Caveat Emptor

Caveat Emptor in Latin means † Let the buyer beware † in other words it is a notice to the buyer that the goods sold to the buyer are â€Å"as it is†. This rule Is a rule of the common law applicable to the sale and purchase of lands, other real estate and so on. Under the principle of Caveat Emptor, the buyer could not recover damages from the seller for defects on the property. However, this rule Is not arranged to protect sellers who engage In fraud or bad faith dealing by making false or misleading representations about the quality or condition of a particular product.Also, in buying used goods, like a used car, often the buyer has the risk, bears the burden of making sure that he or she gets what she bargained for or what she paid for and that there are no defects in the car because they will not be able to return the car and get money back because of the doctrine of caveat emptor. The word ‘caveat' is often used to warn buyers. For instance, you could s ay that the regulatory agency issued a caveat to citizens to do something or not to do something.This ollowing case is connected to the caveat emptor rule: Cheater v Cater [1917] 21 KB 247 The defendant landlord let a farm to a tenant retalnlng the adjoining premises on which was a shrubbery containing yew trees. The branches of the yew trees overhung the farm and were within the reach of the tenants cattle and horses. The tenant's horse died after eating yew from the overhanging branches of trees growing on the landlord's adjoining land. Held: The tenant's claim against the landlord in negligence and nuisance failed.Pickford LJ said: The law of this country is that a tenant, when he takes a farm, must look and Judge for himself what the state of the farm is. Just as in the case ofa purchaser of a business the rule is caveat emptor, so in the case of taking the lease of property the rule is caveat lessee; he must take the property as he finds it. I never heard that a landlord warran ted that the sheep should not eat his yew trees. † That is a distinct statement of the law and not a dictum. It Is the second ground given by the Lord Justice for his Judgment.If a Judge states two grounds for his Judgment and bases his declslon upon both, neither of those grounds Is a dictum. The law so stated by Melllsh L J. Is In agreement with a series of cases of which Sutton v Temple is an early instance. In a case of this kind the tenant takes the land demised as it is, and therefore if the tenant here took the land with the yew trees growing over it so that his cattle could eat of the branches and they did eat, he cannot complain. Therefore the broad proposition argued on behalf of the plaintiff cannot be maintained.In conclusion The caveat emptor had been seen as a powerful tool to the extent that many Jurisdictions have tried to overpower or neutralize it by establishing consumer protection or sale of goods legislation but when it comes to issues concerning land, the principle still applies. Towards the end of the 19th century, Caveat Emptor was still very much breathing as a general rule but the Judiciary were going In to some extent a different direction to go to the length of protecting a buyer as caveat emptor offers buyers very little protection. ThisInevitably led to the drafting of the Sale of Goods Bill. CAVEAT EMPTOR By elnxhshm Caveat Emptor in Latin means † Let the buyer beware† in other words it is a notice to the buyer that the goods sold to the buyer are â€Å"as it is†. This rule is a rule of from the seller for defects on the property. However, this rule is not arranged to protect sellers who engage in fraud or bad faith dealing by making false or The defendant landlord let a farm to a tenant retaining the adjoining premises on overhung the farm and were within the reach of the tenant's cattle and horses.The egligence and nuisance failed. Pickford LJ said: ‘The law of this country is that a farm is. Just as in the case ofa purchaser ofa business the rule is caveat emptor, so not eat his yew trees. † That is a distinct statement of the law and not a dictum. It is grounds for his Judgment and bases his decision upon both, neither of those grounds is a dictum. The law so stated by Mellish L. J. is in agreement with a series of but the Judiciary were going in to some extent a different direction to go to the length inevitably led to the drafting of the Sale of Goods Bill.

Necklace: Writing Process Essay

Choose one of the following topics and write an extended (500-word, multi-paragraph) essay that expands on the chosen topic. Please use all of the steps in the writing process (pre-writing, proof-reading, revising and editing, etc. ). IN THE CONCLUSION OF YOUR ESSAY, DESCRIBE YOUR PERSONAL PREFERENCES IN LISTENING TO OR WATCHING FICTION AND DRAMA. Your grade on this lesson is one sixth (1/6) of your grade for this course. If your grade on this lesson is â€Å"D† or â€Å"F†, you must repeat it until you earn at least a â€Å"C†. A. What is life like in Ireland for â€Å"Eveline† and the boy in â€Å"Araby†? Think about their class/social position. Think about how the people around them treat them. Think about their frustrations and their dreams and possible futures. B. Discuss what happens to Mathilde in â€Å"The Diamond Necklace†. Why did it happen? How could it have been different? What would you have done in this situation? C. Explicate (explain) â€Å"Harlem† (a. k. a. â€Å"A Dream Deferred† by Langston Hughes. What is the main idea (theme) of the poem? Identify and discuss each of the 5 similes. D. The writer in you – Discuss your attitude toward writers and the writing and/or what you have learned about the writing process from this study guide. Do you like to write? If so, do you prefer poetry, stories, non-fiction? WhChoose one of the following topics and write an extended (500-word, multi-paragraph) essay that expands on the chosen topic. Please use all of the steps in the writing process (pre-writing, proof-reading, revising and editing, etc. ). IN THE CONCLUSION OF YOUR ESSAY, DESCRIBE YOUR PERSONAL PREFERENCES IN LISTENING TO OR WATCHING FICTION AND DRAMA. Your grade on this lesson is one sixth (1/6) of your grade for this course. If your grade on this lesson is â€Å"D† or â€Å"F†, you must repeat it until you earn at least a â€Å"C†. A. What is life like in Ireland for â€Å"Eveline† and the boy in â€Å"Araby†? Think about their class/social position. Think about how the people around them treat them. Think about their frustrations and their dreams and possible futures. B. Discuss what happens to Mathilde in â€Å"The Diamond Necklace†. Why did it happen? How could it have been different? What would you have done in this situation? C. Explicate (explain) â€Å"Harlem† (a.k. a. â€Å"A Dream Deferred† by Langston Hughes. What is the main idea (theme) of the poem? Identify and discuss each of the 5 similes. D. The writer in you – Discuss your attitude toward writers and the writing and/or what you have learned about the writing process from this study guide. Do you like to write? If so, do you prefer poetry, stories, non-fiction? WhChoose one of the following topics and write an extended (500-word, multi-paragraph) essay that expands on the chosen topic. Please use all of the steps in the writing process (pre-writing, proof-reading, revising and editing, etc. ). IN THE CONCLUSION OF YOUR ESSAY, DESCRIBE YOUR PERSONAL PREFERENCES IN LISTENING TO OR WATCHING FICTION AND DRAMA. Your grade on this lesson is one sixth (1/6) of your grade for this course. If your grade on this lesson is â€Å"D† or â€Å"F†, you must repeat it until you earn at least a â€Å"C†. A. What is life like in Ireland for â€Å"Eveline† and the boy in â€Å"Araby†? Think about their class/social position. Think about how the people around them treat them. Think about their frustrations and their dreams and possible futures. B. Discuss what happens to Mathilde in â€Å"The Diamond Necklace†. Why did it happen? How could it have been different? What would you have done in this situation? C. Explicate (explain) â€Å"Harlem† (a. k. a. â€Å"A Dream Deferred† by Langston Hughes. What is the main idea (theme) of the poem? Identify and discuss each of the 5 similes. D. The writer in you – Discuss your attitude toward writers and the writing and/or what you have learned about the writing process from this study guide. Do you like to write? If so, do you prefer poetry, stories, non-fiction? WhChoose one of the following topics and write an extended (500-word, multi-paragraph) essay that expands on the chosen topic. Please use all of the steps in the writing process (pre-writing, proof-reading, revising and editing, etc. ). IN THE CONCLUSION OF YOUR ESSAY, DESCRIBE YOUR PERSONAL PREFERENCES IN LISTENING TO OR WATCHING FICTION AND DRAMA. Your grade on this lesson is one sixth (1/6) of your grade for this course. If your grade on this lesson is â€Å"D† or â€Å"F†, you must repeat it until you earn at least a â€Å"C†. A. What is life like in Ireland for â€Å"Eveline† and the boy in â€Å"Araby†? Think about their class/social position. Think about how the people around them treat them. Think about their frustrations and their dreams and possible futures. B. Discuss what happens to Mathilde in â€Å"The Diamond Necklace†. Why did it happen? How could it have been different? What would you have done in this situation? C. Explicate (explain) â€Å"Harlem† (a. k. a. â€Å"A Dream Deferred† by Langston Hughes. What is the main idea (theme) of the poem? Identify and discuss each of the 5 similes. D. The writer in you – Discuss your attitude toward writers and the writing and/or what you have learned about the writing process from this study guide. Do you like to write? If so, do you prefer poetry, stories, non-fiction?

