for women. MIT has a clear preference for students from abroad. MIT has a clear preference for US based students. MIT has a clear preference for rich kids. MIT has a clear preference for kids from families with financial difficulties. Im not trying to make light of any xenophobia people may have, but to read the comments on a number of blog posts this week, you can literally find someone posting one of the above ADJACENT to someone else posting another of the above which statistically is impossible! We cant possibly have a preference for international students and domestic students at the same time. My favorite one was, we only accept liberals. Huh? Is everything now political?! I guess so. I just ate some chicken strips. What does this say about me politically? *sarcasm* (FYI there is no question related to poltical beliefs on the application.) Anyway, I sort of promised that this will be about statistics. So where does this theorem fall overall in the world of admissions? Its relevant because it makes me sad how trapped people are in their microcosms. In their defense, we dont allow them to see the whole picture. This opaqueness allows everyone to construct meaning where there is none. Yes, its true that we seek out talented students of color. No, its not true that those students are less qualified or dont deserve admission. People always forget the second sentence when complaining about the first. Which brings me to another issue. 4.) The insistance that the unquantifiable be quantified. (Or, everyone has a different definition of merit.) We love to quantify things in our life. Economics even tries to do it by using words like, utility. How many units of utility does your computer offer you in comparison to how many units of utility your hairdryer offers you may help you understand how valuable these items are etc, etc. Silly. The facts are that some things cant be quantified. We should begin getting comfortable with that. Take the SAT. Everyone loves to say they hate the thing until they do well on it. Lets say you got a 760 math score. Nice work. You sent an important signal there. The signal is, Im (by one measure) a talented math student. Your friend took the test as well, he got an 800. Youre thinking, ok, we sent the same signal. Both good at math. Hes thinking, Aha! Im a slightly better math student and want to be rewarded for that. Its kind of ridiculous to think that admissions decisions could come down to someone accidentally missing a negative sign somewhere, not getting a perfect score, then not getting into college. Yet, this kind of insistance on the process being quantifiable is something I hear all the time. So thats why we use the word holistic. That aggravates people for its own reasons. How can you possibly be holistic when your median scores are so high? This flashes back to confirmation bias. Try this: Lets say we have two kids. Both have great grades, scores, recommendations, extra-curricular accomplishments, whatever. One of those has to take the bus an hour and half each way to her high school. This impresses an admissions counselor. The other student works for three hours after school every day cooking french fries for some megomaniacal fast food manager. This impresses an admissions counselor. How are we supposed to quantify this? Fryolaters get two points, yogurt shops get one cause thats easier, and long bus commutes get three? Crazy! Its not going to happen. Forget about quantification there is always going to be subjectivity. Which bring me to the end. 5.) Expecting too much certainty: (Embracing subjectivity and randomness) Randomness is everywhere. I read both the Drunkards Walk and The Black Swan both very interesting. Its hard but we have to embrace it. Things are random out there. (Total aside as someone who played sports, I refuse to believe, as any books about randomness say, that hot streaks in sports are all a figment of our imagination and are random occurrences!) Now, this doesnt mean that admissions selection is random. Too many people see an application to have anyone totally fall through the cracks. But heres a statement for you that I believe: the likelihood that one of the kids we denied this year is super awesome and will end up doing something very impactful in a STEM related field is 100%. No doubt. 100% chance. It could be you. There is no way that a.) there are only 1500 talented kids in the world, and b.) that even if there were that were perfect in snagging them all. Its impossible. So if Ive embraced the subjectivity, randomness and accepted that perfection is not attainable, Id like you to as well. Finally: Kids tell me crazy things. Things that make me depressed like, Ill never be happy unless I attend MIT. Or, Ill never amount to anything because I got denied at MIT. I cant tell you how ridiculous that is. I have degrees from 3 different colleges and all of them have students attending them who are learning a lot and are having the time of their lives. This country is full of good colleges, with passionate professors, and staff. Youre going to be just fine. Take it easy on yourself. When I was a kid everyone was trying to get me to work harder. Seems like nowadays we adults are just trying to get you to relax for a second. Sheesh. MIT is an awesome place, but dont make it out to be some nirvana where everyones floating around on flying lazy-boys while their synthetic doppelganger is doing homework for them. Besides, dont forget, Im from California and its 27 degrees right now and its almost April. Not everything is awesome all the time. So let me just end this post by saying this. If you got denied, there is nothing wrong with you or your application. I spoke to a kid the other day who wanted to know where his application was deficient. I looked at his file and read the notes in the file. This is what I told him: Theres nothing in here except very good commentary. How is that possible? There must be something in there! I got denied you know! Theres nothing here except high ratings, and a good, positive summary of your background. Well, I must have done something wrong, I mean . come on, what did I do wrong! You did nothing wrong. This is an awesome application! And it was the truth.
