Hewlett Foundation Case Study Example | Topics and Well Written Essays - 1000 words

Hewlett Foundation - Case Study Example The asset allocation policies are formulated by the foundation, internally managed but uses external manager to invest the portfolio. The external managers can either invest 100% of the asset in indexed instruments or invest partially depending on the allocation method. There are four methods that the foundation uses in evaluating the performance of its portfolio. To begin with, it uses a benchmark with which it compares the performance of each asset. If the portfolio outperforms its benchmark, then it is a worth portfolio to invest in. on the other hand, if its performance is less than that of the benchmark, then it’s not a worth portfolio. The second is comparing the performance of HF ‘composite benchmark’ with that of U.S stocks and bonds. The other method is by comparing performance of its portfolio relative to that of other tax-exempt institutions. Finally, accessing whether the return on assets exceeds the rate of inflation. It is evident that the process do es not use the mean-variance optimization method in the process. It is the most accurate method in analyzing portfolios as it incorporates risk and returns (Goetzmann at.al, 2006). Therefore, it is recommendable for HF to consider using it in asset allocation process. 1.2 Decision-making framework Proposal 2 In this option, 5% of the assets will be committed to a global distressed real estate fund. In order to assess the viability of this investment, the allocation committee should use discounted cash flows (DCF) models such as the Net present Value and the interest rate of return (IRR) (Goetzmann at.al, 2006). These methods take into account the aspect of time value for money and make use of cash flows not profits. The process starts by accessing the initial investment costs and then projecting cash flows. The project is acceptable if the NPV is greater than one meaning that the discounted cash flows should be greater than the initial cost of the investment. In the case for IRR, th e investment is acceptable if IRR is greater than the required rate of return and vice versa. Proposal 1 In this proposal, the committee aim is to reduce the foundation’s exposure to domestic equities, and instead increase this allocation to absolute return strategies and US TIPS (Treasury Inflation Protected Securities). TIPS are short term investments which are risk free. Therefore, they can use Capital asset pricing model (CAPM) in decision making. CAPM is a theoretical model used to determine the required rate of return of an asset. It also considers the risk free asset. Once the required rate of return (Ri) is calculated using the CAPM model, it is compared to the assets estimated rate return over a specific investment horizon to determine the viability of the investment. That is, whether the investment is worth to take. For such comparisons, technical analysis techniques such as the price earning ratio (P/E) can be used. Generally, an asset is said to be well priced if the estimated price is same as the required rates of

cochlear implants Essay -- essays research papers fc

Cochlear Implants   Ã‚  Ã‚  Ã‚  Ã‚  A cochlear implant is an electronic device that restores hearing for people anywhere from hard of hearing to the profoundly deaf. The cochlear implant is surgically implanted under the skin behind the ear. The surgeon puts the electrode array inside the inner ear and than inside the cochlea. The implant works by a device outside the ear, which rests on the skin behind the ear. It is held upright by a magnet and is also connected by a lead to a sound professor.   Ã‚  Ã‚  Ã‚  Ã‚  What happens when you get a cochlear implant? First, you are given an injection to make you fall asleep. Once youà ¢Ã¢â€š ¬Ã¢â€ž ¢re asleep the hair behind your ear is shaved off. Then you have the operation tat usually lasts from 2-4 hours. The doctor cuts behind your ear and puts the implant into the bone right there. Next he places an electrical array the curls inside your cochlea. When you wake up you are sent home for a few days to rest. After you are all rested you go to an audiologist to get the sound professor programmed. The sound professor is a main part is allowing you to hear when you have a cochlear implant and when ità ¢Ã¢â€š ¬Ã¢â€ž ¢s not in, you wonà ¢Ã¢â€š ¬Ã¢â€ž ¢t hear anything. Once the sound professor is programmed you with be able to hear. The cochlear implant uses a much different method to enable a person to hear opposed to a normal hearing ear. The cochlear implant has five parts; a microphone, sound processor, head piece, implant and hearing nerve. The...

