Measuring, Modeling, Managing and Optimizing Interest Rate and Credit Risks - Free Essay Example

Sample details Pages: 18 Words: 5444 Downloads: 2 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? The credit crisis, stock market down turn, and economic slowdown have resulted in a flightto-quality that has pushed credit spreads to historic highs; interest rates have fallen steeply both in the short segment of the curve, where central banks have aggressively decreased prime rates, and in the long segment with long terms sovereign bond prices being pushed up by increased demands from pensions funds and other institutional investors, Low rates and high spread offer investors extremely interesting opportunities. but they also pose serious challenges in terms of optimal passive and active contact to interest rate and credit risks. Credit spread are expected to narrow again, although it is highly in doubt when and how this contraction will take place. Don’t waste time! Our writers will create an original "Measuring, Modeling, Managing and Optimizing Interest Rate and Credit Risks" essay for you Create order The economic stimulus junk mail being pushed through in the major economies will lead to massive issues of sovereign bonds and eventually to increases in interest rates. At the same time while the current credit crunch and economic slowdown have eased the recent inflation scare the fundamental scarcity of natural resources and political pressure on central banks to relax inflation targets mean that for the medium to Long term fears of inflation are still justifiedÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦ In this new environment where fixedincome products have come back centre stage there is a clear and pressing need for investors and assets managers to better understand the refined techniques that can be used to optimize investment in fixedincome products and manage the associated risks. In this chapter is planned to equip participant with the state of the art techniques to arange interest rate and credit risks to seize current opportunities in the fixed income market, and to hedge the ris ks associated with an instable credit and interest rate setting This chapter provides participants with advanced techniques to: Measure the impact of changes in interest rates and credit spreads on fixed income portfolios Model changes in interest rates and credit spreads Get around away the impact of such changes from both asset management and asset liability management standpoint,. Optimize the exposure of bonds portfolios to these changes in the context of fixed income portfolio construction Apply active strategies to benefit from expected changes in the interest rate and credit environments Interest Rate Risk Modeling I will first review empirical facts regarding the multidimensional nature of interest rate risks and present the main economic theories of the term structure of interest rates. He will then introduce competing methodologies for yield curve estimation. Finally, he will present stochastic models of term structure dynamics which make it possibl e to generate estimates for the distribution of asset and liability returns as a function of interest rate uncertainty, Measuring Interest Rate Risks:- ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Terms arrangement of interest rates empirical properties and classic theories ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Dynamics of the term structure stylized facts and theories ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Estimating the term structure direct versus indirect methods, Modeling Interest Rate Risks ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Single and multi factor models of interest rates and bond returns ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Factor models for inflation rate uncertainty and liability returns ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Model calibration empirical issues, Fixed-Income Strategies in the New Environment In fixed income strategies I will first introduce a variety of directional and relative value market timing strategies, and present arbitrage and quasi-arbitrage opportunities related to bonds, futures, and inflation-linked bonds. He will then discuss standard structured products and strategy linked notes offering exposure to proprietary benchmarks and algorithmic trading strategies. He will conclude with a review of recent market trends and an examination of current trade opportunities in a relative value framework, Semi Hedged Market Timing Strategies ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Carry and roll down strategies ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Butterfly strategies construction approaches {50/50, principal component Analysis and minimum variance} and optimization, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Conditional curve trades how to optimize the return or risk profile ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Cross market trades ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Volatility t rades gamma and Vega products Arbitrages and Quasi Arbitrage Opportunities ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Bonds versus strip arbitrage ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Cash carry arbitrage ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Asset swaps and inflation linked versus nominal bonds arbitrage, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Rich cheap analysis of bonds Structured Products and Strategy Linked Notes ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Standard structured products range accrual multi callable snow ball, spread options., ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Structured products with strategies as underlying general properties method of construction, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Examples of strategies Trade Opportunities in the New Situation ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Recent market trends, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Relative value approach in volatility matrix government or swap spreads And credit curves, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Trad e opportunities, Interest Rate Risk Management and Portfolio Construction In interest rate risk management and portfolio construction I will first present an in-depth overview of the modern techniques for managing interest rate risk either through dynamic adjustments of the factor exposure or through investment in interest rate derivatives, He will then introduce advanced techniques for estimating risk and return parameters for bond portfolio construction. Finally he will discuss the application of dynamic risk controlled strategies to fixedincome investment and show how to implement optimal substitution of treasury securities with corporate bonds to benefit from the upside potential of credit sensitive asset while hedging some of their risks,,, Interest Rate Risk prevarication from the Assets Management and ALM Perspectives ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Dynamic interest rate risk hedging duration and beyond,, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Static interests rate risk hedging futures swaps swaptions caps floors, asset swaps,, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Hedging bond portfolios asset management and ALM perspectives,, Dynamic Replacement of Credit and Interest Rate Risks:- ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Starting static to dynamic risk managemen123665 ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Energetic core satellites strategies in a fixed income environment, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Optimal substitution of independent bonds for corporate bonds, Credit Investing The market products In Credits investing I will first review the size and structure of the credit market setting out the main players, the products and the sources of credit risk. He will then detail the mechanics of the main credit products, from fixed- and floating rate bonds to credit default swaps and CDS indices, He will conclude with a discussion of products that allow investors to express a view on the macro credit environment and its volatility, and with a review of credit-based structured products,, The Credit Markets ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ An over view of the credit markets size structure players and asset types 45698 ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Rating agencies role rating methodologies, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The role of credit derivatives now looking forward, Cash based Credit Instruments ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Fixed and floating rate bonds credit risk spread measures and interest rate risk ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The asset swaps mechanics uses and risks The Credit Default Swaps ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Complete analysis of the CDS contracts, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The CDS cash basis definition and behavior ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The standard valuation model for a CDS contract ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Forward CDS digital CDS loan CDS and options on CDS, The CDS index ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Detailed mechanics of the standard CDS index contract, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Price quotation convention and CDS index valuation, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Defining and explaining the CDS index skew /.,/,/ Advanced Index Products ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Credit index options expressing a view on macro credit volatility ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Index tranches expressing a leveraged view on systemic credit risk, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Credit based C.P.P.I and C.P.D.Os, Credit Risk Model The session will focus on models used in the credit markets to assess corporate credit risk and to price and risk manages products and portfolios. I will search and introduce the Merton model and show how its extensions can assist in the evaluation of corporate risk, He will then discuss a popular pricing model used to detect arbitrage opportunities amongst credit products. He will follow with a discussion of the modeling of the risk of credit portfolios, the pros and cons of standard models will be reviewed; the pitfalls of using VaR as a credit risk measure will be exposed and an alternative proposed. He will conclude on risk return optimization for credit p ortfolios, Models Used in Credit Investing ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Structural models and their applications to debt equity arbitrage risk management and rating estimation ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Reduced form intensity models and their application to the pricing of credit risky pay offs, Portfolio Credit Risk Managements ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ identify the risks in a credit portfolio interest rate risk spread instability and correlation recovery rate uncertainty and default co rrelation ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The Gaussian copula model for portfolio credit theory and implementation, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ The Credit Metrics and KMV portfolio models, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Beyond copula models fully dynamic approaches, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Risk measures for portfolio credit the problems with VaR, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Risk return optimizations for portfolio credit using cohere nt risk measures, CREDIT Trading Strategies The session will join the product and modelling knowledge gained to discuss a number of credit trading strategies. The Dominic O-Kane will first look at standard credit curve trades which can be implemented using cash or CDS. He will explain the characteristics of the CDS cash basis and the technicalities of trading this basis, He will then go over the analysis and risk of debt equity trading strategies and conclude with an analysis of index based strategies that make it possible to trade particular versus systemic credit, Bond Strategies ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Standard curve trades level slopes and twist with default risk, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Relative value in the capital structure senior versus subordinated claims, CDS Curve Strategies ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Interpreting the shape of the CDS curl, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Building