Classical Era

In music, a large number of the extraordinary arrangers Like Beethoven, Mozart, and Haydn all became noticeable names through their capacity to completely epitomize all that traditional music is. Following in a comparative example, workmanship additionally took a turn in the backtalk towards a significantly more present day medium. The need to fell each open space with some type of craftsmanship was not, at this point a major concern in old style workmanship. Truth be told, the utilization of lighter hues, more structure, and little lavish subtleties where considerably more liked. This view purpose of craftsmanship was found in artworks, yet additionally in the models and structural plans for this time period.A notable designer for this time was Robert Adam. Who was more adjust at inside structure. His plans exhibited perfect sensitive subtleties just as depicting a typical solace and closeness. This timeframe, would be a period for extending the limits of the brain and making an eve rlasting picture through straightforward and unadulterated procedures. Relating to the music, a case of a practically easy appearing type of music is, Beethoven's own â€Å"FÃ'Ëœr Elise† (1810). In this piece explicitly, parallelisms inside the piece are unmistakable just as a much more slow melodic beat than that found In Baroque pieces.His utilization of elements sets with the strain made all through the piece just to be settled toward the end by the basic principle song returning through. From this timeframe there is another incredible writer, Haydn. One of his numerous pieces is his â€Å"Symphony No. 94† (1792), which is otherwise called his, â€Å"Surprise Symphony. The title in itself depicts the piece perfectly, while tracking with the piece, there were many amazements In it. Abrupt changes in elements and musicality would stun the crowd making all in all a stir.Another Beethoven piece to take a gander at Is his piano sonata, â€Å"Passionate† (1805). I n this sonata, the regular event is an exacting tune played by an independent piano player. Keeping with the old style pattern, the majority of the piece is unforeseen with following a comparative harmony design which gives tit much smoother stream. Music during this time typified, basic smoothness making the absolute most notable melodic and reliably streaming pieces still today. Craftsmanship, Just like Its partner music, likewise encountered a change during this timespan. No more would specialists increasingly moderate feel.Art itself was seen during this time as a type of instruction for the network, and was intended to improve and advance the ethical quality of general society. A case of this type of workmanship is â€Å"The Apotheosis of Homer† (1827) by Jean-Augusta-Dominique Ingress, albeit painted several years after the fact than when the old style time frame finished, it is still particularly in that traditional mode. By utilizing lighter hues, and focusing in on o ne explicit angle, Jean causes him audience to notice the focal point of the canvas where he shows them the delegated of Homer.The lighter hues like the lighter melodic feel in music are a quality of the Classical Era. In Joseph-Marie Vine's, â€Å"The Cupid Seller† (1763) he utilizes a procedure usually utilized in numerous Classical Era pieces, he helps his primary subjects. When taking a gander at the artistic creation, the subjects themselves appear to have a sparkle while everything else around them is obscured and less engaged. Another piece that has this equivalent impact is Franã §ois Grade's â€Å"Portrait of Juliet Racier† (1805).His artwork depicts a solitary lady relaxing over a seat. She like in, â€Å"The Cupid Seller†, is lighter than her environmental factors making her the point of convergence. Music and workmanship both had this comparative propensity, to concentrate on a solitary viewpoint or structure by which they were attempting to depict. The Classical Era was a period of edification and change, from the substantial, dull, and lambent properties that were the Baroque Era to a progressively honorable effortlessness. In this time, thoughts were obtained from their old partners of the Romans and Greeks.

Do you believe in yourself as ... free essay sample

Do you trust in yourself just as your capacities? Would you be able to deal with productive analysis and dismissal or does it break your self-see? We will in general accept we dont let what others state or consider us influence how we feel. We dont let their sentiments influence our vision of ourselves. We make a decent attempt not to accept what they state or think be that as it may, in some cases their sentiments appear to get the high ground. Our self-esteem is significant for our own satisfaction, satisfying responsibilities just as accomplishments. A lot of confidence can prompt acting like a superstar or even a presumptuous character. Anyway low confidence can be similarly as perilous. Individuals with low confidence will in general surrender effectively, and are normally connected with nervousness, despondency and abrupt shock. The issue here, is that in the public arena today, we have such a significant number of that don't have a wellbeing balance in their confidence. This is prompting a lot bigger issues than a self-destructive and egotistical age. Issues with confidence can prompt tormenting, self destruction, savagery and considerably more. Presently some may believe this equitable influences individuals of a specific class or perhaps only a particular gathering of individuals in spite of the fact that, that isn't the situation. Confidence is a difficult that influences the youthful and old. Did you realize that even Marilyn Monroe had low self-esteem? Solid self-esteem is critical to keep up in todays society for on the off chance that we do so it can change our future, if not, it could decimate it. Overseeing confidence is an issue around the world, on the off chance that we figure out how to address the difficult it could help diminish and resolve different clashes. Individuals regularly neglect the significance for people to have a decent confidence. The issue with confidence is that on the off chance that it is excessively low or high over significant stretches of time it very well may be socially unsafe.. Presently before we get an excess of further lets build up what confidence is. Confidence will be trust in ones own value or capacities; sense of pride. There are two kinds of confidence issues; high and low. Low confidence is the point at which an individual feels shameful, inadequate and bumbling. Low confidence as a rule begins at youth and creates as years pass by. During the youth low confidence can be built up by physical discipline, retaining of adoration and influence from guardians or in any event, tormenting. Individuals with low confidence will in general spend a decent bit of their time attempting to feel acknowledged. Despite the fact that low confidence is viewed as a bigger issue, undesirable degrees of high confidence additionally can prompt issues. High confidence is the point at which an individual feels unrivaled and has a ton of fearlessness. At the point when one has too high confidence it might prompt a presumptuous, pompous, predominant or even injurious character. Individuals with high confidence they will in general accept their necessities start things out in some random circumstance, and on the off chance that it doesn't, at that point they will become unsatisfied at that point potentially carry on of outrage. They can embrace an idea of predominance essentially on the grounds that they won such a significant number of trophies or have been informed that they are superior to others in a specific field of intrigue. The individuals who have high confidence frequently cause others to feel immaterial. Presently individuals that have too high or low confidence issues have been probably not going to change their position. Low confidence drives self destruction and sadness just as upheavals of outrage. Individuals with high confidence have been connected to criminal conduct just as tormenting. An unfortunate parity of confidence causes clashes in todays society. It influences the manner by which we consider ourselves well as treat others. Figuring out how to determine this could likewise support criminal rates, self destruction rate and harassing to go down. Since we comprehend both what high and low confidence is, just as how it is caused let me acquaint with you a couple of things you might not have known about. Marilyn Monroe is a notable VIP. She is known for her excellence, insight and substantially more. She had a harsh youth beginning with her dad leaving her family at a youthful age. Marilyns mother was conceded into a few mental organizations due to melancholy and schizophrenic activities. This circumstance left Marilyn spending her youth in eleven diverse cultivate homes; in a large number of which she was abused. She was in reality determined to have dysfunctional behaviors for which she had been dealt with a few times. Marilyns dysfunctional behaviors found her as she headed on a descending slant. She got substance misuse and before long vanished from her high life as an on-screen character. Marilyn had a low confidence the vast majority of her life and afterward one that was around a fair compromise for a brief timeframe. Marilyn has been notable for some statements one of which being, Imperfection is magnificence, frenzy is virtuoso. This statement clarifies that you dont need to fit the norms of todays society. To appear as something else and have assorted variety in this world is not something to be embarrassed about. Marilyn was not the normal model or even entertainer, she has her own missteps and her own issues simply like we as individuals do today. People were destined to be unique. This goes to show Self-worth effects everybody from rich to poor, celebrated to disagreeable and youthful to old generations.So this issue of self-esteem affects everybody and it seems, by all accounts, to be a lot of like a thrill ride. Having our confidence is too high or low it can prompt clashes. How precisely do we get a fair compromise? Presently if your confidence is high or low the initial step to improve your confidence is to battle against the negative contemplations or understand that youre worse than every other person. After you have figured out how to not think so exceptionally or negative of yourself next take the time and exertion to rehearse self-empathy. You should feel fulfilled or glad for yourself and achievements. Realize that individuals commit errors anyway that is the manner by which we become effective; gaining from our missteps. In conclusion, find support from everyone around you. Attempt to encircle yourself with companions, family and even converse with your primary care physician to check whether prescription or treatment may help. Our emotional wellness isn't something to neglect by. It influences our future just as our prosperity. This is a difficult that has influenced everybody sooner or later in their life so when you see another person battling, dont be hesitant to help out them. We have to improve our outlooks about ourselves with the goal that we can make a superior future for us, yet people in the future that are yet to come. We as a general public need to help accomplish a general sound parity of confidence. One in which lies in the center on this continuum. Confidence is essential to a people prosperity and emotional wellness as it has the ability to help decide their future. This is an overall issue that influences everybody and on the off chance that we sit by and sit idle, at that point it will end up being an a lot bigger catastrophe. This contention has influenced billions of individuals effectively, even Marilyn Monroe. Without settling the issue, it could prompt more viciousness just as different pains. It is imperative to keep up a sound parity of self-esteem for if not it will prompt more problems or inconveniences. The popular logician George Santayana once stated, Those who don't learn history are bound to rehash it. So let us settle this issue. We are the ones who have control of our future so let us make it a superior spot for a considerable length of time to come. Self-esteem will consistently affect our reality just as our general public. The number of inhabitants on the planet is developing quickly so on the off chance that we fix this issue why it is as yet containable, at that point it will help the eventual fate of this world. It can forestall harassing, self destruction, crime just as numerous others. Confidence is an unavoidable issue in todays society whenever left untreated it will develop. In todays society most have an unfortunate parity of confidence that should be viewed and dealt with before it deteriorates. Lets change our reality with extra special care by evolving ourselves.

