Behavioural finance Essay Example | Topics and Well Written Essays - 2000 words

Behavioural finance - Essay Example Incurring of additional risk helps attain high rates of return. There has been a proposal relating to the utility maxim and the general solution for the portfolio selection problem (Von Neumann and Morgenstern, 2007). The process of making an investment choice includes; choosing a unique optimum combination of risky assets and separate choice regarding to the allocation of funds. To obtain a maximum resulting satisfaction, there is combination and application of certain wants and commodities. The weakness of this model is it’s cumbersome to separate the purely technical from the ones in the conceptual nature. According to Mr. Jack Treynor, the total utility function can be given by U = f (E, a) illustrating the meters of distribution and the expected value and the standard deviation, where E indicates the future wealth and a shows the standard deviation under prediction (Markowitz, Miller & Sharpe, 1991). There is the preference of a high expected future wealth to a value which is low; this is known as ceteris paribus illustrated as (dU/dEw > 0). This leads to an upward slope as seen in the earlier graph of risk against the expected rate of return. For a simpler analysis, there is an assumption that an investor decides to commit an amount (W) of their wealth to investment. By letting R be the rate of return and W as the terminal wealth, then; R= (Wt- Wi)/Wi. The mean-variance under certain conditions leads to unsatisfactory predictions of behaviour. A model based on semi-variance is preferable basing on standard deviation and variance (Markowitz, Miller & Sharpe, 1991). There is an assumption that the curves can diminish marginal rates of substitution between E and ÃŽ ±, from the earlier equations. There is a derivation of indifference curves from the assumption that the investor wishes to maximise the expected utility and thus,

The Role of the Mentor In Organising, Managing And Leading Programmes Essay

The Role of the Mentor In Organising, Managing And Leading Programmes of Learning In Clinical Education - Essay Example In fact, one of the most familiar adages puts it, â€Å"Experience teaches us best.† This can be further elaborated from Kolb’s theory of experiential learning. Illustration 1: Kolb’s cycle of experiential learning (Quinn, 2000). In this theory, Kolb’s emphasised four generic adaptive abilities to reach effective learning and these involve concrete experience, reflective observation, abstract conceptualization, and active experimentation (Quinn, 2000). Furthermore, in clinical education, another important point in facilitating learning is about providing strategies for effective clinical teaching (Gaberson and Oermann, 2010). However, facilitation alone does not prove to be sufficient to ensure learning at the highest level. Supervision in learning in clinical practice is a must. Aside from facilitating the students in their learning in clinical education, mentors have the role to supervise them. This supervision is evident on the supervision cycle model o f Goldhammer and his colleagues in 1980. Regarding this supervision, it is an integral part of educator’s role (a) to initiate pre-observation stage which establishes rapport, reviews plans and discusses and rehearses changes; (b) the next stage is about educator’s actual observation of the session and taking into account noting issues for future discussion; (c) the third stage is about the analysis of the data that educator’s gathered from observation and consequently followed by strategy planning for feedbacks; (d) finally, both educator and student should initiate individual analyses and undergo plans for modification (Rose and Best, 2005). Supervision therefore is a hands-on activity that tries not only to facilitate learning, but more so... This essay stresses that managing the assessment process so that there is time for continuous feedback and identifying if the student is progressing is another important concern in student’s learning process. It is true that meting the challenges and difficulties presented to the mentors while supporting students in practice is another important area of concern. This is the bottom line of support system. This paper makes a conclusion that managing the situation if there are other concerns involved is another important move in student’s learning success. For example, enhancing the learning of students in the hospital area requires placement area analysis. This means mentors are not only there to facilitate, supervise, assess and give their support, but they should substantially consider the remarkable strengths and weaknesses of their students in their specific placement area. Mentors therefore are expected to conduct analysis and even specific forms of research. Students prior to becoming certified professionals in the clinical practice should undergo necessary learning, but they should not acquire this by themselves. They need mentors to teach, train and above all to support them prior to achieving their individual future objectives in life. Mentors therefore are expected to put their best foot forward as leaders which have substantial ability to facilitate, supervise, assess and support learning at the highest level as possible.