Behavioral Finance and Technical Analysis - 1899 Words

Behavioral Finance and Technical Analysis (within Behavioral Finance): Introduction Behavioral Finance is more often referred to as Behavioral Economics (This area of enquiry is sometimes referred to as behavioral finance, but we call it behavioral economics. Behavioral economics combines the twin disciplines of psychology and economics to explain why and how people make seemingly irrational or illogical decisions when they spend, invest, save, and borrow money. Belsky and Gilovich (1999)) Behavioral Finance is a field that uses scientific research on human social, cognitive, and emotional functioning in order to better understand human decision-making within the financial context. Understanding this helps economists, businesses, and all people involved with finance plan and formulate better scientific decisions in regards to aspects such as market prices, returns and the allocation of resources. It is especially helpful for understanding investor behavior. Behavioral Finance integrates psychology and neo-classical economic theory in its approach and works towards u nderstanding both the effects of market decisions as well as those of investor behavior. It does so by combining prediction (mainly made with technical analysis) and behavioral components in order to better understand peoples rational (or irrational) decision-making within the context of finance. History Economics, at its birth, had a close tie with psychology. Adam Smith, for instance, produced hisShow MoreRelatedSap for Atlam1706 Words   |  7 Pageswholly owned organization of MICT Berhad. The management of ATLAM had been asked to upgrade its accounting system with the PETRA group-wide SAP system. The person who is responsible to the changes of the accounting software is Zulkifli Osman, the Finance Manager of ATLAM. He had to severely assess the risks associated with the decision. The main problem arises is not on the cost of implementing SAP or Systems, Applications and Products in ATLAM but rather on the acceptance of the new system by theRead MoreHuman Psychology And Market Efficiency988 Words   |  4 Pagesactive investor may use strategies such as technical analysis, fundamental analysis, or other advanced trading techniques. Algorithmic trading – also known as â€Å"black box trading† involves using a computer platform to buy or sell securities using predetermined variables including timing and price. When the market exhibits the desired characteristics the transaction will automatically execute. Behavioral finance – is a relatively new field of modern finance concerned with studying the relationship betweenRead MoreThe Basic Function Of The Securities Market1618 Words   |  7 Pagescomprehensive, correct, seasonable and rational judgment of the information disclosed. Which is said that it is futile to use the current and historical prices to predict the future prices. It is argued that the technical analysis of the stock price will be ineffective and the basic analysis may also help the investor to achieve excess profits.(Barnes,2009). In order to achieve that goal, investors must seek information not only the historical price information but also other useful data. In thisRead MoreCapital Budgeting II And Efficient Markets1418 Words   |  6 Pagesassociated with the movement of the market. Efficient Markets II Dr. Lo argues that behavioral finance and rational finance are both correct and incorrect theories. Both theories are correct as applied to certain circumstances. Behavioral finance is a considered a collection of anomalies. The adaptive market hypothesis, introduced by Dr. Lo, is a theory that combines behavioral finance and rational finance to account for market conditions, environmental conditions and the human decision makingRead MoreEfficient Market Hypothesis and Behavioral Finance – Is a Compromise in Sight?6423 Words   |  26 PagesEfficient Market Hypothesis And Behavioral Finance – Is A Compromise In Sight? By Nikolai Chuvakhin Legend has it that once upon the time two economists were walking together when one of them saw something that struck his mind. â€Å"Look,† he exclaimed, â€Å"here’s a great research topic!† â€Å"Nonsense,† the other one said, â€Å"If it were, someone would have written a paper on it by now.† For a long time this attitude governed the view of economists toward the stock market. Economists simply believed thatRead MoreBusiness Process Reengineering And Erp Essay1646 Words   |  7 PagesERP and also gives the phases of BPR process to the micro level view of the phrases. This paper also list out the factors which affect the BPR process. The factors are categorized into different aspects of organization like Managerial, Operation, Technical and Financial aspects. 2. Introduction: Michael Hammer is the pioneer of the concept of BPR during 1990’s. They define BPR as â€Å"the fundamental rethinking and radical redesigning of business process to achieve dramatic improvement in critical contemporaryRead MoreAn Analysis Of Assess And Balance Financials1441 Words   |  6 Pagesequipped with the necessaries for their role in the county. Assess and Balance Financials is in search of filling a position for a budget analyst. Currently, there are two interns in the firm, a staff accountant, a purchasing coordinator, and the finance director. This firm works closely with the county manager as well. The firm is struggling to function with the employees that are currently working, but they can provide the minimum required information, so the firm is able to stay afloat. HoweverRead MoreThe Business Process Reengineering ( Bpr ) Essay1573 Words   |  7 PagesERP and also gives the phases of BPR process to the micro level view of the phrases. This paper also list out the factors which affect the BPR process. The factors are categorized into different aspects of organization like Managerial, Operation, Technical and Financial aspects. 2. Introduction: Michael Hammer is the pioneer of the concept of BPR during 1990’s. They define BPR as â€Å"the fundamental rethinking and radical redesigning of business process to achieve dramatic improvement in critical contemporaryRead MoreEssay on The Efficient Market Hypothesis1845 Words   |  8 Pagesof neoclassical finance, asserts that financial markets are efficient on information. The efficient market hypothesis suggests that there is no trading system based on currently available information that could be expected to generate excess risk-adjusted returns consistently as this information is already reflected in current prices. However, EMH has been the most controversial subject of research in the fields of financial economics during the last 40 years. â€Å"Behavioural finance, however, is nowRead MoreFinancial Investment Ch 97298 Words   |  30 PagesChapter 09 Behavioral Finance and Technical Analysis    Multiple Choice Questions    1.  Testing many different trading rules until you find one that would have worked in the past is called _______.   A.  data mining B.  perceived patterning C.  pattern searching D.  behavioral analysis    2.  Models of financial markets that emphasize psychological factors affecting investor behavior are called _______.   A.  data mining B.  fundamental analysis C.  charting D.  behavioral finance    3

