Investor Attitudes Towards Risk on Stock Market

Investor Attitudes Towards Risk on Stock Market For the abnormal return in stock market, investor attitudes will become increasingly important. This paper attempts to analyze the impact of investor attitude towards risk that have a greater influence on stock market .In this study researcher focused on particular Islamabad stock market and obtain primary data based on five point Likert scale from investor of ISE. The data indicate that investors have substantially different attitudes toward various investments. However, there are significant statistical differences between attitudes of the investor groups in their attitudes toward three risk types. These data also show significant differences in attitudes toward risk. After analyzing the data through the Regression and Correlation, including ANOVA test, the result found the significance impact of variables on stock market. Introduction The whole financial theory is based on the basic hypothesis of rational investor on the financial markets. This rationality is characterized by a continuous quest of the investors to maximize their utility function (actually maximizing the return of the investment for a given risk level or minimizing the risk for an expected return level). In spite their rationality; investors have a different perception over risk, its bearing having an important psychological factor. Most investors show different attitude towards risk like motivated risk aversion, but we can find on the financial markets. While risk behavior has been studied intensely and a large number of risk perception. Through attention to risk perception and risk propensity which are mediators in attitude transaction, financial institutions can realize the effects on investor behavior and their returns expectations. The first section of this paper is the introduction, the second section is the literature review, the third secti on establishes hypothesis model, the fourth section presents the study results and the fifth section is the conclusion and recommendations.Different Studies are available; far less research exists regarding peoples mind-sets towards risk taking, i.e., risk attitudes, such as, risk aversion, risk tolerance and risk neutral. These can be conceptualized as two poles of a one-dimensional attitude towards risk-taking but also as two separate concepts. It is widely assumed that people differ considerably in their attitude towards risks, ranging from good sense to risk-seeking and even pleasure in risk-taking. The first trial of conceptualizing the investors risk aversion belongs to Milton Friedman and Leonard Savage (Milton Friedman, Leonard Savage Utility Analysis of Choices Involving Risk, JPE, 1948) who defined the risk aversion by using the following decisional situation: an investor who can chose among comparable investments will always chose the one with the lowest risk. Explaining the investment behavior using the returns of risky financial investments utility function brought a new perspective to the risk aversion theory. Further studies showed that there are also other factors with direct impact over the attitude towards risk (economic growth forecasts of a market, the level of training and the experience gained, fluctuations of the exchange market, psychological factors, biases and heuristics etc.). This paper follows studies conducted with investors to examine investor attitudes and behavior towards inherent risk and potential returns in stock market. Statement of the Problem The problem statement of research was à ¢Ã¢â€š ¬Ã…“Impact of Investor Attitude towards Risk on Stock Marketà ¢Ã¢â€š ¬?. Major variables used in this study include stock market return volatility and risk attitude i.e risk tolerance, risk aversive, risk neutral variables that are the indicators of investor attitude. Objective: the objectives of research are:- To study how these attitude types are affecting the stock market. To find whether there is any relationship between stock market index and investor behavior. Significance of the Study The market return fluctuate according to events and trends , the human mind also have some psychological factor that can be influenced or might directs towards good or bad decision making regarding investment. From this study individual investor can get knowledge how their behavior that can maximize or minimize their utility in investment plan in market portfolio. They can change their behavior accordingly. Every Kind of individual like small investor including Man, Women with different status i.e. single or Martial with different age can change their mind set and able to understand how they should make decision to see the market trends or events. Review of Literature There is lot work has been done so far in this regard. Now we have overview some of researcher works in this section of the paper as review literature. With the reference of research topic, some of studies are being done in which all the variables includes Risk attitude factors i.e; Risk Aversion, Risk Tolerance, Risk are taken into consideration to define the impact of those variables on stock market. Levin, Synder and chapman (1975) were concerned with the differences between men and women in accepting the risks of financial investments, they focused on a group of 110 students using a questionnaire regarding lotteries to check the more risk aversive according to gender differentiation. the results indicating that women are more risk aversive than men Powell and Ansic (1997) questioned a small group regarding property insurance and the exchange market and again found that women are more aversive than men (this study was among the first which analyzed individual aversion towards speculative and pure risks); using information regarding the weight of the funds invested in risky assets. Jaimie Sung and Hannna (1996) analyzed the risk tolerance corresponding to four ethnic groups: Caucasian, Hispanic, Black and others. Given the substantial differences among risk tolerance capacities of these groups (the Caucasians have the highest risk tolerance and the Blacks the lowest) we may assert that this factor has a direct impact on the way investors accept and perceive the risk attached to financial investments. Education also has a direct influence on risk tolerance, as several studies prove a direct link between higher education and the acceptance of higher risk related to investments. The analysis was conducted on four education levels: primary school, high school, college and postgraduate studies. The results demonstrate an intense and direct impact on accepting financial risk: the higher the subjects education, the higher his tolerance to risk. Sitkin and Pablo (1992) developed a model of determinants of risk behavior. In this model, personal risk preferences and past experiences form an important risk factor in which to frame the problem, and social influence also affects the individuals perception. Sitkin and Weingart (1995) extend the Sitkin-Pablo model leading to the definition that risk perception and propensity are the mediators in