Category: Essay

COURSEWORK

Outline the theoretical assumptions and implications of the Capital Asset Pricing Model (CAPM) derived from papers by Sharpe (1964) and Lintner (1965). (30 marks)

How valid are the assumptions, to what extent does a breach of the assumptions invalidate the CAPM model? (10 marks)

Carry out anempirical test of the CAPM using the data file ‘Fama French’ onMoodle, downloaded from Ken French’s website, as follows:
Using the excess return model:R_pt- R_ft= α+ β*(R_mt- R_ft )+ ε_t
Test: H_(0 ):α=0 (25 marks)

Monthly stock returns for 10 industry portfolios for 30 years to the end of 2010 are included in the Fama French file. You only need to test 2 industries (look on Moodle to see which industries you have been given).

You need to do eight runs of this time series model: firstly use as portfolio returns the two industries allocated to you for the whole period January 1981 to December 2010. Secondly break this thirty year period into three ten year periods for both industries and run separate regressions for these sub-periods.
Copy the regression output into the appendices.
Summarise and interpret the regression output in the body of your assignment, assess if this agrees with the CAPM theory.

Briefly outline the background and important features of the Fama French three factor model(10 Marks)

Carry out a time series empirical test of the Fama French three factor model using the data file ‘Fama French’ on Tulip, as follows: (25 marks)
Using the excess return model:
R_pt- R_ft= α+ β_pt*(R_mt- R_ft )+s_pt*〖SMB〗_t+h_pt*〖HML〗_t+ ε_t
Test the following hypotheses:
H_0 ∶ α=0 , H_0 ∶ β=0 ,H_0 ∶ s=0 ,H_0 ∶h=0

Monthly stock returns for 10 industry portfolios for 30 years to the end of 2010 are included in the Fama French file. You only need to test 2 industries (look on Tulip to see which industries you have been given).

You need to do two runs of this time series model, one for each of the industries you have been allocated.

Copy the regression output into the appendices.
Summarise and interpret the regression output in the body of your assignment, discuss this in relation to the Fama French theory.

Compare the results from the Fama French model to the CAPM.

NOTES
Read the question carefully for each section, make sure that your answer is focussed on and clearly answers the requirement of each section, marks will be mainly allocated to understanding of theory and interpretation of empirical results in the light of theory.
The assignment should use Arial 12 point font with 1.5 line spacing.
The assignment should have a maximum of 2,000 words, this does not include tables, the appendices or references.
It is expected that you will have referred to a number of academic papers and other sources. These should be referenced using the Harvard system.
The assignment assessment will be based on the following criteria:
All relevant parts of the question covered
Logically organised and developed
Easily understandable and well set out, reasonable length
Good use of academic references
Correct use of statistical techniques
Good analysis and interpretation of results
Discussion of link between theory and empirical results

Plagiarism

Academic offences, including plagiarism, are treated very seriously in the Plymouth Business School. You may be asked to attend a meeting to discuss the originality of your assignment and also to submit an electronic copy to assess the degree of any overlap with other work.
A student who is proven to have committed an academic offence may be placing his or her degree in jeopardy. It is your responsibility as a student to make sure that you understand what constitutes an academic offence, and in particular, what plagiarism is and how to avoid it. If you want to reproduce a quotation from a text, website or article, make absolutely sure that you have clearly attributed the work. Read through the information in the document including the penalties for offences. This document is available on the student portal under My Course and Career. Click on the section called Academic Regulations and scroll down until you find the right document. If you still unsure what constitutes an academic offence, please consult student services, your personal tutor or your programme manager.

TEXT: Shepherding the Church, by Joseph M. Stowell, (Chicago: Moody Publishers, 1997)
ISBN:0802478212

Read the textbook for understanding, Scriptures and information you might wish to quickly locate for outlining each of the 12 chapters, and for preparing the required questions and answers which are described below.

Prepare a detailed outline of each chapter in such a way that it can be useful for improving your ability to provide effective spiritual leadership in the church you now pastor and all future pastorates. Each chapter outline should be sufficiently thorough.

From each of the chapters of the book, prepare and show the answers to 5-10 important questions (true or false, fill in the blanks, matching, etc.) which you feel could be an appropriate comprehensive test of knowledge on the material in that part of the book. Be sure to how the page number where you found each question and answer.

3. All writing assignments must follow the procedures described in Guidelines for Writing Assignments, including format and title page.

4. Assignments that require an outline should follow this general form:

I. Major Point

A. Sub point
*1. *(Use as needed)
*a. *(Use as needed)
*(1.) *(Use as needed)
*(a.) *(Use as needed)

B. Sub point

1.
2.
3.

II. Major Point

Bill McKibben, ed., American Earth: Environmental Writing since Thoreau (New York: Library of America, 2008)
For this essay, students will read the John Burroughs materials in the text (pp.145-71) and pay particular attention to the arguments of “The Art of Seeing Things” (noting also the quality of Burrough’s topic sentences). They will then write a short essay inspired by “Nature Near Home.” This should be 750 words long; the aim should be a clear, lucid piece that starts with close observation (of ‘nature near home’ or some suitable alternative) and moves toward larger meaning. This is an opportunity to write in a more creative style (say creative non-fiction), though this is not the only possible genre to use. You will need to look and think and formulate a clear plan for this assignment, and there is perhaps more room here for a “personal touch” than in the other assignments. You might also find inspiration in Sanders essay, “After the Flood,” (text, pp.781-89) and /or in Meloy’s piece (text, pp.793- 808)
Prof realize this assignment is very open-ended. To give us some sense of what is possible and how it might be done, here are four essays written in a previous iteration of this course, all of which scored above average marks (B, B+, A) I will uploaded it later.

Farmer, S. 2011. “Uneven Public Transportation Development in Neoliberalizing Chicago, USA.” Environment and Planning A 43:1154-1172.
Mann, E. 1997. “Confronting Transit Racism in Los Angeles.” Pp. 68-83 in Just Transportation: Dismantling Race and Class Barriers to Mobility, edited by R. Bullard & G. Johnson. Gabriola Island, BC: New Society Publishers.
Urry, J. 2007. “Chapter 5: ‘Public’ Trains.” Pp. 90-111 in Mobilities. Cambridge: Polity Press.
Please read these three essay, find a sentence in those three essay which is critical or compare the critical thoughts among those three articles. The response must include evidence of comprehension, critical reflection, and contextual synthesis (i.e. how the author’s arguments fit into larger literatures or worldviews). Personal reflections and reflexivity (e.g. how the readings speak to relevant life experiences or other educational epiphanies) are also encouraged, though these should be provocative and comprise no more than 50% of the text. Please avoid cliché, buzzword, and hyperbole laden, unreferenced “media speak” such as, “truth is, studies show a big, huge, sea change of innovation in synergistic new technologies will provide solutions to all of our energy needs…”
I will upload the previous two reading response with our prof’s comment, so you can get an idea