a tool for trade analysis, ÃÆ' ¢Ãƒ ¢Ã ¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Trading CDS forwards, Trading the CDS Cash Basis ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Drivers of the CDS cash basis, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ How to identifing investigate implement riskmanage CDS basis trades, Debt Equity Arbitrage Using CDS ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Trade analysis using a structural models, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Event driven tradings ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Hedge ratios guess scenario based risk analysis, CDS Index Strategies ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Hedging a bonds portfolios, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Beta strategies using CDS indices to take a systemic credit risk, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Trading the CDS index skew, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Trading the index roll, ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ CDS index curve trades using forwards, Chapter Introduction to European Fixed Income Securities and Markets Introduction In this chap ter we discus on Eurpon ;;;;fixed income marktes ans securties,, A bonds is a debt capital market tool issued by a borrower, who is then required to repay to the lender investors the amount borrowed plus interest over a specified period of time; Bonds are also known as fixed income instrument, or fixed interest instruments in the real markets. Usually bonds are measured to be those debt securities with terms to maturity of over one year. Debt issued with a maturity of less than one year is considered to be money market debt. There are many different types of bonds that can be issued. The most common bond is the conventional Bond. This is a bond paying periodic interest payments at a fixed rate over a fixed period to maturity or redemption, with the return of principal {the par or nominal value of the bond} on the maturity date. All other bonds will be variations of this basic structure. A bond is therefore a financial contract from the person or body that has issued the bond, that is, the borrowed funds. Unlike shares or equity capital, bonds carry no ownership privileges. The bond remains an interest bearing obligation of the issuer until it is repaid, which is usually on its maturity date. The some types of bonds in the European market reflect the different types of issuers and their respective requirements. Some bonds are safer investments than others. The advantage of bonds to an investor is that they represent a fixed source of current income with an assurance of repayment of the loan on maturity, Bonds issued by developed country governments are deemed to be guaranteed investments in that the final repayment is virtually certain. For a corporate bond in the event of default of the issuing entity, bondholders rank above shareholders for compensation payments, There is lower risk associated with bonds compared to shares as an investment, and therefore almost invariably a lower return in the long term. In this chapter we will provide a basic exp lanation of the various types of fixed income instruments encountered in the European markets as well as the definitions of some key terms and concepts that will assist the reader throughout the remainder of the book. Important groups of investors in these markets are briefly discussed in the last section of the chapter DESCRIPTION OF THE BASIC FEATURES A bond, like any security can be thought of as a package of cash flows,, A bonds cash flows come in two forms coupon interest payments and the maturity value or par value. In European markets many bonds deliver annual cash flows, As an illustration, consider a 6% coupon bond issued by the Spanish government that matures on 31 January 2008,The coupon rate is the rate of interest that is multiplied by the maturity value to determine the size of the bonds coupon payments, Note that this bond delivers annual coupon payment, Suppose one owns this bond in June 2003. what cash flows can the bondholder expect between now and the mat urity date assuming the maturity value is ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬A 100 On each 31 January for the years 2004 through 2008 the bondholder will receive annual coupon payments of ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬A 6. Moreover on the maturity date the bondholder receives the maturity value of ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬A 100 which is the bonds terminal cash flow, Type of Issuer A primary distinguishing feature of a bond is its issuer. The nature of the issuer will affect the way the bond is viewed in the market. There are four issuers of bonds: sovereign governments and their agencies, local government authorities, supranational bodies such as the World Bank, and corporations. Within the corporate bond market there is a wide range of issuers, each with differing abilities to satisfy their contractual obligations to investors. The largest bond markets are those of sovereign borrowers, the government bond markets. Term to Maturity The term to maturity of a bond is the number of years after which the issuer will repay the requirement, During the term the issuer will also make periodic interest payments on the debt. The maturity of a bond refers to the date that the debt will cease to exist, at which time the issuer will redeem the bond by paying the principal. The practice in the market is often to refer simply to a bonds term or maturity The provisions under which a bond is issued may allow either the issuer or investor to alter a bonds term to maturity after a set notice period, and such bonds need to be analyses in a different way. The term to maturity is an important consideration in the makeup of a bond. It indicates the time period over which the bondholder can expect to receive the coupon payments and the number of years before the principal will be paid in full, The bonds give up also depends on the term to maturity. Finally the price of a bond will change over its life as yields in the market change and as it approaches maturity. As we will discover later the volatility of a bonds price is dependent on its maturity, assuming other factors constant the longer a bonds maturity the greater the price volatility resulting from a change in market yields. Coupon Types As noted the coupon rate is the interest rate the issuer agrees to pay each year. The coupon rate is used to determine the annual coupon payment which can be delivered to the bondholder once per year or in two or more equal installments, As noted for bonds issued in European bond markets and the Eurobond markets coupon payments are made annually, Conversely in the UK US, and Japan, the usual practice is for the issuer to pay the coupon in two semiannual installments. An important exception is structured products which often deliver cash flows more frequently certain bonds do not make any coupon payments at all and these issues are known as zerocoupon bond,. A zerocoupon bond has only one cash flow which is the maturity value. Zerocoupon bonds are i ssued by corporations and governments. Security Description screen of a zerocoupon bond issued by the French bank BNP Paribus that matures March 11, 2005. Since the maturity value is AÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬1000 the price will be at a discount to AÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬ 1000, The difference between the price paid for the bond and the maturity value is the interest realized by the bondholder. One important type of zerocoupon bond is called strips. In essence strips are government zerocoupon bonds. However, strips are issued by governments directly but are created by dealer firms Conventional coupon bonds can be stripped or broken apart into a series of individual cash flows which would then trade separately as zerocoupon bonds. This is a common practice in European government bond markets.Since zerocoupon bonds can created from coupon payments or the maturity value, a distinction is made between the two. Currency Denomination The cash flows of a fixed income security can be denominated in any currency. For bonds issued by countries within the European Union the issuer typically makes both coupon payments and maturity value payments in Euros. However there is nothing that prohibits the issuer from making payments in other currencies. The bonds indenture can specify that the issuer may make payments in some other specified currency, There are some issues whose coupon payments are in one currency and whose maturity value is in another currency. An issue with this feature is called a dual currency issue . NONCONVENTIONAL BONDS The definition of bonds given earlier in this chapter referred to conventional or plain vanilla bonds. There are many variations on vanilla bonds and we can introduce a few of them here. Securitized Bonds There is a large market in bonds whose interest and principal payments are backed by an underlying cash flow from another assets,. By securitizing the asset a borrower can provide an element of cash flow backing to investors. For instance a mortgage bank can use the cash inflows it receives on its mortgage book as asset backing for an issue of bonds. Such an issue would be known as a mortgage backed security because residential mortgages rarely run to their full term, but are usually paid off earlier by homeowners the notes that are backed by mortgages are also prepaid ahead of their legal final maturity, This feature means that MBS securities are not bullet bonds like vanilla securities, but are instead known as Amortizing bonds . Bonds with Embedded Options Some bonds include a provision in their offer particulars that gives either the bondholder or the issuer an option to enforce early redemption of the bond. The most common type of option fixed in a bond is a call feature A call provision grants the issuer the right to redeem all or part of the debt before the specified maturity date. An issuing company may wish to include such a feature as it allows it to replace an old bond issue with a lower coupon rate issue if interest rates in the market have declined. As a call feature allows the issuer to change the maturity date of a bond it is considered harmful to the bondholders interests therefore the market price of the bond at any time will reflect this, A call option is included in all asset backed securities based on mortgages for obvious reasons. PRICING A CONVENTIONAL BOND The principles of pricing in the bond market are exactly the same as those in other financial markets which states that the price of any financial instrument is equal to the net present value today of all the future cash flows from the instrument In this Chapter bond pricing will be explained. this chapter we will just present the basic elements of bond pricing, ACCRUED INTEREST, CLEAN PRICE, AND DIRTY PRICE All bonds coupon paying bonds accrue interest on a daily basis and this is then paid out on the coupon date, In determination of the fair price for a bond that is not purchased on a coupon date accrued interest must be incorporated into the price. Accrued interest is the amount of interest earned by the bonds seller since the last coupon payment date. The calculation of accrued interest will differ across bonds due to day count conventions that will be discussed shortly. In all major bond markets the convention is to quote price as a clean price. This is the price of the bond as given by the present value of its cash flows but excluding coupon interest that has accrued on the bond since the last dividend payment. As all bonds accrue interest on a daily basis, even if a bond is held for only one day interest will have been earned by the bondholder. However we have referred already to a bonds all in price which is the price that is actually paid for the bond in the market. This is also known as the dirty price which is the clean price of a bond plus accrued interest. In other words the accrued interest must be added to the quote price to get the total consideration for the bond Accrual Day Count Conventions The accrued interest calculation for a bond is dependent on the day count basis specified for the bond in question. We have already seen that when bonds are traded in the market the actual consideration that changes hands is made up of the clean price of the bond together with the accrued that has accumulated on the bond since the last coupon payment these two components make up the dirty price of the bond. When calculating the accrued interest, the market will use the appropriate day count convention for that bond, A particular market will apply one of five different methods to calculate accrued