risk behaviors of uncertainty decision-making. Shyan-Rong Chou, Gow-Liang Huang, Hui-Lin Hsu (2010) has done research on à ¢Ã¢â€š ¬Ã…“Investor Attitudes and Behavior towards Inherent Risk and Potential Returns in Financial Productsà ¢Ã¢â€š ¬?. They establish a model by which to measure attitudes and behavior towards investment risk.They used variables: Risk propensity, Risk perception, Behavior finance, Decision making. They study to form a framework (framing) for interpretation of their respective populations attitudes and behaviors. Empirical results found no difference by gender to investor propensity to take risk, nor in cognitive perception of such. However, higher and lower perceptions of risk were indicated by investors according to their personal investment experience. Investors with little experience in stocks and structured notes were found to have significantly sensitive perception of risk. Thus the model proposed is relevant in finding a positive correlation between experience and propensity of risk, though the un derstanding of such remains uncertain. In respect to financial products other than mutual funds, investor propensity and perception of risk tend to show a negative correlation. Amos Tversky; Daniel Kahneman (1974) defines in their research à ¢Ã¢â€š ¬Ã…“Judgment under Uncertainty: Heuristics and Biasesà ¢Ã¢â€š ¬? that Heuristics that are important feature of the individual decision-making process which may be considered to include thought representativeness and availability. They founded that there is anchoring bias in the decision-making process which arises due to factors such as overconfidence, loss aversion, status quo bias, mental accounting, framing and so on. Investors in the process of assessing the risks and returns are influenced by this anchor effect. All these studies proved the complexity of risk aversion and its subjective dimension, as the estimates are difficult to obtain accurately. Investors have ultimately a unique behavior which results in un balanced price, no matter how adverse they are to risk. Understanding risk aversion offers another perspective for constructing and optimizing risky financial portfolios. Theoretical Frame work Our theoretical frame work is as under: (Independent Variables) Risk Aversion Risk Tolerance Risk Neutral (Dependent Variable) Stock Market Explanation The possibility of physical or social or financial harm /detriment / loss due to a exposure. This is the (dominating) negative perspective; however, there is also a neutral perspective, i.e., risk = uncertainty about the outcomes (good and/or bad ones) of a decision; and a positive perspective. A persons opinion belief about how large the risk associated with a hazard is (regarding negative outcomes) A general perspective of humans mind towards taking or avoiding a risk when deciding how to proceed in situations with uncertain outcomes. Risk Attitude towards taking risks or avoiding risk are; i.e, Risk aversion, Risk Tolerance, Risk Neutral. So, all decisions about how acceptable a risk is in individual or societal terms deepened on market events or trends. The actual behavior of people when facing a risk situation, each investor has unique personal risk tendencies, investment style, and level of risk awareness. These characteristics, in addition to the expectation of returns, help investment decision making and portfolio construction. According to traditional finances capital asset pricing model, due to investor risk aversion, rational investors understand that increased investment risk demands return with a higher premium. Diagrammatical Expression of Variable:  [1]   Purpose of the study (Hypothesis Testing) Hypothesis testing offers an enhanced understanding of the relationship that exists among variables. It could also established casual and effect relationship. The research à ¢Ã¢â€š ¬Ã…“Impact of Investor attitude towards risk on Stock Marketà ¢Ã¢â€š ¬?, includes there are certain variables upon which the growth of Stock Market depends; these are interest rate, Risk Aversion, Risk Tolerance, Risk Neutral ,Uncertainty. Research is being carried out to analyze the nature of the relationship between all these variables. Hypothesis Risk Tolerance Investor: Investors who tend towards higher risk are more adventurous and so are willing to attempt high-risk, high reward investments. H1: Investor who has a higher tolerance to risk that have significant impact on stock market volatility H2: Investor who has a higher tolerance to risk that have no significant impact on stock market volatility Risk Aversive Investor: People who tend towards lower risk behavior are less willing to engage in risky adventurous behavior due to their low risk tolerance. That is, this kind of investor has a high degree of risk perception in financial products. H3: Investor who are risk aversive has significant impact on stock market volatility H4: Investor who are risk aversive has no significant impact on stock market volatility Risk Neutral Investor: Someone is completely indifferent to the risk involved an investment and is only concerned about expected return. H5: Investor who are risk neutral has significant impact on stock market volatility H6: Investor who are risk neutral has no significant impact on stock market volatility Methodology: (Sample Data Collection) Sample is taken from Islamabad stock exchange and data collection is based on primary data using questionnaire consist of five likert scale including Strongly Agree, Agree, No Strong Opinion, Disagree, Strongly Disagree to analyze the dependent and nondependent variables. The questionnaire sample obtained from the valid source à ¢Ã¢â€š ¬Ã…“The Scottish Life Risk Attitude Profiling Questionnaire is based on the Byrne Blake Risk Profile Questionnaireà ¢Ã¢â€š ¬?  [2]  . The Respondents which have obtained during the research work are 30 that included 20 brokers, 10 small investors i.e Man, Woman having different qualification, age and income groups. To analyze the data being a researcher we used Regression and correlation in SPSS to see the impact and relationship between variables. Data Analysis and Discussion The results drawn from statistical analysis is based on regression analysis. As the independent variable is comprised of three facets i.e, risk aversion, risk taking and risk neutral so several hierarchical regression analyses are performed to formally check the hypothesis. Separate regression analyses are run for analyzing independent-dependent relationship. Regression has been used in order to measure that how much variation in dependent variables has been caused by independent variable. The results are as follows: Risk Aversion (a) Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .467(a) .218 .048 .48900 Interpretation Table illustrate that value of R Square is 0.218 which is equal to 21.8 %. This means that independent variable i.e. risk aversion is accounting for 21.8 % of variation in the dependent variable i.e stock market. (b) ANOVA Model Sum of Squares df Mean Square F 1 Regression 1.535 5 .307 1.284 Residual 5.500 23 .239 Total 7.034 28 a. Predictors: (Constant), risk aversion b. Dependent Variable: Stock market Interpretation F ( 1. 