A Dirty Job Chapter 1

For when the Gods made man, They kept immortality for themselves. Fill your belly. Day and night make merry, Let Days be full of joy. Love the child that holds your hand. Let your wife delight in your embrace. For these alone are the concerns of man. – The Epic of Gilgamesh 1 BECAUSE I COULD NOT STOP FOR DEATH – HE KINDLY STOPPED FOR ME – Charlie Asher walked the earth like an ant walks on the surface of water, as if the slightest misstep might send him plummeting through the surface to be sucked to the depths below. Blessed with the Beta Male imagination, he spent much of his life squinting into the future so he might spot ways in which the world was conspiring to kill him – him; his wife, Rachel; and now, newborn Sophie. But despite his attention, his paranoia, his ceaseless fretting from the moment Rachel peed a blue stripe on the pregnancy stick to the time they wheeled her into recovery at St. Francis Memorial, Death slipped in. â€Å"She’s not breathing,† Charlie said. â€Å"She’s breathing fine,† Rachel said, patting the baby’s back. â€Å"Do you want to hold her?† Charlie had held baby Sophie for a few seconds earlier in the day, and had handed her quickly to a nurse insisting that someone more qualified than he do some finger and toe counting. He’d done it twice and kept coming up with twenty-one. â€Å"They act like that’s all there is to it. Like if the kid has the minimum ten fingers and ten toes it’s all going to be fine. What if there are extras? Huh? Extra-credit fingers? What if the kid has a tail?† (Charlie was sure he’d spotted a tail in the six-month sonogram. Umbilical indeed! He’d kept a hard copy.) â€Å"She doesn’t have a tail, Mr. Asher,† the nurse explained. â€Å"And it’s ten and ten, we’ve all checked. Perhaps you should go home and get some rest.† â€Å"I’ll still love her, even with her extra finger.† â€Å"She’s perfectly normal.† â€Å"Or toe.† â€Å"We really do know what we’re doing, Mr. Asher. She’s a beautiful, healthy baby girl.† â€Å"Or a tail.† The nurse sighed. She was short, wide, and had a tattoo of a snake up her right calf that showed through her white nurse stockings. She spent four hours of every workday massaging preemie babies, her hands threaded through ports in a Lucite incubator, like she was handling a radioactive spark in there. She talked to them, coaxed them, told them how special they were, and felt their hearts fluttering in chests no bigger than a balled-up pair of sweat socks. She cried over every one, and believed that her tears and touch poured a bit of her own life into the tiny bodies, which was just fine with her. She could spare it. She had been a neonatal nurse for twenty years and had never so much as raised her voice to a new father. â€Å"There’s no goddamn tail, you doofus! Look!† She pulled down the blanket and aimed baby Sophie’s bottom at him like she might unleash a fusillade of weapons-grade poopage such as the guileless Beta Male had never seen. Charlie jumped back – a lean and nimble thirty, he was – then, once he realized that the baby wasn’t loaded, he straightened the lapels on his tweed jacket in a gesture of righteous indignation. â€Å"You could have removed her tail in the delivery room and we’d never know.† He didn’t know. He’d been asked to leave the delivery room, first by the ob-gyn and finally by Rachel. (â€Å"Him or me,† Rachel said. â€Å"One of us has to go.†) In Rachel’s room, Charlie said: â€Å"If they removed her tail, I want it. She’ll want it when she gets older.† â€Å"Sophie, your Papa isn’t really insane. He just hasn’t slept for a couple of days.† â€Å"She’s looking at me,† Charlie said. â€Å"She’s looking at me like I blew her college money at the track and now she’s going to have to turn tricks to get her MBA.† Rachel took his hand. â€Å"Honey, I don’t think her eyes can even focus this early, and besides, she’s a little young to start worrying about her turning tricks to get her MFA.† â€Å"MBA,† Charlie corrected. â€Å"They start very young these days. By the time I figure out how to get to the track, she could be old enough. God, your parents are going to hate me.† â€Å"And that would be different how?† â€Å"New reasons, that’s how. Now I’ve made their granddaughter a shiksa.† â€Å"She’s not a shiksa, Charlie. We’ve been through this. She’s my daughter, so she’s as Jewish as I am.† Charlie went down on one knee next to the bed and took one of Sophie’s tiny hands between his fingers. â€Å"Daddy’s sorry he made you a shiksa.† He put his head down, buried his face in the crook where the baby met Rachel’s side. Rachel traced his hairline with her fingernail, describing a tight U-turn around his narrow forehead. â€Å"You need to go home and get some sleep.† Charlie mumbled something into the covers. When he looked up there were tears in his eyes. â€Å"She feels warm.† â€Å"She is warm. She’s supposed to be. It’s a mammal thing. Goes with the breast-feeding. Why are you crying?† â€Å"You guys are so beautiful.† He began arranging Rachel’s dark hair across the pillow, brought a long lock down over Sophie’s head, and started styling it into a baby hairpiece. â€Å"It will be okay if she can’t grow hair. There was that angry Irish singer who didn’t have any hair and she was attractive. If we had her tail we could transplant plugs from that.† â€Å"Charlie! Go home!† â€Å"Your parents will blame me. Their bald shiksa granddaughter turning tricks and getting a business degree – it will be all my fault.† Rachel grabbed the buzzer from the blanket and held it up like it was wired to a bomb. â€Å"Charlie, if you don’t go home and get some sleep right now, I swear I’ll buzz the nurse and have her throw you out.† She sounded stern, but she was smiling. Charlie liked looking at her smile, always had; it felt like approval and permission at the same time. Permission to be Charlie Asher. â€Å"Okay, I’ll go.† He reached to feel her forehead. â€Å"Do you have a fever? You look tired.† â€Å"I just gave birth, you squirrel!† â€Å"I’m just concerned about you.† He was not a squirrel. She was blaming him for Sophie’s tail, that’s why she’d said squirrel, and not doofus like everyone else. â€Å"Sweetie, go. Now. So I can get some rest.† Charlie fluffed her pillows, checked her water pitcher, tucked in the blankets, kissed her forehead, kissed the baby’s head, fluffed the baby, then started to rearrange the flowers that his mother had sent, moving the big stargazer lily in the front, accenting it with a spray of baby’s breath – â€Å"Charlie!† â€Å"I’m going. Jeez.† He checked the room, one last time, then backed toward the door. â€Å"Can I bring you anything from home?† â€Å"I’ll be fine. The ready kit you packed covered everything, I think. In fact, I may not even need the fire extinguisher.† â€Å"Better to have it and not need it, than to need it – â€Å" â€Å"Go! I’ll get some rest, the doctor will check Sophie out, and we’ll take her home in the morning.† â€Å"That seems soon.† â€Å"It’s standard.† â€Å"Should I bring more propane for the camp stove?† â€Å"We’ll try to make it last.† â€Å"But – â€Å" Rachel held up the buzzer, as if her demands were not met, the consequences could be dire. â€Å"Love you,† she said. â€Å"Love you, too,† Charlie said. â€Å"Both of you.† â€Å"Bye, Daddy.† Rachel puppeted Sophie’s little hand in a wave. Charlie felt a lump rising in his throat. No one had ever called him Daddy before, not even a puppet. (He had once asked Rachel, â€Å"Who’s your daddy?† during sex, to which she had replied, â€Å"Saul Goldstein,† thus rendering him impotent for a week and raising all kinds of issues that he didn’t really like to think about.) He backed out of the room, palming the door shut as he went, then headed down the hall and past the desk where the neonatal nurse with the snake tattoo gave him a sideways smile as he went by. Charlie drove a six-year-old minivan that he’d inherited from his father, along with the thrift store and the building that housed it. The minivan always smelled faintly of dust, mothballs, and body odor, despite a forest of smell-good Christmas trees that Charlie had hung from every hook, knob, and protrusion. He opened the car door and the odor of the unwanted – the wares of the thrift-store owner – washed over him. Before he even had the key in the ignition, he noticed the Sarah McLachlan CD lying on the passenger seat. Well, Rachel was going to miss that. It was her favorite CD and there she was, recovering without it, and he could not have that. Charlie grabbed the CD, locked the van, and headed back up to Rachel’s room. To his relief, the nurse had stepped away from the desk so he didn’t have to endure her frosty stare of accusation, or what he guessed would be her frosty stare of accusation. He’d mentally prepared a short speech about how being a good husband and father included anticipating the wants and needs of his wife and that included bringing her music – well, he could use the speech on the way out if she gave him the frosty stare. He opened the door to Rachel’s room slowly so as not to startle her – anticipating her warm smile of disapproval, but instead she appeared to be asleep and there was a very tall black man dressed in mint green standing next to her bed. â€Å"What are you doing here?† The man in mint green turned, startled. â€Å"You can see me?† He gestured to his chocolate-brown tie, and Charlie was reminded, just for a second, of those thin mints they put on the pillow in nicer hotels. â€Å"Of course I can see you. What are you doing here?† Charlie moved to Rachel’s bedside, putting himself between the stranger and his family. Baby Sophie seemed fascinated by the tall black man. â€Å"This is not good,† said Mint Green. â€Å"You’re in the wrong room,† Charlie said. â€Å"You get out of here.† Charlie reached behind and patted Rachel’s hand. â€Å"This is really, really not good.† â€Å"Sir, my wife is trying to sleep and you’re in the wrong room. Now please go before – â€Å" â€Å"She’s not sleeping,† said Mint Green. His voice was soft, and a little Southern. â€Å"I’m sorry.† Charlie turned to look down at Rachel, expecting to see her smile, hear her tell him to calm down, but her eyes were closed and her head had lolled off the pillow. â€Å"Honey?† Charlie dropped the CD he was carrying and shook her gently. â€Å"Honey?† Baby Sophie began to cry. Charlie felt Rachel’s forehead, took her by the shoulders, and shook her. â€Å"Honey, wake up. Rachel.† He put his ear to her heart and heard nothing. â€Å"Nurse!† Charlie scrambled across the bed to grab the buzzer that had slipped from Rachel’s hand and lay on the blanket. â€Å"Nurse!† He pounded the button and turned to look at the man in mint green. â€Å"What happened†¦Ã¢â‚¬  He was gone. Charlie ran into the hall, but no one was out there. â€Å"Nurse!† Twenty seconds later the nurse with the snake tattoo arrived, followed in another thirty seconds by a resuscitation team with a crash cart. There was nothing they could do. A Dirty Job Chapter 1 For when the Gods made man, They kept immortality for themselves. Fill your belly. Day and night make merry, Let Days be full of joy. Love the child that holds your hand. Let your wife delight in your embrace. For these alone are the concerns of man. – The Epic of Gilgamesh 1 BECAUSE I COULD NOT STOP FOR DEATH – HE KINDLY STOPPED FOR ME – Charlie Asher walked the earth like an ant walks on the surface of water, as if the slightest misstep might send him plummeting through the surface to be sucked to the depths below. Blessed with the Beta Male imagination, he spent much of his life squinting into the future so he might spot ways in which the world was conspiring to kill him – him; his wife, Rachel; and now, newborn Sophie. But despite his attention, his paranoia, his ceaseless fretting from the moment Rachel peed a blue stripe on the pregnancy stick to the time they wheeled her into recovery at St. Francis Memorial, Death slipped in. â€Å"She’s not breathing,† Charlie said. â€Å"She’s breathing fine,† Rachel said, patting the baby’s back. â€Å"Do you want to hold her?† Charlie had held baby Sophie for a few seconds earlier in the day, and had handed her quickly to a nurse insisting that someone more qualified than he do some finger and toe counting. He’d done it twice and kept coming up with twenty-one. â€Å"They act like that’s all there is to it. Like if the kid has the minimum ten fingers and ten toes it’s all going to be fine. What if there are extras? Huh? Extra-credit fingers? What if the kid has a tail?† (Charlie was sure he’d spotted a tail in the six-month sonogram. Umbilical indeed! He’d kept a hard copy.) â€Å"She doesn’t have a tail, Mr. Asher,† the nurse explained. â€Å"And it’s ten and ten, we’ve all checked. Perhaps you should go home and get some rest.† â€Å"I’ll still love her, even with her extra finger.† â€Å"She’s perfectly normal.† â€Å"Or toe.† â€Å"We really do know what we’re doing, Mr. Asher. She’s a beautiful, healthy baby girl.† â€Å"Or a tail.† The nurse sighed. She was short, wide, and had a tattoo of a snake up her right calf that showed through her white nurse stockings. She spent four hours of every workday massaging preemie babies, her hands threaded through ports in a Lucite incubator, like she was handling a radioactive spark in there. She talked to them, coaxed them, told them how special they were, and felt their hearts fluttering in chests no bigger than a balled-up pair of sweat socks. She cried over every one, and believed that her tears and touch poured a bit of her own life into the tiny bodies, which was just fine with her. She could spare it. She had been a neonatal nurse for twenty years and had never so much as raised her voice to a new father. â€Å"There’s no goddamn tail, you doofus! Look!† She pulled down the blanket and aimed baby Sophie’s bottom at him like she might unleash a fusillade of weapons-grade poopage such as the guileless Beta Male had never seen. Charlie jumped back – a lean and nimble thirty, he was – then, once he realized that the baby wasn’t loaded, he straightened the lapels on his tweed jacket in a gesture of righteous indignation. â€Å"You could have removed her tail in the delivery room and we’d never know.† He didn’t know. He’d been asked to leave the delivery room, first by the ob-gyn and finally by Rachel. (â€Å"Him or me,† Rachel said. â€Å"One of us has to go.†) In Rachel’s room, Charlie said: â€Å"If they removed her tail, I want it. She’ll want it when she gets older.† â€Å"Sophie, your Papa isn’t really insane. He just hasn’t slept for a couple of days.† â€Å"She’s looking at me,† Charlie said. â€Å"She’s looking at me like I blew her college money at the track and now she’s going to have to turn tricks to get her MBA.† Rachel took his hand. â€Å"Honey, I don’t think her eyes can even focus this early, and besides, she’s a little young to start worrying about her turning tricks to get her MFA.† â€Å"MBA,† Charlie corrected. â€Å"They start very young these days. By the time I figure out how to get to the track, she could be old enough. God, your parents are going to hate me.† â€Å"And that would be different how?† â€Å"New reasons, that’s how. Now I’ve made their granddaughter a shiksa.† â€Å"She’s not a shiksa, Charlie. We’ve been through this. She’s my daughter, so she’s as Jewish as I am.† Charlie went down on one knee next to the bed and took one of Sophie’s tiny hands between his fingers. â€Å"Daddy’s sorry he made you a shiksa.† He put his head down, buried his face in the crook where the baby met Rachel’s side. Rachel traced his hairline with her fingernail, describing a tight U-turn around his narrow forehead. â€Å"You need to go home and get some sleep.† Charlie mumbled something into the covers. When he looked up there were tears in his eyes. â€Å"She feels warm.† â€Å"She is warm. She’s supposed to be. It’s a mammal thing. Goes with the breast-feeding. Why are you crying?† â€Å"You guys are so beautiful.† He began arranging Rachel’s dark hair across the pillow, brought a long lock down over Sophie’s head, and started styling it into a baby hairpiece. â€Å"It will be okay if she can’t grow hair. There was that angry Irish singer who didn’t have any hair and she was attractive. If we had her tail we could transplant plugs from that.† â€Å"Charlie! Go home!† â€Å"Your parents will blame me. Their bald shiksa granddaughter turning tricks and getting a business degree – it will be all my fault.† Rachel grabbed the buzzer from the blanket and held it up like it was wired to a bomb. â€Å"Charlie, if you don’t go home and get some sleep right now, I swear I’ll buzz the nurse and have her throw you out.† She sounded stern, but she was smiling. Charlie liked looking at her smile, always had; it felt like approval and permission at the same time. Permission to be Charlie Asher. â€Å"Okay, I’ll go.† He reached to feel her forehead. â€Å"Do you have a fever? You look tired.† â€Å"I just gave birth, you squirrel!† â€Å"I’m just concerned about you.† He was not a squirrel. She was blaming him for Sophie’s tail, that’s why she’d said squirrel, and not doofus like everyone else. â€Å"Sweetie, go. Now. So I can get some rest.† Charlie fluffed her pillows, checked her water pitcher, tucked in the blankets, kissed her forehead, kissed the baby’s head, fluffed the baby, then started to rearrange the flowers that his mother had sent, moving the big stargazer lily in the front, accenting it with a spray of baby’s breath – â€Å"Charlie!† â€Å"I’m going. Jeez.† He checked the room, one last time, then backed toward the door. â€Å"Can I bring you anything from home?† â€Å"I’ll be fine. The ready kit you packed covered everything, I think. In fact, I may not even need the fire extinguisher.† â€Å"Better to have it and not need it, than to need it – â€Å" â€Å"Go! I’ll get some rest, the doctor will check Sophie out, and we’ll take her home in the morning.† â€Å"That seems soon.† â€Å"It’s standard.† â€Å"Should I bring more propane for the camp stove?† â€Å"We’ll try to make it last.† â€Å"But – â€Å" Rachel held up the buzzer, as if her demands were not met, the consequences could be dire. â€Å"Love you,† she said. â€Å"Love you, too,† Charlie said. â€Å"Both of you.† â€Å"Bye, Daddy.† Rachel puppeted Sophie’s little hand in a wave. Charlie felt a lump rising in his throat. No one had ever called him Daddy before, not even a puppet. (He had once asked Rachel, â€Å"Who’s your daddy?† during sex, to which she had replied, â€Å"Saul Goldstein,† thus rendering him impotent for a week and raising all kinds of issues that he didn’t really like to think about.) He backed out of the room, palming the door shut as he went, then headed down the hall and past the desk where the neonatal nurse with the snake tattoo gave him a sideways smile as he went by. Charlie drove a six-year-old minivan that he’d inherited from his father, along with the thrift store and the building that housed it. The minivan always smelled faintly of dust, mothballs, and body odor, despite a forest of smell-good Christmas trees that Charlie had hung from every hook, knob, and protrusion. He opened the car door and the odor of the unwanted – the wares of the thrift-store owner – washed over him. Before he even had the key in the ignition, he noticed the Sarah McLachlan CD lying on the passenger seat. Well, Rachel was going to miss that. It was her favorite CD and there she was, recovering without it, and he could not have that. Charlie grabbed the CD, locked the van, and headed back up to Rachel’s room. To his relief, the nurse had stepped away from the desk so he didn’t have to endure her frosty stare of accusation, or what he guessed would be her frosty stare of accusation. He’d mentally prepared a short speech about how being a good husband and father included anticipating the wants and needs of his wife and that included bringing her music – well, he could use the speech on the way out if she gave him the frosty stare. He opened the door to Rachel’s room slowly so as not to startle her – anticipating her warm smile of disapproval, but instead she appeared to be asleep and there was a very tall black man dressed in mint green standing next to her bed. â€Å"What are you doing here?† The man in mint green turned, startled. â€Å"You can see me?† He gestured to his chocolate-brown tie, and Charlie was reminded, just for a second, of those thin mints they put on the pillow in nicer hotels. â€Å"Of course I can see you. What are you doing here?† Charlie moved to Rachel’s bedside, putting himself between the stranger and his family. Baby Sophie seemed fascinated by the tall black man. â€Å"This is not good,† said Mint Green. â€Å"You’re in the wrong room,† Charlie said. â€Å"You get out of here.† Charlie reached behind and patted Rachel’s hand. â€Å"This is really, really not good.† â€Å"Sir, my wife is trying to sleep and you’re in the wrong room. Now please go before – â€Å" â€Å"She’s not sleeping,† said Mint Green. His voice was soft, and a little Southern. â€Å"I’m sorry.† Charlie turned to look down at Rachel, expecting to see her smile, hear her tell him to calm down, but her eyes were closed and her head had lolled off the pillow. â€Å"Honey?† Charlie dropped the CD he was carrying and shook her gently. â€Å"Honey?† Baby Sophie began to cry. Charlie felt Rachel’s forehead, took her by the shoulders, and shook her. â€Å"Honey, wake up. Rachel.† He put his ear to her heart and heard nothing. â€Å"Nurse!† Charlie scrambled across the bed to grab the buzzer that had slipped from Rachel’s hand and lay on the blanket. â€Å"Nurse!† He pounded the button and turned to look at the man in mint green. â€Å"What happened†¦Ã¢â‚¬  He was gone. Charlie ran into the hall, but no one was out there. â€Å"Nurse!† Twenty seconds later the nurse with the snake tattoo arrived, followed in another thirty seconds by a resuscitation team with a crash cart. There was nothing they could do.