Tutorial of Enterpreneur Free Essays

Tutorial 8 (topic 7) Preparing A Proper Ethical And Legal Foundation Q1. In general, do entrepreneurs tend to overestimate or underestimate their knowledge of the laws that pertain to starting a new firm? What does answer to this question suggest that entrepreneurs do before they start a firm? In general, entrepreneurs tend to overestimate their knowledge of the laws that pertain to starting a new firm. Before entrepreneurs start a firm, they should seek for lawyer to get some legal advice, get sources and information about the business, refer to book, or search the information thru the internet about the legal issue that they face. We will write a custom essay sample on Tutorial of Enterpreneur or any similar topic only for you Order Now Q2. Describe what is meant by the terms code of conduct and ethics training programs. What is their purpose? The term code of conduct is a formal statement of an organization’s values on certain ethical and social issues. Which means it is a set of formal statement for a firm or company to concern and emphasis on the values on ethical and social issues. For example, value that an organization expect employee to carry out some task, the method on how employee serve customer, social responsibility for an organization, privacy, and others. Then, ethics training programs is teaching business ethnics to help employee deal with ethical dilemmas and improve their overall ethnical conduct. It means, ethics training program is a set of system or some courses that use to lead employee deal with ethical dilemmas, which is a situation that employee involve some activities that is beneficial to oneself or the organization, but may be unethical. For example, an employee using company’s computer to carry out new program, thus this may raise an issue whether the new program is the property for an organization or the particular employee. Also, improve overall ethical conduct can be done by implementing an ethics training program because it can help employee to deal or response to ethical dilemma. The purpose for code of conduct and ethics training programs is to promote a healthy climate of business ethics and avoid lawsuit in a firm. Also, the purpose is to establish a strong ethical culture and avoid litigation. Q3. Describe what a founders’ agreement is and why it’s important for a team of entrepreneurs to have one in place when launching a venture. A founder agreement is a written that deals with issues such as the relative split of he equity among the founders of the firm, how individual founders will be compensated for the cash or the â€Å"sweat equity† they put into the firm, and how long the founders will have to remain with the firm for their shares to fully vest. It means founder agreement is a formal document that mention about the profit sharing between the founders by following the amount of initial investment between the founders. Items that include in a founders’ agreement are nature of the prospective business, a brief business plan, legal form of business ownership, buyback clause, description of the initial operating capital and others. It is important for a team of entrepreneurs to have one in place when launching a venture because it can avoid the conflict such the problem between the founders regarding the profit sharing and distribution of stock at the end of the business, avoid litigation, and to know the expectation of their own role in the organization. Therefore, founders’ agreement is important to act as a set of rules or guideline while founders are conducting their business and it can reduce most of the issues that can harm the performance of a business. Q4. Describe the purpose of a non-disclosure agreement and the purpose of a non-compete agreement. Non-disclosure agreement is a legal document or contract sign between two parties, which is restrict the access or by third party. The purpose of a non-disclosure agreement is a promise made by an employee or supplier who does not disclose the trade secret between the firm to the third party or outsider. Also, a non-disclosure agreement is a contract through which the parties agree not to disclose information covered by the agreement. On the other hand, non-compete agreement is a contract between one party such as employee agrees not to pursue a similar profession or trade in competition against another party such as employer. The purpose of a non-compete agreement is to avoid the possibility that upon the termination or resignation for an employee might begin working for a competitor firm or starting a new business which is related or similar with the employer’s business in a specific geographical area and time frame. Q5. What are the advantages and disadvantages of organizing a new firm as a sole proprietorship? Is sole proprietorship an appropriate form of ownership for an aggressive entrepreneurial firm? Why or why not? The advantages of organizing as a sole proprietorship are being the simplest form of business tructure. Then, creating a sole proprietorship form is easy and inexpensive so a starting cost can be reduced, and then an owner maintains complete control of the business without any intervention in decision making, and profit is own retain by the owner, business losses can be deducted against the sole proprietor’s other sources of income, and the business is not subject to doubl e taxation because the income earned by a sole proprietorship passes directly to the personal income tax return of the owner, and then business is easy to dissolve due to without any partners and complex agreement. Whereas, the disadvantages of a sole proprietorship are liability on the owner’s part is unlimited so if a business is facing deficit, owner is responsible for all the losses. Then, the business relies on the skills and abilities of a single owner in order to manage the business wisely. Furthermore, raising capital can be difficult because of only owner is running the business without any help from partners. Moreover, the business ends at the owner’s death or loss of interest in the business, the liquidity of the owner’s investment is low due to low capital and cash flow can be used in generating more profit. A sole proprietorship is not an appropriate form of ownership for an aggressive entrepreneurial firm. An aggressive firm will probably need to raise capital early in its life because it is important for an aggressive firm to have a huge amount of capital in competing the earlier stage in the market, thus it is not possible under the sole proprietorship form of ownership. Also, in an aggressive entrepreneurial firm will be taking more risk in the investment, hence a limited liability form of company is more suitable in an aggressive entrepreneurial firm, which owner can limit their personal losses. How to cite Tutorial of Enterpreneur, Papers