101) = 1.284 ; P Since the value of P is less than 0.01, so we can say that the overall effect of this independent variable is highly significant. RISK Tolerance (a) Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .442(a) .195 -.025 .50735 Predictors: (Constant), risk tolerance Interpretation Table illustrate that value of R Square is 0.195 which is equal to 19.5 %. This means that independent variable i.e. risk tolerance is accounting for 19.5 % of variation in the dependent variable i.e. stock market. (b) ANOVA Model Sum of Squares df Mean Square F 1 Regression 1.372 6 .229 .888 Residual 5.663 22 .257 Total 7.034 28 a. Predictors: (Constant), risk tolerance b. Dependent Variable: Stock market Interpretation F ( 1. 101) = 0.888 ; P Since the value of P is less than 0.01, so we can say that the overall effect of this independent variable is highly significant. Risk Neutral (a) Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .687(a) .472 -.056 .51517 Predictors: (Constant), risk tolerance Interpretation Table illustrate that value of R Square is 0.472 which is equal to 47.2 %. This means that independent variable i.e. risk neutral is accounting for 19.5 % of variation in the dependent variable i.e. stock market. (b) ANOVA Model Sum of Squares df Mean Square F 1 Regression 3.319 14 .237 .893 Residual 3.716 14 .265 Total 7.034 28 Predictors: (Constant), risk neutral Dependent Variable: Stock market Interpretation F (1. 101) = 0.893; P CONCLUSION This study uses the questionnaire approach to test the risk attitudes and returns expectations of investors of particular Islamabad stock exchange. There are different trends and economic crisis that rapidly changed the attitude of investors of male and female. Variance analysis also found that less experienced investors have lower risk propensity and higher risk perception. However, considering individual attitude and perception about returns of stock market either influenced positively or negatively that assessed during research questionnaire. In the test model, investor experience and their risk propensity is in positive correlation. So, the conclusion of this study is consistent with recent literature, however the relationship between risk attitude and expected returns has not yet been determined as successful and strong empirical result. RECOMMENDATIONS Researcher recommended the followings ways to gain higher return from their investing attitude. Compare current stock value with historical results of securities or bonds markets. If you are risk aversive and need higher income during shorter period of time and at low risk, you will need to find other financial instruments.   As we know that, there is direct correlation between risk and income. The higher is income, the higher is risk so investor should ensure about their instruments worth in which he/she going to invest such can be divided as follows: bank savings, bonds and shares.   Another issue is that somehow media reports negatively about stock market return so, investor rapidly change their mind set as the framing heuristic applied without thinking the validity of information. So investor should protect his or her investments. Having purchased securities, keep monitoring securities market periodically. Other Recommendations are that Do not spread the whole money in the market and prefer to invest in only those companies that pay a dividend and that have a history of raising their dividend every year. Investor should forget making a profit; instead focus on the income provided from the stock portfolio and make every stock purchase with the intent that the purchase will be a long-term investment. Develop a savings plan to add to your holdings each quarter to help dividend reinvestments to accumulate more shares on a cost averaging basis. REFERENCES Amos Tversky; Daniel Kahneman Science, New Series, Vol. 185, No. 4157. (Sep. 27, 1974), pp. 1124-1131. Jaimie Sung, Sherman Hanna, Factors related to risk tolerance, Financial Counseling and Planning, Vol. 7,1996, pag. 14). Levin Irwin P., Mary A. Snyder and Daniel P. Chapman (1975), The Interaction of Experiential and Situational Factors and Gender in a Simulated Risky Decision-Making Task, Journal of Psychology, 1988, 122(2),pp. 173-181) Powell Melanie, and David Ansic (1997), Gender Differences in Risk Behaviour in Financial Decision-Making: An Experimental Analysis, Journal of Economic Psychology, 18(6), 1998, pp. 605-628. Risk Attitude Profiling questionnairehttp://www.scottishlife.co.uk/scotlife/nmsruntime/saveasdialog.asp?fileName=Risk_Attitude_Questionnaire.pdf Source:http://www.emeraldinsight.com/books.htm?chapterid=1760442show=html Sitkin and Pablo (1992) Review of management Review-1992.vol 17, No.1, p-38). Shyan-Rong Chou, Gow-Liang Huang, Hui-Lin Hsu (2010) International Research Journal of Finance and Economics ISSN 1450-2887 Issue 44 (2010)  © Euro Journals Publishing, Inc. 2010. http://www.eurojournals.com/finance.html) Investor Attitudes Towards Risk on Stock Market Investor Attitudes Towards Risk on Stock Market For the abnormal return in stock market, investor attitudes will become increasingly important. This paper attempts to analyze the impact of investor attitude towards risk that have a greater influence on stock market .In this study researcher focused on particular Islamabad stock market and obtain primary data based on five point Likert scale from investor of ISE. The data indicate that investors have substantially different attitudes toward various investments. However, there are significant statistical differences between attitudes of the investor groups in their attitudes toward three risk types. These data also show significant differences in attitudes toward risk. After analyzing the data through the Regression and Correlation, including ANOVA test, the result found the significance impact of variables on stock market. Introduction The whole financial theory is based on the basic hypothesis of rational investor on the financial markets. This rationality is characterized by a continuous quest of the investors to maximize their utility function (actually maximizing the return of the investment for a given risk level or minimizing the risk for an expected return level). In spite their rationality; investors have a different perception over risk, its bearing having an important psychological factor. Most investors show different attitude towards risk like motivated risk aversion, but we can find on the financial markets. While risk behavior has been studied intensely and a large number of risk perception. Through attention to risk perception and risk propensity which are mediators in attitude transaction, financial institutions can realize the effects on investor behavior and their returns expectations. The first section of this paper is the introduction, the second section is the literature review, the third secti on establishes hypothesis model, the fourth section presents the study results and the fifth section is the conclusion and recommendations.Different