5+ Easy Yet Efficient Tips To Increase Typing Speed

5+ Easy Yet Efficient Tips To Increase Typing Speed Make Money Online Queries? Struggling To Get Traffic To Your Blog? Sign Up On (HBB) Forum Now!5+ Easy Yet Efficient Tips To Increase Typing Speed SkillsUpdated On 06/02/2016Author : Pradeep KumarTopic : Tips and tricksShort URL : http://hbb.me/1pnv8Zw CONNECT WITH HBB ON SOCIAL MEDIA Follow @HellBoundBlogIf you want to improve or increase typing speed skills, then apart from practicing a lot, we do have some essentials steps to achieve it. To me, this is one of the best practices for Time Management. It will help you to become more productive, and you can save hell lot of time. I picked up nine simple tips to increase and improve your typing speed.Recently I came to know about this report from a blog, If a computer user doubles his typing speed, he is saving 300 hours in one year! Amazing! Isnt it?Tips To Increase Typing Speed Skills1. Position: Choose a comfortable chair and sit straight. Place your fingers correctly on the keyboard. Type using the pads of your fingers, dont use finger tips or nails. The Keyboard should be at waist level approximately.2. Placement: Use both your hands for typing. You can check this visual tutorial for understanding placement of your fingers on the appropriate keys easily. Use the thumb for Space Bar. It is better to memorize the location of the keys.3. Avoid Seeing: Yes, you should not see the keyboard while you type. You should have a military level of discipline. Look at the screen or the source paper. After you are familiar with the finger placements, you can try this. While riding a bicycle, what will you see? The road or the pedals? ??4. Use Emoticons: Emoticons are nothing but textual expressions representing the face of a writers mood or facial expression. You can find them in many portals including social networks, forums, IM, blog comments and so on. Emoticons usually have symbols. By using them often, you can be familiar with symbols location in the keyboard, and you can type it without seeing soon.READ10 Don'ts Y our Presentation Can Do Without5. Type Along: Try to type what you hear, like news reports, songs, two people talking around, so on. It will help you to become more familiar with various words.6. Avoid Typos: While practicing dont spend time on fixing your typos. Instead, carry on typing. Because you are just training your hands and concentrating on typing faster.7. Get Addicted: I improved my typing speed by using TypeRacer. It is a multiplayer typing game where you race others by typing quotes from popular books, movies, and songs. You can also find TypeRacer applications in Orkut and Facebook.8. Software: You can purchase a typing lesson software or try the free ones available online. But make sure that program is capable of measuring your typing speed. You can also try free Flash typing games.9. Practice: Last but not least, nothing can be done without practicing. Practice as much as possible. Do it regularly with extreme patience. But dont practice if your fingers become tired. Leave some gap.DO YOU WANT TO INCREASE TYPING SPEED + FIX YOUR GRAMMAR MISTAKES?Use Grammarly For Your Typing Practice + Fixing Grammar Mistakes [FREE]These are some of the easy yet efficient tips to improve your typing speed. Now, why dont you practice right now by commenting here? ??

Leverage With High And Low Debt Equity Ratios - Free Essay Example

Sample details Pages: 20 Words: 6093 Downloads: 5 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? The theme of the study is to inspect the effect of the leverage with high and low debt to equity ratios on identified portfolios required rate of returns listed in Karachi Stock Exchange (KSE). The multivariate regression has been used to identify the relationship among market premium, debt à ¢Ã¢â€š ¬Ã¢â‚¬Å" to à ¢Ã¢â€š ¬Ã¢â‚¬Å" equity premium and portfolio returns. The sample has been selected from 21 sectors consisting 100 listed- Pakistani firms for the period of January 2001 to December 2007. Don’t waste time! Our writers will create an original "Leverage With High And Low Debt Equity Ratios" essay for you Create order The P-value at 95% confidence level shows the relationship with CAPM is positive and significant related to portfolio returns (P1 to P10), while the leverage premium (DER premium) is positively insignificant. The proposed multi-factor model explains that the value of R2 indicated that there is no contribution by adding the identified variable (Leverage premium). Therefore the security analysts, institutional investors, fund managers and other stakeholders should not consider the leverage premium as an important factor for determinant of required rate of returns. INTRODUCTION Leverage refers to the use of fixed cost in attempt to increase profitability. The two principles of leverage are Operating leverage and financial leverage. The former is due to the fixed operating costs associated with the production of goods or services, whereas the latter is due to the existence of fixed financing cost. Both type of leverage affect the level and variability of firms stock return. These studies fall out that several of the CAPM average returns anomalies are interrelated. The CAPM has been one of the most frequently used, but today many empirical studies have pointed out some deficiencies in the model, as an explanation of the link between risk and return. CAPM is weak as it based on Efficient Market Hypothesis, which means: transparency; no transaction costs; no significant restriction to investment; investors rational behavior and expectations. These assumptions imply that the market is not affected by imperfections. There is mixed support for a positive linear association between required rates of return and systematic risk for portfolios of stock. Some recent evidence indicated the need to consider the additional risk variables or different risk proxies. Thats why several studies criticize the tests of the model and usefulness of the model in portfolio evaluation because of its dependence on a market portfolio of risky assets. Empirical studies have shown the accessibility of extra required rate of returns by using active investment strategies base on a number of firm variables such as leverage (Bhandari, 1988), size (Banz, 1981), price earnings ratio (Basu, 1977), book to market ratio (Stattman, 1980); Rosenberg, Reid and Lanstein, (1985), etc. These evidences, since inconsistent with the CAPM, are popularly known as CAPM anomalies. The asset-pricing model of Sharpe (1964), Linter (1965) and Black (1972) has long formed the mode academics and practitioners thought about average required rate of returns and risk. There are various observ ed contradictions of the Sharpe-Linter-Black (SLB) model. One of the contradictions of the Sharpe-Linter-Black (SLB) model is inverse relation between leverage and return acknowledged by Bhandari (1988). It has been brought into the account that the leverage is related with risk and expected return. The most leading work of Fama-French (1992) three factor model in which they attach two variables in addition to the market return, the returns on small minus big stocks (SMB) and the returns of high book to market value minus low book to market value stocks (HML). This particular study discussed the two-factors that included one variable other than market premium i-e the returns with high leverage stocks minus the low leverage stocks (Debt/equity ratio premium). Leverage effect is the most important assets pricing anomalies. The recognition of the leverage effect leads the researchers to investigate its possible causes, as its presence implies that either the CAPM is miss-specified or t hat market is inefficient. The leverage ratio of the firm in this study was high and it has been argued that the small firms usually do not have almost as much collateral as big firms and would not have the similar capability to increase outdoor finances. Consequently, small firms would be more negatively affected by lower liquidity and higher short-term interest rates. This study tests the leverage effect in Pakistan stock market over a long period of seven years. The leverage is the most important factor that determines the leveraged. There are various sources of corporate financing, financial leverage is one of among it and is supposed to have both positive and negative features as a debt- financing tool. The issuance of debt makes a firm liable to pay