Tuesday, June 23, 2020
The Effects of Macroeconomic Essay - 275 Words
Stock Prices in the UK Stock Market (Essay Sample) Content: THE EFFECTS OF MACROECONOMIC VARIABLES ON STOCK PRICES IN THE UKSTOCK MARKETby Dona M Course NameInstructors NameInstitution of LearningLocation of the SchoolDateChapter IIntroductionThe relationship between macroeconomic variables and stock prices has been extensively studied in developed capital markets and literature on the above variables are widely available. However, multifactor models have been developed as an explanatory factor of the variation in equity prices and these studies have typically focused on developed markets. The relationship between macroeconomic variables and stock prices has been examined in Emerging Stock Markets (ESMs) after 1980s. However, interest in investing in emerging markets has grown considerably over the past decade. Harvey (1995a) shows that returns and risks in ESMs have been found to be higher, relative to other developed marketsNumerous studies have been conducted to determine the determinant of stock price movements. Man y studies suggest that strong relationships exist between macroeconomic variables and stock prices in developed such in the United Kingdom economy. Although most of the studies were carried out in emerging market contexts recently, there is a paucity of such studies in London Stock Market with the exception of a few like Samarakoon (1996 b, 1998 c, 1998 d); Samarakoon et al. (2000); Perera, (1994), Nimal, (1997), Premawardena; (1997)}. This study extends these literatures by considering the relationship between stock prices and macroeconomic variables in the UK Stock Market. Macroeconomic variables such as money supply, exchange rate, inflation rate and interest rate on stock prices form the foundation of this study. The findings imply that there exists significant association between most of the macroeconomic variables and stock prices in the UK Stock Exchange.The theoretical motivations for undertaking the study on the effect of macroeconomic variables on stock prices are disc ussed as follows. The relations between exchange rate movements and stock prices are based on the rise in the domestic interest rate. This leads to capital inflows and makes the exchange rate appreciate and this suggests that, for export dominant industries, currency appreciation has a negative effect on stock prices in such industries because of reduction in exports while currency appreciation boosts the stock market (positive effect on stock prices) for import dominant industries due to increase in imports. Numerous studies have been conducted in developed capital markets with regard to the relationship between stock prices and interest rates and results of most studies suggest that stock and bond returns are predictable and that one may be used to forecast the other. Whenever the interest rate on Treasury securities rises, investors tend to switch out of stocks, causing stock prices to fall. The effects of inflation on the returns to financial assets have been an important the oretical issue for many years. The basic theoretical concept in this area is commonly attributed to Irving Fisher (1930) who posited that the nominal interest rate fully reflects the available information concerning the possible future values of the rate of inflation. This hypothesis has received wide acceptance among economists and has played an important role in the monetary theory, finance and macroeconomics. All the above considerations motivated to conduct this research study in the UK context. The above theoretical motivations and empirical evidence reveal relationships between stock prices and macroeconomic variables. This leads to studying the effects of macroeconomic variables on stock prices in the UK context. When considering the above facts, the results of a study of this nature will be of enormous importance to numerous parties. The findings of the study hold practical implications for various parties. Therefore, a study of this nature is timely and essential.Th e stock exchange acts as the most important market for capital and a well-developed capital market is essential to promote economic development. The UK government has been offering a number of incentives to boost the stock market. Specially, foreign investors are granted substantial incentives to invest in UK company shares. The government has taken several significant listed in the London Stock Exchange are already involved in the development of infrastructure - the Power Sector, Telecom, Water and Health while other sectors in the LSE cover a significant role in the UK macroeconomic. By taking into consideration the above factors, the results of a study of this nature will be of enormous importance for both local and foreign investors, stock market regulators, multinational corporations, stock market analysts and policy makers. Therefore, this type of study is very essential to promote the stock market steps to boost the UK