interest. RISKS ASSOCIATED WITH INVESTING IN FIXED INCOME SECURITIES Risk can thought of as the possibility of unpleasant surprise. Fixed income securities expose the investors to one or more of the following types of risk (1) Interest rate risk, (2) Credit risk, (3) Call and prepayment risk, (4) Exchange rate risk, (5) Liquidity risk, (6) Inflation or purchasing power risk, Interest Rate Risk A fundamental property is that an upward change in a bonds price results in a downward move in the yield and vice versa. This result makes sense because the bonds price is the present value of the expected future cash flows. As the required yield decreases the present value of the bonds cash flows will increase, This inverse relationship embodies the major risk faced by investors in fixed income securities interest rate risk. Interest rate risk is the possibility that the value of a bond or bond portfolio will decline due to an adverse movement in interest rates, Call and Prepayment Risk As noted a bond may contain an embedded option which permits the issuer to call or retire all or part of the issue before the maturity date. The bondholder, in effect is the writer of the call option. From the bondholders perspective there are three disadvantages of the embedded call option. First relative to bond that is option free the call option introduces uncertainty into the cash flow pattern. Second since the issuer is more likely to call the bond when interest rates have fallen, if the bond is called, then the bondholder must reinvest the proceeds received at the lower interest rates. Third a callable bonds upside potential is reduced because the bond price will not rise above the price at which the issuer can call the bond. Collectively these three disadvantages are referred to as call risk. MBS and ABS that are securitized by loans where the borrower has the option to prepay are exposed to similar risks. This is called prepayment risk, Exchange Rate Risk If a European investor buys a bond whose cash flows are denominated in a currency other than euros they are exposed to an additional risk. Namely the euro denominated cash flows are dependent on the exchange rate at the time the payments are received. For example suppose a European investor purchases a US corporate bond whose payments are denominated in US dollars. If the dollar depreciates relative to the euro, then fewer euros will be received. This risk is called exchange rate risk. Thus, if an investor buys a bond in a currency other than her own, she is, in essence, making two investments an investment in the bond and an investment in the currency. Liquidity Risk Liquidity involves the ease with which investors can buy or sell securities quickly at close to their perceived true values. Liquidity risk is the risk that the investor will have to buy or sell at security at a price above or below its true value. One widely used indicator of liquidity is the size of the spread between the bid price and the ask price other things equal the wider the bid ask spread the greater the liquidity risk. For investors who buy bonds with the intent of holding them until maturity liquidity risk is of secondary importance, Inflation or Purchasing Power Risk Inflation or purchasing power risk reflects the possibility of the erosion of the purchasing power of bonds cash flows due to inflation. Bonds whose coupon payments are fixed with long maturities are especially vulnerable to this type of risk. Floaters and inflation indexed bonds have relatively low exposures to inflation risk. INVESTORS There is a large variety of players in the bond markets each trading some or all of the different instruments available to suit their own purposes. We can group the main types of investors according to the time horizon of their investment activity, Short-Term Institutional Investors Short term institutional investors include banks and building societies, money market fund managers, central banks and the treasury desks of some types of corporate. Such bodies are driven by short-term investment views, often subject to close guidelines, and will be driven by the total return available on their investments. Banks will have an additional requirement to maintain liquidity often in fulfillment of regulatory authority rules, by holding a proportion of their assets in the form of easily tradable short-term instruments, Long-Term Institutional Investors Typically long term institutional investors include pension funds and life assurance companies. Their investment horizon is long-term, reflecting the nature of their liabilities. Often they will seek to match these liabilities by holding long-dated bonds. Mixed Horizon Institutional Investors Mixed horizon institutional investors are possibly the largest category of investors and will include general insurance companies and most corporate bodies. Like banks and financial sector companies, they are also very active in the primary market, issuing bonds to finance their operations. Market Professionals Market professionals include the banks and specialist financial mediators mentioned above, firms that one would not automatically classify as investors although they will also have an investment objective. Their time horizon will range from one day to the very long term. They include the proprietary trading desks of investment banks as well as bonds market makers in securities houses and banks who are providing a service to their customers. Proprietary traders will actively position themselves in the market in order to gain trading profit, for example, in response to their view on where they think interest rate levels are headed. These participants will trade direct with other market professionals and investors, or via brokers. Market makers or traders are wholesalers in the bond markets; they make two-way prices in selected bonds. Firms will not necessarily be active market makers in all types of bonds; smaller firms often specialize in certain sectors. Chapter 7 Quantitative study of Computational Finance 7.3Quantitative and Computational Finance:- Quantitative Finance as a branch of modern finance is one of the best growing areas within the corporate world, Together with the superiority and difficulty of modern financial products this exciting control continues to act as the motivating factor for new numerical models and the subsequent development of associated computational schemes, Alternative names for this subject area are Mathematical Finance, Financial Mathematics or Financial Engineering, This is a course in the applied aspects of mathematical finance in particular derivative pricing ,The necessary understanding of products and markets required will be covered during the course. The overall theme of the course is to develop the Partial Differential Equation approach to the pricing of options, As well as a 2 hour examination during the summer term students will undertake a short computing project where they will use statistical and computational techniques to perform derivative pricing, Simulation Methods in Fina nce Brief introduction to Stochastic Differential Equations drift diffusion Its Lemma, The statistics of random number generation in Excel, Simulating asset price SDEs in Excel, Financial Products and Markets Introduction to the financial markets and the products which are traded in them Equities indices foreign exchange fixed income world and commoditys, Options contracts and strategys for speculation and hedging Black-Schools framework Comparison reduction and basic solution for the heat equation, Black Schools PDE simple European calls and puts put call parity,The PDE for pricing commodity and currency options,Discontinuous payoffs Binary and Digital options,The Greeks theta delta gamma Vega and rho and their role in hedging, Computational Finance Solving the pricing PDE numerically using Explicit Implicit and Crank Nicholson Finite Difference Schemes. Stability criteria, Monte Carlo Technique for derivative pricing, Fixed-Income Products Preface to the properties and features of fixed income products yield time period and convexity,Stochastic interest rate models stochastic different equation for the spot interest rate bond pricing PDE popular models for the spot rate solutions of the bond pricing equation 7.4Fixed Income:- The fixed income market demands a vast selection of investment options with a variety of credit quality maturities and yields to meet investors objectives, to accomplish this, fixed income groups frequently create and modify mathematical models to calculate bond pricing perform yield analysis calculate cash flows and develop hedging strategies, Fixed income research groups use the thousands of prewritten math and graphics functions in Math Works products to access bond data perform statistical analysis calculate spreads determine bonds and derivative pricing perform sensitivity analyses and run Monte Carlo simulations, Advanced graphics and rendering capabilities in MATLAB make reviewing cash flows visualizing decision trees plotting spot and forward curves and creating deployable interactive 2-D and 3-D models easy, 7.5 Equity:- Smart security investing requires in depth research and analysis, measuring all the influencing factors is an essential part of risk management, As a result research groups continually create and modify mathematical models to calculate stock value review forecasts and develop innovative risk strategies, Equity research groups use the thousands of math and graphics functions in Math Works products to access stock data perform statistical analysis determine derivatives pricing perform sensitivity analyses and run Monte Carlo simulations, The graphics capabilities in MATLAB offer a variety of ways to review time series data visualize portfolio risks and returns and create forecasting graphs 7.6 Investment Management and Trading:- To meet the investment needs of individuals institutions and governments investment firms needed to deliver a wide range of investment opportunities with risk adjusted performance and consistent returns over time, To accomplish this financial professionals need to develop and use mathematical models to optimize portfolios and develop trading strategies and systems that can respond to market conditions, Investment management and trading research groups use the thousands of math and graphics functions in Math Works products to easily access securities data perform statistical analysis determine pricing conduct sensitivity and principal component analyses and implement buy and sell criteria, The graphics capabilities in MATLAB offer a selection of ways to easily review time series data visualize portfolio risks and returns and create forecasting graphs, With Math Works deployment tools, you can easily compile and integrate your MATLAB algorithms into your system, 7.7Mathematical and statistical approaches:- According to Fund of Funds analyst Fred Gem There are two types of quantitative analysis and therefore two types of quants, One type works primarily with mathematical models and the other primarily with statistical models, While there is no logical reason why one person can not do both kinds of work this does not seem to happen perhaps because these types demand different skill sets and, much more important different psychologies, A typical problem for a numerically oriented quantitative analyst would be to develop a model for pricing and managing a complex derivative product, A typical problem for statistically oriented quantitative analyst would be to develop a model for deciding which stocks are relatively expensive and which stocks are relatively cheap, the model might include a companies book value to price ratio its trailing earnings to price ratio and other accounting factors, An investment manager might implement this analysis by buying the underpriced stocks selling the overpriced stocks or both, One of the principal mathematical tools of quantitative finance is stochastic calculus, According to a July 2008 Aite Group report today quants often use alpha generation platforms to help them develop financial models, These software solutions enable quants to centralize and modernize the alpha generation process, 7.8Areas of Computational Finance application:- Areas where computational finance techniques are employed include: Investment banking , Forecasting, Risk Management software , Corporate strategic planning , Securities trading and financial risk management , Derivatives trading and risk management, Investment management, Pension scheme, Insurance policy, Mortgage agreement, Lottery design, Islamic banking , Currency peg , Gold and commodity valuation , Collateralized debt obligation , Credit default swap, Bargaining, Market mechanism design,

Renewable Energy Is Not The Answer - 978 Words