Studies are available; far less research exists regarding peoples mind-sets towards risk taking, i.e., risk attitudes, such as, risk aversion, risk tolerance and risk neutral. These can be conceptualized as two poles of a one-dimensional attitude towards risk-taking but also as two separate concepts. It is widely assumed that people differ considerably in their attitude towards risks, ranging from good sense to risk-seeking and even pleasure in risk-taking. The first trial of conceptualizing the investors risk aversion belongs to Milton Friedman and Leonard Savage (Milton Friedman, Leonard Savage Utility Analysis of Choices Involving Risk, JPE, 1948) who defined the risk aversion by using the following decisional situation: an investor who can chose among comparable investments will always chose the one with the lowest risk. Explaining the investment behavior using the returns of risky financial investments utility function brought a new perspective to the risk aversion theory. Further studies showed that there are also other factors with direct impact over the attitude towards risk (economic growth forecasts of a market, the level of training and the experience gained, fluctuations of the exchange market, psychological factors, biases and heuristics etc.). This paper follows studies conducted with investors to examine investor attitudes and behavior towards inherent risk and potential returns in stock market. Statement of the Problem The problem statement of research was à ¢Ã¢â€š ¬Ã…“Impact of Investor Attitude towards Risk on Stock Marketà ¢Ã¢â€š ¬?. Major variables used in this study include stock market return volatility and risk attitude i.e risk tolerance, risk aversive, risk neutral variables that are the indicators of investor attitude. Objective: the objectives of research are:- To study how these attitude types are affecting the stock market. To find whether there is any relationship between stock market index and investor behavior. Significance of the Study The market return fluctuate according to events and trends , the human mind also have some psychological factor that can be influenced or might directs towards good or bad decision making regarding investment. From this study individual investor can get knowledge how their behavior that can maximize or minimize their utility in investment plan in market portfolio. They can change their behavior accordingly. Every Kind of individual like small investor including Man, Women with different status i.e. single or Martial with different age can change their mind set and able to understand how they should make decision to see the market trends or events. Review of Literature There is lot work has been done so far in this regard. Now we have overview some of researcher works in this section of the paper as review literature. With the reference of research topic, some of studies are being done in which all the variables includes Risk attitude factors i.e; Risk Aversion, Risk Tolerance, Risk are taken into consideration to define the impact of those variables on stock market. Levin, Synder and chapman (1975) were concerned with the differences between men and women in accepting the risks of financial investments, they focused on a group of 110 students using a questionnaire regarding lotteries to check the more risk aversive according to gender differentiation. the results indicating that women are more risk aversive than men Powell and Ansic (1997) questioned a small group regarding property insurance and the exchange market and again found that women are more aversive than men (this study was among the first which analyzed individual aversion towards speculative and pure risks); using information regarding the weight of the funds invested in risky assets. Jaimie Sung and Hannna (1996) analyzed the risk tolerance corresponding to four ethnic groups: Caucasian, Hispanic, Black and others. Given the substantial differences among risk tolerance capacities of these groups (the Caucasians have the highest risk tolerance and the Blacks the lowest) we may assert that this factor has a direct impact on the way investors accept and perceive the risk attached to financial investments. Education also has a direct influence on risk tolerance, as several studies prove a direct link between higher education and the acceptance of higher risk related to investments. The analysis was conducted on four education levels: primary school, high school, college and postgraduate studies. The results demonstrate an intense and direct impact on accepting financial risk: the higher the subjects education, the higher his tolerance to risk. Sitkin and Pablo (1992) developed a model of determinants of risk behavior. In this model, personal risk preferences and past experiences form an important risk factor in which to frame the problem, and social influence also affects the individuals perception. Sitkin and Weingart (1995) extend the Sitkin-Pablo model leading to the definition that risk perception and propensity are the mediators in risk behaviors of uncertainty decision-making. Shyan-Rong Chou, Gow-Liang Huang, Hui-Lin Hsu (2010) has done research on à ¢Ã¢â€š ¬Ã…“Investor Attitudes and Behavior towards Inherent Risk and Potential Returns in Financial Productsà ¢Ã¢â€š ¬?. They establish a model by which to measure attitudes and behavior towards investment risk.They used variables: Risk propensity, Risk perception, Behavior finance, Decision making. They study to form a framework (framing) for interpretation of their respective populations attitudes and behaviors. Empirical results found no difference by gender to investor propensity to take risk, nor in cognitive perception of such. However, higher and lower perceptions of risk were indicated by investors according to their personal investment experience. Investors with little experience in stocks and structured notes were found to have significantly sensitive perception of risk. Thus the model proposed is relevant in finding a positive correlation between experience and propensity of risk, though the un derstanding of such remains uncertain. In respect to financial products other than mutual funds, investor propensity and perception of risk tend to show a negative correlation. Amos Tversky; Daniel Kahneman (1974) defines in their research à ¢Ã¢â€š ¬Ã…“Judgment under Uncertainty: Heuristics and Biasesà ¢Ã¢â€š ¬? that Heuristics that are important feature of the individual decision-making process which may be considered to include thought representativeness and availability. They founded that there is anchoring bias in the decision-making process which arises due to factors such as overconfidence, loss aversion, status quo bias, mental accounting, framing and so on. Investors in the process of assessing the risks and returns are influenced by this anchor effect. All these studies proved the complexity of risk aversion and its subjective dimension, as the estimates are difficult to obtain accurately. Investors have ultimately a unique behavior which results in un balanced price, no matter how adverse they are to risk. Understanding