Importances essays

Significances articles One can say there are numerous things that individuals overestimate the significance of, however the one that is most troublesome would be the wide universe of sports. It is a significant perspective in our lives, I mean, it keeps us engaged. Yet, there is positively no requirement for the total confusion with regards to the serious fight. In addition to the fact that it takes from other significant issues on the news, it gives poor good examples and ravenousness too much. When is it that one can turn on the TV and not see a battle emit during a game. Regardless of whether it would be baseball, football, b-ball, or hockey. Do you truly need your youngsters to see this and think this is how they should act on the off chance that they don't dominate in a match? Its fair not right. It is in our temperament to be serious, yet lets not take it to the outrageous. Competitors need to figure out how to control their activities and chill off before they accomplish something that they lament. In addition to the fact that athletes play messy, however mentors and fans too. And all as a result of a terrible call or an irritated misfortune? Its fair not justified, despite any potential benefits. Competitors should be taken a gander at as constructive good examples to whom individuals turn upward to. Presently, we see them on the every day news overstepping the laws. Heres a model, Kobe Bryant put on rape charges. That is genuine pleasant, a thing a kid should see without a doubt on TV. What's more, shouldn't something be said about all the competitors that are taking medications and taking steroids? Its a joke; they ought to have the option to play out their athletic capacities without a medication to help their exhibition. That is not a genuine competitor. So mull over the competitor that you believe is so incredible, in light of the fact that it may not be all his exertion. While conversing with one of my companions, he expressed that a TV program that he was appreciating was hindered by an uncommon news brief which frightened him. He thought something had turned out badly in this universe of our own. In any case, no, it was a report on the exchange o ... <!

Woolworths Australia CSR Factors Sample Guideline

Question: Clarify Woolworths Australia CSR Factors. Answer: The Woolworths chains of stores in Australia have been resolved to retail business since foundation. The association creates the benefits dependent on the great and administrations they offer to their clients. The benefit made by the organization relies upon the deals recorded over the predetermined period in the bookkeeping methodologies. It is basic to take note of that the financial obligation of the associations in the corporate segment starts with the way toward gathering benefit (Corporate Social Responsibility, 2016; Hopkins, 2006). The Woolworths retail locations in Australia have set up their market inclusion systems through consumer loyalty measures and advancement of their exercises. Corporate endeavors are required to decide their benefit before taking part in the Corporate Social Responsibility exercises. The Woolworths organization has guaranteed that the way toward purchasing and selling doesn't misuse the helplessness of the clients and providers (Woolworths Limited, 2012). The benefit produced by the association is centered around speculation, use, and network support. The organization has built up its money related limit as a proportion of supporting their monetary duty. Moral Factor Business associations are committed to do their practices dependent on the ethical norms and the moral measures. The exercises of the endeavors should be adjusted by the altruism and the prerequisites of the network, the business, and the administration (Lindgreen, Kotler, and Maon, 2010). The Woolworths the board has guaranteed that the exercises did by their stores are moral and adequate by the inner and outer partners. The association manages the retail exercises, which is exposed to more connections dependent on the assortment of items the organization is selling. The organization has guaranteed that the products are sold at sensible costs that don't misuse the clients or deaden the rivals in the business. The association has made techniques that guarantee the workers are paid very much dependent on the wages guideline norms. Woolworths the board has given a significant level of consistence to the Consumer Laws and Regulations in Australia (Woolworths Limited, 2012). The retail e xercises have been founded on the need to make benefit and the construct the limit of the gatherings the business is cooperating with, for example, the clients, the providers, the representatives, and the administration. Optional Factor The Woolworths chains of stores are guided by a few magnanimous duties inside their region across Australia. Corporate associations take part fundamental exercises that are intended to increase the value of the encompassing network not on the grounds that it a commitment yet they want to improve the general public by sharing the produced benefits (Nejatti and Ghasemi, 2012). The Woolworths the executives has been detailing systems for supporting the network through battles, sharpening, and financing forms. The activity by the association has profited to the individuals from general society and the separate frameworks accepting the help. The rule that the organization has grasped includes the foundation of the monetary limit, adherence to lawful necessities, and conveying exercises dependent on moral norms before participating in network support. A few cases have risen in the corporate segment where firms take part in help network occasions yet neglect to hold fast to inner and outer quality and administrative measures (Idowu and Louche, 2011). Woolworths the executives has set activities that secure the notoriety of the business by holding fast to the Australian corporate guideline instruments. The support in the network based improvement exercises has empowered the organization to be a piece of the auxiliary changes in the general public. The organizations should