cash as interest and principal. Bhandari (1988) concluded in his study that the expected returns on common stocks are inversely linked to the debt to equity ratio. This particular study examines how the stock price of a firm reacts to the overall change of its leverage ratio. It is a significant subject since the option of capital structure is possibly one of the mainly important decisions managers face, and a change in the leverage ratio can affect a firms financing capability, risk, cost of capital, investment and planned decisions, and eventually shareholder wealth. The descriptive statistical trend of the calculated portfolios on the base of leverage follow the abnormal behavior as the general theoretical phenomena is that the firms with high debt to equity ratios have high risk adjusted high return, but this particular study has reported the high volatility in low debt to equity ratio in compare to the high debt to equity ratio. The required rate of return of the firms with low debt to equity ratio (P1 to P5) is high and there is an increasing trend, while there is decreasing trend in the firms with high debt to equity ratio. The findings reveal a positive and insignificant relationship between leverage premium and expected returns. The same result supported by Ho et al (2006) in Singapore. The study is aim to; 1. To evaluate the effect of leverage on stock return through CAPM. 2. To determine the direction of relationship between leverage and required rate of return. LITERATURE REVIEW Bhandari (1988) proposed to use Debt/ Equity ratio as an additional variable to explain the stock returns. He argued in his paper that an increase in debt/ equity ratio of a firm increases the risk of common equity. He concluded that the debt/ equity ratio has a significant positive effect on the expected common stock returns though in the month of January is much larger. Empirical studies have shown the accessibility of extra normal required rate of returns by using active investment strategies based on a number of firm variables such as size (Banz, 1981), leverage (Bhandari, 1988), price earnings ratio (Basu, 1977). These evidences, since inconsistent with the CAPM, are popularly known as CAPM anomalies. Fama and French (1992) reported that average returns on small stocks are too high with given estimated beta, while average returns on large stocks are too low. This study reported that the relationship between beta and average return disappeared during the period 1963à ¢Ã¢â€š ¬Ã ¢â‚¬Å"1990 and weak relation between beta and average return during (1941 à ¢Ã¢â€š ¬Ã¢â‚¬Å"1990). Their study reported that size beta of size portfolios were highly correlated (- 0.988, in their data) so problem arose to separate the effect of size and beta on average return. When portfolio was formed alone on size, there is strong negative relationship between size and average return. Fama French (1992) concluded that for the period 1963 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 1990 French (1996) argued in their study that the small stocks tend to have higher returns than big stocks and high-book-to-market stocks have high returns than low BE/ME stocks. Moreover, stocks with low long-term past returns revealed a significant relationship between the fundamental financial variables (earnings yield, size, book to market ratio, and cash flow yield) and expected returns in the Japanese market. The book to market ratio and cash flow yield has the most significant positive impact on expected returns. Anothe r variable, cash flow yield, also has a positive and in general highly significant impact on expected returns. Their findings confirmed the existence of a size effect; small firms tend to outperform larger firms, after adjusting for market risk and the other fundamental variables but the statistical significance of the market capitalization variable is sensitive to the specification of the model; indeed, in some cases it is not significant. Choi, J. (2009) reported that the large positive alpha from the high book to market portfolios came from financial leverage. When the risk premium was high, book to market firms equity beta tends to increase more than those of low book to market firms. Their study showed that the book to market changes driven by changes in market leverage. The result suggested that the firms become high book to market firms because their equity value falls after negative shocks. Nishat (2000) concluded in his study that in Pakistan, industry leverage is high, hen ce there were negative and significant relationships between return and volatility change. Kane, Marcus and McDonald (1985) concluded that benefit to debt finance is the difference in the rate of return (premium return) earned by optimally levered and un-levered firms. Odit, Chittoo (2008) conducted empirical study in Stock Exchange of Mauritius and found relationship between leverage and investment. There study has investigated the two kinds of firms, that is: (1) high-growth firms; and (2) low- statistically significant both for the firms with low growth and as well as the firm with high growths. Maroney, Naka and Wans (2004) conducted a study in the context of 1997 Asian financial crisis; it included 6 Asian countries (Malaysia, South Korea, Taiwan, Indonesia Thailand and Philippines). Their study considers leverage as a key feature for financial crisis that the firms were highly levered with dollar denominated debt. The devaluation in currency resulted in increase in leverage an d interest payments. Leverage increased with exchange rate depreciation caused equity betas to rise; investors suffered capital losses because the equity they hold became more risky. The positive correlation between exchange rates and local returns were consistent with leverage linked to exchange rate. The local returns have positive correlation with exchange rate changes because they were associated with capital gains and losses in local market. The increased leverage contributes to the rise in equity beta and raises expected returns. Cai, Zhang (2008) examined the extensively inverse cause of the change in leverage ratio on the portfolio returns. There was a significant, inverse result of the change in long-term debt leverage on stock returns, but a weaker cause for the change in short-term debt leverage. Their study reported straight indications that rise in leverage proportion lead to lower investment in future, which is an inverse cause of leverage change on future investment. Hull (1999) analyzed whether the stock value was influenced by how a firm changed its leverage ratio in relationship to its industry leverage ratio norm. He found out in his study that the stock returns for firms moving away from debt-to- equity norms were significantly more negative than return for firms moving closer capital structure theory if industry debt-to- equity norms were reasonable approximations of wealth-maximizing leverage ratios. Ho, Tjahjapranata, and Yap (2006) conducted a study in Singapore which investigated that a firms ability to arise the growth opportunities from RD investments depend on its size, leverage, and the industry concentration. The analysis of the firm size, financial leverage, and industry concentration interactions showed that the levels of financial leverage moderate the firm size benefits. The RD investments were positively associated with growth opportunities as firm size increases when financial leverage is high. The study concluded the effect iveness of RD investment in generating growth opportunities has a significant positive effect for firm size and a significant negative effect for industry concentration, whereas non-significant ambiguous results for the independent effect of financial leverage. The current study conducted is to find the multifactor model, to test the application of CAPM, to express the relationship between leverage premium and equity returns in Pakistan equity market. These finding suggest fund managers, analysts, institutional investors and individual investors to consider the identified variables to obtain optimal expected average returns. III. RESEARCH METHODOLOGY Stephen Ross in 1976, create the theory by which to predict the association between the returns of a single asset and the returns of a portfolio through a linear combination of many independent macro-economic variables. The asset pricing model is frequently viewed as substitute to the capital asset pricing model (CAPM), since the