Alzheimer’s Disease

Question: Give a brief discussion on Alzheimers disease as a factor that will influence in my nursing career. Answer: Introduction Alzheimers disease is a very common disease seen in older adults which makes the communication difficult between the health care providers like nurses and the patients and their family. Patients with Alzheimers disease do not remember things and get frustrated frequently. Most of the time Alzheimer patients are recommended to nursing care facilities so that they can get best services and care which they cannot get at home. This article will help the nurses how to communicate with the patients and treat them and how they can make their interactions less stressful for the patients and will help them in getting success in their nursing career. About Alzheimers This disease starts with the short term memory loss and with its continuation they also start forgetting the long term memory. Gradually this disease worsens with time and has no cure. Patients cannot think in normal manner when they reaches the last stage and become very dependent on others and at this stage the role of nursing staff becomes very crucial. How nurses should communicate with Alzheimers patient The major role nurses and health care providers should play is to manage the uncertainty which the patient and family members are undergoing after diagnosis and during treatment of the disease. Nurses should properly communicate the disease to the patient and his family members by easing their experiences. Providing detailed information about the disease to the family members is the most common and social support that nurses can provide. Nurses should feel the importance of educating the family about the disease not only by educational material like pamphlets or through websites but also by using analogies and metaphor. For eg neurons in the brain are misfiring, there is a object which is rolling around and cutting string and thus causing the disease of memory loss (Anee, 2013). Effective Communication Techniques When the patient enters a new environment filled with everything new and strange to him will increase the anxiety, agitation and confusion within him. Thus through effective communication techniques the nursing staff can provide better deal with the patients and ease their anxiety they are undergoing because of the disease. To deal with the behavior problems the nurses should know the patient and his family members very well. For e.g. knowing what kind of things lead to poor behavior in the patients and should smartly deal with those situations like if the patient is less agitated and confused in the morning than he should be taken for both in the morning. The nurse should eliminate all those physical, emotional and communication things which trigger the patient. Should patiently listen to the patient and spend quality time with them. Make the sessions interactive by making them eager to share their feelings and when required repeat back to them to make sure they regain and understand what you are saying. While communicating the nurse should always begin by telling her name always and calling the patients name. Nurse should always speak from front not by side ways, speak slowly clearly and specifically. Should always show warm and friendly facial expressions. Should patiently listen to the patient and give him plenty of time to speak because it is difficult for him to recall the memory. One should never test the patients memory by using words like do you remember or you are losing your memory etc such sentences will increase their resistance. While dealing with the patient, the nurse should give him simple directions one at a time so that he can recall easily. During his personal care, the nurse should inform and explain each step she will be doing so that the patient every time recalls the procedure and become comfortable. Managing disruptive and dangerous behaviors Patients usually at last stage of Alzheimers disease show unacceptable behaviors, sometime they become violent and controlling them become a difficult situation. In such condition the nursing staff should (Joseph, 2015): Make the patient calm and sit. Speak calmly and politely. Stop the task whatever you are doing give full attention to the patient. When patient become violent, still be calm and protect yourself from injuries. Do not fight back or pull away and remove the person from injury. Always try to study the cause of such behaviors. Patients when they are hungry, thirsty, dirty or wet make such types of noises and behaviors so try to meet the patients need. Conclusion Caring the Alzheimers patient requires skill, patience and a team effort. The Nursing staff plays a very important role in dealing with the Alzheimers patient as they are in personal touch with the patient always. A proper communication and behavior should be followed to ensure that the patient and his family members get highest quality of care, dignity and respect. References Anne M. Stone. (2013). Communicating About Alzheimers disease. Communication currents knowledge for communicating well. A publication of the National communication Association. Vol 8, Issue 2. Retrieved from https://www.natcom.org/CommCurrentsArticle.aspx?id=3603 Joseph. (2015). Acute Hospitalization and Alzheimers disease: A special kind of care. National Institute on Aging. Retrieved from https://www.nia.nih.gov/alzheimers/publication/acute-hospitalization-and-alzheimers-disease