Premise Ato Essay Example | Topics and Well Written Essays - 500 words

Premise Ato - Essay Example Debate also suggests that washing hands by health care providers might not be the primary way to prevent the spread of disease however, due to the results that do show that these prevent the speared of disease, the U.S Centers for Disease Control and Prevention has issued through recommendations promoting hand washing by health care providers (Lucking, Maffei, Tamburro & Thomas, 2012). Having highlighted how important it is to wash hands, the adherence to hand washing guidelines by healthcare providers and especially by physicians is notoriously poor (Lucking, Maffei, Tamburro & Thomas, 2012). For this research paper, evidence from Chengdu, China is looked at, where 6 hospitals were observed for hand washing adherence. Doctors and nurses were asked about their hand washing practice and observations are recorded. Surprisingly out of 1535 activities where hand hygiene is considered necessary, only about 17.8% of the times the healthcare providers complied with hand washing safety standards (Han, Dou, Zhang & Zhou, 2011). These results don’t reflect the situation in the US however this is an eye opener as to what can be expected in case there is no scrutiny regarding hygiene. Speaking of overall situation of hand hygiene, in practice it is only observed half of the times it is required for patient care (Carayon, 2011). And interestingly, healthcare providers have their reasons for not completely adhering to hygiene practices; less number of sinks, soap causing irritation or dryness, less number of paper towels and soap, wastage of time as they are too busy with patients, they even complain about faucets and sinks being located at odd places (Carayon, 2011). This complaint from nurses of not having enough time to pay attention to their hand hygiene is also endorsed by Lautenbach, Woeltje & Malani (2010), where they showed that lack of hand hygiene in hospitals was the major cause of transmitting pathogens. Poor

Portfolio Theory and Investment Analysis Term Paper

Portfolio Theory and Investment Analysis - Term Paper Example wa + wb + wc = 1. E(rp) = waE(ra) + wbE(rb) + wcE(rc ) 0.6(-0.2) + 0.3(0.1) + 0.1(0.04) = -0.086 Hence the strategy before the 2007 economic crisis would have realised an expected return of -8.6% on investment. The strategy adopted from 2007 onwards in the light of the crisis would realise: E(rp) = waE(ra) + wbE(rb) + wcE(rc ) 0.4(-0.2) + 0.4(0.1) + 0.2 (0.04) = -0.032 The strategy adopted after 2007 would realise an expected return of -3.2% on investment. As a result, the benefit of the strategy adopted from 2007 would be a reduced lose of 5.4% II. Advisability of investing more funds in UK equities. With the managers of the funds thinking of investing more funds into equity in the market, it is important for the managers to analyse the UK equities in a risk-return relationship. Hence when analysing the risk premium of the equity with the rest of the asset class, the return differential will be attributed to the difference in the risk associated with equity as opposed to bonds. The equity line will be normally "shakier" than the bond line. As evident from the data provided, Wealth invested in equity for the past 20 years has been more volatile than wealth invested in bonds (the UK equity having a risk of 16% as compared to 5% for bonds and cash for 0.3% in derivatives). Despite the higher return, the risks were higher as well. The fund’s managers should care about the riskiness of any investment especially in a volatile market. As a result, they should also be willing to trade a lower rate of investment return for "insurance" that their principal will be secure. This is called risk-aversion -- and all things being equal, most investors would prefer less risk to more. At the same time, when analysing the Standard Deviation as a measure of risk, the UK equity returns are riskier and more volatile. Even with the future projections of 8% returns per annum, the projected risk is projected to be at 18% for UK equity and 19% for overseas equity respectively an d at the same time, their correlation is very high at 0.8% between the UK and overseas equity making diversification not an option since it will not create any positive benefits of diversification. Due to the fact that the fund’s managers will be holding different portfolios, it would be important for them to use other statistical and non statistical data to be able to make informed decisions like the beta in respect to the market, fundamental ratios such as Book to Market Ratio and Earnings Price Ratio. III. Advantage of investing in the funds in international equities rather than UK equities. Due to the fact that stock market investing is risky, in the wake of the financial crisis, it is recommended for the fund’s managers to hold a well-diversified portfolio (including international diversification) to reduce risk as supported by the Capital Asset Pricing Model (CAPM) and the Modern Portfolio Theory (MPT). The fund’s manager, after analysing international mar ket correlations in relation to the returns of various national markets due to difference in levels of economic growth and timings of business cycles, would allocate investments among these markets as a means of rebalancing their portfolios and reducing risks in favor of foreign equities (Rezayat and Yavas 440-458). In analysing the data provided, international equity portfolio diversification would be recommended based on the existence of low correlations among national stock markets and