arbitrage pricing theory (APT) has more elastic supposition requirements, while the CAPM require the markets predictable return. The basis of arbitrage pricing theory is the initiative that the price of an asset is determined by a number of factors. These numbers of factors can be divided into two groups: micro factors and macro factors. The name of the theory comes from the fact that this division, together with Arbitrage can be used to derive the following formula: r = rf + ÃŽÂ ²1f1 + ÃŽÂ ²2f2 + ÃŽÂ ²3f3 +à ¢Ã¢â€š ¬Ã‚ ¦.. ÃŽÂ ²nfn. r = rf + ÃŽÂ ²1f1 + ÃŽÂ ²2f2 8Where r is the expected return on the security, rf is the risk free r ate, each f is a separate factor, f1 denote market premium while f2 represent the difference of high and low leverage stocks portfolio and each coefficients are the risk sensitivities of returns for market risk (ÃŽÂ ²1) and leverage (ÃŽÂ ²2). The two-factor model is an addition of a sole factor CAPM; lot of literature today supports other additional factors beside the traditional beta. Fama French (1992) have done wide investigate in this region and initiate factors describing value and size to be the most considerable factors, other than the market risk, they value risk. The word SMB means small minus big, ià ¢Ã¢â€š ¬Ã¢â‚¬Å"e, the firm with low market capitalization and the firm with high market capitalization. HMB stands for high minus low, has been designed to determine the value premium. The two factors model allows the investors to weight their portfolios in such a way that they have larger or lesser coverage to each of the particular risk factors and there fore can mar k more accurately various levels of expected return. To test the two factor model this particular study follow the traditional multivariate regression framework and convert the above equation into a simple time series model represented as follows: RÃŽÂ ¯ = R?+ÃŽÂ ²ÃƒÅ½Ã‚ ¯ (Rm-R?) + hÃŽÂ ¯ (DER Premium). This study constructs two factors; (Rm-R?) address market premium and (DER Premium) address debt to equity ratio premium. (DER Premium) stands for the leverage premium that is the differentiation of the high and low debt to equity ratio. As regression analysis is used to predict dependent variable by using one or more independent variables. Where RÃŽÂ ¯ present the return on portfolios, it is the dependent variable that is to be predicted, (Rm-R?) and (DER Premium) are the independent variables that is use to predict it, ÃŽÂ ²ÃƒÅ½Ã‚ ¯ and hÃŽÂ ¯ are the coefficients or multipliers that describe the level of the effect, the independent variables has on dependent variable. Population The study has been conducted in Karachi Stock Exchange (KSE) that is Pakistan equity market. There are three markets in Pakistan where stocks are traded that is Islamabad Stock Exchange (ISE), Lahore Stock Exchange (LSE) and Karachi more active stock market in Pakistan. According to accounting information 65 to 70% value of total transaction of the country recorded at KSE on 1st October 2004. It was stated the Best performing stock market of the world for 2002 Suliaman et al (2009). In 1991, KSE was declared as an open market and it is considered as an emerging stock market and is therefore consider different from the developed markets. There are 34 sectors that have been traded, and each sector consist bundle of companies. As for the particular study is concerned, the population to be studied includes 34 sectors from Karachi Stock Exchange (KSE). It contains a large number of listed firms. Sample The secondary data has being used for this particular study. The data collected from the financial data available in the Karachi stock exchange web site (www. kse .com. Pk), cover a phase from 2001 to 2007. The sample include 100 listed- Pakistani firms at Karachi Stock Exchange among the identified sample ià ¢Ã¢â€š ¬Ã¢â‚¬Å"e 21 sectors which is almost equal to 60%, from 2001 to 2007, the monthly data on closing price of stocks and Karachi Stock Exchange index gathered from the www.brecorder.com and Ready Board Quotations issued by Karachi Stock Exchange at the closing of trading day, that is also accessible in the documents of Security and Exchange Commission of Pakistan (SECP). The procedure to create a sample size from the identified population is to select those 100 companies that are traded eight (8) months a year at least, while as the companies that has been traded less than eight months a year has been excluded, the analysis of the relationship between stock returns and th e identified variables is conducted at the portfolio level. To find out the leverage ratio (debt à ¢Ã¢â€š ¬Ã¢â‚¬Å" to à ¢Ã¢â€š ¬Ã¢â‚¬Å" equity ratio) of the sorted companies the value of debt divided by the value of equity. These values of debt and equity of the sorted company are obtained from the annual report of companies. The companies with low leverage ratio have been placed in small and those with high leverage ratio have been placed in large. The treasury-bill rate is used as risk free rate and KSE Index as the return rate of market. The data on treasury-bill rates are taken from Monthly Billiton of State Bank of Pakistan. The financial sector including banks, insurance and leasing etc; are excluded from the total selected sample, as the majority of the studies exclude the financial sectors while conducting the study because of highly differentiated risk profiles, Fama and French (1992). The industries to be studied listed at Karachi Stock Exchange 1. Textile Spinning . 2. Transport. 3. Technology and Communication. 4. Woolen. 5. Jute. 6. Sugar and Allied Industries. 7. Cement. 8. Tobacco. 9. Refinery. 10. Power Generation and Distribution. 12. Oil and Gas Exploration Companies. 13. Automobile Assembler. 14. Automobile Parts and Accessories. 15. Cable and Electronic Goods. 16. Fertilizer. 17. Pharmaceuticals. 18. Chemical. 19. Leather and Tanneries. 20. Food and Personal Care Products. 21. Miscellaneous. IV. ANALYSIS AND EMPIICAL RESULT The empirical estimation is based on a cross-sectional regression analysis of the relationship between stock prices in form of portfolios and the firm debt to equity ratio. It actually test the relationship of portfolio return as dependent variable and two independent variables i.e. market premium (Rm-Rf) and leverage premium. Dependent Variable PORTFOLIO RETURNS The average returns of the firms included in sample of all stocks by creating portfolios, represented by P1 to P10 is to be cosidered as dependent variable for the two factor model. Stock returns are calculated as; Rit = Ln (Pit-1/ Pit) Where Pit is the stock price of the i- th firm in time period t and the average return of this stock is the return of portfolios that has been regressed as dependent variable on two factors namely market premium premium and leverage premium. The independent variables include market premium and leverage premium. Independent Variables 1. Market premium (Rm-Rf) 2. Lever age premium (DER PREMIUM) 1. MARKET PREMIUM (Rm-Rf) Market premium, it is calculated as the differentiation among risk free rate and return on market, that presents the excess return that investor could receive if he invests in market both CAPM and three factor model, but today the empirical studies have shown the accessibility of extra normal returns by adding other factors that has the affect on the returns of the stocks. In this particular paper other two independent variables are; Return of market is calculated as; Rm = Ln (KSE Indexit -1/ KSE Indexit) Market premium (Rm-Rf) is calculated as, the difference between the return on KSE index and T-bill yield. This factor is enough to found the CAPM, however there is another risk factors to be studied in this study that is leverage. 