Stock Market. Further, the capital market plays an important part in the economy and companiesStill, the paucity of literature on the effects of macroeconomic variables on stock prices and little attention of the responsible parties and the insufficient knowledge of this issue in the UK context could not be added to the information set available to the above parties. In order to fill this gap in the literature in UK Stock Market this study will add immensely to the existing literature of UK Stock Market. Therefore, the research problem of this study is to find out whether there is any relationship between macroeconomic variables and stock prices in the London Stock Exchange. The primary objective of the study is to identify the impact of behaviour of macroeconomic variables on stock prices. The remainder of the paper proceeds as follows: Chapter 2 reviews the literature; chapter 3 describes the methodological issues and data used; chapter 4 discusses the results. Chapter 5 analyses the empirical findings of the study while chapt er six is the conclusions made from the study. The final chapter is the reflections inferred from this study.Chapter IILiterature ReviewThis chapter refers to the former academic work concerning the influence of macroeconomic variables on stock prices with distinctive reference to the UK stock market. Countless researches have been investigated how macroeconomic factors affect the stock prices throughout the world. For instance, many of the researches attempt to broaden the research in developed and emerging stock markets. While investigating this principles, it is initiated the significance of theoretical underpinnings and empirical evidences. The chapter is divided into two sections. Section one, discusses the previous literature regarding the effects of macroeconomic factors on the stock returns in developed and emerging stock markets. This part analyses the effects of several macroeconomic variables such as interest rate, exchange rate, inflation, cash flow, money supply and sto ck returns in UKs London Stock Exchange and, where applicable, other stock markets around the world. Section two, critically evaluates this issue in a UK perspective.Previous literature in developed and emerging stock marketsIt is been examined that macroeconomic factors on stock prices cause the volatility of stock markets around the world since 1970s. While identifying the stock returns these variables are considered as a major indicator. The strong correlation between the macroeconomic variables and stock returns are disclosed by various academics in both the past and present day literature. These studies were carried out on both developed and emerging capital markets. It is deliberated that, on the valuation process the economic and industry environment as well as the investigation of individual companies or stocks should be taken in to attention. According to several soundings it is noted that an individuals success or failure could be affected by his or her family, society or, economic background. As per Reilly and Brown (2006, p. 15) pointed out the economic and industry environment of a firm should be considered during the valuation process, or in other words in the valuation of securities. Consequently, the significance of the economic and industry environment on the valuation process distinguished by the top-down (the three-step) approach contrast to the bottom-up approach. According to the top-down approach it is certified that the total returns for individual stocks are expressively affected by both the economy and industry, regardless the assets that a firm hold, while the bottom-up approach opposes that statement as it believes that it is possible to find greater returns of stocks regardless of the economy and industry outlook. However, the top-down investment process has been strengthened by the outcomes of various speculative researches examining the effects of economic variables on stock returns. In addition to the individual quality and pros pective profitability of a firm, it is also believed that the economical atmosphere and industry performance is influenced by the value of a security and its rate of return. In so doing, certain macroeconomic variables would be considered as an indicator of risk that is common in most organisations. The hypothetical valuation models illustrate the link between stock prices and macroeconomic variables. Those are such as Dividend Discount Model (DDM), Free Cash Flow Valuation and Residual Income Valuation Model. As reported in these models, the current prices of an equity share is approximately equal to the present value of all future cash flows; therefore if any economic variable affects cash flows and required rate of return, in turn influences the share value as well.As stated in Moore (1983) the general level of stock prices has been much higher at the top of a boom than at the bottom of a recession in the USA. The st...
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