Renewable Energy Is Not the Answer Renewable Energy is defined as: a renewable natural resource or source of energy, such as water, wind, or solar power (Oxford English Dictionary). There are those that believe that our nation should abandon the use of fossil fuels such as oil, natural gas, and coal, and switch to renewable energy sources. Although the change could yield many benefits, I believe that renewable energy is a not viable alternative for our nation’s energy future because it would create an unfavorable environmental impact, it is not as reliable, and it would be too costly. Converting to renewable energy sources would have a devastating environmental impact. In addition to solar panels, wind turbines and hydroelectric dams would make up the largest portion of renewable energy generation. Wind farms create hazards in their areas of operation. They consume up to 200 times as much land as gas-fired power plants (Langwith). If 25 percent of our nation’s energy ca me from wind, the turbines would kill more than a million birds each year (Langwith). Experts have been unable to find a solution to this problem. Hydroelectric dams are harmful to the habitats of many fish. For example, the Bonneville Power Administration has an expensive program of capturing fish and moving them around its Columbia River dams. Their goal is to recover and preserve the Pacific Northwest Salmon. This creates a huge cost to fisheries and causes many environmentalists to support â€Å"non-hydroShow MoreRelatedAlexander Gibbs. Liberty Union High School1025 Words   |  5 Pages Alternative Energy Persuasive Essay Alexander Gibbs Liberty Union High School May 10, 2016 In today’s world, the topic of energy is dominated by one thing: ancient organic matter. Carbon and oxygen that existed in this matter when it was alive is still present and is released in the form of carbon dioxide when the coal and oil it was compressed into is burned. The problem is that the carbon that was buried over millions of years was never naturally supposed to be released back intoRead MoreWind Energy : One Approach From The Energy Crisis996 Words   |  4 PagesWind Energy: One Approach to the Energy Crisis Introduction The renewable energy from wind energy has become a popular method of producing energy. When the world realized fossil fuel emission are harmful to our atmosphere, many countries started to look toward renewable energy sources. In recent years the U.S. has given tax incentives and tax breaks for using a renewable energy sources. The U.S. has become the leaders in using wind energy for a renewable resources. Even though wind power energyRead MoreWhy Bother By Michael Pollen1135 Words   |  5 PagesIn the article,† Why Bother† written by Michael Pollen, he explains how the environment has gotten very bad over time. He talks about sustainability, global warming, and the cheap-energy mind in his article. He tells us that we need to act now before the phenomenon gets worse. Have you paid attention to the environment lately? Have you noticed the rising temperature around the world? Have you noticed the melting of the ice caps? If you haven’t you are about to be in f or a surprise. The world hasRead MoreRenewable Energy Resources928 Words   |  4 Pagesfact that 86% of our energy comes from nonrenewable, polluting, costly fossil fuels and only 14% is renewable is diabolical. Why must we harm our environment to contribute to our energy production when renewable energy sources are so abundantly present so that we may be symbiotic with nature? To lessen our environmental impact and be able to avoid the high expenses of non-renewable fossil fuels in the near future it should be obvious that we start to use more renewable energy sources than we do nonrenewableRead MoreIs Renewable Energy The Solution For Our Energy Problems?1453 Words   |  6 PagesIs renewable energy the solution to our energy problems? Energy that can be re-used or re-grown in a shorter period of time than, for example, a fossil fuel, is the simplest way of defining renewable energy. It is considered very eco-friendly as energy from resources such as oceans, the sun and the wind contribute very little to pollution overall when producing energy. The energy problem which we are faced with today is critical and governments, scientists and environmentalist continue to searchRead MoreThe Effects Of Global Warming On Australia Essay1091 Words   |  5 Pagesthe effects and it is energy crisis in the future, exploring the renewable energy source feasibility and sustainable development is necessary. Therefore, in the long term, the potential of wind energy and solar energy could be the answer to global warming in Australia and determine the current barriers to renewable energy in terms of the energy industry and the locations in Australia. Main body Australia has potential wind and solar energy resources to enable a move to renewable resources. ShafiullahRead MoreAlternate Energy : Alexander Gibbs806 Words   |  4 PagesAlternate Energy Alexander Gibbs In today’s world, the topic of energy is dominated by one thing: ancient organic matter. Carbon and oxygen that once existed in this matter is still present and is released in the form of carbon dioxide when the coal and oil it was compressed into is burned. The problem is that the carbon that was buried over millions of years was never going to be released back into the atmosphere it once existed in at such an alarming rate. The amount of carbon dioxideRead MoreThe Effects Of Global Warming On Australia Essay1198 Words   |  5 Pagesthe effects and it is an energy crisis in the future, exploring renewable energy source feasible and sustainable development is necessary. Therefore, in the long-term, the potential of wind energy and solar energy could be the answer to global warming in Australia and determine the current barriers to renewable energy in terms of the energy industry and the locations in Australia. Main body Australia has potential wind and solar energy resources to enable a move to renewable resources. Shafiullah,Read MoreAnalysis Of Katrin Jordan Korte s Implementation Of Renewable Energy Essay930 Words   |  4 Pagesimplementation of renewable energy markets and technologies to find what is the most effective strategy. Through her research she attempted to answer what specific renewable energy techniques were the most effect and efficient while also trying to find whether or not stricter or more lenient government decisions lead to a more successful energy promotion. One conclusion Katrin finds is that, â€Å"Government promotion is important and is warranted to secure a sufficient diffusion of renewable energy sources,†Read MoreRenewable Energy and Business: The Case of Solarcity Essay602 Words   |  3 Pages Renewable energy and business Renewable energy and business are closely related. There are many countries in the world producing electricity from renewable energy sources and using it in the intermediary way. This intermediary chain is private business. Everyone knows the fact that business works better when it belongs to private sector and not to the government. In this section, we focus on renewable energy and business. We analyze several renewable energy companies and research how business can

College Isn t For Everyone - 992 Words

W.J. Reeves, a professor of English at the Brooklyn College of the City University of New York, offers his idea of college being too easy to access and with that low retention standards. He begins by stating that 15 million Americans attend college and of those 15 million, half should not be enrolled. Reeves believes that students entering college fresh out of high school are not ready for the challenges college will bring to them due to grade inflation while being in high school. He also argues against colleges in regards that they do not influence one s ability to expand their intelligence and readiness for the workforce. In College Isn t for Everyone, W.J. Reeves argues that colleges have become too easy to enter and students show a lack of drive to succeed once enrolled in college. Reeves believes colleges should raise expectations when accepting students into their schools, and the students admitted continue to demonstrate responsibility during the years spent at school. He points out colleges have lowered the bar when it comes to admissions due to the fact that a college cannot exist without a funding source. Reeves argues against unwilling matriculations by drawing your attention to the fact those students are not ready for college. Reeves is specific on the areas where students are slacking most in. He cites another professor s experience with a student where the student informed the professor of a very elaborate excuse as to why they had not come to class. HeShow MoreRelatedCollege Is An Opportunity That Changes Your Life913 Words   |  4 Pageslearning in person...College sums up all of thes e different assumptions and options. College is an opportunity that changes your life no matter if it is a four-year college or a two-year community college. In some cases, you need to study certain majors in that you feel are necessary for particular careers. However, college may not be for you. Many of you would rather go into the army, instead of spending your time and patience in a place were you feel as if you don’t belong. College is a great optionRead MoreShould College Education Be Free?1266 Words   |  6 PagesThe Proposal: Should College Education be Free There are people who are in our nation right now that can t afford to go to college and gain the education they need to succeed. People have a deep conviction about this controversy. This issue has lead to the debate should the first two years of a college education be free. If college was free for the student the yes, it comes to the taxpayers to come up with the money. There should be rules and regulations in place and should be maintained byRead MoreReasons For Attending College For All Kinds Of Reasons Essay929 Words   |  4 PagesMilliner EES21QH ­ 02 09 ­26 ­2016 People go to college for all kinds of reasons . The college experience is one of the many factors in life that affects a person. Obtaining a college degree and having the ability to live on your own are why many people go to college. On the other hand, people feel as though everybody doesn t need college and it is a waste. One reason that college is important in people s eyes is it opens doors to the passage of a career. College provides the education that jobs want toRead MoreMaking A Happy And Successful Life For Yourself1167 Words   |  5 Pageshappy and successful life for yourself, you need to go to school, get good grades, and obtain a college education. Only then will you be financially secure and have a high quality lifestyle. This is a common misconception many people have, but it s only because this is the belief they were taught growing up. Yes, collage can be a great vehicle to help you pursue the career you want, but if college isn t a necessitate for you, there s no need to pay thousands of dollars, get into serious debt, andRead MoreRacial Discrimination : Black And Middle Class1527 Words   |  7 Pagesare fifty years later and it is still happening today. To be black and middle class is not the same as to being say white and middle class and not for obvious reasons. The white has a major advantage and doesn t have to do anything to earn it. The unemployment rate of blacks with a college education is 5 percent higher than that of whites and one of the main issues creating that statistic is racial discrimination. Employers will try to use different excuses and make different claims on why they hiredRead MoreThe Effects Of Free Secondary Education On The Middle Class1361 Words   |  6 Pagesschool degree and a factory job. In the new flat world with outsourcing these jobs are no more. The new way to the middle class is a secondary education, and that costs lots of money. Even though free community college would cost US taxpayers 65 billion dollars in 10 years, it would make college education more accessible than ever before. We should also consider free vocational school. With education becoming free and more accessible, this would not only help the ambition gap, but also the gap at theRead MoreCan Not Guarantee A Job For The Growing Youth?1401 Words   |  6 Pagesdegree (Appendix 2). This is because the value of a degree is currently falling. Every year, its value drops. Kids are now able to find work without having to go to college, and some are actually doing quite well for themselves. A lot of jobs offer on-the-job training and that in itself allows people to be qualified for work. College degrees are now only becoming measly pieces of paper that people only want just to say that they have it. The value is diminishing not only economically, but in theRead MoreGraduation Speech At Utah Valley University873 Words   |  4 PagesEver since I could remember my parents told me that college was key to being successful in life, if you didn t attend a good college your life was most likely not going to be a very happy one. This message stay throughout my life , education was of great importance and college was the key factor of where you ended up in life. High school counselors, teachers, parents, and mentors all emphasized that the better the college you attend the more opportunities you ll have. Being a high school seniorRead MoreWhat I ve Learned From College1372 Words   |  6 Pagesthings I ve learned from college: Go out as much as possible Okay, I know what your thinking, and I m not saying that you should drink until the AM at some frat house. I m saying that you need to get outside and take an adventure with friends. You need to get involved in something your passionate about. Breech your comfort zone, and do something other than sit at your desk with your nose in a book. I personally know how easy it is to continuously tell yourself you can t go do X,Y, or Z - you haveRead MoreThe Book Make Lemonade By Virginia Euwer Wolff The Environment1313 Words   |  6 Pages In life many experience hardship. We live in a world where for some have to work so hard everyday just to survive society. In the book Make Lemonade by Virginia Euwer Wolff the environment isn t stable for a lot of people. There is poverty and crime surrounding the area and this makes it hard on everyone to be, and feel secure in their own environment. Throughout the book Jolly’s and LaVaughn’s environment changes involuntarily. Once they both accept what they can and cannot control their environments