2. LEVERAGE PREMIUM (DER PREMIUM) Leverage premium, is measured as the difference between the firms with high debt to equity ratios and the firms the low debt to equity ratios. Leverage premium (DE R premium) is computed as; There are two ways to measure the capital structure supported by literature: book leverage and market leverage. This paper use the book leverage, which equates the historical (book) value of total liabilities, divided by the book value of total assets. As for this study is concern the market leverage inappropriate, as its change is automatically linked with stock price. Therefore, the particular studies use the 3book leverage to determine the debt ratio. The book value of the assets is stable as compare to the market value. DER = Total Liabilities /Total Equity Total Liabilities = Total Asset à ¢Ã¢â€š ¬Ã¢â‚¬Å" Total Equity Leverage Premium = High DER last 30% à ¢Ã¢â€š ¬Ã¢â‚¬Å" Low DER top30% liabilities on the book value of total equity at the ending period of each year of the sample. The identified sample then ranked and grouped into 3 different groups based on the bottom 30% classified as low debt to equity ratios, middle 40% classified as Med ium and top 30% classified as high debt to equity ratios. The firms were sorted into ten portfolios, with portfolio one (P1) having the lowest leverage ratio and portfolio ten (P10) having the highest leverage ratio. The firms in Pakistan are highly levered; the average equity is 35% while the average debt is 65% of the identified population that contain approximately 400 companies. The Table 4.1 shows the descriptive statistical trend of the calculated portfolios on the base of leverage. The 1st portfolio (P1) present the firms with low debt to equity ratio and the last portfolio (P10) present the firms with high debt to equity ratio. It follow the abnormal behavior as the general theoretical phenomena is that the firms with high debt to equity ratios have high risk adjusted high return, but this particular study report the high volatility in low debt to equity in compare to the high debt to equity ratio (Fig. 4.1.A). At extreme level the expected return of the firm with high debt to equity ratio is high than the firm with low debt to equity ratios but overall the expected return of the firms with low debt to equity ratio (P1 to P5) is high and there is an increasing trend, while there is decreasing trend in the firms with high debt to equity ratio (Fig. 4.1.B). The reason for such behavior may be the industry effect that the firms in these portfolios mostly belong to textile spinning, sugar and chemical industry. The trading volume in these industries is low in this particular period that may miss priced the securities. The 6 th portfolio (P6) reported in Fig. 4.1. B also affected by the industry factor that is textile spinning and sugar. MEAN P 1 P 2 P 3 P 4 P 5 P 6 P 7 P 8 P 9 P 1030Mean 0. 0028 0. 0116 0.0151 0. 0145 0. 0182 0. 0059 0. 0140 0.10139 0. 0107 0. 0053 Standard Error 0. 0095 0. 0096 0. 0080 0. 0083 0. 0074 0. 0079 0. 0080 0. 0066 0. 0077 0. 0089 Median -0. 0001 0. 0084 0. 0113 0. 0028 0. 0161 -0. 0004 0. 0096 0. 0182 -0. 0017 -0. 0007 18Mode # N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A Standard Deviation 0. 0870 0. 0875 0. 0729 0. 0760 0. 0680 0. 0725 0. 0736 0. 0605 0. 0702 0.0819 Sample Variance 0. 0076 0. 0077 0. 0053 0. 0058 0. 0046 0. 0053 0. 0054 0. 0037 0. 0049 0.0067 Kurtosis 0.7974 1.5235 1.1644 0.3897 0.0609 0.5231 0.9866 -0.2800 0.3757 1.3534 5Skewness 0. 0467 0. 7305 0. 2540 0. 2827 0. 1311 0. 2868 0. 7281 0. 0441 0. 3698 0. 4540 1Range 0. 4565 0. 4933 0. 4404 0. 4160 0. 3548 0. 3761 0. 3909 0. 2908 0. 3741 0. 5089 Minimum -0. 2179 -0. 2033 -0. 1781 -0. 1780 -0. 1507 -0. 1512 -0. 1487 -0. 1196 -0. 1362 -0. 2186Maximum 0. 2385 0. 2900 0. 2623 0. 2379 0. 2042 0. 2248 0. 2422 0. 1712 0. 2379 0. 2903 Sum 0.2372 0.9723 1.2656 1.2151 1.5262 0.4959 1.1793 1.1674 0.8960 0.4432 Count 84.0000 84.0000 84.0000 84.0000 84.0000 84.0000 84.0000 84.0000 84.0000 84.0000 Confidence Level (95%) 0.0189 0.0190 0.0158 0.0165 0.0148 0.0157 0.0160 0.0131 0.0152 0.0178 Fig. 4.1.A. Graph of Leverage sorted portfolio returns (2001 to 2007) 2001 to 2007 0.0200 0.0150 0.0100 0.0050 0.0000 R.P 1 R.P 2 R.P 3 R.P 4 R.P 5 R.P 6 R.P 7 R.P 8 R.P 9 R.P 10 Portfolios Standard Deviation Fig. 4.1.B. Graph of Leverage sorted portfolio of standard deviation (2001 to 2007) 2001 to 2007 0.1000 0.0800 0.0600 0.0400 0.0200 0.0000 R.P 1 R.P 2 R.P 3 R.P 4 R.P 5 R.P 6 R.P 7 R.P 8 R.P 9 R.P 10 Portfolios The data is further classified into two- sub group for more precise examination. The table 4.2 presents the statistical behavior of 1 st sub group that is from January 2001 to December 2003. The 1 st sub group follows almost the same behavior. The effect of industry is found in both P6 and P10. The P10 present the most high leverage ratios because of the textile spinning industry. Most of the firms belong to textile sector has negative equity that result in low trading and that also result in low returns. Mean P 1 P 2 P 3 P 4 P 5 P 6 P 7 P 8 P 9 P 1054Mean 0. 0092 0. 0166 0. 0270 0. 0201 0. 0249 0. 0176 0. 0201 0. 0302 0.0238 0. 0168 Standard Error 0. 0176 0. 0177 0. 0138 0. 0141 0. 0133 0. 0135 0. 0133 0. 0102 0.0123 0. 0161 Median -0. 0013 0. 0240 0. 0266 0. 0178 0. 0195 0. 0088 0. 0135 0. 0312 0. 0253 0. 0094 Mode 16#N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A Standard Deviation Sample Variance 0. 1053 0. 1062 0. 0829 0. 0849 0. 0795 0. 0807 0. 0796 0. 0611 0. 0735 0. 0967 0. 0111 0.0113 0.0069 0.0072 0.0063 0.0065 0.0063 0.0037 0.0054 0.0094 ]Kurtosis 0. 1066 0. 8914 0. 6407 -0. 1493 -0. 1222 0. 5813 0. 9614 -0. 2317 -0. 4227 1.3774 Skewness 0. 1930 0. 6009 0. 5844 -0. 0209 0. 1658 0. 5579 0. 4964 0. 0643 -0. 1648 0. 4486 Range 0. 4565 0. 4933 0. 3946 0. 3758 0. 3548 0. 3459 0. 3907 0. 2535 0. 2843 0. 5089 Minimum -0. 2179 -0. 2033 -0. 1323 -0. 1780 -0. 1507 -0. 1211 -0. 1487 -0. 0823 -0. 1362 -0. 2186 Maximum 0. 2385 0. 2900 0. 2623 0. 1977 0. 2042 0. 2248 0. 2420 0. 1712 0. 1481 0. 2903 Sum 0.3298 0.5977 0.9710 0.7221 0.8968 0.6328 0.7243 1.0862 0.8585 0.6035 Count 36.0000 36.0000 36.0000 36.0000 36.0000 36.0000 36.0000 36.0000 36.0000 36.0000 Confidence Level(95%) 0.0356 0.0359 0.0280 0.0287 0.0269 0.0273 0.0269 0.0207 0.0249 0.0327 Fig. 4.2.A. Graph of Leverage sorted portfolio returns (2001 to 2003) 2001 to 2003 0.0350 0.0300 0.0250 0.0200 0.0150 0.0100 0.0050 0.0000 R.P 1 R.P 2 R.P 3 R.P 4 R.P 5 R.P 6 R.P 7 R.P 8 R.P 9 R.P 10 Portfolios Mean Standard Deviatio 2001 to 2003 0.1200 0.1000 0.0800 0.0600 0.0400 0.0200 0.0000 R.P 1 R.P 2 R.P 3 R.P 4 R.P 5 R.P 6 R.P 7 R.P 8 R.P 9 R.P 10 Portfolios Standard Deviation The table 4.3 presents the 2 nd sub group that contains the data from January 2004 to December 2007. In this particular duration there is a high variation in mean of the firms with high debt to equity ratio in portfolios as compare to other identified periods, even in some cases their trend is negative (P6 and P10 see Fig 4.3.A) which indicate the industry factor followed by P6 in each period. In 2 nd sub group period the negative trend of P10 is because of industr y factor. In which most of the companies belong to textile spinning and sugar. In this particular time large numbers of textile companies were de listed from KSE. There may some macro economic indicator also involve in this particular period that is the interest rate, exchange rate and inflation rate increase at increasing rate. P 1 P 2 P 3 P 4 P 5 P 6 P 7 P 8 P 9 P 10Mean -0. 0019 0. 0078 0.0061 0. 0103 0. 0131 -0. 0029 0. 0095 0. 0017 0. 0008 -0. 0033 Standard Error 0. 0103 0. 0103 0. 0092 0. 0100 0. 0084 0. 0094 0. 0100 0. 0083 0. 0096 0. 0099 Median -0.0001 0. 0047 0. 0012 -0. 0101 0. 0148 -0. 0093 0. 0014 -0. 0063 -0. 0110 -0. 0098 Mode 16#N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A Standard Deviation Sample Variance 0. 0711 0. 0714 0. 0639 0. 0693 0. 0582 0. 0653 0. 0693 0. 0577 0. 0667 0. 0685 0. 0051 0.0051 0.0041 0.0048 0.0034 0.0043 0.0048 0.0033 0.0044 0.0047 Kurtosis 1.0956 1.4548 0.8971 1.3503 -0.4150 -0.4151 1.2643 -0.4202 2.0809 -0.4177 5Skewness -0. 5540 0. 7717 -0. 5549 0. 6067 -0. 1664 -0. 2848 0. 9538 -0. 0488 0. 8397 0. 0785 Range 0. 3622 0. 3809 0. 3134 0. 3722 0. 2381 0. 2581 0. 3412 0. 2423 0. 3657 0. 2953 Minimum -0. 1948 -0. 1456 -0. 1781 -0. 1343 -0. 1091 -0. 1512 -0. 0990 -0. 1196 -0. 1277 -0. 1505 Maximum 0. 1674 0. 2353 0. 1353 0. 2379 0. 1291 0. 1068 0. 2422 0. 1227 0. 2379 0. 1448 Sum -0.0926 0.3746 0.2945 0.4930 0.6294 -0.1368 0.4550 0.0812 0.0375 -0.1603 Count 48.0000 48.0000 48.0000 48.0000 48.0000 48.0000 48.0000 48.0000 48.0000 48.0000 Confidence Level (95.0%) 0. 0206 0. 0207 0. 0185 0. 0201 0. 0169 0. 0190 0.0201 0. 0167 0. 0194 0. 0199 Standaiationrd De Mean 2004 to 2007 0.0150 0.0100 0.0050 Mean 0.0000 -0.0050 R.P 1 R.P 2 R.P 3 R.P 4 R.P 5 R.P 6 R.P 7 R.P 8 R.P 9 R.P 10 Portfolios Fig. 4.3.B. Graph of leverage sorted portfolio of standard deviation (2004 to 2007) 2004 to 2007 0.0800 0.0700 0.0600 0.0500 0.0400 0.0300 0.0200 0.0100 0.0000 R.P 1 R.P 2 R.P 3 R.P 4 R.P 5 R.P 6 R.P 7 R.P 8 R.P 9 R.P 10 Portfolios Standard Deviation Table 4.4: CAPM P1 to P10 (2001 to 2007) 2001 to 2007 P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 Rm-Rf 0. 