increase the value of the network that structures some portion of their market specialty by sharing piece of the benefit through social intercessions (Jones et al., 2009; Trong, 2012: Rigoberto, 2009). Outline of the Plan The Woolworths Sustainability program is a drawn out responsibility that the organization created to accomplish essential destinations over a time of quite a while identified with water use, carbon discharge, bundling, and waste reusing. The system is being executed under the Greening Retail plan, which focused the commitment of retail outlets universally to help with building a reasonable green condition (Woolworths Limited, 2012). The Greening Retail Plan is a global measure that requires the retail locations to guarantee that their tasks, advertise change, and the flexibly fasten hold fast to making an economical situation regardless of their capital of abuse and area (Wendy, 2009). The operational center guarantees that the stores configuration measures as indicated by their structure that will prompt vitality being spared. The methodology was mostly intended for the basic food item chains just as the food outlets. The purchaser change prerequisite required the setting up of road s that will join the clients while making the market new methodologies. Such estimates need innovative work exercises, which is planned for creating items that are ok for the market and reasonable for the area (Piacentini et al., 2000; Preston and Bailey, 2003). The flexibly chain systems called the retail outlets to consider their transportation exercises are adjusted to ecological protection measures. Destinations and Aims The Woolworths Greening Retail was made by the inward and outer structures of the Australian corporate segment. The arrangement depended on four key territories including the environmental change, water, bundling, and waste. The program was begun to produce viable change inside the network by building up a maintainable situation (Woolworths Limited, 2012). The targets of the organization were downsized to six significant endeavors as laid out underneath. To diminish the carbon outflows by 40% by 2016 a level that will be like the recorded rate in the year 2006 To guarantee that the carbon emanation levels are diminished through the vehicle components that will guarantee that every container conveyed by Woolworths trucks adds to 25% carbon outflow decreases by 2012 To guarantee that the organization armada adds to 30% carbon emanations decreases by 2010 To diminish the water the degree of water utilization by around 200 million liters every year To add to the disposal of food waste to landfill by 2016 To complete the retail sourcing exercises dependent on moral and practical measures Techniques and Methods of Implementation The organization utilized a few strategies to guarantee that the exercises are adjusted to accomplish the Greening Retail targets under their Sustainable Program. The associations rebuilt the inner variables to guarantee absolute consistence to guideline and authority (Wendy, 2009). At whatever point organizations agree to set measures, at that point a safe inner condition for executing different instruments is made. The Woolworths organization guaranteed that the providers were assessed dependent on their creation techniques and culture. The association changed the vitality techniques utilized inside the shop units from carbon-based to all the more perfect structures, for example, power and petroleum gas. The goal of the organization was to guarantee that the procedures inside the store no longer increment carbon outflow. The organization concentrated on the transportation designs over the units. The trucks were to be stacked to guarantee that they expand on each outing. The bundlin g procedure moved to biodegradable materials to diminish the degree of carbon in the earth from the creation exercises. The retail shop supported reusing activities at whatever point non-biodegradable bundling was included. The standard of water use depended on the severe administration that empowered wellbeing and proficiency (Woolworths Limited, 2012). The association has sharpened ranchers to utilize water the board measures during creation to decrease the degree of utilization. The improved stores have been fitted with cooling highlights and refrigeration systems. Assessment and Sustainability The association has figured out how to bring a distinction since the beginning of the execution of the Sustainability Greening Retail Strategy. The Woolworths organization has had the option to control the gracefully of the items from the producer base on their promise to the economical condition in Australia. The coordinated effort with ranchers has seen an adjustment in the strategies for creation. Ranchers have depended on procedures that safeguard water to deliver the sound, which is sold at the Woolworths basic food item unit. The controlled vehicle plan has seen the business working together with organizations that offer conveyance administrations to diminish the commitment of trucks. Also, the associations have decreased the quantity of the armada for the staff through sharing that has empowered lower levels of the foreseen carbon emanation (Woolworths Limited, 2012). The quality and affirmation divisions for the chain stores have been focused on guaranteeing that the organiza tion exercises depend on the corporate guidelines of the legislature of Australia. The selling of protected and quality items to the client has made trust for showcase supportability. The organization has connected with the network in programs that support security. The workers fulfillment and inspiration has improved throughout the years. The promise to building up the skill of the laborers has built up the moral norms just as the degree of the client experience (Schrag, 2011; Reilly and Peter, 2000). Difficulties and Possible Improvements The usage of the maintainability program has been exposed to a few deficiencies. The business cost and consumption has expanded throughout the years. The procedure o

Transportation Security Administration Example

