Capital Market Efficiency Hypotheses Observations in Croatia Essay

Capital Market Efficiency Hypotheses Observations in Croatia - Essay Example Jordon (1983. pp1325-1327) proved that efficient market hypotheses cannot be viewed from the ideal perspective whereby the signals (of internal information) and the corresponding return on assets need not be normal if the dimension of signal space is larger for a smaller number of assets. In such cases, the researcher argued that the market equilibrium is generally inconsistent with the efficient market hypotheses. If investors are risk neutral, the equilibrium price of each asset can be equal to its expected returns. However, investors do have risk aversion – in the form of relative risk aversion and constant risk aversion. Each signal, when known to the investors adds to the risk perception thus affecting the return from the asset – positively or negatively – depending upon how the signal has been perceived. Beaver (1981. pp23-26) described the phenomenon of â€Å"incomplete markets† whereby the expectations are formed on future prices based on informal signals and the equilibrium is characterized as dependent upon these expectations that have formed from the informal signals. In growth times (bull markets) or during uncertainty (bear markets) the polarity of the signals automatically changes as a result of relative risk aversion of the investors. Hence, during bull markets, even the companies not rated high may still enjoy a rally and during bear markets, even the best-performing companies may suffer crash of security prices.  

Africana studies final assignment Essay Example | Topics and Well Written Essays - 500 words

Africana studies final assignment - Essay Example Thereafter, the European powers struggled to create a sphere of influence for themselves in Africa. These European powers used various methods to acquire these colonies of which were falsehood to the Africans. They included signing of treaties between African and Europeans, which were vague and were to the advantages of Europeans. They used of force, which used military occupation, for example, Ashanti by British, use missionaries and collaboration. Economic, social and political reasons led acquisition of Africa (Shreuder 90). First, Africa came under colonization for economic reasons as an option for abolition of slave trade. Europe had to have an alternative trade commodity from Africa. Africa was rich in minerals, fertile lands for agriculture and cheap labor. Agrarian revolution and industrialization of the mid-19th century caused European power to rethink about Africa. They needed to increase sources of raw materials for their growing industries. Africa was a rich source of raw materials including iron ore, copper, palm oil, rubber and cotton. Furthermore, these European powers wanted extended markets for their manufactured goods. As consequence, they needed to expand their market in Africa. In addition to this, they wanted to have a share in African trade in gold, ivory and slaves. Some of the European powers established settlements and started cash crop farming and livestock keeping, for example, the Dutch settled in Kenyan highlands. Other than the coast, they began to establish trade contacts wit h long distance traders from the interior where they exchanged items of trade. For these reasons, each European power wanted to secure or safeguard their commercial motivations by exercising political control the over sources of raw material and markets (Okoth 44). Europeans invaded Africa for humanitarian reasons. Other than spreading Christianity, missionaries came to Africa to establish schools as means to civilize Africans and to provide health or medical