Motivation Essay - 1315 Words

What is Motivation? Motivation is the force that makes us do things: this is a result of our individual needs being satisfied (or met) so that we have inspiration to complete the task. These needs vary from person to person as everybody has their individual needs to motivate themselves. Depending on how motivated we are, it may further determine the effort we put into our work and therefore increase the standard of the output. When we suggest factors (or needs) that determine the motivation of employees in the workplace, almost everyone would immediately think of a high salary. This answer is correct for the reason that some employees will be motivated by money, but mostly wrong for the reason that it does not satisfy others (to†¦show more content†¦Without going into the fine details and depth of all the motivational theory, we will use Fredrick Herzbergs (1966) research to outline the main issues concerning motivation. In 1966, Herzberg interviewed a number of people in different professions at different levels to find out two things: Those factors that MOTIVATED them in the workplace These were identified as factors that gave employees an incentive to work resulting in job satisfaction. They are also referred to as motivators. These motivators increased the job satisfaction of the employee and further increased their efficiency. Those factors that PREVENTED JOB DISSATISFACTION These were identified as factors that prevented job dissatisfaction. These did not make the employees happy (or have job satisfaction): it just removed the unhappiness out of working. They are also referred to as hygiene factors. Such hygiene factors, if not satisfied, had an effect of reduced employee efficiency. Herzberg believed that all factors fell into one of these categories and therefore had separate consequences. His research concluded that some factors fell into both categories although they held a stronger position in one of them. 7 motivational strategies 1. Team Work Skillful managers form work groups when possible with the hope that peer pressure will induce high levels of performance. This is reported to be an effective means of motivationShow MoreRelatedMotivation : Motivation And Motivation1216 Words   |  5 PagesOverall, motivation is, â€Å"the general desire or willingness of someone to do something† (Oxford Dictionaries). For me, motivation plays a significant role in accomplishing goals, working harder, and being successful. Internal and external forces also have a powerful impact on my motivation. I discovered that my motivation stems from both internal and external forces equally. However, sometimes motivation is lacking when doing something unpleasant or undesirable, such as writing an essay. ThankfullyRead MoreMotivation : Motivation And Motivation1341 Words   |  6 PagesMotivation Motivation is, according to the text, â€Å"A set of energetic forces that originate within and outside an employee that initiates work-related effort and determines its direction, intensity and persistence.† (Colquitt) When one hears the word â€Å"motivation†, one automatically thinks of an individual’s reasoning behind a certain task or performance. In terms of job motivation, it is what pushes or encourages a person to not only perform the work tasks, but to also be successful in the positionRead MoreMotivation : Motivation And Motivation Essay1070 Words   |  5 Pages4) Motivation Motivation is an important concept in modern psychology. It is not possible to understand, explain or predict human behavior without some knowledge of motivation. Motivation is the effective methods that relate to an individual s intensity, route and determination of effort towards the achievement of goals. Motivation is the process of producing and maintaining goal-directed behavior. Motivation is a psychological process through which unsatisfied wants or needs leads to drivesRead MoreMotivation : Motivation And Motivation1048 Words   |  5 Pages Motivation to work Jesus Guzman Psych 301 One topic of I-O Psychology that I found most interesting is motivation to work. The exploration of what it takes to push someone forward to follow certain company standards or rules and fulfilling a responsibility of behaving a certain way to help it succeed. I specifically want to explore the relationship between rewards and motivation. A few studies caught my attention; one was an exploration of a relationship between money attitudes and Maslow’s hierarchyRead MoreMotivation : Motivation And Motivation2425 Words   |  10 PagesIntroduction Motivation is the number one driving force behind anything and everything an individual does each day. â€Å"Motivation is the desire to do the best possible job or to exert the maximum effort to perform an assigned task. Motivation energizes, directs, and sustains human behavior directed towards a goal.† (Honor, 2009). Motivation can determine the outcome of projects, goals, and can set limits on what an individual can obtain or what they believe they can obtain. Motivation often is theRead MoreMotivation, Motivation And Intrinsic Motivation951 Words   |  4 Pagesresearching on how motivation works in our brain, we cannot make a conclusion about the truth of the motivation in the past century. Luckily, Daniel Pink announces his latest results, â€Å"The Puzzle of Motivation†, on TED in 2009, which gives us a brand new idea about our motivation and how we could improve us by learning his method. In this essay, I will illustrates the main point of Daniel Pink, the ev idence given in his speech, also the benefits I get from his idea which increase my self-motivation and helpsRead MoreMotivation Theory : Motivation And Motivation846 Words   |  4 PagesProfessor Jones Psychology April 28 2016 Motivation Theories Having motivation to do something is very important. Motivation plays a huge roll in everyone’s life, even If someone has very little motivation. There are several types of motivation such as Instinct and drive motivation. These two motivations are quite similar, but different at the same time. I will compare and contrast both of these types of motivation and what I think about them. These motivations are very important to your life and canRead MoreMotivation, Motivation And Intrinsic Motivation1629 Words   |  7 PagesIntroduction There are certain theories that works in the business organization at both practical and theoretical levels and one of such theories is motivation. The term motivation has been defined, discussed and has been dealt with a number of times as in accordance with the changing dynamics of the business organizations. Richard M. Ryan and Edward L. Deci defines a person to be motivated if, a person is moved to do something. (2000). Thereby it simply means that the one who is not energized orRead MoreMotivation Theories Of Motivation And Motivation Essay1020 Words   |  5 Pages Overview of Presentation What is motivation? Cognitive theories of Motivation Forms of Motivation Motivation Theories Profile of Motivational Problems How to Motivate Students What is Motivation? Many different theorists have tried to define what is meant by motiviation. Urdan and Schoenfelder (2006) defined Motivation as follows: â€Å"Motivation is a complex part of human psychology and behavior that influences how individuals choose to invest their time, how much energy they exert in any givenRead MoreMotivation Theories And Motivation Of Employee Motivation Essay1517 Words   |  7 Pagescontrol and some that are not. Employee motivation is something that can directly affect an organizations production. It is no secret that un-motivated employees equates to un-productive workers, but how can we combat this? In order to better understand this concept we will look at the definition of employee motivation, some of the motivation theories and some motivation techniques that could be useful in our organizations. What is employee motivation? Motivation is a word used quite often in many different

Internet and Traditional Books Free Essays

I. Title Library vs. Internet II. We will write a custom essay sample on Internet and Traditional Books or any similar topic only for you Order Now Introduction Students are often unable to distinguish appropriate from inappropriate resources. If the information is not available on the internet, it does not exist for them. Librarians and faculty express concern that students do not know how to adequately evaluate the quality of information resources found on the internet. Both  web-based  and traditional  library  resources are useful when conducting research. Each have their own particular strengths and weaknesses. Conducting research is something that every student will eventually have to do. Research projects are done in English class, in foreign language class, in social studies class and in science class. The sooner students are able to master the skills required for conducting research the better off they are going to be. The two most common places to find resources for research projects are in the library and online. Many thousands of web pages exist, comparing the advantages and disadvantages of using the Internet instead of a traditional library. Many of these are personal opinions, with the authors ranging from commercial sites to professional organizations. By limiting their research to the internet, students are ignoring the books, journals, databases, full-text digital resources and other scholarly materials provided by the library. In many academic libraries, use of print resources is decreasing. Use of video and other media appears to be increasing. Ignoring library resources in lieu of web resources may imperil the quality of student learning. You may find instructors who do not allow their students to use web resources in class projects for this very reason. Faculty can have an enormous influence over student choices for research resources. However, the Internet and the Web should not be disregarded as valuable research tools. With proper training and cross-referencing, both can be highly effective and efficient means by which students locate information. As computers are becoming more common in schools and homes, students and teachers are becoming more computer literate and Internet literate. The library is the traditional place to conduct research for a school research project. Libraries contain a large collection of books, periodicals and multimedia resources. They also have live people there called librarians who are available to help you find the information that you need. Libraries also give you the opportunity to read hardcopies of the reference materials that you use and they have photocopying machines available to students so that they can take home a copy of the information that they need. Libraries are established for the systematic collection, organization, preservation and dissemination of knowledge and information. It is very important for man to preserve and maintain the valuable knowledge and information contained in the books and documents because we want to preserve our knowledge and wisdom for the coming