Transportation Security Administration Example Transportation Security Administration â€" Essay Example > The New TSA Security MeasuresOn 19th November, 2001, one month after the September 11 terrorist attacks, the United States Government established the Transportation Security Administration (TSA), which is now under the Department for homeland security. The agency was founded as a response to the attacks and has been operating in various security facilities, mainly airports, with an aim to prevent terrorist activities and enhance the security of civilians during flights. In the ten years since its inception, this agency has adopted several security procedures some of which had received widespread criticism. Even after the much publicized outcry in protest of its routines, the agency continues to act either as the sole security organ, or as the major security overseer responsible for civilian security in most airports in the states (Goins, 2010). This paper will focus on the various security procedures employed by TSA and discuss their ineffectiveness. TSA monitors all the different transport channels including air transport, land or surface transport as well as water transport. The department of homeland security has mandated TSA with the responsibility of ensuring safety and security in transportation, whereby TSA may work closely with other organs â€" both private and public, in executing its mandate. The organizational structure of the TSAThe agency employs various types of workers, mainly: -Transportation Security officers- their main duty is to carry out security checks on travelers in the airports, travel stations and landing ports through screening (Layton, 2007.Security inspectors- they inspect cargo and report on general transport safety. An explosives and canine detection team-they have a dedicated team of dogs and dog handlers specially trained to locate dangerous materials. Federal Air Marshalls- these officers locate possible terrorist elements from within the travelers through mixing with them. Security procedures employed by the TSAThe major up grades on TSA proceduresRisk-based approaches for Aviation securityTSA has been overseeing Public Aviation safety for more than a decade. Initially, it relied on the Processes listed below including pat-down, cargo screening and behavior observation officers to enhance security (Cohen, 2011). Recently, TSA introduced new procedures aimed at security enhancement. Some of the major changes include the following: TSA Pre TM This is a security initiative that allows travelers to volunteer information about themselves in order to expedite screening at check-points in various airports. The service is available to U. S citizens provided they are members of the Customs and Border Protection (CBP) Trusted Traveler organization as well as frequent air travelers of other selected airlines in the country. The trusted traveler programs include Global Entry, Nexus and Sentri. Already implemented is a new TSA policy on screen procedures for children under 12 years old. The traditionally conducte d shoe scan security check for travelers has been eliminated for children under 12 years. TSA also has developed expedited screening procedures for airline plots as well as revised screening procedures for senior citizens 75 years old and above, as well as active members of the U. S military. The organization may, however, still conduct random security measures within the airport from which no one is expedited. So these risk based approaches point towards a more flexible security system in which certain levels of trust are allowed between the TSA and travelers where strict security procedures for certain categories of travelers are conducted only when needed.

Studying The Bankruptcy Of Orange County Finance Essay - Free Essay Example

Sample details Pages: 10 Words: 2920 Downloads: 2 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? The case of bankruptcy of Orange County in 1994 emphasize the importance of using duration and Value at risk (VAR) to assess portfolio risk and avoid future bankruptcy. Duration and VAR analysis provide deeper understanding about the underlying risk of the Orange County Investment Pool which was heavily leveraged and interest-pledged through reverse repurchase agreements and other derivatives in the pool. Some VAR estimation, including historical simulation method, delta-normal method and Monte Carlo simulation will be used to calculate worst possible loss. Don’t waste time! Our writers will create an original "Studying The Bankruptcy Of Orange County Finance Essay" essay for you Create order The EWMA will be used to provide more accurate estimation of the volatility to improve the accuracy of VAR estimation. Background: On Dec 6, 1994, Orange County declared bankruptcy after suffering losses of around $1.6billion from a wrong way bet on interest rates 7.5 billion investment pool. This pool was intended to gain some returns from the investing the money which is raised from taxes and other government incomes. It was implemented a bet that the interest would decline or stay low by Citron (the portfolio manager). Because of the steadily declining interest rates from 1989 to 1992, the portfolio performed extremely well before 1994 and earned millions of above average profit. However, in 1994, the government suddenly declared policies which included raise the interest rates from 3.45% to 7.14% to prevent high inflation and overheating economy. This increase in interest rate caused the portfolio suffer 1.6 billion loss and further lead the bankruptcy of Orange County. Section 1: The heavy leveraged and interest-pledged portfolio In order to sustain above average returns, several investment tools are used by Citron to leverage the $7.5 billion funds into $20.5billion investment. In detail, reverse repurchase agreements allow Citron to use the securities which had already purchased as collateral on further borrowing and then reinvested the cash into new securities (Jameson, 2001). Besides the heavily leveraged risk, the portfolio also encounters significant risk from the unexpected interest movement. Firstly, these repurchase agreements