Boing 737 Assignment Example | Topics and Well Written Essays - 250 words

Boing 737 - Assignment Example However, in the early 1990s many commercial aircraft manufacturers including Douglas Aircraft, McDonnell Aircraft, and Boeing switched to horizontal integration through mergers. The major drivers to this shift were technology that progressively became more specialized, costs of production using vertical integration became uncompetitive and the dire need for management efficiency. On the other hand, factors such as lower costs due to increased economies of scale and increased market power made Airbus maintain vertical integration. Horizontal industry structure seems to be a benefit since it helped resuscitate Boeing that had stagnated after many years of vertical integration structure. It helped it install a lean system and clean up the production of the 737. The evolution of the auto industry is similar to that of the commercial aircraft industry. Major players in the industry have adopted the â€Å"lean production system†. However, competitive forces are far from being static, and hence vehicle manufacturers can no longer rely on excellence in production only (Shih and Pierson

Immigration Policy Reforms Essay Example | Topics and Well Written Essays - 1500 words

Immigration Policy Reforms - Essay Example (Bush, et al, ix) Statement of your position Immigration is a deep â€Å"human issue† as it is concerned with the lives of large number of families and individuals. Immigration deals with the question of American citizenship and helps in shaping up the image of the American nation in the eyes of the world. (Bush, et al, ix) Policy reforms should act as support base for immigrants who come to America to see better opportunities that were lacking in their home countries. My approach to the paper In this paper immigration policy reforms are critically analyzed after seeing through the lens of the American Enlightenment. The point that I have stressed in this paper is that only through legalization of the status of the immigrants can they prove to be beneficial to the country policy reforms should look out for solution by combining the perspective of both federalists and anti-federalists. Immigration in US during the era of Enlightenment The problem of immigration was also a matte r of concern for the Enlightenment leaders like Benjamin Franklin and Thomas Jefferson. The land of America was increasing becoming a â€Å"dumping ground for the European undesirables†. They were concerned with growing number of German immigrants in the eighteenth century. The Germans came from a completely different social background than those of the Americans, and the increasing number of German population within the borders of America were proving to be incompatible with the republican democracy (Zolberg). Comparative and Analysis Social contract (representative governance) In the global arena, America is recognised as the â€Å"nation of immigrants†. This makes it easier for people from all over the world to enter the borders of America. It is a challenge for the policymakers to distinguish â€Å"illusory immigration problems from real problems.† There has been a tendency to neglect the issue of immigration. This â€Å"policy of benign neglect† is n o longer viable in current times. During the last decade, there have been a number of efforts to reform the immigration policies. There has been improvement in the security of the borders. The statuses of people who seek employment are being verified by the employers. The focus of every immigration policy should be on both border security and migrant workers. Ignoring any one of them cannot make any policy successful (â€Å"The Real Problem with Immigration...and the Real Solution†). During the civil war in the nineteenth century, immigration was specifically encouraged in America. From 1882 onwards, the immigration policies started to focus on restricting the flow of immigrants. This was done to protect the nation from undesirable people from foreign countries. People with contagious diseases like tuberculosis were not allowed to enter the nation to protect the health policies. People with immoral characters and polygamists were also restricted (Williamson 184). Classical Li beralism (natural rights) Classical liberalism defines specific activities for the government. The role of the government should be to protect the rights of individuals with relation to property, religion, freedom of speech and press. There should also be the system of â€Å"free markets† to ensure a smooth economic life (Hudelson 37). The continuous flow of immigrants into America can threaten the practice of classical liberalism. The major concern is that the various cultural and economic backgrounds of the

The Film Miss Presentation and Mistreated Women Essay

The Film Miss Presentation and Mistreated Women - Essay Example In addition to this, only 16% of women are writers, directors, producers, cinematographers and editors. Patriarchy has unfortunately caused a poor representation of women in society. In this paper, I will analyze the power of the media and its influence on the role of women. The paper further dwells upon the effects of the negative image of women, created by media, which affects their position in society. The media has been continuously using women to its benefits, meeting the needs of the male audience. This has eventually had a negative effect on women and their representation and position in the world. This is because you can’t be what you can’t see. ‘The media is the message and the messenger’. These were the opening remarks in Pat Mitchell’s documentary. He is the president and CEO of the Paley Center for Media. Jackson Katz, the author of The Macho Paradox, argues that people learn much more from the media than from any other source. On the other hand, Jim Steyer the CEO of Common Sense Media argues that the media is delivering the content that is shaping our society. Even though 51% of the US population is women, only in very rare cases anyone of them achieves elite positions. The media is one of the key factors which are to blame for this. It makes and delivers the news and for this reason, most of the information we get from it is a result of the trends liked by the media. It has portrayed the males as dominant over the females. Patriarchy is evident and the female identity has been blurred. Nude pictures of attractive women are used all the time in magazines, movies and even on calendars and billboards on the streets. This all objectifies women and makes them a lifeless thing of desire and lust. The director of this film emphasizes that despite the high percentage of women in the US, only 17 of them are members of Congress. Since 1979, the first election of a woman to the  congress took place in 2010. This fact proves the evidence of patriarchy.

Global Strategy Coursework Example | Topics and Well Written Essays - 3000 words

Global Strategy - Coursework Example †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..21 Bibliography†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.22 Executive summary This research analysis is aimed at significantly breaking down the micro and macro-operating environment of Tesco organization, one of the biggest foodstuff and grocery traders in the globe, running about 4, 331 warehouses. Strategic assessment tools like PESTEL, Porter’s Five Forces model, SWOT, and Value Chain analysis have been applied through scholars to attain this purpose. Then a conclusion is finally provided. Introduction Tesco is considered to be one of the biggest food traders in the sphere in surplus of ?54 billion during 2009 and recruiting above four hundred and seventy thousand individuals. They run an estimated four thousand, three hundred and thirty one stores in fourteen nations across the globe. The organization runs mainly in the United States of America, Europe, and Asia; and their Head Office is located in Hertfordshire, UK. The commercial system portfolio of Tesco constitutes: more than 960 Express warehouses that vend an estimated 7,000 commodities as well as fresh foodstuffs at appropriate places. Moreover, 170 Metro warehouses that trade in different food commodities in cities and town centres; and 450 super warehouses that trade in both foodstuffs and non-foodstuff commodities together with manuscripts and DVDs. Tesco as well offers online trading services by their website tesco.com and Tesco Direct. Furthermore, they offer broadband I internet linkages and monetary services by Tesco Personal Finance (TPF). The company was established in 1919 in the UK and has steadily evolved greatly since then. The food and beverage trade department represents the biggest firm in th e United Kingdom, offering jobs for above three million individuals in primary manufacturing, production, and trading. During 2003, trade reported 9% of Gross Domestic Product. The analysis below offers an insight into the supermarket organization, Tesco, with stress on its exterior environment breakdown and organization’s breakdown of resources, proficiency, and traditions. Strategic assessment tools like PESTEL, Porter’s Five Forces model, SWOT, and Value Chain analysis have been applied through scholars for attaining this purpose. During the past decades, United Kingdom supermarkets have been subjected under high scrutiny due to their reaction to vendors, specifically of personal-label goods, although the growth of strategic distribution networks has remained an important section of majority of supermarket plans for the recent years. Corporate Strategy The vision of the

Nature in Religion Essay Example | Topics and Well Written Essays - 500 words

Nature in Religion - Essay Example Each one has their own specific historic development, which was influenced by events in world history. In terms of indigenous cultures such as Native Americans, they developed very differently compared to their other religious counterparts. They were extremely influenced by nature and the elements, which preceded the need of a shaman, compared to a priest or another spiritual leader. Shamans were important because they helped keep tradition and rituals alive and passed down the spiritual knowledge through the other members of the tribe. Like stated previously, the Native Americans’ in particular placed a great deal of spiritual and religious influence in nature. This is because many of the traditions and rituals reside in the themes of nature. Myths, such as the creation stories, result from themes in nature such as the cycles of the seasons, which undergo in the climate. Many tribes also use features such as reincarnation, which influenced by nature, shows that when we die, w e are born into a cycle of rebirthing where we come back as another creature. Shamans were also used to communicate with nature and the spirits of the world and animals. These would be invoked for good fortune for healing, for bountiful harvest and for other ceremonies (Matthews, 2008).