Insight on Macro Economics

Question 1: financial globalization Over the years since World War 2 we have seen economists battle on the idea for and against of financial globalization. The topic had been there during previous years but not much attention was paid into it, it only attracted attention after the effects of World War 2 let to social unification. This is idea suggests that all the countries of the world should unite economically by setting up a global financial institution to standardize al the economic activities of the world. The pros and cones have laid out with case studies on regional bodies and domestic financial institutions being cited to back up various claims that take different stands on the issue.Both Mishkin and Rogoff acknowledged that if the world would be a better place if it had a global financial institution. Even with this in mind, they never failed to say that the idea is a pipe dream as there are many economic, social and political variables round it. Unifying all the three factors would be daunting even from the onset and it would be a miracle if the unification worked. They stated that even if all odds were beaten and the institution was formed; developing countries would end up losing market and money as the developed countries would exploit them. The two agreed that if formed, the international institution would be more successful as it will have many investors from developing countries and be disbursing high return interest loans to developed countries for them to invest in developing countries. Professor Kling agrees with the two economists up to the point that formation of a global financial institution is an imaginary (Lawrence-2001) object but takes a turn on the point that the institution would be more successful. Kling argues that economic problems domestic institutions face are the exact one the global institution will face but a larger and much devastating state.If a crisis arises, the international institution would cut the money it loans and raise the interests on the money. This would not be harsh stance as just like any business, the institution would want to grow its profit base and reduce risks. Developing countries that would by then be so dependant to the institution will be affected terribly as the probability of their economies collapsing would be so high. Mishkin, Rogoff and Kling all agree with this theory and each of them made reference to the behavior of the international monetary fund when an economic crisis arises. Benefits that the international institution will pass to the global community fixed. It would quickly restore liquidity if asked to because it would have a perpetual stability and flow of cash. Making available long term loans will be an easy task for the institution (chui-2002). Opening markets will be among the merits of an international as all countries will be operating under the same economic laws. Diversifying the market base will be another benefit as there will be numerous markets for different goods. Note; the previous statement will work if the global community allows production specialization policy to work. All these benefits have been agreed to by Mishkin and Rogof but Kling refutes the point that loans will be available to all countries. He says that is an impractical suggestion. There are elaborate disadvantages of the international institution if it is formed. Huge disparities in economic growth would be inevitable. We would see developing countries grow in economy as the developing counties would be seeing a drop in their GDP. The institution will cause an increase of taxes globally incase an economic bomb explodes and its liquidity goes down. The institution will kill productivity of small countries if it does not make policies that facilitate the smooth transfer of technology from developed to developing countries. Most of the skilled and unskilled labor force in developed countries will be left jobless as their companies will prefer manufacturing products in less developed countries that have low wage payouts.Question B1: contrast on transmission mechanismsTaylor and Lucas are profound economists that have made phenomenal economic revelations and added spice to works of Meynerd Keynes. Their insight on transmission mechanism is what staged their professionalism and expertise in the field of economics. They have divergent and convergent views relating to the topic; let us analyze them. The similarity they hold is that they both support the use of short term interest rates and investment on short term high return bonds and securities to propel economic growth, better known as financial market price review (taylor-1995). They say this is the only way the American banks maintain their liquidity. They also agree that how money is transferred between accounts and the number of times it circulates should be increased so as to maximize its efficiency; this is known as limited participation (tobin-1969). Credit view is one of the clashing points between the two professionals; Taylor fully supports the policy but Lucas admonishes it. Taylor advocates for unison change in lending rate policies among banks as Lucas stands for free financial flowing activities. Question B2: not what they had in mindKlings books explains a chronological order of events that led to the 2007/2008 financial crises that left many big companies bankrupt and with large debts, this is the year in united states history that stock prices shot and the exchange market remained shocked. He states that it is also a year to be remembered as there was widespread public outcry because people were being kicked out of their mortgages (kling-2009). It depicts how the bad economic policies made by previous governments led to the catastrophic time. He compares the laws of the times from 1930 to 1970 then 2001 when the policies were changed but that that could not save or salvage the 2008 disruption from taking place. The title highlights that the thoughts that were behind the previous policy makers did not come to be as they made poor economic judgments. The general idea is that the policies be changed and that companies customize the laws according to their own needs to avoid a scenario similar to the 2007/2008 one. The book gives insights and acts as a wake up to the policy makers, the banking and insurance companies and the general public; main consumers.Mr Kling urged the public to come up with innovations that would help cruise through bad economic times like the one in 2007/2008. He also urges the government to thoroughly scrutinize bills before passing them into laws as they would turn to be harmful in future times. He made the previous as a sig to acknowledge that economic forces are not static and they require revision from time to time. Here he lay an example that innovation would help reduce future effects as they did by helping quash the Glass-Stealgall act of 1933 (krugman-2002). The act prohibited interstate banking and also outlawed the merging of investment and commercial banks. Many economists including Kling said that the policy makers of that time passed the act as they thought that if banks were allowed to operate nationally they would be more powerful than other federal agencies. They also thought that merging of banks would create a monopoly and catalyze an economic breakdown.By equity finance; financial institutions would be reducing the economic burden by sharing risks. Kling sees this method work more efficiently if financial institutions merge. He also adds the money to be placed in the investment should be given I bits. This will allow the institution to study the market as the venture grows, in case they notice a downward or predict a loss the company can always pull out of the deal safely. This method has fewer sets of threats to loss than giving out all the cash for investment in one bit. Equity he says will prevent a coming from running out of liquidity. If the investment return is high, an institution can always remain in service even if it is funding different projects from different parties. In his introduction Mr Kling named bad bets and excessive leverage to be among the four practices financial institutions engaged in that led to the crisis. Prior to 2008 many lenders would typically really on institution credit scores before giving out loans; if they noticed that the borrower had good scores they would not hesitate giving him the loan in one sum. They did this even before assessing investment they were funding. The financial institutions would later come back to collect the money or claim the property, this is what led to the collapse of minor banks in the US. In his analysis if the matter he states that equity finance can help counter this effect as institutions that use it will save money and reduce the risk of becoming bankrupt by 40%. It is the excessive bets placed on none return investments that lead to excessive leverage. He structures the equity funding policy as a way of keeping the financial institutions in check with their investments. The actions that I would propose to the state is; creation of a federal body that will be mandated to assess the market viability of projects and investment opportunities. This body should then approve and certify that the project is truly worth the money requested in the quotation. I also recommend that banks be more open with their liquidity information and hand it over to the body that certifies projects. After certification the body will now recommend the project owner to an institution with that kind of money. This action will save many banks from collapse as many of them succumb to greed; bad bets.ReferencesBook written by Michael Chui in 2002Sovereignty liquidity crisis; analysis and complications for public policyBook written by A Lawrence in 2001International financial crisis; causes prevention and curesOnline Article from the new York times newspaperhttps;//www.nytimes/2002/08/02/opinion/duby-s-double-dip.htmlBook written by professor Kling'Not what they thought'Book written by Tobin in 1968 and published in 1969Theory of investmentBook written by Ando in 1958 and published in 1963'The life cycle theory of consumption'