values significantly depend on the change in interest rate. In detail, its value decrease as the interest rate increase and increase as the interest rate decrease (P=). Secondly, $2.8 billion of derivatives, including inverse floating-rate notes, dual index notes, floating-rate notes, index-amortizing notes and collateralized mortgage obligations, are used to increase the portfolio bet on the term structure of the interest rate (Jorion, 2009). Thirdly, median term maturities which had higher yields (5.2%) than the short term investments (3%) were used to increase the return of the portfolio (Jorion, 2009). However, by using longer term maturities, the portfolios sensitivity to interest change will significantly increase. Clearly, by doing these, the portfolios value will be significantly impacted by the movement of the interest. Section 2: Duration of the portfolio and its application Duration of the portfolio Hull (2009) defines the duration as a measure of how long, on average, the holder of the instrument has to wait before receiving cash payments. It measures sensitivity of price changes with changes in interest rates. Duration can be calculated by weighting average (the weight is the proportion of portfolios total present value of cash flow received at time t) of the times. In this case, the portfolio was heavily bet on the interest, therefore, duration might be a good measure for the portfolio. In the $7.5 billion portfolio, median term maturities (5 years), rather than short term maturities (1-3 years), were used to increase the return. By doing this, the duration of the portfolio significant increased. In other words, the portfolio exposed higher risk of interest rate movements. In December 1994, the average duration of the securities in the portfolio was 2.74 years. It means 1% change in interest would cause 2.74% change in portfolios prices. M oreover, Citron leveraged $7.5 billion equity into a $20.5 billion portfolio. This means that a 2.73 leverage ratio (20.5/7.5). In other words, for every dollar of the pool invested, the pool borrowed extra $1.73. For a leveraged portfolio, the effective portfolio duration = ordinary duration * leverage ratio. Thus, the effective portfolio duration of the portfolio is 7.4 (2.74*2.7). Estimation by using duration The response of portfolio prices to change in interest rate: In 1994, the interest rates went up by about 3.5 ( and the 5 years bond yield was 5%, therefore, the loss of the portfolio equals 1.85 (7.5*7.4*3.5%/1.05) which is slightly larger than the actual loss of 1.64 billion. This slightly difference between the loss estimated by duration and the actual loss might be caused by that the duration applies to only small changes in interest rate. As a first order approximation, duration cannot capture the information that two bonds with same duration can have different change in price for large change in interest rate (different convexity). So, convexity (second order approximation) which can capture this information should be added into the estimating model. Through adding this (convexity factor), the estimated loss will slightly less than before, and will more close to the actual loss (1.64 billion). Thus, duration seems to have the ability to accurate measure the portfolios sensitivity to interest rate change. Section 3: Value at risk (VAR) Value at risk (VAR) In order to estimate the underlying risk of the portfolio, VAR which measures the worst expected loss over a given horizon under normal market conditions at a given confidence level could be used (Jorion, 2001). Because the portfolio was heavily bet on the interest rate, its return and risk are significantly depending on the change of interest rate. In other words, the change of interest yield multiplies the modified duration and portfolio value could be used as an approximation of the change of portfolios value. Thus, the change of interest yield could be used in the 3 simulation methods as the only factor that contribute the change of portfolio value. Non-parametric approach (no need to identify variance-covariance matrix) Historical simulation approach The historical simulation accounts for non-linearity, income payments, and even time decay effects through using marking-to-market the whole portfolio over a large number of realizations of underlyi ng random variables. VAR is calculated from the percentiles of the full distribution of payoffs (Jorion, 2001). By using actual price, the method captures Greek risk (gamma, vega risk etc.) and corrections of securities (already exist in the real historical data) in the portfolio, and it does not rely on some specific assumption, such as the underlying stochastic structure of the market (the pre-requests of estimating volatility and mean). Moreover, it can account for fat tails distribution besides normal distributions (Jorion, 2001). (Figure 1) The root-T approach will be used to transfer the monthly VAR to yearly VAR in all the 3 approaches. Its success significantly relies on the some specific assumptions, including the monthly yield changes of the portfolio are identically and independently distributed (iid distribution) and the return has a constant variance (Cuthbertson and Nitzsche, 2001). However, in the real world, stock returns always has time varying variance and th ere are some autocorrelation factors exist (thus, not independent). Therefore, as the T increase, the error of the transformation will significantly increase. The VAR will be calculated through sorting the monthly yield change and picking the worst daily yield change at 5% percentile (see details in CD). However, in this case, the increase in yield will cause decrease in portfolio return, therefore, the worst daily yield change should be picked at the right hand side of the histogram (see figure 1). The VAR equals 1.24 billion annually (0.36 billion monthly) which is less than the actual loss (1.64 billion). This inaccuracy might be caused by the problems exist in historical simulation method. Firstly, the success of the method significantly relies on the assumption that the past price can represent the future price information. However, the