risk aversion offers another perspective for constructing and optimizing risky financial portfolios. Theoretical Frame work Our theoretical frame work is as under: (Independent Variables) Risk Aversion Risk Tolerance Risk Neutral (Dependent Variable) Stock Market Explanation The possibility of physical or social or financial harm /detriment / loss due to a exposure. This is the (dominating) negative perspective; however, there is also a neutral perspective, i.e., risk = uncertainty about the outcomes (good and/or bad ones) of a decision; and a positive perspective. A persons opinion belief about how large the risk associated with a hazard is (regarding negative outcomes) A general perspective of humans mind towards taking or avoiding a risk when deciding how to proceed in situations with uncertain outcomes. Risk Attitude towards taking risks or avoiding risk are; i.e, Risk aversion, Risk Tolerance, Risk Neutral. So, all decisions about how acceptable a risk is in individual or societal terms deepened on market events or trends. The actual behavior of people when facing a risk situation, each investor has unique personal risk tendencies, investment style, and level of risk awareness. These characteristics, in addition to the expectation of returns, help investment decision making and portfolio construction. According to traditional finances capital asset pricing model, due to investor risk aversion, rational investors understand that increased investment risk demands return with a higher premium. Diagrammatical Expression of Variable:  [1]   Purpose of the study (Hypothesis Testing) Hypothesis testing offers an enhanced understanding of the relationship that exists among variables. It could also established casual and effect relationship. The research à ¢Ã¢â€š ¬Ã…“Impact of Investor attitude towards risk on Stock Marketà ¢Ã¢â€š ¬?, includes there are certain variables upon which the growth of Stock Market depends; these are interest rate, Risk Aversion, Risk Tolerance, Risk Neutral ,Uncertainty. Research is being carried out to analyze the nature of the relationship between all these variables. Hypothesis Risk Tolerance Investor: Investors who tend towards higher risk are more adventurous and so are willing to attempt high-risk, high reward investments. H1: Investor who has a higher tolerance to risk that have significant impact on stock market volatility H2: Investor who has a higher tolerance to risk that have no significant impact on stock market volatility Risk Aversive Investor: People who tend towards lower risk behavior are less willing to engage in risky adventurous behavior due to their low risk tolerance. That is, this kind of investor has a high degree of risk perception in financial products. H3: Investor who are risk aversive has significant impact on stock market volatility H4: Investor who are risk aversive has no significant impact on stock market volatility Risk Neutral Investor: Someone is completely indifferent to the risk involved an investment and is only concerned about expected return. H5: Investor who are risk neutral has significant impact on stock market volatility H6: Investor who are risk neutral has no significant impact on stock market volatility Methodology: (Sample Data Collection) Sample is taken from Islamabad stock exchange and data collection is based on primary data using questionnaire consist of five likert scale including Strongly Agree, Agree, No Strong Opinion, Disagree, Strongly Disagree to analyze the dependent and nondependent variables. The questionnaire sample obtained from the valid source à ¢Ã¢â€š ¬Ã…“The Scottish Life Risk Attitude Profiling Questionnaire is based on the Byrne Blake Risk Profile Questionnaireà ¢Ã¢â€š ¬?  [2]  . The Respondents which have obtained during the research work are 30 that included 20 brokers, 10 small investors i.e Man, Woman having different qualification, age and income groups. To analyze the data being a researcher we used Regression and correlation in SPSS to see the impact and relationship between variables. Data Analysis and Discussion The results drawn from statistical analysis is based on regression analysis. As the independent variable is comprised of three facets i.e, risk aversion, risk taking and risk neutral so several hierarchical regression analyses are performed to formally check the hypothesis. Separate regression analyses are run for analyzing independent-dependent relationship. Regression has been used in order to measure that how much variation in dependent variables has been caused by independent variable. The results are as follows: Risk Aversion (a) Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .467(a) .218 .048 .48900 Interpretation Table illustrate that value of R Square is 0.218 which is equal to 21.8 %. This means that independent variable i.e. risk aversion is accounting for 21.8 % of variation in the dependent variable i.e stock market. (b) ANOVA Model Sum of Squares df Mean Square F 1 Regression 1.535 5 .307 1.284 Residual 5.500 23 .239 Total 7.034 28 a. Predictors: (Constant), risk aversion b. Dependent Variable: Stock market Interpretation F ( 1. 101) = 1.284 ; P Since the value of P is less than 0.01, so we can say that the overall effect of this independent variable is highly significant. RISK Tolerance (a) Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .442(a) .195 -.025 .50735 Predictors: (Constant), risk tolerance Interpretation Table illustrate that value of R Square is 0.195 which is equal to 19.5 %. This means that independent variable i.e. risk tolerance is accounting for 19.5 % of variation in the dependent variable i.e. stock market. (b) ANOVA Model Sum of Squares df Mean Square F 1 Regression 1.372 6 .229 .888 Residual 5.663 22 .257 Total 7.034 28 a. Predictors: (Constant), risk tolerance b. Dependent Variable: Stock market Interpretation F ( 1. 101) = 0.888 ; P Since the value of P is less than 0.01, so we can say that the overall effect of this independent variable is highly significant. Risk Neutral (a) Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .687(a) .472 -.056 .51517 Predictors: (Constant), risk tolerance Interpretation Table illustrate that value of R Square is 0.472 which is equal to 47.2 %. This means that independent variable i.e. risk neutral is accounting for 19.5 % of variation in the dependent variable i.e. stock market. (b) ANOVA Model Sum of Squares df Mean Square F 1 Regression 3.319 14 .237 .893 Residual 3.716 14 .265 Total 7.034 28 Predictors: (Constant), risk neutral Dependent Variable: Stock market Interpretation F (1. 