6139 0. 5538 0. 4958 0. 4584 0. 4897 0. 5342 0. 6992 0. 7182 0. 9143 0. 9301 T-statistics 4.4118 4.6371 4.8907 5.6019 5.9395 7.1472 8.4852 10.1047 13.9437 22.1909 P- value 713.09E-05 1. 32E -05 4.93E -06 2. 76E-07 6. 63E-08 3.32E-10 7.61E-13 4.64E-16 2.4E-23 2.06E-36 35R2 0. 1918 0. 2077 0. 2258 0. 2767 0. 3008 0. 3838 0. 4675 0. 5546 0. 7033 0. 8572 The regression use the natural logs to found out the empirical link between the risk and return of portfolios that is the market premium, in other word to test the CAPM that is most frequently used. The P-value at 95% confidence level shows the relationship is highly significant at each portfolio (P1 to P10). A higher value of R 2 is associated with more explanatory power of a model but the table 4.4 suggests space for other variable, as the value of R 2 is not high. Table 4.5: Regression Market Premiums and Leverage P1 to P10 (2001 to 2007) P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 Rm-Rf 0. 6402 0. 5813 0. 6110 0. 6382 0. 5959 0. 7007 0. 5539 0. 4837 0. 5451 0. 6437 T- statistics 6.8075 5.6327 7.8876 8.1968 8.6013 11.4118 6.6843 7.3051 7.0040 7.3814 4P- value 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 DER (PREMIUM) -0. 6282 -0. 3881 0. 0729 -0. 3754 -0. 1046 0. 5139 0. 2662 -0. 0996 0. 2246 0. 5054 T- statistics -3.2207 -1.8134 0.4537 -2.3252 -0.7281 4.0355 1.5490 -0.7255 1.3914 2.7944 4P- value 0. 0018 0. 0735 0. 6513 0. 0226 0. 4686 0. 0001 0. 1253 0. 4702 0. 1679 0. 0065 R2 0. 4153 0. 3041 0. 4348 0. 4751 0. 4800 0. 6414 0. 3658 0. 4004 0. 3848 0. 4319 By adding other factor the regression predict that the dependent variable is not more effected by leverage premium (DER premium), the P-value at 95% confidence level is highly significant at market premium but almost insignificant at leverage premium. The R 2 increase highly in small firms (P1 to P5), this makes R 2 sensitive to number of expl anatory variables including in model. The difference between the values of R 2 is almost equal to zero by adding 2 nd factor (DER premium) that predict no contribution towards the equity returns. Conclusive result of all the two tables in the period of 2001 to 2007 clearly suggest that the market premium does exit contribution towards the stock returns, while the leverage ratio dose not affect the stock returns in identified period and time. 2001 to 12003 P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 Rm-Rf 0. 6097 0. 4567 0. 4208 0. 4734 0. 4875 0. 5643 0. 7017 0. 7997 1.0423 1.0005 T-statistics 3.5320 2.4908 3.1141 5.6393 4.2490 6.5681 6.3983 8.8634 11.5965 22.2875 20P-value 0. 0012 0. 0178 0. 0037 0.0000 0. 0002 0.0000 0.0000 0.0000 0.0000 0.0000 R2 0. 2684 0. 1543 0. 2219 0. 4833 0. 3468 0. 5592 0. 5463 0. 6979 0. 7982 0. 9359 The table 4.6 regresses the sub period from 2001 to 2003 to predict the linear relationship between the portfolio returns and risk. The P-value at 95% confidence level is highly significant at each portfolio, as reported in table 4.6. The value of R 2 is high with same factor (market premium) and same model (CAPM) in sub period. The higher value of R 2 indicates more explanatory power of model in sub period. Table 4. 7: Regression Market Premium and Leverage P1 to P10 (2001 to 12003) P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 Rm-Rf 0. 6290 0. 6884 0. 7096 0. 6444 0. 6691 0. 7033 0. 6065 0. 4875 0. 5616 0. 7450 T- statistics 4.5695 4.5780 7.7303 6.5886 7.2923 8.6674 5.8244 6.5908 5.8158 5.9996 4P- value 0. 0001 0. 0001 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 DER (PREMIUM) -1.1500 -0.7034 0.0954 -0.7578 -0.2427 0.2865 -0.2597 -0.3164 -0.1302 0.1314 T- statistics -4.0704 -2.2791 0.5065 -3.7753 -1.2890 1.7201 -1.2153 -2.0840 -0.6570 0.5156 4P- value 0. 0003 0. 0293 0. 6159 0. 0006 0. 2064 0. 0948 0. 2329 0. 0450 0. 5158 0. 6096 R2 0. 5117 0. 4269 0. 6493 0. 6202 0. 6191 0. 7109 0. 5108 0. 5812 0. 5064 0. 5288 Almost same behavior is followed in tabl e 4.7 by regressing two factors for 1st sub period that is the market premium is highly significant at 95% confidence level, while the leverage is insignificant. 1P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 Rm-Rf 0. 6156 0. 6892 0. 5999 0. 4327 0. 4940 0. 4898 0. 6923 0. 5907 0. 7156 0. 8234 T-statistics 2.6730 4.3240 3.8005 2.9263 3.9416 3.8017 5.3308 5.2482 7.8105 11.4892 43P 0. 0104 0. 0001 0. 0004 0. 0053 0. 0003 0. 0004 0.0000 0.0000 0.0000 0.000020R2 0. 1344 0. 2890 0. 2390 0. 1569 0. 2525 0. 2391 0. 3819 0. 3745 0. 5701 0.7416 The CAPM in 2nd sub period that is from 2004 to 2007 predict that it is highly significant at 95% confidence level; the P -value of 1st portfolio is significant at 90% confidence level. The value of R 2 is low as compare to the CAPM applied in 1st sub group (see table 4.6). The 2nd period that is 2004 to 2007 Pakistan stock market suffers due to macro factors. Table 4. 9: Regression Market Premium and Leverage P1 to P10 (2004 to 12007) P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 Rm-Rf 0. 7533 0. 4714 0. 4358 0. 6988 0. 5015 0. 7318 0. 5765 0. 4951 0. 5745 0. 5517 T- statistics 6.4090 3.2099 3.3728 5.8465 4.5757 7.7722 4.8593 4.5264 4.7426 4.5422 4P- value 0.0000 0. 0025 0. 0015 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 DER (Premium) 0. 2092 0. 0121 -0. 1219 0. 2262 0. 0257 0. 8464 1.0852 0. 1508 0. 7328 0. 9958 T- statistics 0. 8331 0. 0387 -0. 4416 0. 8861 0. 1099 4.2085 4.2820 0.6455 2.8320 3.8384 4P- value 0. 4092 0. 9693 0. 6609 0. 3803 0. 9130 0. 0001 0. 0001 0. 5219 0. 0069 0.0004 R2 0. 4780 0. 1911 0. 2183 0. 4320 0. 3235 0. 6027 0. 4403 0. 3133 0. 3698 0. 3991 In 2 nd sub period lot of variation has been experienced (see mean value, table 4.3), the same impact is found in table 4.9 by regressing the 2 nd factors, the P-value of market premium is highly significant at 95% confidence level at each portfolios, while the same consistency is not followed by leverage (DER premium). The another independent variable that is the leverage, is highly s ignificant in few portfolios (P6, P7, P9 and p10) at 95% confidence level that predict the contribution of last identified factor. The value of R 2 is also high as compare to previous periods that indicate the high contribution by 3 rd factor in this particular period. V. SUMMARY, CONCLUSION AND RECOMMENDATIONS 5 .1 Summary This study was conducted to determine the affect of market premium and one of CAPM anomaly in Pakistan equity market. The anomaly that has been studied is the leverage premium. The study uses the secondary data of the firms that has been traded in Karachi stock exchange (KSE). The data has been collected from the financial data published in the Karachi stock exchange web site (www. kse .com. Pk), covering a phase from 2001 to 2007. The sample includes 100 listed- Pakistani firms at Karachi Stock Exchange among 21 sectors, the monthly data on ending price and Karachi Stock Exchange index collected from the www.brecorder and Ready Board Quotations that is iss ued by Karachi Stock Exchange at the closing of trading day, which are also presented in the records of Security and Exchange Commission of Pakistan (SECP). The multivariate regression model has been used to identify the relationship among market premium, debt à ¢Ã¢â€š ¬Ã¢â‚¬Å" to à ¢Ã¢â€š ¬Ã¢â‚¬Å" equity premium and portfolio returns. The P-value at 95% confidence level shows the relationship with CAPM is positive and is significant related to portfolio returns (P1 to P10), while the leverage premium (DER premium) is positively insignificant. The proposed multi-factor model explains that the value of R2 indicated that there is no contribution by adding the identified variable (Leverage premium). 