generations. By preserving the documents in a library this knowledge can be made available to others so that they can benefit from it. Establishment of libraries is not a new concept. The oldest library dates to around 2700 years ago in Sennacherib’s Palace in Nineveh which shows how long ago the concept of leaving a piece of your wisdom behind started being formed into the organized collection to preserve the work. While libraries are wonderful resources for a variety of reference materials, they do have a few limitations. First of all libraries are not usually open 24 hours a day seven days a week. This means that your access to the research materials is limited to the hours of operation of the library. Secondly, the books in a library can be somewhat out-of-date, particularly in smaller libraries. Finally, libraries can be crowded and access to reference materials, computers and other pieces of equipment can be limited by the number of people who also need to use those items. Internet research  is the practice of using the  Internet, especially the World Wide Web, for  research. The internet is widely used and readily accessible to hundreds of millions of  people  in many parts of the  world. It can provide practically instant  information  on most topics, and has a profound impact on the way  ideas  are formed and  knowledge  is created. The Internet solves many of the problems associated with conducting research in a physical library. First of all students have instant access to reference materials 24 hours a day seven days a week. Students also do not have to travel to get to the reference materials that are found online. This means that they can find references for their research project any time and it also means that they can access these references from anywhere that has a computer an Internet access. Finally, the Internet provides students access to multiple databases and sources of information, many of which are not going to be found in a library. Common applications of  Internet researchinclude personal research on a particular subject (something mentioned on the news, a health problem, etc. ,  students  doing research for academic projects and papers, and  journalists  and other  writers researching stories. It should be distinguished from  scientific research  Ã¢â‚¬â€œ research following a defined and rigorous process – carried out on the Internet; from straight forward finding of specific info, like locating a name or phone number; and from research  about  the Internet. Co mpared to the Internet, print physically limits access to information. A book has to be identified, then actually obtained. On the Net, the Web can be searched, and typically hundreds or thousands of  pagescan be found with some relation to the topic, within seconds. Just like a physical library the Internet has research limitations. The first limitation is based on the student’s ability to access a computer, electricity and Internet access. The second problem is that not all information found online is good information. There are a lot of websites that have inaccurate and incomplete information. These problems can be overcome by focusing research efforts solely on websites that are run by government or other authoritative organizations or by using databases that hold peer reviewed journals. Many predict that the digital age will wipe public bookshelves clean, and permanently end the centuries-old era of libraries. As libraries’ relevance comes into question, librarians face an existential crisis at a time when students need them the most. User demand is ever increasing and putting a great pressure on the librarians. Therefore, there is an imperative need for the modernization of libraries in order to keep pace with the modern times. The new challenges in the field of Library and Information Science can be met by adopting the process of digitization and networking. In the present age the Librarians have to face many problems due to the limitations of time and space. User satisfaction is the main objective of a good library. It cannot be achieved without adopting the modern tools and techniques rendered available by the modern technologies available in the field of Information and telecommunication. These developments have led to the creation of Digital and Virtual Libraries, which have great advantages over the traditional libraries. Therefore, digital libraries are becoming popular due to the advantages and facilities, which are offered by them to their users. III. â€Å"Accuracy is another area where the Internet information and library information are dissimilar. Before information reaches a library, it is filtered in three ways: (a) it is written and/or issued by an authoritative source such as the federal government or a reliable organization; (b) it is authenticated as part of an editorial or peer review process by a publisher; or (c) it is evaluated by experts, reviewers, or subject specialists/librarians as part of collection development (Brandt, 1996). In a library, the information is then selected, reviewed again, evaluated, and catalogued. The information is selected for specific purposes and specific reasons to be included in a section. Information on the Web has no evaluation criteria. Anyone can publish anything on the Web. It is important that teachers and students do not take information found on the Web at face value. Facts and figures should always be cross-referenced with other resources. † — http://www2. hawaii. edu/~nguyen/web/literature1. htm How to cite Internet and Traditional Books, Papers

Management Program for Prepubertal Children Effective Appraisal

Question: Describe about the Management Program for Prepubertal Children for Effective Appraisal. Answer: As per Edmunds et al., the predominant impact of obesity in age groups prior to puberty has been noticed in major research work prior to the provided paper of Dr. Golley. The study in the research paper is characterized by the analysis of parenting skills and their impact on the modification of child behavior according to their age. The parents have to apprehend the necessity of behavioral modifications in different methods (Edmunds et al., 2014). The exposure or intervention observed in the research paper directs towards the randomized control trial of 111 overweight children in age group of 6-9 years. The intervention comprised of two weight management strategies including the delivery of parenting skills training and the provision of parental skills training complemented with comprehensive lifestyle training. As per Friend et al the control group was assumed in the form of waitlisted group awaiting intervention and was subject to observation for 12 months (Friend et al., 2015). Th e parents involved in each intervention group were administered with distinct levels of parental training modules which reflected on the individual needs of social modeling for tackling the issue of obesity in children especially in age groups prior to puberty. The outcome of the study was found in the background noted in the social issues with the distinct blocks stratified according to the recruitment site and gender. The study design could be observed as a 3-block strategy primarily designed through computer applications. According to Golley et al, the different responsibilities of the research activity such as data collection, recruitment, intervention delivery, participant allocation and randomization were assigned to specific individuals (Golley et al., 2007). The study population could be clearly observed in the families which were selected through different recruitment methods such as newsletters in schools and media publicity over the course of a year. As per the research o f Gillette et al., the impact of distinct behavioral traits on the capability of parents to assist in curbing the obesity in children among 6 to 9 years of age could be apprehended as the outcome of the research paper. Exposure in case of the research assumes application in form of a three distinct layered strategy which is implemented through the different parental skills training, waitlisted group and intensive lifestyle education (Gillette et al., 2014). The prominent resources implied in the research include the triple P resources which indicates positive parenting program. The intensive education for parents was complemented with additional sessions for lifestyle support. According to Hughes et al, the outcomes of the study indicated that the impact of the training in parenting skills alongside intensive education was reliable in moderating the BMI, weight and metabolic quotients (Hughes et al., 2015). Parenting skills training alone also contributed to feasible development in the treatment of children and the reduction in BMI scores in three groups over the years as observed in different intervention groups. The reduction in BMI scores by 45% in the personal skills training and intensive education intervention group is a profound indicator of intervention outcome. The research findings could be evaluated from a non-casual perspective citing the requirement of identifying ambiguity, chance variation and bias due to measurement or selection. The critical explanation of the distinct outcomes in context of ambiguity could be found in the observation of similar outcomes in case of intervention groups with parenting skills training as well as those with parenting skills training and intensive lifestyle education. As per Jasik et al, outcome suggests that the provision of additional lifestyle support education did not have any formidable impact on the reduction in BMI scores or metabolic health profiles of the participants (Jasik et al., 2015). The impacts of chance variation have to be considered as the necessary ingredient for the research as the data implemented for monitoring the BMI and metabolism index are collected with a substantial degree of error observed in each variable. The impact of other hormonal effects, medication and psychological e ffects also requires an evaluation in context of the research issue for illustrating a lucid impression of the chance variation prospects. Furthermore, the measurement and selection bias could be reviewed as a profound aspect of the research study which suggests uniform weight and body measurement standards for prevention of chance variations and the intervention is also associated with relaxing messages assuring lack of gender stereotyping. As per Nguye, the issues of measurement bias could be observed in the errors which are imperatively found in the data measured especially the body weight, age, height, BMI and waist circumference (Nguye, 2015). The cumulative evaluation of data could create various ambiguities in terms of measurement bias. Selection bias could be observed in the research topic as per a casual explanation as the selection of participants for the study could be contradicted on the basis of involvement of distinct personnel. The randomization of base line measureme nts could also be subjected to the impact of facets such as socioeconomic status and the anthropometry or measurement of physical traits across different anthropological sects. According to O'Connor et al, the evaluation for the program could be considered as a monitoring initiative responsible for adaptations and appropriate attendance at the sessions was considered as explanation of an outcome exposure relationship from a non-causal perspective (O'Connor et al., 2015). The participants also created issues which led to chance variation alongside confounding since some participants withdrew from the training program. The increase in height was also a prominent characteristic outcome of the research. However, the impact of intervention on groups and waitlisted groups indicate different implications suggesting the underlying effect of factors such as age and behavioral adaptations. The research outcomes are hence found to be characterized by a prominent association with the chances of ambiguity, selection bias, chance variation and measurement bias. As per the research of Santa Maria, the prominent confounding observed in the research is also related to selection bias as 64% of the participants are female and it is also seen that 44% parents were obese and 34 percent are considered overweight which suggests a formidable confusion in the flexibility of outcomes (Santa Maria et al., 2014). The baseline measurement and the stratified period of time utilized for the execution of research activity and the improvement of body statistics of the participants i.e. the children. According to Skelton, Martin Irby, while the control group is established in the form of a section of the participants waitlisted for intervention for 12 months, it is not necessarily determined that they showed no signs of improvement (Skelton, Martin