101) = 0.893; P CONCLUSION This study uses the questionnaire approach to test the risk attitudes and returns expectations of investors of particular Islamabad stock exchange. There are different trends and economic crisis that rapidly changed the attitude of investors of male and female. Variance analysis also found that less experienced investors have lower risk propensity and higher risk perception. However, considering individual attitude and perception about returns of stock market either influenced positively or negatively that assessed during research questionnaire. In the test model, investor experience and their risk propensity is in positive correlation. So, the conclusion of this study is consistent with recent literature, however the relationship between risk attitude and expected returns has not yet been determined as successful and strong empirical result. RECOMMENDATIONS Researcher recommended the followings ways to gain higher return from their investing attitude. Compare current stock value with historical results of securities or bonds markets. If you are risk aversive and need higher income during shorter period of time and at low risk, you will need to find other financial instruments.   As we know that, there is direct correlation between risk and income. The higher is income, the higher is risk so investor should ensure about their instruments worth in which he/she going to invest such can be divided as follows: bank savings, bonds and shares.   Another issue is that somehow media reports negatively about stock market return so, investor rapidly change their mind set as the framing heuristic applied without thinking the validity of information. So investor should protect his or her investments. Having purchased securities, keep monitoring securities market periodically. Other Recommendations are that Do not spread the whole money in the market and prefer to invest in only those companies that pay a dividend and that have a history of raising their dividend every year. Investor should forget making a profit; instead focus on the income provided from the stock portfolio and make every stock purchase with the intent that the purchase will be a long-term investment. Develop a savings plan to add to your holdings each quarter to help dividend reinvestments to accumulate more shares on a cost averaging basis. REFERENCES Amos Tversky; Daniel Kahneman Science, New Series, Vol. 185, No. 4157. (Sep. 27, 1974), pp. 1124-1131. Jaimie Sung, Sherman Hanna, Factors related to risk tolerance, Financial Counseling and Planning, Vol. 7,1996, pag. 14). Levin Irwin P., Mary A. Snyder and Daniel P. Chapman (1975), The Interaction of Experiential and Situational Factors and Gender in a Simulated Risky Decision-Making Task, Journal of Psychology, 1988, 122(2),pp. 173-181) Powell Melanie, and David Ansic (1997), Gender Differences in Risk Behaviour in Financial Decision-Making: An Experimental Analysis, Journal of Economic Psychology, 18(6), 1998, pp. 605-628. Risk Attitude Profiling questionnairehttp://www.scottishlife.co.uk/scotlife/nmsruntime/saveasdialog.asp?fileName=Risk_Attitude_Questionnaire.pdf Source:http://www.emeraldinsight.com/books.htm?chapterid=1760442show=html Sitkin and Pablo (1992) Review of management Review-1992.vol 17, No.1, p-38). Shyan-Rong Chou, Gow-Liang Huang, Hui-Lin Hsu (2010) International Research Journal of Finance and Economics ISSN 1450-2887 Issue 44 (2010)  © Euro Journals Publishing, Inc. 2010. http://www.eurojournals.com/finance.html)

Comparison between Frankenstein and “The Birthmark” Essay

The Industrial Revolution that was happening in the early twilight of the 19th centuries changed the world forever. The introduction of science as a possible cure for all became apparent. Many fascination inventions such as steamboat, cars and electricity were created and the outlook for the future was bright. However, because of this, many scientists turned a blind eye to the dangers of knowledge and unwittingly caused many sorrows in their process to become â€Å"god†. Such examples are introduced in the following two stories: Frankenstein and â€Å"The birthmark†. In both stories, the author created a character that was to symbolize the scientists of the early 19th centuries who believed that anything was possible with science. In â€Å"The Birthmark†, Hawthorne’s character Aylmer tries to remove his wife’s birthmark with his use of science but ends up killing her. While in Frankenstein, the protagonist Victor attempts to use science to create li fe but ends up destroying those there were closest to him. There are many similarities between the two stories, especially between the characteristics of Victor Frankenstein and Aylmer. Both men have a deep passion and love for science that borders on obsession. One of the prevalent themes in both stories is the danger of playing god. In Frankenstein, Victor attempts to go beyond accepted human limits and access the knowledge of life and therefore becoming godlike. The story begins with Walton’s letter to his sister. From the letter, we are introduced to the danger of science. Victor tells Walton, â€Å"You seek for knowledge and wisdom, as I once did; and I ardently hope that the gratification of your wishes may not be a serpent to sting you, as mine has been.† (pg 31) The theme of destructive knowledge is then developed further throughout the story as the tragic events and consequences of Victor’s obsession for life is unfold. He cuts himself off from the world and eventually commits himself entirely to his task, â€Å"while I pursued my undertaking with unremitting ardour, my cheek has grown pale with study and my person has become emaciated with confinement.† (pg 55) This is similar to what Aylmer went through, â€Å"He was pale as death, anxious and absorbed, and hung over the furnace as if it depended upon his utmost watchfulness†¦ or misery. (pg 70) He was so obsessed about perfection that he forsakes the consequences of his action. Throughout Frankenstein, Victor repeatedly convinced himself that what he is doing is absolutely right and because of this, his fall from grace mirrors those of Aylmer. Both of them have unrealistic goals to achieve and both unintentionally destroy those that are precious to them. For all their similarities, Dr. Frankenstein and Aylmer are still significantly different characters. Victor wants to be god but does not know what to do with the power, â€Å"When I found so astonishing a power placed within my hands, I hesitated a long time concerning the manner in which I should employ it.† (pg 54) Victor views science as the path to new knowledge: â€Å"in other studies you go as far as others have gone before you†¦ but in scientific pursuit, there is continual food for discovery and wonder.†(pg 52) While Aylmer views science as the path to greater power, â€Å"We know Aylmer possessed this degree of faith in man’s ultimate control over nature.†(pg 59) He tries to play god in order to bend the laws of nature and make imperfection to perfection, â€Å"I feel myself fully competent to render this dear cheek as faultless†¦ and then, most beloved, what will be my triumph when I shall have corrected what Nature left imperfect in her fairest work!† (pg 63) In the end however, it was nature that got the last laugh when the potion that Aylmer gave Georgiana resulted in her death. Both Frankenstein and Aylmer are victims of the destructive fascination for science and nature. Both men try to transcend to godhood and, ultimately, both fail. Perhaps, that is why both Shelley and Hawthorne wrote similar stories in an attempt to illustrate the danger of ambition, science and godhood.

