Appling the EMH evaluate the role that government played in economic Essay

Appling the EMH evaluate the role that government played in economic recovery using recent real-life examples - Essay Example Aim and objectives of the study The theme around which the discussion will tend to revolve is of efficient market hypothesis under the intervention of the government. The hit of the financial crisis has left many countries under the scanner and so the usefulness of the study cannot be underestimated. Enormous scope of the study is waiting in the background as it is extremely important to understand or analyze the intervention of the government in detailed manner in this volatile scenario. The study will take into consideration or will try to consider the various policies of the government which will determine the scope of legislation on efficiencies of the market in the near future. The present times has witnessed gradual instability in the market due to the imposition of the different market policies of the government and would provide an opportunity of learning in the current scenario. Efficient market hypothesis The efficient market hypothesis implies that if any new form of information is available in the market the share price of the company will move accordingly and the movement of the price will be rational according to the information available in the market. In this type of market no trader will have an opportunity to earn profits which is above the normal level on the return from a share greater than the fair return from the associated risk. The chance of absence of normal profits arises as the past or the future information is reflected in the current prices of the shares. The availability of new information in the market has the ability to affect the prices of the shares (Palan, 2007, p. 3). ... icient market hypothesis implies that if any new form of information is available in the market the share price of the company will move accordingly and the movement of the price will be rational according to the information available in the market. In this type of market no trader will have an opportunity to earn profits which is above the normal level on the return from a share greater than the fair return from the associated risk. The chance of absence of normal profits arises as the past or the future information is reflected in the current prices of the shares. The availability of new information in the market has the ability to affect the prices of the shares (Palan, 2007, p. 3). The hypothesis is concerned in analysing the conditions under which an investor can earn abnormal profits from investing in a stock. It claims that the relevant information is reflected in the stock price. It states that abnormal returns cannot be availed with only public information. People are of the opinion that efficiency means that it is not possible to outperform the market at a certain point of time. It can be expected that under certain points of time the prices will deviate from the fair value as it majorly depends on the unpredictable future. It does not mean that an investor will not be able to beat the market scenario at any time. In the market which is efficient one half of the purchased shares subsequently outperform as the process tend to deviate randomly (Harder, 2010, p.7). Adoption of particular investment strategy in the long run can contribute to beat the market situation. It may be possible to find few investors who have beaten up the market scenario in a completely efficient market with price deviating from the true value. The laws of probability have the central

Intrinsic vs. Extrinsic Motivation (Opinion Paper) Essay

Intrinsic vs. Extrinsic Motivation (Opinion Paper) - Essay Example Intrinsic motivation comes from within such as a person's need to feel useful or need to seek self-actualization (Law, 2006). Extrinsic motivation consists of external factors that motivate an individual such as pay and benefits or other motivators provided by employers. Intrinsic and extrinsic motivators are not limited to the workforce. Motivators, or rewards, are provided beginning in childhood. Taking piano lessons and studying a foreign language are intrinsically motivated for this author. The intrinsic rewards that I am receiving are satisfaction and enjoyment. Extrinsically motivated activities include cooking and exercising. The extrinsically motivated activities are performed to please others who hope that diet and exercise will help improve my quality of life. There are several principals and theories related to intrinsic and extrinsic motivation. Motivation itself can be described as the "mental processes that arouse, sustain, and direct human behavior."(Law, 2006) People can be positively motivated or negatively motivated. One boss' leadership style may motivate productivity while another boss' leadership style may negatively affect productivity. It is key for any organization to conquer motivation within the workplace. In my opinion coaches of sports teams have known for years that the combination of intrinsic and extrinsic motivating factors can create the need to excel or a... George Gipp was a varsity football player at Notre Dame. When he fell ill and died Knute Rockne used a statement that Gipp is said to have made on his death bed: I've got to go, Rock. It's all right. I'm not afraid. Some time, Rock, when the team is up against it, when things are wrong and the breaks are beating the boys, ask them to go in there with all they've got and win just one for the Gipper. I don't know where I'll be then, Rock. But I'll know about it, and I'll be happy. (Estate of George Gipp, 2007). Knute Rockne used this statement to motivate his team to defeat the undefeated Army team in 1928. He knew that his team would be intrinsically and extrinsically motivated to win the game. Another principal relating to motivation is the multicative principal. This principal is based upon the belief that intrinsic and extrinsic motivation are interactive rather than additive. I agree with this principal because I have seen how in playing the piano I am rewarded by other people noticing and commenting on my performance. At the same time I have a sense of personal satisfaction when I play well (intrinsic). Although it is nice to receive positive comments, and encouragement, I gain more from the intrinsic award. I am motivated more by how I feel about myself and am motivated to play better despite the extrinsic rewards. The discounting principal of motivation has to do with the rewards affect on atheletic performance. The athelete may be intrinsically motivated to perform and win. But, an athelete that is paid to perform (such as major league baseball and NFL football) may stop performing if the paid reward is removed. Thus the intrinsic motivation is pushed aside or 'discounted' when the extrinsic reward is