Irby, 2016). The only prominent assumption which could be presented in the context is the relatively higher impact of P+DA training. The differen t factors which are also concerned with the non-causal explanation of research outcomes further refer to the distinct variables such as total cholesterol, gender, blood pressure, BMI, posthoc analysis and the utilization of SPSS for analyzing the research inputs. The test for causal explanation could be derived only through association with response which is one of the significant indicators. The dose-response association is determined through the determination of outcome following the intervention in a specific context. As per Twiddy et al, the participants selected in the research were subjected to distinct interventions and hence could be considered as responsive to a certain amount of moderation. The distinct activities noted for the validation of dose-response relationship in the exposure and outcome could be seen as the change in the strategy of tackling prepubertal obesity (Twiddy et al., 2012). Rather than emphasizing on the child for decreasing weight, parents were divided into groups and were consulted for specific intervention sessions. The dose response relationship between the exposure and the outcome is effective for the research activity since the association determines the feasibility of outcomes derived from a particular doma in of study. The sample size obtained for the research was 28 for each groups and the application of the sample sizes for deriving depreciation in BMI mean values from the baseline of 0.26+-0.49 and the significance level is assumed to be 0.05 obtained from a 2-sided perspective. The dropout rate has also been considered for determining the requirement of considering dropout rates essentially at 20 to 50 percent and therefore selection of sample sizes are enough for obtaining relevant research outcomes. The baseline variables included age, parental weight, growth potential, socioeconomic status, weight description, ethnicity and gender. Secondary analysis is executed for resolving the ambiguity pertaining to gender and analysis of families having greater than 75% attendance in the training sessions (Skelton, Martin Irby, 2016). The establishment of the relationship between exposure and outcome has to be critically reviewed with the references to findings of the research. Sixty four percent of the sample population was found out to be above 8 years of age and obesity was also clearly anticipated in the findings. Around 82 individuals were obese and the dual parent families alongside the demographic information indicating majority of white ancestry. The share of parents associated with overweight problems and obesity issues include 34% and 44% respectively and the prominent differences related to the family characteristics and child behavioral traits. The dose-response relationship could be estimated in the prominent effect of the three intervention groups noticed differently in context of BMI status, metabolic profiles, waist circumference and height. The reductions in the BMI scores over the course of 12 months suggest an almost similar range of results observed in the different intervention groups such as P, P+DA and WLC group. As per Jasik et al, the growth in BMI was observed predominantly in the WLC group at a rate of 45% as compared to 24% and 19% in the P+DA and P groups and therefore, indicates that the intervention or the exposure has presented a formidable impact through the administration of the intervention in measured proportions and thus obtain relevant responses (Jasik et al., 2015). The research results also nee d to be evaluated for relevancy to the topic of study. The findings in terms of variables such as waist circumference and BMI are considered as relevant to the study and the relevancy could be tested against the objectives of the research paper. As per the research of Gillette et al, First of all, the research objectives to find the impact of parenting skills and training on the reduction of obesity in children within the age group of pre puberty primarily range from 6 to 11 years (Gillette et al., 2014). The intervention groups were specifically designed to monitor the varying levels of impact of the parenting skills training and alternative support education for lifestyle improvement. Hence the research findings could provide a basic impression of the directions in which the research variables affect the outcome. Furthermore, the establishment of a control group serves as a precedent for the research activity as it illustrated the impact of non intervention groups on obesity manag ement. The findings observed in case of the WLC groups helped to obtain a frame of reference for comparing the findings of the P+DA and P groups. The findings obtained in the research paper were also indicative of references to the other influencing factors such as gender disparity, weight status, parental weight status and socioeconomic standing. However, the association of the research outcomes with evidence from earlier studies also deserves a profound mention as they help in reviewing the authenticity of the research findings in case of the present research topic. The ambiguities in precedents could also lead to several superfluous pitfalls in research findings which could be limited with the moderation of distinct facets such as methods for data collection, establishment of supervision standards and enhancing the data analysis methods (Golley et al., 2007). The correspondence of research outcomes with the exiting evidence from other studies could be helpful in determining the areas of insufficiency in the research activity and thereby impose remedial measures. The association of the selected research paper with other prof ound evidence refers to the research findings based in Israel. The evidences from the research also suggests the significance of parenting as a potential resource for managing issues of excessive weight in children prior to the age of puberty. The study was carried out on a sample population of 50 individuals comprising largely of children within the age group of six to eleven years. The reports from the research findings indicated that if parents assumed responsibility for managing weight issues of children prior to puberty, then the consistent follow up till a period of 8 years leads to induction of a formidable lifestyle modification. The participants i.e. children implemented major transformations in their lifestyles through the implementation of strategies by parents such as initiation and sustenance of recommended and healthy dietary habits. The other evidence acquired from the studies which are relevant to the selected research paper includes the reference to impression of pa rents that they have adequate information pertaining to child nutrition and therefore they are completely aware of the requirements of their children. This perception is also noticed in context of the selected research paper as the distinct intervention groups are designed with parenting skills training as the primary aspect of intervention alongside the improved and intensive training on lifestyle support. These factors are perceived as foremost influences on the parenting skills training and reduction in obesity of children and therefore relate to evidences in other studies and models. The implications of plausibility of the outcomes in context of a biological mechanism can be evaluated from the viewpoint of the physiological indicators determined from the research outcome. The metabolic health outcomes serve as the platform for validating the plausibility of research outcomes as biological mechanism and in this case, the differences were minimal and the impact of the intervention groups could be barely observed in context of the biological mechanism indicators. However, the findings were slightly altered in the first six months which indicate reduction in diastolic blood pressure and with limited variations at the end of 12 months. The comparative reduction in the six month duration could be validated by the impact of drastic changes in lifestyle (Friend et al., 2015). Generalisability can be perceived as the representation of external validity and it indicates the relevancy of application of research outcomes in case of the source population. The source population could be defined as the sample population subjected to study. The result findings indicate that the generalisability of the research outcomes can be verified from two distinct perspectives. First of all, the research outcomes have to applicable in the case of selected sample only and the second perspective refers to the overall population. Therefore, the study findings could be considered externally valid since the outcomes of the intervention applied for the research indicate profound association with changes in weight management strategies due to the improvement of parenting skills training. Furthermore, the individual research findings refer to the reduction in BMI scores of different intervention groups alongside the metabolic health profiles could be applicable in the case of presen t population. The evidences from the different case studies in the past such as in an Israeli research study indicate the feasibility of the outcomes in diverse contexts of population and thereby realize the prospects of external validation (Hughes et al., 2015). Apart from the minimal instances of critical gaps, the research findings are also applicable in a wider population context since the outcomes of the research indicate modification of lifestyle as well as behavioral traits of parents rather than embarking on management of the individual or the child for weight management. The application of the research outcomes for designing strategies incorporated with measures through which parents can initiate healthy and recommended diet practices for their children. The implications of socioeconomic and demographic factors have been minimal only with the exception of gender in the research outcomes and hence the outcomes could be considered as generalisable in context of the global pop ulation also. References Edmunds, L.D., Rennie, K.L., King, S. and Mayhew, H., 2014. Experiences of those Taking Part in the BeeZee Bodies Family-Based Weight Management Intervention: A Qualitative Evaluation.International Journal of Child Health and Nutrition,3(4), pp.163-169. Friend, S., Fulkerson, J., Flattum, C., Horning, M., Olson, C., Barlow, T. and Neumark-Sztainer, D., 2015. Cooking With Kids in Rural Minnesota: Family Meals and Interest in Family-Focused, Community-Based, Healthful-Eating Programs.Journal of Nutrition Education and Behavior,47(4), p.S9. Golley, R.K., Magarey, A.M., Baur, L.A., Steinbeck, K.S. and Daniels, L.A., 2007. Twelve-month effectiveness of a parent-led, family-focused weight-management program for prepubertal children: a randomized, controlled trial. Pediatrics,119(3), pp.517-525. Gillette, M.L.D., Stough, C.O., Beck, A.R., Maliszewski, G., Best, C.M., Gerling, J.K. and Summar, S., 2014. Outcomes of a Weight Management Clinic for Children with Special Needs.Journal of Developmental Behavioral Pediatrics,35(4), pp.266-273. Hughes, S., Power, T., Johnson, S., Parker, L., Beck, A., Overath, I., Betz, D., Goodell, L.S. and Lanigan, J., 2015. Development of a Family Focused Child Obesity Prevention Program.Journal of Nutrition Education and Behavior,47(4), p.S106. Jasik, C.B., King, E.C., Rhodes, E., Sweeney, B., Mietus-Snyder, M., Grow, H.M., Harris, J.M., Lostocco, L., Estrada, E., Boyle, K. and Tucker, J.M., 2015. Characteristics of Youth Presenting for Weight Management: Retrospective National Data from the POWER Study Group.Childhood Obesity,11(5), pp.630-637. Nguyen, B., Shrewsbury, V.A., O'Connor, J., Lau, C., Steinbeck, K.S., Hill, A.J. and Baur, L.A., 2015. A process evaluation of an adolescent weight management intervention: findings and recommendations.Health promotion international,30(2), pp.201-212. O'Connor, J.N., Golley, R.K., Perry, R.A., Magarey, A.M. and Truby, H., 2015. A longitudinal investigation of overweight children's body perception and satisfaction during a weight management program.Appetite,85, pp.48-51. Santa Maria, D., Swartz, M.C., Markham, C., Chandra, J., McCurdy, S. and Basen-Engquist, K., 2014. Exploring Parental Factors Related to Weight Management in Survivors of Childhood Central Nervous System Tumors. Journal of Pediatric Oncology Nursing,31(2), pp.84-94. Skelton, J.A., Martin, S. and Irby, M.B., 2016. Satisfaction and attrition in paediatric weight management.Clinical obesity. Twiddy, M., Wilson, I., Bryant, M. and Rudolf, M., 2012. Lessons learned from a family-focused weight management intervention for obese and overweight children.Public health nutrition,15(07), pp.1310-1317.