The Impact of Teachers - Free Essay Example

Sample details Pages: 4 Words: 1121 Downloads: 6 Date added: 2019/06/24 Category Education Essay Level High school Topics: Philosophy Of Education Essay Did you like this example? As a teacher you are given the opportunity to largely impact your students lives. Throughout my education I have experienced a variety of teaching style. Some of my past teachers have left the impact on me that I will strive to leave on my students, and others merely left a dent. Don’t waste time! Our writers will create an original "The Impact of Teachers" essay for you Create order Experiencing this helped me to be able to see the characteristics that compile a good teacher, and those that do just the opposite. As a future educator my passion is to become a teacher that my students can look back on and say, She impacted my life and prepared me for what was to come. I believe that every student has the right to quality education and learning. There are several educational philosophies that are tried and true when it comes to becoming a successful teacher, and having success in your classroom. The key is to figure out which philosophy best fits with the way you intend to connect with your classroom. In my opinion, the progressivism theory best connects and fits me. I feel that progressivism best fits me because it is my belief that education is centered around the whole child, rather than the content or teacher. I believe in learning by doing is a way to effectively help students learn problem-solving skills, and help prepare them for situations in and out of the classroom. It is easy to stand in front of a classroom and lecture all day, but what percentage of your students actually retained the content you are trying to teach them? How many students actively sat and listened without letting their minds and attention wander off onto something else? John Dewey was a philosopher and strong believer of the progressive theory of education, he believed that learning should be active instead of passive. His system helps students to learn and develop life skills that can be used in other aspects outside of a classroom. The progressive theory embraces the idea that we as teachers should encourage a student on how to think rather than throwing them a test to see if they have obtained the information and are considered to be educated. Experiential learning is based upon developing students with skills like having good teamwork, being able to have creative thinking, and work independently. Having a student that is prepared to work with a team and tackle problems independently sets them ahead for real life situations that can occur for them. During some of my observations I learned quickly that students are quick to engage in learning through progressive teaching. One day, the teacher allowed students to walk up to the smart board and work the problem out in front of other students. As the student was working the problem out, other classmates helped walk the student through any confusing spots he came across until they figured it out as a whole before asking the teacher for help. It was great seeing th e students so engaged and interested in helping one another to figure out the problem rather than the teacher walking around and helping them one on one as they worked alone. Being a more progressive teacher means to be a facilitator who encourages the classroom to think and question what is around them rather than leading the classroom from the front and hoping it sticks with them. By supporting the progressive philosophy of teaching means to support a form of learning that makes going through school a more enjoyable time of their life, and not just a phase they have to go through during childhood and ends when they become an adult. Being able to help students learn and get the education they need is everything, but to be able to do that plus incorporate skills that they can use throughout their life means even more. Encouraging students to explore the goals of learning is more of a value for me than memorization. As a teacher making sure my students can actively engage in problem solving is a huge goal for myself. I want my students to learn, but also knowing how to address problems by creativity, problem-solving, and brainstorming. I believe that these are good qualities for them to have to be able to be successful in real life. While getting observation hours in, I was able to distinguish teachers using several different teaching theories. Personally, the teachers who based the learning around their students, and engaged in more of a hands-on learning experience are the most effective. The progressivism approach relates to standard two and four in the Kentucky Teaching Standards. Standard two is that the teacher designs and plans instruction. In any approach that you choose to teach in your classroom it is important that you create lesson plans accordingly based on your way of teaching. With progressive teaching it is imperative that you would plan and design instruction for more of a learning by doing aspect. While creating a hands-on approach to the learning you must make sure your students are able to apply core concepts, become self-sufficient individuals, think and solve problems, become responsible team members, and integrate knowledge. Standard four says that teachers are to implement and manage inst ruction. Progressivism really encourages students to think creatively and brainstorm. Encouraging your students to think and question the world around them is a way to facilitate higher order thinking which is what standard four encourages. Progressivism in my opinion coincides with higher order thinking. Its all about teaching the student to think outside of the normal to reach higher goals and achieve more success. The University of the Cumberlands Standard 12 to demonstrate behaviors that support the Kentucky School Professional Code of Ethics says to provide students with professional education services in a nondiscriminatory manner and in consonance with accepted best practice known to the educator. What better way to support the idea of the best interest of the student rather than applying progressive teaching in your classroom. This engages students in active learning, learning by doing, and more of a hands on approach in learning. All of these help to better engage the student in daily activities and keep their attention so that they can apply what they learn to other situations throughout their life. Progressive education instills the students with the ability to be themselves, and create a new desire for learning that other teachers may not be able to create with other approaches of teaching content. When students are active learners they are able to tackle problems head on and do it co nfidently whether it be as a teammate or independently. Progressive teaching displays an approach for success of learning in the classroom, thus providing the best practice known to the educator as the standard 12 requests.