assumption is not realistic to some extent because of the existence of market efficient. Secondly, simple historical simulation method may m iss the information of temporarily elevated volatility, such as structural breaks and extreme value (Butler and Schachter, 1996). In this case, the historical simulation method cannot capture the extreme value (1.64 billion loss) which is caused by 6 suddenly decreases of interest rate. Parametric approach (need to need to identify variance-covariance matrix) Delta normal approach The delta normal method is particularly simple approach to implement. It takes account simple variance-covariance matrix and then forecast the total variance of the portfolio (volatility). Then, The VAR can be calculated through the formula: VAR = MD*Portfolio Value*=7.4*7.5*0.4%*1.65/(1.005)=0.35 billion (monthly) = 1.21 billion (annually). Delta normal method is slightly less accurate than the historical in the case. This might caused by that the change in yield does is a fat tail distribution (Kurtosis =6.9, Skewness = -0.44) rather than a normal distribution (Kurtosis =6.9, Skewness = -0.44 ). Thus, the model based on the normal distribution will underestimate the proportion of outliers and hence the value at risk (Jorion, 2001). In addition, the portfolio contains a lot of derivatives instrument. This will cause the method inadequately measures the risk of nonlinearity. Monte Carlo simulation (MCS) (the theoretical most powerful method) Unlike historical simulation, through specifying and stimulating a stochastic process for financial variables, Monte Carlo simulation covers a wide range of financial variables (volatility and stochastic variables) and fully captures correlations of securities (unlike HS, need to define the matrix) in the portfolio (Jorion, 2001). It does not only account for a wide range of risks, such as nonlinear price, volatility and model risks (the same as historical simulation), but also incorporate time variation of volatility (structural breaks and extreme values), and fat tails. Moreover, it can capture the structure changes in the port folio as the time pass (Jorion, 2001). In theoretical way, MCS should be the best method in estimating VAR. The MCS VAR is about 0.295 monthly, through using the root-T rule, the annually VAR is about 1 billion (see detail calculation in CD). There are also some limitations of Monte Carlo simulation cause the estimated error between the estimated loss and actual loss. Its success significantly relies on the specific pricing model for underlying assets and stochastic processes for the underlying risk factors. In this case, the pricing formula is Brownian approach without drift may not accurately capture the actual value change of the portfolio. This might be one possible reason that the estimated loss is not equal to the actual loss. Moreover, the problems may exist in the sample used to derivate the underlying risk factors. For example, MCS will generate less accurate estimates then delta normal method when the risk factors are jointly normal and all payoffs are liner (Cuthbertso n and Nitzsche, 2001). Why MCS (theoretical best method) shows the worst estimation in this case MCS seems to have the least accurate estimation (more closer to the actual loss) in this case. This might be caused by the portfolio used in MCS are treated as one asset which is only impacted by the interest yield. Three factors, including the correlation between all the securities in the portfolio, the underlying risk factors of these securities and the different price formula should be used for each security, are ignored in the powerful approach (Tardivo, 2002). On the other hand, compared with the MCS, historical simulation does not need to define the correlation matrix, because the data has already captured the information. In addition, underlying risk factors also contains in the actual data. Thus, in the case with limited information, historical simulation provides more accurate estimation. Section 4: EWMA In realistic world, the variance of the time series is varying overtime. Thus, the simple unconditional variance (simple variance/standard deviation) may not provide unbiased estimation of the volatility. This will further result in inaccuracy estimation of the VAR. in the case, In the case, the simple variance (volatility) are calculating through assigning the same weight on all observations during Jan 1953 and Dec 1994. This may lead to biased forecasts of VAR because the Fed dramatically increased/decreased the interest rate during this time period. In order to improve the accuracy of estimating VAR, Exponentially weighted moving average (EWMA) will be used to provide more accurate estimation to the volatility at a specific time (conditional standard deviation) (Cuthbertson and Nitzsche, 2001). EWMA method allows more recent observations to have stronger impact on the forecast of volatility than the old observations. In practical way, the recent data are given more weights th an the old data. By applying this model, volatility in practice will be more impacted by recent events and the impacts on volatility will decline as time pass (smaller weights apple to the event) (Brooks, 2002). Through applying the EWMA model, the monthly standard deviation for the six months before December 1994 is 0.348%. The next 6 months volatility could be forecasted through using the formula:. In addition, the actual monthly volatility could use the change in yield as approximation. According to RiskMetrics, the optimalshould be 0.97 (Brock, 2002). ÃÆ' £Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ Forecast volatility (%) Actual volatility (%) Range of the possible volatility at 5% confidence level ÃÆ' £Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ Volatility at june 1994 0.35 ÃÆ' £Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ Left side (-1.65) Right side (1.65) Forecasted volatility ÃÆ' £Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ ÃÆ' £Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ ÃÆ' £Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ ÃÆ' £Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ Jul-94 0.35 -0.26 -0.57 0.57 Aug-94 0.34 0.08 -0.56 0.56 Sep-94 0.35 0.47 -0.57 0.57 Oct-94 0.34 0.20 -0.56 0.56 Nov-94 0.34 0.31 -0.56 0.56 Dec-94 0.34 0.04 -0.55 0.55 Generally, the EWMA approach does not fully capture abnormal volatility change in 1994. In detail, the actual volatility change more volatile than the forecast one (table 1). The inaccuracy involve in estimating the volatility may result in that the calculated VAR is significantly different from the actual possible loss of the portfolio (table 2). If the forecast volatility is used to calculate VAR, manager should aware that the calculated VAR is only an approximation and it cannot capture all the volatility change information. For example, in this case, the actual volatility in Sep-94 is significantly larger than the forecast one. This may cause manager to underestimate the risk in the time period and then holding the portfolio unchanged as before. It is also support by Mahoney (1996) who empirically support that the EWMA volatility has inaccuracy problems. Table 1: ÃÆ' £Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ Forecast volatility (%) Actual volatility (%) Left side (-1.65) Right side (1.65) Volatility at June 1994 0.35 ÃÆ' £Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ ÃÆ' £Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ Forecasted volatility ÃÆ' £Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ ÃÆ' £Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ ÃÆ' £Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ ÃÆ' £Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ Jul-94 0.35 -0.26 -0.57 0.57 Aug-94 0.34 0.08 -0.56 0.56 Sep-94 0.35 0.47 -0.57 0.57 Oct-94 0.34 0.20 -0.56 0.56 Nov-94 0.34 0.31 -0.56 0.56 Dec-94 0.34 0.04 -0.55 0.55 On the other hand, VAR calculated based on EWMA volatility can still be used as a benchmark to assess the portfolios risk. All of the actual volatility is in the boundary of the forecast volatilitys 5% tail cut off (on both sides *1.65). That is to say, although there are significant differences between the forecast and the actual volatility in this case, portfolio manager may still not underestimate the underlying risk at 5% confidence level (normal distribution). In addition, if better models are used, including GARCH, EGARCH, and GJR , the VAR can provide more precise estimation of the worst possible loss. Table 2: ÃÆ' £Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ Forecasted VAR(*-1.65) monthly Actual VAR monthly Forecasted VAR annually Actual VAR annually Jul-94 -0.302 0.227 -1.045 0.786 Aug-94 -0.297 -0.070 -1.030 -0.242 Sep-94 -0.301 -0.410 -1.044 -1.420 Oct-94 -0.298 -0.174 -1.034 -0.604 Nov-94 -0.298 -0.270 -1.031 -0.937 Dec-94 -0.293 -0.035 -1.015 -0.121 Section 5: Backtest EWMA model In order to test whether VAR can be used as s a benchmark to assess the portfolios risk, the backtest should be used to test whether EWMA can capture the actual change in interest yield at the 5% left tail cut off level (normal distribution). Practically, if all of the actual changes in interest yield are within the forecast volatilities boundary (the forecast volatility multiply 1.65 at right hand side and -1.65 at the left hand side), the EWMA model can be considered as providing accurate estimation at 5% confidence level. According to figure 2, there are 4 outliers (Aug-89, Jan-92, Feb-94 and Mar-94) are outside the forecast. This will cause manager to over/under estimate the underlying risk of the portfolio. Figure 2: forecast volatilities boundary and actual change in interest yield Section 6: Whether the portfolio should be liquidated in December 1994 Miller and Ross (1997) recommend that the portfolio should not be liquidated until the maturity of the structural notes. This is because after the Orange County bankruptcy, the interest rate fell from 7.8% to 5.25% during Dec 1994 to Dec 1995. If it did not announce the bankruptcy, this decrease in interest rate could help the County to recover 7.4*7.5*2.55%/1.05= 1.32 billion losses. However, the problem is that in Dec 1994, how the managers would know that there would be a decrease in interest in 1995. Jorion (1997) suggest that because it is impossible to predict suddenly interest rate decrease, holding the assets in order to recover value in the next years is speculative and risky. Given this change in yield is a normal distribution, the probability of 2.55% decrease in interest can be calculated through P(=P(-6.223). According to the normal statics table, the probability of such large decrease in interest is less than 1%. Thus, the rational managers would not expect suddenl y large decrease in interest rate. In order to minimize to further loss, it is reasonable to liquidate the portfolio on Dec 1994. In addition, as the portfolio is interest pledged, some interest futures, such as the T-bond futures, could be shorted to hedge the portfolio in Dec 1993. Long cap could also a good choice to generate profit when interest rate exceeds the strike rate. This could partially compensate the massive loss. Conclusion The orange countys heavy leveraged and interest-pledged portfolio suffer massive loss in 1994 because of the suddenly increase of interest rate. Through examining this case study, the Duration and VAR are important measurement of risk to avoid future bankruptcy. Compare the duration estimated loss with the actual loss, Duration (plus convexity) of the portfolio seems to have the ability to accurately measure the portfolios sensitivity to the change in interest rate. In addition, all of the VARs calculated through three approaches, including historical simulation, delta normal, and MCS, are less than the actual loss. The theoretical best approaches (MCS) does not provide the most accurate estimation because of ignorance of some important factors, such as the correlation between all the securities in the portfolio, the underlying risk factors of these securities and the different price formula should be used for each security. The backtest of EWMA (4 outliers) suggest that there are some risk in using VAR to measure the worst possible loss in the real world.