Water Pollution - 1198 Words

All over the world there are many different traces of water pollution. Water pollution is when there are traces of both biological agents and toxic chemicals. If these agents and chemicals bypass the usual number that is found in the water, it will become a threat. Having these chemicals in the water not only affects the human bodies but it also affects the environment. There are three different types of water pollution. The three different types of pollution are chemical, biological and radiological. Chemical water pollution occurs when workers whose job is to dispose of chemicals do not dispose of them correctly and dumps them into the water. There are eleven common types of chemical related water pollution. The first commonly found†¦show more content†¦This type of water pollution is mainly occurring when there is evidence improperly disposed of human and animal wastes and decaying organic materials in the water. Another type of water pollution is Radiological. Radiologic al water pollution is when radiation levels increases. This is caused by human activities. Although there are many types of water pollution there are many other effects of water pollution on the environment. Polluted water has many effects on the humans, animals and our environment. The majority of highly polluted water is in or around cities and towns across the world. This is because chemicals, garbage, etc. is constantly dumped in our bodies of water, without any thoughts of what the result may be. Places that are mainly known to practice illegal dumping is health centers, manufacturing companies, markets and schools. Pollution in water disrupts the natural habitats. Many animals that live in the various bodies of water end up dying because of the foreign pollutants. Fishes, birds, carbs, dolphins, etc. die and wash up at the seashore as a result. Once the pollutants such as lead and cadmium. The bigger sea animals eat the smaller ones and passes on the pollutants to the other an imals. This process affects the food chain as a continuing process. Due to water pollution many of our ecosystems have been affectedShow MoreRelatedThe Effects Of Water Pollution905 Words   |  4 Pages Pollution is a term applied to any environmental state or manifestation which is harmful or unpleasant to life, resulting from failure to achieve or maintain control over the chemical, physical or biological consequences or side effects of human scientific, industrial and social habits (Feugo, 2008; Anderson et al., 2005). 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This can have devastating consequences in the lower poorer countries around the world where there is no way for the people there to have access to fresh ,and clean water. That s why in this final essay it explains to the reader all of the hazardous ways you or your family could and even may be at risk for water pollution wherever you goRead MoreThe Air Pollution And The Water Pollution1790 Words   |  8 Pagesenvironments, specifically the air pollution and the water pollution. China began seeing an increase in cancer a few decades ago when their industrial movement began. Pollution from the factories seem to be the leading cause of cancer in the Chinese population. This is a major socioeconomic issue because in order to clean the environment, factories would be forced to close or relocate. Initially, the Chinese government denied that cancer was a byproduct of pollution. Although recently they were forcedRead MoreThe Importance Of Water Pollution1575 Words   |  7 PagesWater pollution is a serious environmental issue worldwide. 1 Water is one of the most valuable resources on our planet; having clean water is vitally important for our survival. Here in the United States, the Clean Water Act of 1972 was very successful in reducing point sources of water pollution; however, it has been ineffective in reducing nonpoint sources of water pollution (Manuel, 2014). Nitrogen and phosphorous that originate from agricultural sources, such as manure and inorganic fertilizerRead MoreEssay On Water Pollution1200 Words   |  5 PagesWater is one of the most needed elements for survival on Earth. All organisms contain it, drink it or live in it. Water pollution has been an increasing problem for many generations. Pollution has been around for more than a century, but people did not believe that it was a real threat until it became more aggressive over the years. Pollution comes in many forms such as agricultural, runoff, industrial, sedimentary, animal wastes, etc. For example, many industries began using synthetic materialsRead MoreCharlestons Water Pollution921 Words   |  4 Pagesovercome with pollution. This Pollution travels to the oceans and to the shores of South Carolina’s beaches. The water is affecting Charleston’s harbor but ho usehold water, local businesses, and marine life in the area. Water pollution should not be looked over and needs to be taken care of before it gets worse. More and more ways are being discovered to help treat water pollution around the world, but what needs to happen is to stop the pollution. Around the world water pollution is a definite