Management Information Systems (MIS) Article Critique Research Paper

Management Information Systems (MIS) Article Critique - Research Paper Example Popular internet companies are ready for stock market listing. This has created lot of activity in the stock exchange. There are three main forces which are driving this activity. First the advancement in technology is making it very easy to start online business. Second the investors who are backing this activity are young, who give online companies many options to choose from and the last factor is the involvement of global participants in general and Chinese firms in particular. The combined impact of these three factors is responsible for the phenomenal growth of internet based companies in last two to three years. There are also reliable and sound companies, who are interested in buying these online companies or their products. For some experts this trend in the market is dangerous as many companies are getting more value than normal. Investors are investing in untested products and impact of regulatory policy by China is overlooked. If Chinese government starts to put restricti on on internet companies then market could go down but like all bubbles it is time for investors to make money. The article is very well written and the writer is able to present facts and figures along with tables to present the main theme that internet based companies are booming very fast.

Finance Problem Solving Assignment Example | Topics and Well Written Essays - 1000 words

Finance Problem Solving - Assignment Example Therefore, Amber has a net working capital of $200 and a current ratio of 1.20. This indicates that the company will be able to pay any short term obligations that arise unexpectedly due to some investment in the working capital. On the other hand, Barbie has no current assets, but has $600 worth of current liabilities. Therefore, Amber has a net working capital of negative $600 and a weak current ratio. This indicates that the company will not be able to pay any short term obligations that arise unexpectedly due to no investments in the working capital. Amber Barbie Current Assets $1,200 $0 Current Liabilities $1,000 $600 Net Working Capital $200 ($600) Current Ratio 1.20 0.00 Therefore, it is important for a corporation to invest some of its funds in the financing of the working capital. A company must be able to pay its creditor when payment becomes dues, and possess ample inventory and cash to ensure the smooth functioning of the company. Question 4 A firm achieves optimal level of working capital only when the constituents of the working capital achieve optimal position. The company must have a favorable level of inventory determined by the economic order quantity. It must work upon optimal lead times that ensure no shortfall and no excess inventory at any point in time. This will ensure minimum costs association with the inventory handling. Likewise, the company must forecast future cash inflows and outflows, risk tolerance and borrowing capability to ensure an optimal cash level. An excess surplus must be invested in short term securities, whereas a shortage must be immediately handled with an overdraft with the bank. Similarly, the company could determine its advantageous day’s sales outstanding which will allow it to make an effective policy toward the management of its receivables. (Brigham and Gapenski 1988) Question 6 The matching principle of the working capital financing states that the non-current assets and permanent current assets must b e financed by long term debt; whereas fluctuating current assets must be financed by short term debt. (Brigham and Gapenski 1988) For instance: A retail store balance sheet shows inventory, cash, account receivable and fixed assets. At any point in time, this store has a minimum amount of all current assets which becomes a part of the permanent current assets. Therefore, according to this matching principle, these permanent current assets and fixed assets are to be financed by long term debt. There is low cost associated with this technique as most of the assets are finance low interest long term debt. Likewise, it results in a higher profitability as interest expense is low in this strategy. It also provides the company with more liquidity and a better current ratio. (Brigham and Gapenski 1988) Problem 17-3 Company A Company B Current Assets $1,400 $960 Current Liabilities $900 $600 Net Working Capital $500 $360 Current Ratio 1.56 1.60 Company A appears to be more liquid as compare d to company B. This is because it has a higher net working capital. Even though company A has slightly lower current ratio, it holds more of its assets in the liquid form. Problem 17-6 a. Working Capital = $160 b. Net Working Capital = Current Assets – Current Liabilities Net Working Capital = $160 - $170 Net Working Capital = ($10) c. The company is following a very aggressive approach to working capital financing. This is indicated by a low net working capital; which shows that all of the current assets –

Relience Insurance Essay Example for Free

Relience Insurance Essay Reliance Insurance Company, now officially known as Reliance Insurance Company [in Liquidation], was founded in Philadelphia in 1817. In October 2005, Reliance Insurance Company had taken place in India. Reliance Life Insurance Company Limited is an associate company of reliance Anil Dhirubhai Ambani Group. Reliance Capital Limited is one of India’s leading private sectors. Reliance capital has interests in an asset management and mutual funds, stock broking, life and general insurance’ proprietary investments’ private equity and other activities in financials service. Reliance Group also has presence in Communications, Energy, Natural + interests. Reliance General Insurance Co. Ltd. is fast emerging as one of the biggest general insurance companies in India. The company offers over 95 insurance products for both corporate and individual customers. The distribution network of Reliance General Insurance Co. Ltd. extends 200 branch offices spread across 172 cities in 22 states in India. Automobileindia.com furnishes information on Reliance General Insurance Co. Ltd. Risks Covered by Reliance General Insurance Co. Ltd.: Reliance General Insurance offers coverage for all the accidental happenings, producing monetary loss or loss of life. It also includes risks of an individual, or a group. Reliance General Insurance offers coverage in case of: †¢Financial loss of the insured †¢Measurable or tangible monetary loss †¢Legal object of the insurance contract Advantages of Insuring with Reliance General Insurance Co. Ltd.: Reliance General Insurance Co. Ltd offers you a number of advantages. Automobileindia.com furnishes information on Reliance General Insurance Co. Ltd. Some of the advantages of using Reliance General Insurance Co. Ltd are †¢Speedy claims settlement through country wide reach †¢Free towing facility for insured vehicles in case of an accident in all metropolitan cities in India †¢Cashless claims settlement in preferred garages of the policy holder. †¢Reliance General Insurance Reliance General Insurance Co. Ltd has tie-ups with leading TPAs and hospitals offering cashless facilities, ensuring hassle free returns †¢Easy and prompt E intimation facility Claim Procedure in Reliance General Insurance: The policy holder needs to know the claim process and the different kinds of insurance. Automobileindia.com furnishes information on Reliance General Insurance Co. Ltd. Claim Procedure in Reliance General Insurance falls into three broad categories: * Theft claims * Own damage claims * Third party claim Information Required for Claiming Policy at Reliance General Insurance: The insurer or policy holder needs to provide the following details, when he or she is claiming for insurance. * Full name of the Insured * the contact details of the policy holder * Policy number * Nature of loss * Place of loss or accident site (in case of accident) * Contact details of insured person (if in case the person intimating the claim is not insured) WHAT IS INSURANCE? Insurance is a specialized type of contract. It is an agreement between two parties one party is insurance company who takes the insurance of other party known as insured party. Premium is consideration of Contract of the insurance. The insurer issues a document in writing in the name of the insured which is called policy. It includes terms and conditions of the insurance contract. The insurer has to pay a certain amount to the insured, if uncertain event takes place after taking the insurance and before the expiry of the policy NEEDS FOR INSURANCE:- Human life is a full of uncertainty and therefore ,there is a need for insurance if there no uncertainty there is no need for insurance .If one can predict the forthcoming dangers ,he can take a proper action and face the crisis . However, death, disaster and  dangers cannot be predicted and hence the insurance is needed. Insurance does not protect the assets. It also does not prevent the losses due to the perils. The perils cannot be avoided by taking the insurance ,but it compensate the losses caused due to the perils which are uncertain . The insurance companies play an important role of implementing the concept of insurance. They collect the premium in advance and create the fund out of which the losses incurred by few a insured people are compensated . Thus the variable need of life insurance can be: (a) Protection of the interest of the family members. (b)Provision for education and marriage of children. (c) Post-retirement income for self and family members. The general insurance helps to protect capital employed in industry and economic activity. Life insurance has become the main vehicle for carrying the social security to the public and the weaker section. Life insurance business is complimentary to the government efforts in social management. LIFE INSURANCE:- Life insurance business was entirely in the hands of LIC till 1999. In late 1999, the government of India allowed the opening up of the insurance sector to private parties by passing the insurance regulatory and development authority (IRDA).foreign companies are also allowed to invest up to 26 percent of equity stake in the insurance sector in the India. The market share of reliance insurance company is 0.47%. Following are the basic types of policies:- (a) Term assurance (b)Endowment product (c)Whole life insurance (d)Money- back policies (e)Annuity plan GENERAL INSURANCE :- General insurance evolved with the evolution of business and the lifestyle of the human beings. Today general insurance cover everything from space expenditure to the voice of the famous singer. general insurance business in India can be traced its roots to the Triton insurance company limited , the first general insurance company established in the year 1850 in Calcutta by the Britishers. The India mercantile insurance ltd. Was set up in 1907. In 1968 the insurance act was amended to regulate investment and set minimum solvency margins and the Tariff advisory committee was set up. Insurance act , 1938 and the general insurance business ( nationalize ) act ,1972 regulate the insurance business. Inter-regulatory committee set up to fix norms on insurance firms Paving the way for guidelines for listing by insurance companies, the Insurance Regulatory and Development Authority (IRDA) has set up a committee to finalize the norms. This committee, appointed recently, would look at the level of disinvestment that a company could undertake through the stock market. Apart from IRDA officials, the committee also consists of members from the Securities and Exchange Board of India (SEBI). The committee is headed by IRDA Member. The move would pave the way for the likes of Reliance Life Insurance to list on stock exchanges. The government is set to ease the norms to allow companies to list after five years of operation, instead of the Current 10-year norm. Reliance, which had sought a relaxation, could be the first beneficiary. The sources said that the matter had also been examined by the Insurance Regulatory and Development Authority (IRDA) and it was decided that SEBI would issue the norms. Apart from Reliance, a host of other life insurers such as HDFC Standard Life and SBI Life could also tap the market. In the run-up to the listing norms, IRDA would issue guidelines related to valuation. The insurance regulator has already issued the disclosure norms for companies. In the past, the government and the market regulator have provided a special dispensation for various sectors, such as information technology, to help companies list. COMPETITORS OF RELIANCE INSURANCE:- 1) LIFE INSURANCE CORPORATION IN INDIA THAT IS (LIC). 2) BAJAJ ALLIANZ GENERAL INSURANCE. 3) ICICI PRUDENTIAL LIFE INSURANCE. 4) ICICI LOMBARD GENERAL INSURANCE. 5) BIRLA SUN LIFE INSURANCE. 6) TATA AIG GENERAL INSURANCE. 7) NEW INDIA ASSURANCE COMPANY. 8) IFFCO TOKIO GENERAL INSURANCE. SOME ONLINE POLICIES PROVIDED BY RELIANCE INSURANCE COMPANY:- CAR INSURANCE: Reliance General Insurance offers an online car insurance portal which is quick and fast and one can purchase the automobile Insurance policy in ten minutes if one has all the information about his/her vehicle. Some of the advantages of the reliance private car Insurance policy are: The online policy is issued within 10 minutes. The online policy eliminates the process of paper work. It gives you complete Insurance cover on and off the road. It covers your car against accidents, theft, natural calamities, etc. Cashless facility is provided. In case of claim, the survey of the vehicle is arranged within 24 hours. TRAVEL INSURANCE: Travel insurance or visitor insurance also known as overseas medical insurance can cover your medical expenses, personal accident, trip delay, loss of passport and many more risk while you travel abroad. At insurance Pandit, we offer a convenient way to compare travel insurance plans offered by reliance insurance company. Not only you can compare plans but also buy and print your travel insurance policy online. Individual Overseas Medical Insurance HEALTH INSURANCE: Health and medical insurance is a recent origin in India. Health insurance covers two types of benefits. One is reimbursement of medical expenses related to specific diseases and the other is related to hospitalization. Health insurance cover operates in two ways- cashless and cash reimbursable ones. The health insurance has changed the way medicine is dispensed and sold in most of the parts of the world. In India, the introduction of the new famous policy â€Å"MEDICLAIM† has made a huge difference to an ordinary citizen’s usage of insurance for medical cover purpose. The mediclaim covers the following expenses: PROFESSIONAL INDEMNITY: General insurance evolved with the evolution of business and life style of living beings. It took shape in the sea going vessels of the early centuries. Today expeditions to the voice of famous singers. General insurance forms the lifeline of several commerce and trade activities.