According to Merriam Webster - Free Essay Example

Sample details Pages: 4 Words: 1195 Downloads: 1 Date added: 2019/08/16 Category History Essay Level High school Tags: Ancient Greek Essay Did you like this example? According to Merriam Webster dictionary, a femme fatale is an attractive and seductive woman, especially one who will ultimately bring disaster to a man who becomes involved with her. This idea of vengeful women such has femme fatales has been shown in the arts, mainly in the theatre, for centuries even though this term was well identified in the twentieth century. Clytemnestra proves to be one of the first examples of a femme fatale by murdering her husband to seek revenge for the death of her daughter he sacrificed. Don’t waste time! Our writers will create an original "According to Merriam Webster" essay for you Create order As shown in the play Agamemnon, by Aeschylus, Clytemnestra is shown as self-sufficient, and clever. She uses her traits, combined with her seductive charm, to trick Agamemnon. The audience is aware that the murder is obviously planned way before his arrival, showing us how rigid, conniving, and willing she is to go the extra mile to get what she wants. When Agamemnon finally returns to his home, Clytemnestra coaxes Agamemnon into believing he is safe at home by being both obedient and bashful. She had it all planned out to the tee, she did not aggressively attack him the second he arrived and did not scold him for bringing another woman into their house. She simply played the part of a well-behaved housewife until she reveals her plan. Clytemnestra is the example of a classic Femme Fatale. Clytemnestra would be considered every mans worst nightmare. Now, to fully understand Clytemnestra as a femme fatale, one must understand how her character was written according to how the playwright visions the character. According to the backstory of the play, Clytemnestra was the wife of Agamemnon, who was the king of Mycenae, and sailed to Troy as the leader of the Greek army to help his brother Menelaus win back his wife Helen who had been taken by Paris of Troy. But, before he left Greece, Agamemnon had to sacrifice his daughter Iphigenia to the goddess Artemis, to please him and avoid confrontation with him. Artemis promised hed allow the winds to blow in Agamemnons favor for the war in Troy. While Agamemnon was fighting the war in Troy, Clytemnestra began plotting the murder of her husband with her new lover, Aegisthus. When the king finally returns, the two lovers eventually over the cores of the play, attack him and cut his throat. Although she has been portrayed as a villain in this Greek tragedy, no one could blame her for wanting the revenge of her daughters death. This plot allows the audience to paint a picture of a justified mother who is seeking revenge for her daughters death and shows that Clytemnestra has been planning this revenge for years and years. Even the old men in the play are scared of Clytemnestra and grow concerned that she is plotting revenge against Agamemnon, but they do not understand to what extent her murder fantasies go to. In the last few lines of the introduction, the chorus states that they will know the future when it comes, which proves that they had no idea what was going on nor did they even want to. Later in the play, Agamemnon returns to the city, where Clytemnestra greets him. She then delivers a long monologue about her love for him, how she was scared that he would not return home from war, and her reasons for sending their son, Orestes away. She even goes into detail about how she was worried that the men of the city would attack her while Agamemnon was away at war and kill Orestes in order to take over the throne. So not only did she gain sympathy for being all alone, she also explains why she chooses to send their son away cutting any suspicion down, though the real reason for him being sent away is so that he would not be able to impede on her plans for vengeance. Clytemnestra uses this to convince Agamemnon that she is still dedicated to their love. She plays the perfect obedient housewife to make sure he is calm and unsuspicious of her plans. Something rather important that stands out too, is that Clytemnestra purposely avoids talking about any of their daughters and she does not bring up Iphigenia ever to Agamemnon, or her death because that would have most likely lead to a fight between the two of them. If that were to happen it could have shown how Clytemnestras grief for her daughter has only grown stronger over the years. Something also worth noting is how Clytemnestra plays to Agamemnons patriarchal value. This was common in ancient Greek society, to only have men in charge, therefore only sons would have been important in the continuation of the family name. Clytemnestra knew that Orestes would have been the next heir to the crown thus being the only child that Agamemnon would really care about. She was clever in doing this in front of everyone in the house to gain more empathy and look even less obvious when murdering her husband. The plan officially begins once Clytemnestra gets Agamemnon to go into the house, but before he does Agamemnon introduces a woman named Cassandra, who is represented as the prize for winning the war. The audience sees the contrast in how cold Agamemnon treats Clytemnestra after her long monologue versus how sweet he treats Cassandra. It is understandable why Clytemnestra would feel anger towards him in this moment. After the murder takes place, Aeschylus has Clytemnestra confessing to the murders and giving a long monologue to the men of Argos. In this monologue she talks about why she killed Agamemnon and Cassandra and explained that she did this for three different reasons. The first most important, and most prominent reason is seeking revenge for her daughters death, then on to punishing Agamemnon for bringing Cassandra into their house, and lastly, to break the ancient curse on the house of Atreus. Aeschylus makes it very clear that he believes she is motivated by the loss of her daughter by having her advocate for her own actions, sacrificed his own child, our daughter, the agony I labored into love. She is obviously more than just a woman driven by the grief of her daughter; she is clever and determined to seek revenge on her husband. Clytemnestra is one of the first representations of a what we now know is a femme fatale. Clytemnestra was undoubtably a strong woman and just as smart as any of the men of her time period. She used her charm and sexuality to seduce Aegisthus (her lover) into planning Agamemnons murder with her along with ultimately take the throne. It is important to also note, that both murders were completed completely on her own showing her strength and willingness for revenge. Clytemnestra fits the mold of a femme fatale by spending her time and energy over the last ten years plotting and planning the murder of her husband and she follows through with this plan by using her womanly gifts. In Aeschyluss Agamemnon, Clytemnestra fits all the descriptions of a classic femme fatale even when the description had not yet been thought of during Ancient Greece.