What Is PSI Definition of Unit

PSI definition: PSI is a unit of pressure expressed in pounds of force per square inch of area. It stands for Pounds per Square Inch.1 PSI 6894 Pascals 0.070 atmospheres 51.715 torr

The Crystal Shard 3. The Mead Hall Free Essays

Many miles north of Ten-Towns, across the trackless tundra to the northernmost edge of land in all the Realms, the frosts of winter had already hardened the ground in a white-tipped glaze. There were no mountains or trees to block the cold bite of the relentless eastern wind, carrying the frosty air from Reghed Glacier. The great bergs of the Sea of Moving Ice drifted slowly past, the wind howling off of their high-riding tips in a grim reminder of the coming season. We will write a custom essay sample on The Crystal Shard 3. The Mead Hall or any similar topic only for you Order Now And yet, the nomadic tribes who summered there with the reindeer had not journeyed with the herd’s migration southwest along the coast to the more hospitable sea on the south side of the peninsula. The unwavering flatness of the horizon was broken in one small corner by a solitary encampment, the largest gathering of barbarians this far north in more than a century. To accomodate the leaders of the respective tribes, several deerskin tents had been laid out in a circular pattern, each encompassed in its own ring of campfires. In the center of this circle, a huge deerskin hall had been constructed, designed to hold every warrior of the tribes. The tribesmen called it Hengorot, â€Å"The Mead Hall,† and to the northern barbarians this was a place of reverence, where food and drink were shared in toasts to Tempos, the God of Battle. The fires outside the hall burned low this night, for King Heafstaag and the Tribe of the Elk, the last to arrive, were expected in the camp before moonset. All of the barbarians already in the encampment had assembled in Hengorot and begun the pre-council festivities. Great flagons of mead dotted every table, and good-natured contests of strength sprang up with growing frequency. Though the tribes often warred with each other, in Hengorot all differences were put aside. King Beorg, a robust man with tousled blond locks, a beard fading to white, and lines of experience etched deeply into his tanned face, stood solemnly at the head table. Representing his people, he stood tall and straight, his wide shoulders proudly squared. The barbarians of Icewind Dale stood a full head and more above the average inhabitant of Ten-Towns, sprouting as though to take advantage of the wide and roomy expanses of empty tundra. They were indeed much akin to their land. Like the ground they roamed over, their oftenbearded faces were browned from the sun and cracked by the constant wind, giving them a leathery, toughened appearance, a foreboding, expressionless mask that did not welcome outsiders. They despised the people of Ten-Towns, whom they considered weak wealth-chasers possessed of no spiritual value whatsoever. Yet one of those wealth-chasers stood among them now in their most revered hall of meeting. At Beorg’s side was deBernezan, the dark-haired southerner, the only man in the room who was not born and bred of the barbarian tribes. The mousey deBernezan kept his shoulders defensively hunched as he glanced nervously about the hall. He was well aware that the barbarians were not overly fond of outsiders and that any one of them, even the youngest attendant, could break him in half with a casual flick of his huge hands. â€Å"Hold steady!† Beorg instructed the southerner. â€Å"Tonight you hoist mead flagons with the Tribe of the Wolf. If they sense your fear †¦Ã¢â‚¬  He left the rest unspoken, but deBernezan knew well how the barbarians dealt with weakness. The small man took a steadying deep breath and straightened his shoulders. Yet Beorg, too, was nervous. King Heafstaag was his primary rival on the tundra, commanding a force as dedicated, disciplined, and numerous as his own. Unlike the customary barbarian raids, Beorg’s plan called for the total conquest of Ten-Towns, enslaving the surviving fishermen and living well off of the wealth they harvested from the lakes. Beorg saw an opportunity for his people to abandon their precarious nomadic existence and find a measure of luxury they had never known. Everything now hinged on the assent of Heafstaag, a brutal king interested only in personal glory and triumphant plunder. Even if the victory over Ten-Towns was achieved, Beorg knew that he would eventually have to deal with his rival, who would not easily abandon the fervent bloodlust that had put him in power. That was a bridge the King of the Tribe of the Wolf would have to cross later, the primary issue now was the initial conquest, and if Heafstaag refused to go along, the lesser tribes would split in their alliances among the two. War might be joined as early as the next morning. This would prove devastating to all their people, for even the barbarians who survived the initial battles would be in for a brutal struggle against winter: The reindeer had long since departed for the southern pastures, and the caves along the route had not been stocked in preparation. Heafstaag was a cunning leader; he knew that at this late date the tribes were committed to following the initial plan, but Beorg wondered what terms his rival would impose. Beorg took comfort in the fact that no major conflicts had broken out among the assembled tribes, and this