Design Methodology Essay Example for Free

Design Methodology Essay A design methodology is series of phases that guide a project lifecycle. Generally speaking there are an uncountable number of design methodologies, but the two most utilised are the predictive and the adaptive approach. The predicative approach assumes that a project can be planned in advance and the adaptive approach assumes the opposite. These design methodologies are also referred to as traditional or waterfall approach and spiral or iterative approach respectively. The phases involved generally fall into the categories of planning, analysis, design, implementation and support. Whether implementing the predictive or adaptive approach, each phase is an important step in the design methodology but can differ depending on the approach taken. Additional, depending on the design methodology implemented, the phases may not exist as separate entities and can be combined, split up or even removed all together. During the planning phase the problem and scope are defined, a work breakdown structure and schedule is developed, a feasibility study is undertaken, team members are assigned and official approval is sought for commencement. The analysis phase involves gathering information relevant to the scope of the problem, constructing models or prototypes to assist information gathering, defining the goals or requirements and assessing and prioritising those goals or requirements. Information gathering techniques involve interviews, observation, reviewing industry standards, questionnaires, joint application design (JAD) sessions and general research. The design phase includes designing and integrating the system controls, designing the system and designing the system interfaces. The implementation phase involves constructing the system, verifying and testing the system, data conversion, training users, documenting the system and installation of the system. Finally, the support phase encompasses maintenance of the system, improving the systems and providing continual support for users of the system. The traditional or waterfall approach follows a sequential set of phases that need to be complete in order, one after the other. In most cases the waterfall approach does not contain overlapping phases and each phase must be completed before beginning the next phase. On the other hand, the adaptive approach involves repeating phases and/or overlapping phases. Usually the phases are repeated in a looping or spiral fashion but can also follow the more traditional linear pattern with overlap or loopbacks to only a few of the phases. Design methodologies encompass not only how the project lifecycle is planned out but also the models, tools and techniques used to assist the project lifecycle. Models can include anything from diagrams and charts to real world representations and abstract representations. Tools range from simple programs to produce models to complex Computer Aided Software Engineering (CASE) tools. Finally, techniques consist of step-by-step instructions, guidelines or advice to assist the completion of the phases or the project lifecycle. Design methodologies are mostly notably applied to project management and technological industries such as software development. In project management, design methodologies allow projects to be directed to achieve the expected goals within the given constraints. Technological industries also follow a very similar approach to project management. Methodologies can also be applied to everyday tasks, especially within the area of business. In retail, staff are often given guidelines on how to deal with customer complaints. Most notably, ALARA involves the steps of acknowledge, listen, ask questions, recap and act. This is in essence a design methodology which begins with the planning phase (acknowledge), the analysis and design phase (listen and ask questions), the support phase (recap) and implementation phase (act).

