Thursday, February 20, 2020

Testing CAPM Essay Example | Topics and Well Written Essays - 1500 words

Testing CAPM - Essay Example For better clarity in the results, the number of replications was set to 1500. The bias and the accuracy of the significance tests are provided below for each observation value. From the above results, the bias for the YSeries is -0.331 and has a very low standard deviation of 0.008. The RMSE (Root Mean Square Error) is an absolute measure of the residuals. A low value indicates a better fit. The RMSE is relatively higher for the Intercept in comparison to the RMSE values for the XSeries and YSeries, suggesting that the latter two parameters exhibit a better absolute fit to the given data. The EDFs from the analysis is shown below: Based on the above results, X5% should be 1.96 for the null hypothesis to be true. However, the upper tail quantiles in the case of both variables (XSeries and YSeries(-1)) lead to the rejection of the null hypothesis since their 5% values exceed the critical value of 1.96. The null hypothesis in the case of both the variables is that H0:  µ =  µ0 for a given value  µ0 (sample mean). The alternative hypothesis in either case states that Ha:  µ ≠   µ0, indicating a two tailed test. The power indicates the probability of rejecting the null hypothesis when the true mean differs from the hypothetical mean. From the above two cases, the power for YSeries(-1) is much greater than that for the XSeries indicating a greater probability for rejection of the null hypothesis in the case of the latter. The figure below shows the bias for the parameters when configured for 30 observations. It appears that the bias has reduced in the case of both estimators as a result of this increase in the number of observations (compared to the earlier simulation with 10 observations) indicating that the new estimates provide a better fit. The RMSE values have also reduced suggesting a similar conclusion. However, the higher RMSE value for the intercept indicates a comparatively lower fit with respect

Tuesday, February 4, 2020

MGT 302 MOD 2 SLP Essay Example | Topics and Well Written Essays - 500 words

MGT 302 MOD 2 SLP - Essay Example It means that I will have to make them realize that as their professional superior, I would be expecting them to follow my directives accordingly. Second, power may come from Reward, or another person’s ability to compensate another for compliance. Undeniably, the motivation of each member is a very crucial aspect when expecting positive results in an organization, and nothing can motivate a person more than a reward can (Singh). This would mean that I could constantly ensure active participation in the workplace by regularly offering rewards to high performing members. This could come in the form of a financial reward like a bonus, or an emotional reward like a â€Å"Best Team Member† award of sorts. Third, power may be Coercive, or based on the belief that a person can punish others for noncompliance (Singh). As opposed to reward, I am not very comfortable in using coercive power in my repertoire of leadership techniques. However, I do realize the importance of setting an example for the corresponding consequences of noncompliance and so I am prepared to also use punishment when the situation calls for it. Fourth, power may come from an Expert, someone who has superior skill and knowledge (Houser and Domokos). I always believe in leadership by example. That is, I wouldn’t expect any of my subordinates to accomplish a task that I am not even capable of doing. Thus, I would constantly seek out opportunities to demonstrate to my subordinates my capabilities of performing organizational tasks to make them aware that if ever I require something from them, it can be done because I have accomplished it myself. Lastly, power may be based on Reference, or a person’s perceived attractiveness, worthiness, and right to respect from others (Lee-Chai and Bargh). I feel that this basis of power is closely related with the fourth one except that reference as a basis of power works more on a psychological