Implementation Challenges Mobile Commerce -Myassignmenthelp.Com

Question: Discuss About The Implementation Challenges Mobile Commerce? Answer: Introduction In the current era, there is huge value of mobile technology. As the mobile business applications increase into quality, therefore it is the purpose of Smartphone to remain dynamic. At the time of understanding the mobile technology as business solution, it is precious to inspect the problems that the business faces throughout its implementation. Most of the business organizations are developed and build of mobile applications in order to enhance the engagement of customers along with employee productivity (Chang 2016). The research suggested that there are three strategic implications of the mobile technology such as improvement of working process, increased internal communication and enhancement of sales as well as marketing effectiveness. Statement of purpose The purpose of this paper is to implement a mobile business solution for the organization which can create value to build a better brand reputation of the business. As the business solution, Smartphone is used to make changes into business along with enterprise mobile applications. Brief description of the paper The paper describes the use of mobile technologies, platforms and success factors for implementation of mobile solutions into business organization. SAP mobile solutions are used into the organization to run the business properly by increasing the productivity of employee along with its operational efficiency. It transforms the business, creation of new business model and new development of product (Moller and Parvinen 2015). It delivers the industry leading and reduces the training cost of SAP, reduces the user errors in addition to increase the ROI. The large companies are analyzed their business performance throughout KPI which are processed by the business intelligence systems. Into the organization while distributing of information from one place to another, mobile devices are increasing the usability of business intelligence, as the decision makers are able to track performance of the business. Technologies, platforms, success factors and successful implementation of mobile business solution Mobile technologies are such a technology which is portable. The mobile IT devices includes of laptop, tablets, Smartphone, GPS devices and wireless debit or credit card payment. The mobile devices consist of communication technologies such as Wi-Fi which is a local area network technology, Bluetooth, 3G-4G global system, GPRS data services, dial up services, data networking services like modems, telephone lines and virtual private networks (Ren et al. 2015). Those mobile communication technologies are used for higher efficiency, staffs productivity, quality of the service, flexibility of the mobile services and capability to accept the mobile payments. It increases the capability to communicate within and out of the workplace. The mobile technologies can access to the modern mobile applications as well as mobile services. The use of mobile technologies improved over the networking capabilities (Merlo et al. 2018). The mobile devices link directly with the office network sets the new account of customers, accesses existing records of customers, checks for the prices as well as places of order online. Due to rapid development of cloud technologies, it boosts the use of mobile devices into the business and supports flexible working practices along with access of mobile services over internet (Gannamaneni, Ondrus and Lyytinen 2015). There are various platforms the mobile business solution used to design, create and maintain the mobile applications. The platforms of mobile business solutions are as follows: SAP: It is the best platform on mobility. The business organizations are invested into SAP to optimize the operations, streamline the business processes and integrate the system along with best technologies to get ahead of competition (Calabuig, Monserrat and Gomez-Barquero 2015). SAP mobile platform operates with agility, makes faster business related decisions and collaborates with increasing mobility. SAP services help the customers to innovate in new mobile advancement technology. Antenna: It is a mobility platform which should be a good fit for those organizations which require building various mobile applications for different types of mobile devices and deployment of cloud services (Prasad and Prasad 2016). This mobile platform collected of development studio together with scalable cloud runtime services with clients run on large array of the mobile devices. In this particular paper, SAP platform is used as the mobile business solutions. Lu et al. (2015) stated that a mobile business solution for the customers represent expensive along with complex proposition of the company to implement the mobile based solutions for business. As the business solution, mobile payment is used globally to do transaction. The mobile trend considers that mobile connectivity is prevalent and the mobile user interfaces reduces the payment resistance with raise into economic inclusion. The success factor is that improvement over the payment method can boost the productivity and profitability of the business (Ghezzi, Cortimiglia and Frank 2015). As for example, the mobile payment application of Starbucks accounts for more than 21% of the transactions of company and it represents 50% of the m-payments which are made into US. At the time of getting coffee, the user can activate app on the phone that stores of digital profile of user linked to the debit/credit card. It also earns as well as tracks the reward points in order to release marketin g promotion (Dahlberg, Guo and Ondrus 2015). This mobile business solution can decrease the time spent at cashier and decreases the waiting time at the queue. The mobile payment methods offer promotions, discounts and decrease the working capital of the company. It helps to increase the customer loyalty. Another success factor is to use of pricing model which are attractive to the business to enhance their business (de Reuver et al. 2015). A mobile payment solution of the company helps to reduce the churn rate along with an increase into customer retention. It increases the lifetime value of the customers. Most of the business organizations are expanding the deployment of mobile application in order to reach the employees, suppliers, customers and suppliers by used of various mobile device operating systems. Bohnsack, Pinkse and Kolk (2014) discussed that mobility becomes a higher priority of the organization. The successful implementation of mobile business solutions is when the mobile devices support the customers into sales contacts as well as customer services. New generation of iOS, Android are used for successful implementation of the mobile technology (Chae and Hedman 2015). It provides of tools to develop mobile applications at lower cost. The steps for successful implementation of the mobile business solutions are as follows: Share of the information among the cross functional teams. Conducting of mobile technology and security assessment (Luciani 2015). Initiation of vendor selection, road mapping and implementation of mobile solutions. Development, maintenance and documentation plan (Ondrus 2015). The senior project manager is responsible to support implementation of new mobile business solutions within an organization. Different cost factors and key components of mobile solution influence the cost Price or cost is the main concern for the customers due to the reason that final result for implementation of mobile business solutions is dependent on the budget. The development cost of mobile applications is dependent on the customers requirements, number of platforms used, application security, API and complexity of project along with hourly rate of the employees (Gannamaneni, Ondrus and Lyytinen 2015). There are various factors and components which influence the development cost of mobile business solutions or mobile applications are as follows: Project complexity: The development cost of mobile is based on the complexity of the project. The complexity factors are the total number of features implemented into the mobile devices, screens, buttons and fields and the amount of logic required. The functionality of mobile application plays a major role into total cost of development which is generally value between 60-80% (Dahlberg, Guo and Ondrus 2015). In order to build a proper mobile application, it is required to understand the business flow. Complex as well as expensive mobile applications are those which can utilize of new technologies for function the mobile payments into the business organizations. Type and total number of platforms used: It is required to determine and choose proper cross platform application development or it is native. Native mobile application development creates of some products such as iOS, Android and others. When most of the customers are used of Android, then it is required to choose of Android application development and same with iOS (Moller and Parvinen 2015). Sometimes, the business organizations are reached the maximum possible audiences, and then if the organization has no enough money to build up the native application, it is considered to take cross platform application development (Liebana-Cabanillas, Ramos de Luna and Montoro-Ros 2015). Native mobile application development is costly as compared to cross platform while native platform is popular as it provides of higher quality to provide best services to customers. Application security: Higher security level is considered as main requirements of most of the organizational clients. Access to the organizational information includes of documents, financial records of transactions ad structured data stored into the mobile devices. All those data are required to be kept secured from the hackers (Gannamaneni, Ondrus and Lyytinen 2015). Implementation of secured mobile application identifies vulnerabilities and authentication which requires of monetary investment influence the development cost of mobile application. Backend infrastructure and application program interface (API): This component plays a significant role into total cost of the mobile application development. The implementation of third party services enables the feature of product which increases the price. Mobile application pulls the data from the web based API. PayPal payment into the mobile app interacts with PayPal in order to verity the payment such that the user does not have to leave the application (Dahlberg, Guo and Ondrus 2015). When there is no proper documentation on the technical specifications, it becomes a time consuming process along with costly to define accurate path to implement information within the application. Hourly rates: The cost drivers for mobile application implementation are dependent on the hourly rate the workers work into the application development. It is also required to understand the goals, requirements and efficient products. In order to determine the total number of hours a resource is involved into development process, it is necessary to consider and measure each of the mobile application features. Custom mobile app development consists of huge monetary investment (Ren et al. 2015). Building of the successful product solves the challenges and meets with the project goals to lead the organizations growth as well as increase into revenue. QA and stabilization: One of the drivers into customer application development cost is testing of the application. QA is considered as key significant part into the development process which requires of greater efforts (Merlo et al. 2018). In order to keep the mobile application running, it is required to conduct timely activities of QA, measures the user feedback as well as makes an enhancement. This particular stage has some significance impact into the project success along with affects the development cost of the mobile applications. Conclusion It is concluded that mobile application are drivers of traffic, increasing of advertising, sales along with growth. The researcher summarized the key drivers of the cost into the mobile application development will help to make cost related decisions and deliver of best return on investment (ROI) into the development budget. This particular paper analyzes the implementation of mobile business solution for the organization which can build value to assemble an enhanced brand reputation of the business. It raises the ability in order to communicate in as well as out of the organization. The mobile technologies are used to access the modern mobile related applications as well as also the mobile related devices. Expensive mobile applications are utilized of new technologies in order to perform function the mobile payments in the business. It increases the lifetime value of the customers. SAP platform is used for operating with agility, makes faster business related decisions as well as co llaborates with increasing mobility. SAP services assist the clients to innovate in new mobile expansion technology. New creation of both iOS as well as Android is used for flourishing execution of the mobile technology. References Bohnsack, R., Pinkse, J. and Kolk, A., 2014. Business models for sustainable technologies: Exploring business model evolution in the case of electric vehicles.Research Policy,43(2), pp.284-300. Calabuig, J., Monserrat, J.F. and Gomez-Barquero, D., 2015. 5th generation mobile networks: A new opportunity for the convergence of mobile broadband and broadcast services.IEEE Communications Magazine,53(2), pp.198-205. Chae, J.S.U. and Hedman, J., 2015. Business Models for NFC based mobile payments.Journal of Business Models,3(1). Chang, J.F., 2016.Business process management systems: strategy and implementation. CRC Press. Dahlberg, T., Guo, J. and Ondrus, J., 2015. A critical review of mobile payment research.Electronic Commerce Research and Applications,14(5), pp.265-284. de Reuver, M., Verschuur, E., Nikayin, F., Cerpa, N. and Bouwman, H., 2015. Collective action for mobile payment platforms: A case study on collaboration issues between banks and telecom operators.Electronic Commerce Research and Applications,14(5), pp.331-344. Gannamaneni, A., Ondrus, J. and Lyytinen, K., 2015, January. A post-failure analysis of mobile payment platforms. InSystem Sciences (HICSS), 2015 48th Hawaii International Conference on(pp. 1159-1168). IEEE. Ghezzi, A., Cortimiglia, M.N. and Frank, A.G., 2015. Strategy and business model design in dynamic telecommunications industries: A study on Italian mobile network operators.Technological Forecasting and Social Change,90, pp.346-354. Liebana-Cabanillas, F., Ramos de Luna, I. and Montoro-Ros, F.J., 2015. User behaviour in QR mobile payment system: the QR Payment Acceptance Model.Technology Analysis Strategic Management,27(9), pp.1031-1049. Lu, M.T., Hu, S.K., Huang, L.H. and Tzeng, G.H., 2015. Evaluating the implementation of business-to-business m-commerce by SMEs based on a new hybrid MADM model.Management Decision,53(2), pp.290-317. Luciani, S., Mobile Payments Interchange LLC, 2015.Universal Interface Card Swipe Terminal Point of Sale System With Multiple Mobile Wallets/Payment Applications. U.S. Patent Application 14/447,066. Merlo, O., Eisingerich, A., Auh, S. and Levstek, J., 2018. The benefits and implementation of performance transparency: The why and how of letting your customers see throughyour business.Business Horizons,61(1), pp.73-84. Moller, K. and Parvinen, P., 2015. An impact-oriented implementation approach in business marketing research: Introduction to the Special Issue on Implementing Strategies and Theories of B2B Marketing and Sales Management.Industrial Marketing Management,45, pp.3-11. Ondrus, J., 2015, August. Clashing over the NFC Secure Element for Platform Leadership in the Mobile Payment Ecosystem. InProceedings of the 17th International Conference on Electronic Commerce 2015(p. 30). ACM. Prasad, G.N.R. and Prasad, D.N.S., 2016. Implementation Challenges of Mobile Commerce in Small and Mid-size Business.Small Enterprises Development, Management Extension (Sedme),40(1). Ren, J., Zhang, Y., Zhang, K. and Shen, X., 2015. Exploiting mobile crowdsourcing for pervasive cloud services: challenges and solutions.IEEE Communications Magazine,53(3), pp.98-105