Malaysian Conventional and Islamic Equity Mutual Fund

Malaysian Conventional and Islamic Equity Mutual Fund An Analysis Of Companies Portfolio Performance Using Sharpe Ratio: A Study On The Differences Of Performance Between Malaysian Conventional And Islamic Equity Mutual Fund In 2007 1.0 Introduction 1.0.1 Chapter Description In this chapter, explaining the background of the study, problem statement, objectives of the study, hypotheses, significance of this study, as well as the scope and limitations during the process of completing this study. 1.0.2 Background of the Study Portfolio evaluation is on the time before 1960. Investors evaluated portfolio performance almost entirely on the basis of the rate of return. They were aware of the concept of risk but did not know how to quantify or measure it, so they could consider it explicitly. Developments in portfolio theory in the early 1960s showed investors on how to quantify and measure risk in terms of the variability of returns. Still, because no single measure combined both return and risk, the two factors had to be considered separately as researchers such as Friend, Blume, and Crockett (1970). Specifically, the investigators grouped portfolios into similar risk classes based on a measure of risk (such as the variance of return) and compared the rates of return for alternative portfolios directly within these risk classes. Before 1960, investors evaluated portfolio performance almost entirely on the rate of return, although they knew that risk was a very important variable in determining investment success. The reason for omitting risk was the lack of knowledge on how to measure and quantify it. After the development of portfolio theory in early 60s, and CAPM in subsequent years, risk, measured as either by standard deviation or beta, was included in evaluation process. However, since there was not a single measure combining return and risk, two factors were to be considered separately that were researchers grouped portfolios into similar risk classes and compared rates of return of portfolios in the same risk class. There are many kinds of measurement such as Jensen, Treynor and also Sharpe to evaluate the companys portfolio performance. Jensens alpha has been a popular performance measure because it is a return concept. Related to Dr. William F. Sharpes contribution to style analysis of investment performance, the Sharpes alpha is related to the Jensens alpha in the sense that both measures excess returns. They differ, however, in the selection and construction of benchmarks. Sharpe (1966) developed a composite index which was very similar to the Treynor measure, the only difference was that it was being used as standard deviation, instead of beta. To measure the portfolio risk, the researcher needs the average rate of return for Portfolio during a specified time period, the average rate of return on risk-free rate during the same period, Sharpe performance index and the standard deviation of the rate of return for Portfolio during the time period. Sharpe preferred to compare portfolios to the capital market line (CML) rather than the security market line (SML). Sharpe index, therefore, evaluated funds performance based on both rate of return and diversification (Sharpe 1967). For a completely diversified portfolio Treynor and Sharpe indices would give identical rankings. Although the mutual fund industry in Malaysia started as far back as 1959 with the establishment of the Malayan Unit Trust Ltd, the development of the industry did not take-off until the 1980s with the launching of the Amanah Saham Nasional (ASN). In 2004, the Commission approved 17 new Syariah-based unit trust funds, bringing the total number of such funds to 71 or 24.4% of the total 291 approved funds in the industry as at the end of 2004 (2003: 55 funds or 24.3% of the total industry). Of the 71 Syariah-based unit trust funds, 14 were balanced funds, 14 were bond funds, 39 were equity funds, 2 two were fixed income funds and two were money market funds. The number of units in circulation for Syariah-based unit trust funds also increased from 8.59 billion units as at the end of 2003 to 13.16 billion units in 2004. The number of accounts registered an increase of 23.4% or 80,848 accounts, with a total of 427,000 accounts in 2004. One conventional fund made changes to its investment objectives and operations which enabled it to comply with the requirements of Syariah-based unit trust funds. In terms of value, the NAV of Syariah-based unit trust funds grew to RM6.76 billion representing 7.7% of the industry, an increase of 0.9% from the previous year. Over a 10-year period (1995-2004), the NAV of Syariah-based unit trust funds grew at a compounded annual growth rate (CAGR) of 26.18% while the overall industry CAGR was 7.89%. The recognition of the increasing dominance and importance of unit trusts as an investment instrument has spurred researchers to devise appropriate techniques to assess portfolio performance. The earlier works by Sharpe (1966), Treynor (1965) and Jensen (1968) represented significant contributions to the evaluation of portfolio performance. Therefore, the primary aim of this paper is to present new evidences for the analysis of companies portfolio performance using Sharpe ratio by studying the differences the performance between Malaysian conventional and Islamic Equity Mutual Fund in 2007. 1.0.3 Overview of Conventional and Islamic Mutual Fund Mutual fund or better known as unit trust in Malaysia is an investment vehicle created by asset management companies specializing in pooling savings from both retail and institutional investors. Individual investors seeking liquidity, portfolio diversification and investment expertise are increasingly choosing unit trust funds as their investment vehicle. However, these investors do differ in their preferences based on their risk threshold, liquidity needs and their needs to comply with religious requirement. In the Malaysian context, the performance of mutual funds or more popularly known as unit trust funds as reported by Shamsher and Annuar (1995), Tan (1995), Leong and Aw (1997), Annuar et al,. (1997) and Low and Noor A. Ghazali (2005) concluded that on average, funds were unable to beat the market. The number of unit trust has grown dramatically in recent years. Unit trusts are now the preferred way for individual investors and many institutions to participate in the capital markets, and their popularity has increased demand for evaluations of fund performance. Muslims are not allowed to invest in standard mutual funds since their religion prohibits them from investing in certain equities, like those of banks or companies that deal in pork, alcohol, pornography and certain entertainment related products. An Islamic mutual fund is similar to a â€Å"conventional† mutual fund in many ways; however, unlike its â€Å"conventional† counterpart, an Islamic mutual fund must conform to the Sharia (Islamic Law) investment precepts. The Sharia encourages the use of profit sharing and partnership schemes, and forbids riba (interest), maysir (gambling and pure games of chance), and gharar (selling something that is not owned or that cannot be described in accurate detail; i.e., in terms of type, size and amount) (El-Gamal 2000). The Sharia guidelines and principles govern several aspects of an Islamic mutual fund, including its asset allocation (portfolio screening), investment and trading practices, and income distribution (purification). When selecting investments for their portfolio (asset allocation), conventional mutual funds can freely choose between debt-bearing investments and profit-bearing investment, and invest across the spectrum of all available industries. An Islamic mutual fund, however, must set up screens in order to select those companies that meet its qualitative and quantitative criteria set by Sharia guidelines. 1.1 Problem Statement At some levels, people are always interested in evaluating the performance of their investments. Having to spend the time and incurred the expense to design an asset allocation strategy and select the specific set of securities to form their portfolios, investors whether they are individuals, corporations, or financial institutions. It must be periodically determined whether this effort is worthwhile. Investors in managing their own portfolios should evaluate their performance, as should those who pay one or several professional money managers to make these decisions for them. It is imperative to determine the realized investment performance which justifies the additional costs of engaging professional management. Comparing a portfolios historical returns to those produced by other managers or indexes can be instructive; such comparisons do not produce a complete picture of the portfolios performance. Indeed, the central tenet of the modern approach to performance measurement is that it is impossible to make a thorough evaluation of an investment without explicitly control the risk of the portfolio. Given the complexity and importance of the issues involved, it is not a surprise to learn that there is not a single universally accepted procedure for risk-adjusting portfolio returns. Nevertheless, there are several techniques that are commonly employed. Some previous studies found results that are inconsistent with Chuas findings. These studies include Ewe (1994), Shamsher and Annuar (1995), and Tan (1995). Shamsher and Annuar (1995), focused their study on the performance of 54 unit trusts covering the period of late 80s to early 90s. They found out that the returns on investment in unit trust were well below the risk free and market returns. Furthermore, the results indicated that not only the degree of portfolios diversification was below expectation but the actual returns and risk characteristics of funds were also inconsistent with their stated objectives. Tan (1995) analyzed performance of 12 unit trusts over a 10-year period, 1984-1993. He concluded that unit trusts in general perform worse than the market portfolio. Consistent with Chuas findings, Tan also concluded that government sponsored funds performed better than private funds. As we can see, there are three portfolio performance evaluation techniques that comprise the basic ‘toolkit for measuring risk-adjusted performance. Although some redundancy exists among these measures, each of them provides unique perspectives, so that best viewed as complementary measures. In particular, examining the controversy surrounding the selection of the proper benchmark to use in the risk-adjustment process and discussing why these benchmark problems become larger when beginning to invest globally. From here, how to evaluate the performance of the investments in order to reduce the risk taken? What measurement can contribute to evaluating a good investment? Therefore, it is interesting to analyze the companies portfolio performance by studying on the differences in the performance between conventional and Islamic equity mutual fund in Malaysia by using Sharpe ratio. 1.2 Objectives of Research The general purpose of this study is to analyze the companies portfolio performance using Sharpe ratio by studying on the differences in the performance between conventional and Islamic equity mutual fund in Malaysia. A careful review on those questions has led to the development of the following specific research objectives which are: i. To measure and rank both relative quantitative performances of mutual fund (conventional/Islamic) on the basis of their return, total risk, coefficient of variation and Sharpe ratio. The term performance contains both the return and the risk undertaken by these mutual funds. ii. To investigate whether both mutual funds (conventional/Islamic) are earning higher returns than the benchmark returns (or market Portfolio/Index returns) in terms of risk. iii. To determine the relationship between dependent variable and independent variable. 1.3 Scope of Study The study is on the analysis of the companies portfolio performance in determining the measure of average daily return, total risk (standard deviation), coefficient of variation and Sharpe ratio. Moreover, to observe the differences in terms of performance between conventional and Islamic mutual fund in the context of Malaysian capital market by comparing them to the stock market index or Kuala Lumpur Composite Index (KLCI) benchmark. The scopes of the study are stated as follow:  § The relationship between two variables: the return on equity mutual fund as the dependent variable whereas the return on stock market index (KLCI) as the independent variable for conventional and Islamic fund.  § The period of study will cover one (1) year starting from January 2007 to December 2007 using the daily basis collected from The Star and New Straits Times newspapers and also from the internet.  § This research will also focus on the conventional and Islamic Equity Mutual Fund companies available in Malaysia. 1.4 Theoretical Framework The theoretical framework shows the relationship between the independent variables and dependent variable. The independent variable is the return on KLCI while the dependent variable is the return of Equity Mutual fund companies in Malaysia. Schematic diagram for the theoretical framework in this study is as follows: Market Index Equity Fund Market Index Islamic Equity Fund Independent Variable Dependent Variable 1.5 Hypotheses According to Uma Sekaran (2003), a hypothesis can be defined as a logically conjectured relationship between two or more variables expressed in the form of testable statement. Hypothesis can be divided into two categories which are Ho which is a Null Hypothesis and Ha which is an Alternate Hypothesis. The term â€Å"null† can be thought of as meaning â€Å"no change† or â€Å"no difference†. The second hypothesis is called alternative hypothesis. It is summary of the case if the null hypothesis is not true. It is stated that Ha, the alternative hypothesis is a statement of a view that has been prepared to be accepted if Ho is rejected. The hypotheses of this study are: Hypothesis 1: Ho: There is no relationship between the return on KLCI and the return on Conventional equity mutual fund. Ha: There is a relationship between the return on KLCI and the return on Conventional equity mutual fund. Hypothesis 2: Ho: There is no relationship between the return on KLCI and the return on Islamic equity mutual fund. Ha: There is a relationship between the return on KLCI and the return on Islamic equity mutual fund. 1.6 Limitations of the Study Data Collection and Cost Limitation The major source of data gained is from the secondary sources. The data is only available at certain places and it requires cost to obtain the data. Besides, it also requires costs in the process of printing, photocopying, data services and transportations to obtain the information. The information about the topic studied is also difficult to search in the library because of the limited information. As a result, it causes problems to the researcher to gather and collect the information. The information and data related to the study is rather difficult to obtain. Thus, the accuracy of the study depends on the accuracy of the data available and may not perfectly precise. In addition, data is also limited since it relies on the secondary sources alone. Lack of Experience and Expertise Since this research is the first research experience for the researcher, undoubtedly there are still lots of things to improve. The lacks of experience especially in data collection and time management have been the limitations to the researcher. Moreover, the researcher has limited knowledge on the topic and needs more understanding on the topic studied. Time Constraint Time is very limited for the researcher to complete the research. The researcher has to be very smart in scheduling the time to make sure the research is completed in time. Thus, time constraint has been identified as one of the limitations for the researcher. 1.7 Significance of the Study This research analyzes on the companies portfolio performance using Sharpe ratio by studying on the differences in the performance between conventional and Islamic Equity Mutual Fund in Malaysia. Therefore this study will provide some information that can be useful because the data and findings from this research will help other researchers to produce better result in their research. This research is also significant to: To Researcher As a finance student, issues in measuring portfolio performance are so much important and crucial. By studying about measurement of portfolio performance in depth, a better understanding and knowledge is gained. This research has given the researcher the opportunity to get the experience in practice as well as in theories. To other researcher This study also can be a useful reference to other researchers who are keen to carry on the study regarding the performance of mutual fund in Malaysia. There are several fruitful areas in this study that can be further examined by other researchers. Further study will give an opportunity to other researchers to expand their view and knowledge. To do so, they need to refer to numerous literatures and hopefully, this research can come in handy for them. To Finance Students This research will be very useful for finance students in having more knowledge about the companys portfolio performance and the differences in the performance between conventional and Islamic Equity Mutual fund in Malaysia. They can use this research as a guide and as references in their studies in portfolio management and mutual fund in Malaysia. To Businesses This research is very important to businesses in realizing the effects of portfolio management on their performance. This is important so that they will have clear direction in deciding their investment. To Investors This study plays an important role in decision making since it gives the investors a prior knowledge of which Equity Mutual Fund companies is the best to invest and whether those companies provide high returns on investment. Moreover, revealing the specific volatility patterns in returns might also benefit investors in risk management and portfolio optimization. This research is also important to investors so that they can have a clearer picture of their investment choices. For investors the study can help them to know the risk and return of their investment transaction. 1.8 Definition of Terms Portfolio A collection of investments are all owned by the same individual or organization. These investments often include stocks, which are investments in individual businesses; bonds, which are investments in debt that are designed to earn interest; and mutual funds, which are essentially pools of money from many investors that are invested by professionals or according to indices. Sharpe Ratio A risk-adjusted measure developed by William F. Sharpe, calculated using standard deviation and excess return to determine reward per unit of risk. The higher the Sharpe ratio, the better the funds historical risk-adjusted performance. Mutual Fund (Unit Trust) A form of collective investment constituted under a trust deed or a pooled investment plan where the capital contributions of investors are combined into a legally formed trust fund. Equity fund Equity fund or stock fund is a fund that invests in Equities more commonly known as stocks. Such funds are typically held either in stock or cash, as opposed to bonds, notes or other securities. Return Based on Investopedia definition, return can be defined as the gain or lossof an investment over a specified period, expressed asa percentage increase over the initial investment cost. Gains on investments are considered to beany income received from the security, plus realized capital gains. Risk The quantifiable likelihood of loss or less-than-expected returns Risk-adjusted return A measure of how much an investment returned in relation to the amount of risk it took on. Often used to compare a high-risk, potentially high-return investment with a low-risk, lower-return investment. Benchmark A standard, used for comparison. For example, the Nasdaq may be used as a benchmark against which the performance of a technology stock is compared. Regression Analysis A statistical technique used to find relationships between variables for the purpose of predicting future values. Coefficient of Determination A measure of the correlation between the dependent and independent variables in a regression analysis. R-squared A measurement of how closely a portfolios performance correlates with the performance of a benchmark index, such as the SP 500, and thus a measurement of what portion of its performance can be explained by the performance of the overall market or index. Values for r-squared range from 0 to 1, where 0 indicates no correlation and 1 indicates perfect correlation. Kuala Lumpur Composite Index (KLCI) The Kuala Lumpur Composite Index (KLCI) is a stock market index generally accepted as the local stock market barometer. KLCI was introduced in 1986 to public the need for a stock market index which would serve as an accurate performance indicator of the Malaysian stock market as well as the economy. It is used to be the main index, and is now one of the three primary indices for the Malaysian stock market which the other two are FMB30 and FMBEMAS, Bursa Malaysia. It contains 100 companies from the Main Board with approximately 500 to 650 listed companies in the Main Board which comprise of multi-sectors companies across the year 2000 to 2006 and is a capitalization-weighted index. 