5.2 Conclusion This study relates cross-sectional differences in returns on Pakistan stocks to the underlying behavior of two identified variables i-e market premium (Rm-Rf) and DER (Premium). It has been experienced that there exist lot of variation in Pakistan and the multivariate regression model. It includes 21 sectors consisting of 100 listed- Pakistani firms for the period of January 2001 to December 2007. The data has been classified into there different time periods. First time period follows the abnormal behavior as the general theoretical phenomena is that the firms with high debt to equity ratios have high risk adjusted high return. But this particular study report the high volatility in low debt to equity in compare to the high debt to equity ratio (Fig. 4.1.A) by using descriptive statistics (Table 4.1). At extreme level the expected return of the firm with high debt to equity ratio is high than the firm with low debt to equity ratios but overall the expected return of the firms with low debt to equity ratio (P1 to P5) is high and there is an increasing trend, while there is decreasing trend in the firms with high debt to equity ratio (Fig. 4.1.B). The reason for such behavior may be the industry effect that the firms in these portfolios mostly be long to textile spinning, sugar and chemical industry. The trading volume in these industries is low in this particular period that may miss priced the securities. The 6 th portfolio (P6) reported in Fig. 4.1.B also affected by the industry factor that is textile spinning and sugar. The data is further classified into two- sub group for more precise examination. The 1 st sub group consists of three years from January 2001 to December 2003. The 1st sub group follows almost the same behavior. The effect of industry is found in both P6 and P10. The table 4.3 presents the 2nd sub group that contains the data from January 2004 to December 2007. In this particular duration there is a high variation in mean of the firms with high debt to equity ratio in portfolios as compare to other identified periods, even in some cases their trend is negative (P6 and P10 see Fig 4.3.A) which indicate the industry factor followed by P6 in each period. In 2 nd sub group period belong to textile spinning a nd sugar. The regression uses the natural logs to found out the empirical link between the identified variables and portfolios return. Conclusive result of all the two tables (Table 4.4 and 4.5) in the period of 2001 to 2007 clearly suggest that the market premium does exit contribution towards the stock returns, while the leverage ratio dose not affect the stock returns in identified period and time. The first sub period (Table 4.6) from 2001 to 2003 predict that the P-value at 95% confidence level is highly significant at each portfolio. The value of R 2 is high with same factor (market premium) and same model (CAPM) in sub period. Almost same behavior is followed in table 4.7 by regressing two factors for 1st sub period that is the market premium is highly significant at 95% confidence level, while the leverage is insignificant. In 2nd sub period Pakistan stock market suffers due to macro factors. In 2nd sub period lot of variation has been experienced (see mean value, table 4.3) , the same impact is found in table 4.9 by regressing the 2nd factors, the P-value of market premium is highly significant at 95% confidence level at each portfolios, while the same consistency is not followed by leverage (DER premium). 5.3 Recommendation As conclusive result suggest that the market premium does exit contribution towards the stock returns, while the leverage ratio dose not affect the stock returns in identified period. This particular study recommends that there might many other independent macro-economic or micro-economic variables that predict a relationship between the returns of a portfolio. Today lot of literature support other company price earnings ratio and book to market ratio etc. ABSTRACT CAPM anomalies. The asset-pricing model of Sharpe (1964), Linter (1965) and firms risk premium. The company by more debt finance than equity finance is to be considered highly Chan et al. (1991) conducted a study in Tokyo stock market; their findings growth firms. The association between leverage and corporate value is negative and to these norms. He also mentioned that there finding was consistent with optimal constructed two factors; SMB to address size risk and book -to- market to address34Stock Exchange (KSE). The Karachi Stock Exchange (KSE) is the highly liquid and To find out the leverage ratio (debt à ¢Ã¢â€š ¬Ã¢â‚¬Å" to à ¢Ã¢â€š ¬Ã¢â‚¬Å" equity ratio) of the sorted 11. Oil and Gas Marketing Companies. portfolio instead of investing in a risk free asset. The market premium is the same in Debt to equity ratio (DER) ratio is calculated by dividing book value of total Table 4 .1: Descriptive Statistics of portfolios sorted on leverage (2001 to 2007) Table 4.2: Descriptive Statistics of portfolios sorted on leverage (2001to 2003) Fig. 4.2.B. Graph of leverage sorted portfolio of standard deviation (2001 to 2003) Table 4.3. Descriptive Statistics of portfolios sorted on leverage (2004 to 2007) Fig. 4.3.A. Graph of leverage sorted portfolio r eturns (2004 to 2007). Table 4.6: CAPM P1 to P10 (2001 TO 2003) Table 4.8: CAPM P1 TO P10 (2004 to 2007) in relation to portfolio returns the particular study use the descriptive statistical trend the negative trend of P10 is due to industry factor that is most of the companies specific (micro) factors to determine the required rate of return i-e size premium, 1 2 3 4 tend to have positive SMB HML slopes and higher future average return. 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 equity returns as in other developing countries. To determine the identified variables 26 27 28 29

Top Three Shakespeare Villains

While Shakespeare is known for penning many heroic monologues from Henry V  to Hamlet, lets turn our attention toward the immortal bards darker nature. Shakespeare has a knack for giving a sharp tongue to his tyrants, traitors, and antagonists. The following is a list of the three most villainous Shakespeare characters along with their best monologues. #1 Iago from Othello Iago is  Shakespeares most sinister (and in some ways most mysterious) character. He is the main antagonist in Othello. He is Othellos ensign and the husband of Emilia, who is the attendant of Desdemona, Othellos wife. A Machiavellian conniver, Othello deeply trusts Iago, and Iago uses this trust to betray Othello while still appearing honest.   Iagos motives also remain a mystery, leading to lengthy debates between theatergoers and Shakespeare scholars alike. While some argue his motivation is to be promoted, others believe Iago enjoys destruction for the sake of it. In Act II Scene III, Iago delivers one of his most villainous monologues  as he reveals his plot to overthrow Othellos sense of reason and trust. He explains his scheme to make it seems as though Othellos wife Desdemona has been unfaithful. Here are some quotes from the monologue that exemplify Iagos manipulative and mysterious nature: And whats he then that says I play the villain?When this advice is free I give and honest.How am I then a villainTo counsel Cassio to this parallel course,Directly to his good?So will I turn her virtue into pitch,And out of her own goodness make the netThat shall enmesh them all. #2 Edmund from King Lear Nicknamed Edmund the Bastard, Edmund is a character in Shakespeares tragedy, King Lear. He is the black sheep of the family, and self-conscious because he believes his father favors the so-called good brother over him. On top of that, Edmund is particularly bitter as he was born out of wedlock, meaning his birth was with someone other than his fathers wife. In Act I Scene II, Edmund delivers a monologue in which he reveals his intention to make a grab for power that will send the kingdom into a bloody civil war. Here are some memorable lines: Why bastard? wherefore base?When my dimensions are as well compact,My mind as generous, and my shape as true,As honest madams issue?Legitimate Edgar, I must have your land.Our fathers love is to the bastard EdmundAs to th legitimate. Fine word- legitimate!Well, my legitimate, if this letter speed,And my invention thrive, Edmund the baseShall top th legitimate. I grow; I prosper.Now, gods, stand up for bastards! #3 Richard from Richard III Before he can ascend to the throne and become king, the hunchbacked Richard, Duke of Gloucester, does a lot of double-crossing and killing first. In one of his more diabolical moves, he attempts to win the hand of Lady Anne, who at first loathes the power-hungry creep but eventually believes him sincere enough to marry. Unfortunately for her, she is completely wrong, as his villainous monologue  in Act I Scene II reveals. The following are excerpts from Richards speech: Was ever woman in this humour wood?Was ever woman in this humour won?Ill have her; but I will not keep her long.Hath she forgot already that brave prince,Edward, her lord, whom I, some three months since,Stabbd in my angry mood at Tewksbury?My dukedom to a beggarly denier,I do mistake my person all this while:Upon my life, she finds, although I cannot,Myself to be a marvellous proper man.