2.0 Literature Review 2.1 Chapter Description Literature review is the documentation of a comprehensive review of the published and unpublished work from the secondary sources of data in the areas of specific interest to the researcher. The reason of the literature review is to ensure that no important variable that has in the past been founded repeatedly to have an impact on the problem is ignored. (Uma Sekaran, 2005 page 63). 2.2 Literature Review of Evaluated Portfolio Performance Craig W. French (2003) discussed on what is involved in evaluating portfolio performance, including the need to adjust for differential risk and differential time periods, the need for a benchmark, and constraints on portfolio managers. It also considered the difference between the portfolios performance and the managers performance. For measurement this paper used well-known risk-adjusted (composite) measures of Sharpe portfolio performance. Investors who had all (or substantially all) of their assets in a portfolio of securities should rely more on the Sharpe measure because total risk is important. Joel Owen and Ramon Rabinovitch (1998), for the last four decades, numerous authors have been suggesting methods to evaluate portfolio performance. Sharpe (1966) proposed performance measures which had produced a score for every portfolio being evaluated. These scores were used to compare the performance of any two portfolios or rank the performance of all portfolios in a given set. The earlier works by Sharpe (1966), Treynor (1965) and Jensen (1968) represented significant contributions to the evaluation of portfolio performance. 2.3 Literature Review of Sharpe Ratio Francisco Peà ±aranda (2007) in her paper commented on developments beyond mean-variance preferences to some alternatives to the Sharpe ratio. The main goal of those measures was to give a similar ranking to Sharpe ratios when returns were symmetrically distributed and showed a preference for skewness when they were not. Moreover, performance measures could be used to guide asset allocation since they can be used as the criterion to maximize with portfolio. Raphie Hayat (2006), the attractiveness of the Sharpe Ratio came from its intuitiveness and simplicity. The Sharpe Ratio are simple because it could rank funds on the base of a single and intuitive since it only rewarded funds with a higher ratio if their returns were higher with the same level of risk or if the risk was lowered while keeping the same level of return. Zhidong Bai, Keyan Wang, and Wing-Keung Wong (2006) stated that the asset performance evaluation was one of the most important areas in investment analysis. In order to compare the performance among assets, several statistics had been developed and among them, the Sharpe-ratio statistic was the most prevalent. However, the major limitation of the Sharpe-ratio statistic was that its distribution is only valid asymptotically, but not valid for small samples. Nevertheless, it was important in finance to test the performance among assets for small samples. Tzu-Wei Kuo and Cesario Mateus (2006), the Sharpe ratio was well known risk-adjusted performance measures and easily understood by an individual investor. Thus, investors could evaluate the exchange-traded funds (ETFs) performance, based on the Sharpe ratio. However, the Sharpe ratio relied on the assumption that returns were normally distributed having these measures difficulty in evaluating the performance with skewed return distributions. Martin Eling and Frank Schuhmacher said that the classic Sharpe ratio was adequate in evaluating investment funds when the returns of those funds were normally distributed and the investor intended to place all his risky assets into just one investment fund. Because hedge fund returns differed significantly from a normal distribution, other performance measures had been proposed and encouraged in both academic and practice-oriented literature. The Sharpe ratio measured the performance of an investment fund by considering the relationship between the risk premium and the standard deviation of the returns generated by a fund. The Sharpe ratio were an adequate performance measure if the returns of the investment funds were normally distributed and the investor wished to place all his risky assets in just one investment fund. Andreas G Merikas, Anna A Merikas and Ioannis Sorros (2005) examined the exact relationship between the Sharpe ratio and the information ratio. Sharpe in 1994 asserted that the information ratio was a generalized Sharpe ratio. Sharpe ratios had been estimated for each fund in each category, and an average ratio for each category. The Sharpe ratio would generally be positive since excess returns of funds over the risk free rate would be positive, unlike excess returns of funds over the market, which could be negative, as the return of the risk free bond was smaller but at the same time less volatile than the return of the market. Cheryl J. Frohlich, Anita Pennathur and Oliver Schnusenberg in their research, Sharpe reward-to-variability ratio was used if total variability was thought to be the appropriate measure of risk, a stocks (portfolios) risk-adjusted returns could be computed using the Sharpe Index. The Sharpe and Treynor Index eliminated the problem of only considering return as a measure of performance. However, neither ratio was independent of the time period over which it is measured. This means that the ratio can change from one period to another with different results. Moreover, both ratios also ignored the correlation of a fund with other assets, liabilities, or previous realizations of its own return. Mario Onorato (2004), the Sharpe Ratio of any investment was defined as its excess return, it is return in excess of a benchmark return divided by the standard deviation of excess return. The benchmark represents a risk free investment alternative. Moreover, although the Sharpe ratio has become part of the modern financial analysis, its applications typically did not account for the fact that it was an estimated quantity, subject to estimation errors that would be substantial in some cases. The statistical properties of Sharpe ratios depended intimately on the statistical properties of the return series on which they are based. This suggests that a more sophisticated approach to interpreting Sharpe ratios is called for, one that incorporates information about the investment style that generates the returns and the market environment in which those returns are generated. Wei Zhen (2004), in his paper said that the Sharpe (1966) and Treynor (1965) performance measures were widely accepted in both academia and industry to assess the Risk-adjusted value of a particular portfolio. It could be shown, after some mathematical treatment, that the Sharpe performance measure was useful when the portfolio of interest represented all of the investors investment, while Treynors measure was preferred when the portfolio under discussion was only a portion of the whole investment package. Robert McCauley and Guorong Jiang (2004), through the Sharpe ratio it compared the returns of portfolios in relation to their risk by dividing their returns in excess of the riskless rate of return by the volatility of their returns. A portfolio with a higher Sharpe ratio was preferred in that it offered a higher return per unit of risk, as measured by return volatility. William Goetzmann, Jonathan Ingersoll, Matthew Spiegel and Ivo Welch (2002), the Sharpe ratio is one of the most common measures of portfolio performance. It was used as a tool for evaluating and predicting the performance of mutual fund managers. Since then the Sharpe ratio, and its close analogues the Information ratio, the squared Sharpe ratio and M-squared, have become widely used in practice to rank investment managers and to evaluate the attractiveness of investment strategies in general. The appeal of the Sharpe measure was clear. It was an affine transformation of a simple t-test for equality in means of two variables, the first variable being the managers time series of returns and the second being a benchmark. The Sharpe ratio was also ubiquitous in academic research as a metric for bounding asset prices. Andrew Worthington and Helen Higgs (2002), the Sharpe ratio (also known as the reward-to-volatility ratio) indicated the excess return per unit of risk and was calculated by dividing the return in excess of the risk-free rate by the standard deviation of returns. In the current context, the Sharpe ratio was the most appropriate performance measure for an investor whose portfolio was composed wholly of a given artists work. Verena Kugi (1999), the Sharpe ratio measured the change in the portfolios return with respect to a one unit change in the portfolios risk. The higher this Reward-to-Variability-Ratio the more attractive was the evaluated portfolio because the investor received more compensation for the same increase in risk. Graphically, the Sharpe ratio was equal to the slope of a straight line connecting the position of the evaluated portfolio, for example a fund, with the risk-free rate. To determine the quality of performance, the Sharpe index of the evaluated portfolio was compared to the Sharpe index of the market or benchmark portfolio. The portfolios Sharpe index being higher than the markets Sharpe index indicated that the portfolio manager had outperformed the market. Respectively, a lower Sharpe ratio was a sign of underperformance. Any portfolio that was positioned on the capital market line had a Sharpe ratio equal to that of the market and was therefore characterized by neutral perform ance. Youguo Liang and Willard McIntosh (1998), the Sharpes alpha captured the excess return of Malaysian Conventional and Islamic Equity Mutual Fund Malaysian Conventional and Islamic Equity Mutual Fund An Analysis Of Companies Portfolio Performance Using Sharpe Ratio: A Study On The Differences Of Performance Between Malaysian Conventional And Islamic Equity Mutual Fund In 2007 1.0 Introduction 1.0.1 Chapter Description In this chapter, explaining the background of the study, problem statement, objectives of the study, hypotheses, significance of this study, as well as the scope and limitations during the process of completing this study. 1.0.2 Background of the Study Portfolio evaluation is on the time before 1960. Investors evaluated portfolio performance almost entirely on the basis of the rate of return. They were aware of the concept of risk but did not know how to quantify or measure it, so they could consider it explicitly. Developments in portfolio theory in the early 1960s showed investors on how to quantify and measure risk in terms of the variability of returns. Still, because no single measure combined both return and risk, the two factors had to be considered separately as researchers such as Friend, Blume, and Crockett (1970). Specifically, the investigators grouped portfolios into similar risk classes based on a measure of risk (such as the variance of return) and compared the rates of return for alternative portfolios directly within these risk classes. Before 1960, investors evaluated portfolio performance almost entirely on the rate of return, although they knew that risk was a very important variable in determining investment success. The reason for omitting risk was the lack of knowledge on how to measure and quantify it. After the development of portfolio theory in early 60s, and CAPM in subsequent years, risk, measured as either by standard deviation or beta, was included in evaluation process. However, since there was not a single measure combining return and risk, two factors were to be considered separately that were researchers grouped portfolios into similar risk classes and compared rates of return of portfolios in the same risk class. There are many kinds of measurement such as Jensen, Treynor and also Sharpe to evaluate the companys portfolio performance. Jensens alpha has been a popular performance measure because it is a return concept. Related to Dr. William F. Sharpes contribution to style analysis of investment performance, the Sharpes alpha is related to the Jensens alpha in the sense that both measures excess returns. They differ, however, in the selection and construction of benchmarks. Sharpe (1966) developed a composite index which was very similar to the Treynor measure, the only difference was that it was being used as standard deviation, instead of beta. To measure the portfolio risk, the researcher needs the average rate of return for Portfolio during a specified time period, the average rate of return on risk-free rate during the same period, Sharpe performance index and the standard deviation of the rate of return for Portfolio during the time period. Sharpe preferred to compare portfolios to the capital market line (CML) rather than the security market line (SML). Sharpe index, therefore, evaluated funds performance based on both rate of return and diversification (Sharpe 1967). For a completely diversified portfolio Treynor and Sharpe indices would give identical rankings. Although the mutual fund industry in Malaysia started as far back as 1959 with the establishment of the Malayan Unit Trust Ltd, the development of the industry did not take-off until the 1980s with the launching of the Amanah Saham Nasional (ASN). In 2004, the Commission approved 17 new Syariah-based unit trust funds, bringing the total number of such funds to 71 or 24.4% of the total 291 approved funds in the industry as at the end of 2004 (2003: 55 funds or 24.3% of the total industry). Of the 71 Syariah-based unit trust funds, 14 were balanced funds, 14 were bond funds, 39 were equity funds, 2 two were fixed income funds and two were money market funds. The number of units in circulation for Syariah-based unit trust funds also increased from 8.59 billion units as at the end of 2003 to 13.16 billion units in 2004. The number of accounts registered an increase of 23.4% or 80,848 accounts, with a total of 427,000 accounts in 2004. One conventional fund made changes to its investment objectives and operations which enabled it to comply with the requirements of Syariah-based unit trust funds. In terms of value, the NAV of Syariah-based unit trust funds grew to RM6.76 billion representing 7.7% of the industry, an increase of 0.9% from the previous year. Over a 10-year period (1995-2004), the NAV of Syariah-based unit trust funds grew at a compounded annual growth rate (CAGR) of 26.18% while the overall industry CAGR was 7.89%. The recognition of the increasing dominance and importance of unit trusts as an investment instrument has spurred researchers to devise appropriate techniques to assess portfolio performance. The earlier works by Sharpe (1966), Treynor (1965) and Jensen (1968) represented significant contributions to the evaluation of portfolio performance. Therefore, the primary aim of this paper is to present new evidences for the analysis of companies portfolio performance using Sharpe ratio by studying the differences the performance between Malaysian conventional and Islamic Equity Mutual Fund in 2007. 1.0.3 Overview of Conventional and Islamic Mutual Fund Mutual fund or better known as unit trust in Malaysia is an investment vehicle created by asset management companies specializing in pooling savings from both retail and institutional investors. Individual investors seeking liquidity, portfolio diversification and investment expertise are increasingly choosing unit trust funds as their investment vehicle. However, these investors do differ in their preferences based on their risk threshold, liquidity needs and their needs to comply with religious requirement. In the Malaysian context, the performance of mutual funds or more popularly known as unit trust funds as reported by Shamsher and Annuar (1995), Tan (1995), Leong and Aw (1997), Annuar et al,. (1997) and Low and Noor A. Ghazali (2005) concluded that on average, funds were unable to beat the market. The number of unit trust has grown dramatically in recent years. Unit trusts are now the preferred way for individual investors and many institutions to participate in the capital markets, and their popularity has increased demand for evaluations of fund performance. Muslims are not allowed to invest in standard mutual funds since their religion prohibits them from investing in certain equities, like those of banks or companies that deal in pork, alcohol, pornography and certain entertainment related products. An Islamic mutual fund is similar to a â€Å"conventional† mutual fund in many ways; however, unlike its â€Å"conventional† counterpart, an Islamic mutual fund must conform to the Sharia (Islamic Law) investment precepts. The Sharia encourages the use of profit sharing and partnership schemes, and forbids riba (interest), maysir (gambling and pure games of chance), and gharar (selling something that is not owned or that cannot be described in accurate detail; i.e., in terms of type, size and amount) (El-Gamal 2000). The Sharia guidelines and principles govern several aspects of an Islamic mutual fund, including its asset allocation (portfolio screening), investment and trading practices, and income distribution (purification). When selecting investments for their portfolio (asset allocation), conventional mutual funds can freely choose between debt-bearing investments and profit-bearing investment, and invest across the spectrum of all available industries. An Islamic mutual fund, however, must set up screens in order to select those companies that meet its qualitative and quantitative criteria set by Sharia guidelines. 1.1 Problem Statement At some levels, people are always interested in evaluating the performance of their investments. Having to spend the time and incurred the expense to design an asset allocation strategy and select the specific set of securities to form their portfolios, investors whether they are individuals, corporations, or financial institutions. It must be periodically determined whether this effort is worthwhile. Investors in managing their own portfolios should evaluate their performance, as should those who pay one or several professional money managers to make these decisions for them. It is imperative to determine the realized investment performance which justifies the additional costs of engaging professional management. Comparing a portfolios historical returns to those produced by other managers or indexes can be instructive; such comparisons do not produce a complete picture of the portfolios performance. Indeed, the central tenet of the modern approach to performance measurement is that it is impossible to make a thorough evaluation of an investment without explicitly control the risk of the portfolio. Given the complexity and importance of the issues involved, it is not a surprise to learn that there is not a single universally accepted procedure for risk-adjusting portfolio returns. Nevertheless, there are several techniques that are commonly employed. Some previous studies found results that are inconsistent with Chuas findings. These studies include Ewe (1994), Shamsher and Annuar (1995), and Tan (1995). Shamsher and Annuar (1995), focused their study on the performance of 54 unit trusts covering the period of late 80s to early 90s. They found out that the returns on investment in unit trust were well below the risk free and market returns. Furthermore, the results indicated that not only the degree of portfolios diversification was below expectation but the actual returns and risk characteristics of funds were also inconsistent with their stated objectives. Tan (1995) analyzed performance of 12 unit trusts over a 10-year period, 1984-1993. He concluded that unit trusts in general perform worse than the market portfolio. Consistent with Chuas findings, Tan also concluded that government sponsored funds performed better than private funds. As we can see, there are three portfolio performance evaluation techniques that comprise the basic ‘toolkit for measuring risk-adjusted performance. Although some redundancy exists among these measures, each of them provides unique perspectives, so that best viewed as complementary measures. In particular, examining the controversy surrounding the selection of the proper benchmark to use in the risk-adjustment process and discussing why these benchmark problems become larger when beginning to invest globally. From here, how to evaluate the performance of the investments in order to reduce the risk taken? What measurement can contribute to evaluating a good investment? Therefore, it is interesting to analyze the companies portfolio performance by studying on the differences in the performance between conventional and Islamic equity mutual fund in Malaysia by using Sharpe ratio. 