John Stuart Mill on Liberty and Freedom of Expression

Inhibition of ones liberty, such as their liberty of conscience (i.e. freedom of speech), is unjust by Millian principles, unless the persons use of deliberation is to voice hate speech. So what is hate speech? Hate speech is directed towards a member of a group, or the group as a whole, that vilifies on the basis of the subjects beliefs. In comparison to discriminatory speech, hate speech does not invoke mere offense, but in most cases is traumatic, and severely impair one’s deliberative capacities, or their mental faculties (judgment, moral preference, intuition, etc†¦). Liberties have been established to protect our deliberative abilities, as these are conducive to achieving happiness, which to Mill is the individuals primary goal. So why should we regulate hate speech? Although it is important to allow peoples freedom of expression, as this is conducive to promoting ones individuality, hate speech can stigmatize ones character, and for this reason hate speech is not always morally, or legally permissible. To better understand hate speechs importance, I will describe Mills argument in favor of prohibiting hate speech, following this I will object to Mills rejection of hate speech, finally, I will show why hate speech should be regulated, and why allowing it is dangerous to humans, and society as a whole. Freedom of expression is imperative for improving one’s character, but not all forms of opinions, such as hate speech, should have full freedom to beShow MoreRelatedAccording to Mills, government should not be attempting to control individual freedoms, but should1100 Words   |  5 Pages According to Mills, government should not be attempting to control individual freedoms, but should be helping individuals develop in society. 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Alfred Tennyson and His Work Essay Example For Students

Alfred Tennyson and His Work Essay Alfred Tennyson and His WorkAlfred Tennyson was born on August 6th, 1809, at Somersby, Lincolnshire,fourth of twelve children of George and Elizabeth Tennyson. Tennyson, said tobe the best poet of the Victorian era and his poetry will be discussed in thisessay. Tennyson had a lifelong fear of mental illness, because several men inhis family had a mild form of epilepsy, which then was thought of as a shamefuldisease. His father and brother Arthur made their epilepsy worse by excessivedrinking. His brother Edward had to be put in a mental institution after 1833,and he spent a few weeks himself under doctors care in 1843. In the latetwenties his fathers physical and mental condition got worse, and he becameparanoid, abusive, and violent. In 1827 Tennyson escaped his troubled home when he followed his twoolder brothers to Trinity College, Cambridge, where his teacher was WilliamWhewell. Because each of them had won university prizes for poetry the Tennysonbrothers became well known at Cambridge. In 1829 The Apostles, an undergraduateclub, invited him to join. The members of this group would remain Tennysonsfriends all his life. Arthur Hallam was the most important of these friendships. Hallam, abrilliant Victorian young man was recognized by his peers as having unusualpromise. He and Tennyson knew each other only four years, but their intensefriendship had a major influence on the poet. On a visit to Somersby, Hallammet and later became engaged to Emily Tennyson, and the two friends lookedforward to a life-long companionship. Hallam died from illness in 1833 at theage of 22 and shocked Tennyson profoundly. His grief lead to most of his bestpoetry, including In Memoriam, The Passing of Arthur, Ulysses, andTithonus. Since Tennyson was always sensitive to criticism, The bad reviews of his1832 poems hurt him greatly. Critics in those days took great joy in theharshness of their reviews. John Wilson Crokers harsh criticisms of some ofthe poems he wrote kept Tennyson from publishing again for another nine years. The success of his 1842 poems made Tennyson a popular poet, and in 1845he got a government pension of 200 pounds a year, which helped him with hisfinancial difficulties. The success of The Princess and In Memoriam and hisappointment as Poet Laureate in 1850 finally established him as the most popularpoet of the Victorian era. By now Tennyson, only 41, had written some of his greatest poetry, buthe continued to write and to gain popularity. Prince Albert admired his poetryso much that he would drop by unexpectedly to here some of Tennysons poetry. This helped solidify his position as the national poet, and Tennyson returnedthe favour by dedicating The Idylls of the King to his memory. Tennyson suffered from extreme short-sightedness so without a monocle hecould not even see to eat. This made for difficult reading and writing, andthis is why he composed a lot of his poetry in his head. Sometimes he wouldwork on a single poem for many years. Every aspect of the Victorian era were found in his poetry. His poetrycovered a large range of subjects such as moral and religious problems in histime. His poems also discuss the events of his day The Charge of the LightBrigade and The Death of the Duke of Wellington are two poems of this typethat show the emotion of the nation. Tennysons work is appreciated perhaps for the sheer beauty of hiswriting, his descriptions of the natural world and of the landscape-most oftenthe Lincolnshire countryside which he grew up in: Calm and deep peace on this high wold, And on these dews that drench the furze, And all the silvery gossamers That twinkle into green and gold (Culler, A. Dwight, pg. 39)The public side of Tennysons work is now valued less than his morepersonal poetry. He writes about how reality destroys the ideal world as inThe Lady of Shalott. Frequently, Tennysons personal worries were the sameas those of the time. For example, the way he describes Sir Bediveres reactionto the death of King Arthur in Morte DArthur. Tennyson expresses SirBediveres problem, caught in a changing world and with stable traditionsdisappearing fast. For now I see the true old times are dead(Culler, A. .u16d2e13cc40a8f6fa59777603a9b9559 , .u16d2e13cc40a8f6fa59777603a9b9559 .postImageUrl , .u16d2e13cc40a8f6fa59777603a9b9559 .centered-text-area { min-height: 80px; position: relative; } .u16d2e13cc40a8f6fa59777603a9b9559 , .u16d2e13cc40a8f6fa59777603a9b9559:hover , .u16d2e13cc40a8f6fa59777603a9b9559:visited , .u16d2e13cc40a8f6fa59777603a9b9559:active { border:0!important; } .u16d2e13cc40a8f6fa59777603a9b9559 .clearfix:after { content: ""; display: table; clear: both; } .u16d2e13cc40a8f6fa59777603a9b9559 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u16d2e13cc40a8f6fa59777603a9b9559:active , .u16d2e13cc40a8f6fa59777603a9b9559:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u16d2e13cc40a8f6fa59777603a9b9559 .centered-text-area { width: 100%; position: relative ; } .u16d2e13cc40a8f6fa59777603a9b9559 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u16d2e13cc40a8f6fa59777603a9b9559 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u16d2e13cc40a8f6fa59777603a9b9559 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u16d2e13cc40a8f6fa59777603a9b9559:hover .ctaButton { background-color: #34495E!important; } .u16d2e13cc40a8f6fa59777603a9b9559 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u16d2e13cc40a8f6fa59777603a9b9559 .u16d2e13cc40a8f6fa59777603a9b9559-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u16d2e13cc40a8f6fa59777603a9b9559:after { content: ""; display: block; clear: both; } READ: Sophocles' Antigone - Creon is Donig the Right Thi EssayDwight, pg. 47): And I, the last, go forth companionless, And the days darken round me, and the years, Among new men, strange faces, other minds. (Culler, A. Dwight, pg. 48)Probably his greatest poem is In Memoriam, published in 1850, thoughwritten over the previous seventeen years. He started writing it after theyouthful death of his best friend, Arthur Hallam. His death led Tennyson toquestion the purpose of life and the importance of death. In Memoriam isalmost like a poetic diary since all events are linked to Hallam and to thequestion of death. They say its the uncertainty of the poem that makes it sogood. The twentieth century poet T. S. Eliot said of it, Its faith is a verypoor thing, but its doubt is a very intense experience. The intensity, thedoubt, the beauty: all are typical of Tennyson. Long-lived like most of his family, no matter how unhealthy they seemedto be, Alfred, Lord Tennyson died on October 6, 1892, at the age of 83. Bibliography1. The Illustrated Encyclopedia of Knowledge (1978)2. Culler, A. Dwight, The Poetry of Tennyson (1977)3. Nicolson, Harold, Tennyson: Aspects of His Life, Character, and Poetry(1972)4. Software Toolworks Multimedia Encyclopedia (1992) English