1.2 Objectives of Research The general purpose of this study is to analyze the companies portfolio performance using Sharpe ratio by studying on the differences in the performance between conventional and Islamic equity mutual fund in Malaysia. A careful review on those questions has led to the development of the following specific research objectives which are: i. To measure and rank both relative quantitative performances of mutual fund (conventional/Islamic) on the basis of their return, total risk, coefficient of variation and Sharpe ratio. The term performance contains both the return and the risk undertaken by these mutual funds. ii. To investigate whether both mutual funds (conventional/Islamic) are earning higher returns than the benchmark returns (or market Portfolio/Index returns) in terms of risk. iii. To determine the relationship between dependent variable and independent variable. 1.3 Scope of Study The study is on the analysis of the companies portfolio performance in determining the measure of average daily return, total risk (standard deviation), coefficient of variation and Sharpe ratio. Moreover, to observe the differences in terms of performance between conventional and Islamic mutual fund in the context of Malaysian capital market by comparing them to the stock market index or Kuala Lumpur Composite Index (KLCI) benchmark. The scopes of the study are stated as follow:  § The relationship between two variables: the return on equity mutual fund as the dependent variable whereas the return on stock market index (KLCI) as the independent variable for conventional and Islamic fund.  § The period of study will cover one (1) year starting from January 2007 to December 2007 using the daily basis collected from The Star and New Straits Times newspapers and also from the internet.  § This research will also focus on the conventional and Islamic Equity Mutual Fund companies available in Malaysia. 1.4 Theoretical Framework The theoretical framework shows the relationship between the independent variables and dependent variable. The independent variable is the return on KLCI while the dependent variable is the return of Equity Mutual fund companies in Malaysia. Schematic diagram for the theoretical framework in this study is as follows: Market Index Equity Fund Market Index Islamic Equity Fund Independent Variable Dependent Variable 1.5 Hypotheses According to Uma Sekaran (2003), a hypothesis can be defined as a logically conjectured relationship between two or more variables expressed in the form of testable statement. Hypothesis can be divided into two categories which are Ho which is a Null Hypothesis and Ha which is an Alternate Hypothesis. The term â€Å"null† can be thought of as meaning â€Å"no change† or â€Å"no difference†. The second hypothesis is called alternative hypothesis. It is summary of the case if the null hypothesis is not true. It is stated that Ha, the alternative hypothesis is a statement of a view that has been prepared to be accepted if Ho is rejected. The hypotheses of this study are: Hypothesis 1: Ho: There is no relationship between the return on KLCI and the return on Conventional equity mutual fund. Ha: There is a relationship between the return on KLCI and the return on Conventional equity mutual fund. Hypothesis 2: Ho: There is no relationship between the return on KLCI and the return on Islamic equity mutual fund. Ha: There is a relationship between the return on KLCI and the return on Islamic equity mutual fund. 1.6 Limitations of the Study Data Collection and Cost Limitation The major source of data gained is from the secondary sources. The data is only available at certain places and it requires cost to obtain the data. Besides, it also requires costs in the process of printing, photocopying, data services and transportations to obtain the information. The information about the topic studied is also difficult to search in the library because of the limited information. As a result, it causes problems to the researcher to gather and collect the information. The information and data related to the study is rather difficult to obtain. Thus, the accuracy of the study depends on the accuracy of the data available and may not perfectly precise. In addition, data is also limited since it relies on the secondary sources alone. Lack of Experience and Expertise Since this research is the first research experience for the researcher, undoubtedly there are still lots of things to improve. The lacks of experience especially in data collection and time management have been the limitations to the researcher. Moreover, the researcher has limited knowledge on the topic and needs more understanding on the topic studied. Time Constraint Time is very limited for the researcher to complete the research. The researcher has to be very smart in scheduling the time to make sure the research is completed in time. Thus, time constraint has been identified as one of the limitations for the researcher. 1.7 Significance of the Study This research analyzes on the companies portfolio performance using Sharpe ratio by studying on the differences in the performance between conventional and Islamic Equity Mutual Fund in Malaysia. Therefore this study will provide some information that can be useful because the data and findings from this research will help other researchers to produce better result in their research. This research is also significant to: To Researcher As a finance student, issues in measuring portfolio performance are so much important and crucial. By studying about measurement of portfolio performance in depth, a better understanding and knowledge is gained. This research has given the researcher the opportunity to get the experience in practice as well as in theories. To other researcher This study also can be a useful reference to other researchers who are keen to carry on the study regarding the performance of mutual fund in Malaysia. There are several fruitful areas in this study that can be further examined by other researchers. Further study will give an opportunity to other researchers to expand their view and knowledge. To do so, they need to refer to numerous literatures and hopefully, this research can come in handy for them. To Finance Students This research will be very useful for finance students in having more knowledge about the companys portfolio performance and the differences in the performance between conventional and Islamic Equity Mutual fund in Malaysia. They can use this research as a guide and as references in their studies in portfolio management and mutual fund in Malaysia. To Businesses This research is very important to businesses in realizing the effects of portfolio management on their performance. This is important so that they will have clear direction in deciding their investment. To Investors This study plays an important role in decision making since it gives the investors a prior knowledge of which Equity Mutual Fund companies is the best to invest and whether those companies provide high returns on investment. Moreover, revealing the specific volatility patterns in returns might also benefit investors in risk management and portfolio optimization. This research is also important to investors so that they can have a clearer picture of their investment choices. For investors the study can help them to know the risk and return of their investment transaction. 1.8 Definition of Terms Portfolio A collection of investments are all owned by the same individual or organization. These investments often include stocks, which are investments in individual businesses; bonds, which are investments in debt that are designed to earn interest; and mutual funds, which are essentially pools of money from many investors that are invested by professionals or according to indices. Sharpe Ratio A risk-adjusted measure developed by William F. Sharpe, calculated using standard deviation and excess return to determine reward per unit of risk. The higher the Sharpe ratio, the better the funds historical risk-adjusted performance. Mutual Fund (Unit Trust) A form of collective investment constituted under a trust deed or a pooled investment plan where the capital contributions of investors are combined into a legally formed trust fund. Equity fund Equity fund or stock fund is a fund that invests in Equities more commonly known as stocks. Such funds are typically held either in stock or cash, as opposed to bonds, notes or other securities. Return Based on Investopedia definition, return can be defined as the gain or lossof an investment over a specified period, expressed asa percentage increase over the initial investment cost. Gains on investments are considered to beany income received from the security, plus realized capital gains. Risk The quantifiable likelihood of loss or less-than-expected returns Risk-adjusted return A measure of how much an investment returned in relation to the amount of risk it took on. Often used to compare a high-risk, potentially high-return investment with a low-risk, lower-return investment. Benchmark A standard, used for comparison. For example, the Nasdaq may be used as a benchmark against which the performance of a technology stock is compared. Regression Analysis A statistical technique used to find relationships between variables for the purpose of predicting future values. Coefficient of Determination A measure of the correlation between the dependent and independent variables in a regression analysis. R-squared A measurement of how closely a portfolios performance correlates with the performance of a benchmark index, such as the SP 500, and thus a measurement of what portion of its performance can be explained by the performance of the overall market or index. Values for r-squared range from 0 to 1, where 0 indicates no correlation and 1 indicates perfect correlation. Kuala Lumpur Composite Index (KLCI) The Kuala Lumpur Composite Index (KLCI) is a stock market index generally accepted as the local stock market barometer. KLCI was introduced in 1986 to public the need for a stock market index which would serve as an accurate performance indicator of the Malaysian stock market as well as the economy. It is used to be the main index, and is now one of the three primary indices for the Malaysian stock market which the other two are FMB30 and FMBEMAS, Bursa Malaysia. It contains 100 companies from the Main Board with approximately 500 to 650 listed companies in the Main Board which comprise of multi-sectors companies across the year 2000 to 2006 and is a capitalization-weighted index. 2.0 Literature Review 2.1 Chapter Description Literature review is the documentation of a comprehensive review of the published and unpublished work from the secondary sources of data in the areas of specific interest to the researcher. The reason of the literature review is to ensure that no important variable that has in the past been founded repeatedly to have an impact on the problem is ignored. (Uma Sekaran, 2005 page 63). 2.2 Literature Review of Evaluated Portfolio Performance Craig W. French (2003) discussed on what is involved in evaluating portfolio performance, including the need to adjust for differential risk and differential time periods, the need for a benchmark, and constraints on portfolio managers. It also considered the difference between the portfolios performance and the managers performance. For measurement this paper used well-known risk-adjusted (composite) measures of Sharpe portfolio performance. Investors who had all (or substantially all) of their assets in a portfolio of securities should rely more on the Sharpe measure because total risk is important. Joel Owen and Ramon Rabinovitch (1998), for the last four decades, numerous authors have been suggesting methods to evaluate portfolio performance. Sharpe (1966) proposed performance measures which had produced a score for every portfolio being evaluated. These scores were used to compare the performance of any two portfolios or rank the performance of all portfolios in a given set. The earlier works by Sharpe (1966), Treynor (1965) and Jensen (1968) represented significant contributions to the evaluation of portfolio performance. 2.3 Literature Review of Sharpe Ratio Francisco Peà ±aranda (2007) in her paper commented on developments beyond mean-variance preferences to some alternatives to the Sharpe ratio. The main goal of those measures was to give a similar ranking to Sharpe ratios when returns were symmetrically distributed and showed a preference for skewness when they were not. Moreover, performance measures could be used to guide asset allocation since they can be used as the criterion to maximize with portfolio. Raphie Hayat (2006), the attractiveness of the Sharpe Ratio came from its intuitiveness and simplicity. The Sharpe Ratio are simple because it could rank funds on the base of a single and intuitive since it only rewarded funds with a higher ratio if their returns were higher with the same level of risk or if the risk was lowered while keeping the same level of return. Zhidong Bai, Keyan Wang, and Wing-Keung Wong (2006) stated that the asset performance evaluation was one of the most important areas in investment analysis. In order to compare the performance among assets, several statistics had been developed and among them, the Sharpe-ratio statistic was the most prevalent. However, the major limitation of the Sharpe-ratio statistic was that its distribution is only valid asymptotically, but not valid for small samples. Nevertheless, it was important in finance to test the performance among assets for small samples. Tzu-Wei Kuo and Cesario Mateus (2006), the Sharpe ratio was well known risk-adjusted performance measures and easily understood by an individual investor. Thus, investors could evaluate the exchange-traded funds (ETFs) performance, based on the Sharpe ratio. However, the Sharpe ratio relied on the assumption that returns were normally distributed having these measures difficulty in evaluating the performance with skewed return distributions. Martin Eling and Frank Schuhmacher said that the classic Sharpe ratio was adequate in evaluating investment funds when the returns of those funds were normally distributed and the investor intended to place all his risky assets into just one investment fund. Because hedge fund returns differed significantly from a normal distribution, other performance measures had been proposed and encouraged in both academic and practice-oriented literature. The Sharpe ratio measured the performance of an investment fund by considering the relationship between the risk premium and the standard deviation of the returns generated by a fund. The Sharpe ratio were an adequate performance measure if the returns of the investment funds were normally distributed and the investor wished to place all his risky assets in just one investment fund. Andreas G Merikas, Anna A Merikas and Ioannis Sorros (2005) examined the exact relationship between the Sharpe ratio and the information ratio. Sharpe in 1994 asserted that the information ratio was a generalized Sharpe ratio. Sharpe ratios had been estimated for each fund in each category, and an average ratio for each category. The Sharpe ratio would generally be positive since excess returns of funds over the risk free rate would be positive, unlike excess returns of funds over the market, which could be negative, as the return of the risk free bond was smaller but at the same time less volatile than the return of the market. Cheryl J. Frohlich, Anita Pennathur and Oliver Schnusenberg in their research, Sharpe reward-to-variability ratio was used if total variability was thought to be the appropriate measure of risk, a stocks (portfolios) risk-adjusted returns could be computed using the Sharpe Index. The Sharpe and Treynor Index eliminated the problem of only considering return as a measure of performance. However, neither ratio was independent of the time period over which it is measured. This means that the ratio can change from one period to another with different results. Moreover, both ratios also ignored the correlation of a fund with other assets, liabilities, or previous realizations of its own return. Mario Onorato (2004), the Sharpe Ratio of any investment was defined as its excess return, it is return in excess of a benchmark return divided by the standard deviation of excess return. The benchmark represents a risk free investment alternative. Moreover, although the Sharpe ratio has become part of the modern financial analysis, its applications typically did not account for the fact that it was an estimated quantity, subject to estimation errors that would be substantial in some cases. The statistical properties of Sharpe ratios depended intimately on the statistical properties of the return series on which they are based. This suggests that a more sophisticated approach to interpreting Sharpe ratios is called for, one that incorporates information about the investment style that generates the returns and the market environment in which those returns are generated. Wei Zhen (2004), in his paper said that the Sharpe (1966) and Treynor (1965) performance measures were widely accepted in both academia and industry to assess the Risk-adjusted value of a particular portfolio. It could be shown, after some mathematical treatment, that the Sharpe performance measure was useful when the portfolio of interest represented all of the investors investment, while Treynors measure was preferred when the portfolio under discussion was only a portion of the whole investment package. Robert McCauley and Guorong Jiang (2004), through the Sharpe ratio it compared the returns of portfolios in relation to their risk by dividing their returns in excess of the riskless rate of return by the volatility of their returns. A portfolio with a higher Sharpe ratio was preferred in that it offered a higher return per unit of risk, as measured by return volatility. William Goetzmann, Jonathan Ingersoll, Matthew Spiegel and Ivo Welch (2002), the Sharpe ratio is one of the most common measures of portfolio performance. It was used as a tool for evaluating and predicting the performance of mutual fund managers. Since then the Sharpe ratio, and its close analogues the Information ratio, the squared Sharpe ratio and M-squared, have become widely used in practice to rank investment managers and to evaluate the attractiveness of investment strategies in general. The appeal of the Sharpe measure was clear. It was an affine transformation of a simple t-test for equality in means of two variables, the first variable being the managers time series of returns and the second being a benchmark. The Sharpe ratio was also ubiquitous in academic research as a metric for bounding asset prices. Andrew Worthington and Helen Higgs (2002), the Sharpe ratio (also known as the reward-to-volatility ratio) indicated the excess return per unit of risk and was calculated by dividing the return in excess of the risk-free rate by the standard deviation of returns. In the current context, the Sharpe ratio was the most appropriate performance measure for an investor whose portfolio was composed wholly of a given artists work. Verena Kugi (1999), the Sharpe ratio measured the change in the portfolios return with respect to a one unit change in the portfolios risk. The higher this Reward-to-Variability-Ratio the more attractive was the evaluated portfolio because the investor received more compensation for the same increase in risk. Graphically, the Sharpe ratio was equal to the slope of a straight line connecting the position of the evaluated portfolio, for example a fund, with the risk-free rate. To determine the quality of performance, the Sharpe index of the evaluated portfolio was compared to the Sharpe index of the market or benchmark portfolio. The portfolios Sharpe index being higher than the markets Sharpe index indicated that the portfolio manager had outperformed the market. Respectively, a lower Sharpe ratio was a sign of underperformance. Any portfolio that was positioned on the capital market line had a Sharpe ratio equal to that of the market and was therefore characterized by neutral perform ance. Youguo Liang and Willard McIntosh (1998), the Sharpes alpha captured the excess return of