night, when they all met in the common hall, the atmosphere was brotherly and jovial, with every beard in Hengorot lathered in foam. Beorg’s gamble had been that the tribes could be united by a common enemy and the promise of continued prosperity. All had gone well†¦so far. But the brute, Heafstaag, remained the key to it all. * * * The heavy boots of Heafstaag’s column shook the ground beneath their determined march. The huge, one-eyed king himself led the procession, his great, swinging strides indicative of the nomads of the tundra. Intrigued by Beorg’s proposal and wary of winter’s early onset, the rugged king had chosen to march straight through the cold nights, stopping only for short periods of food and rest. Though primarily known for his ferocious proficiency in battle, Heafstaag was a leader who carefully weighed his every move. The impressive march would add to the initial respect given his people by the warriors of the other tribes, and Heafstaag was quick to pounce on any advantage he could get. Not that he expected any trouble at Hengorot. He held Beorg in high respect. Twice before he had met the King of the Tribe of the Wolf on the field of honor with no victory to show for it. If Beorg’s plan was as promising as it initially seemed, Heafstaag would go along, insisting only on an equal share in the leadership with the blond king. He didn’t care for the notion that the tribesmen, once they had conquered the towns, could end their nomadic lifestyle and be contented with a new life trading knucklehead trout, but he was willing to allow Beorg his fantasies if they delivered to him the thrill of battle and easy victory. Let the plunder be taken and warmth secured for the long winter before he changed the original agreement and redistributed the booty. When the lights of the campfires came into view, the column quickened its pace. â€Å"Sing, my proud warriors!† Heafstaag commanded. â€Å"Sing hearty and strong! Let those gathered tremble at the approach of the Tribe of the Elk!† * * * Beorg had an ear cocked for the sound of Heafstaag’s arrival. Knowing well the tactics of his rival, he was not surprised in the least when the first notes of the Song of Tempos rolled in from the night. The blond king reacted at once, leaping onto a table and calling silence to the gathering. â€Å"Harken, men of the north!† he cried. â€Å"Behold the challenge of the song!† Hengorot immediately burst into commotion as the men dashed from their seats and scrambled to join the assembling groups of their respective tribes. Every voice was lifted in the common refrain to the God of Battle, singing of deeds of valor and of glorious deaths on the field of honor. This verse was taught to every barbarian boy from the time he could speak his first words, for the Song of Tempos was actually considered a measure of a tribe’s strength. The only variance in the words from tribe to tribe was the refrain that identified the singers. Here the warriors sang at crescendo pitch, for the challenge of the song was to determine whose call to the God of Battle was most clearly heard by Tempos. Heafstaag led his men right up to the entrance of Hengorot. Inside the hall the calls of the Tribe of the Wolf were obviously drowning out the others, but Heafstaag’s warriors matched the strength of Beorg’s men. One by one, the lesser tribes fell silent under the dominance of the Wolf and the Elk. The challenge dragged on between the two remaining tribes for many more minutes, neither willing to relinquish superiority in the eyes of their deity. Inside the mead hall, men of the beaten tribes nervously put their hands to their weapons. More than one war had erupted on the plains because the challenge of the song could determine no clear winner. Finally, the flap of the tent opened admitting Heafstaag’s standard bearer, a youth, tall and proud, with observing eyes that carefully weighed everything about him and belied his age. He put a whalebone horn to his lips and blew a clear note. Simultaneously, according to tradition, both tribes stopped their singing. The standard bearer walked across the room toward the host king, his eyes never blinking or turning away from Beorg’s imposing visage, though Beorg could see that the youth marked the expressions that were upon him. Heafstaag had chosen his herald well, Beorg thought. â€Å"Good King Beorg,† the standard bearer began when all commotion had ceased, â€Å"and other assembled kings. The Tribe of the Elk asks leave to enter Hengorot and share mead with you, that we might join together in toast to Tempos.† Beorg studied the herald a bit longer, testing to see if he could shake the youth’s composure with an unexpected delay. But the herald did not blink or turn aside his penetrating stare, and the set of his jaw remaining firm and confident. â€Å"Granted† answered Beorg, impressed. â€Å"And well met.† Then he mumbled under his breath, â€Å"A pity that Heafstaag is not possessed of your patience.† â€Å"I announce Heafstaag, King of the Tribe of the Elk.† the herald cried out in a clear voice, â€Å"son of Hrothulf the Strong, son of Angaar the Brave; thrice killer of the great bear; twice conqueror of Termalaine to the south; who slew Raag Doning, King of the Tribe of the Bear in single combat in a single stroke†¦Ã¢â‚¬  (this drawing uneasy shuffles from the Tribe of the Bear, and especially their king, Haalfdane, son of Raag Doning.) The herald went on for many minutes, listing every deed, every honor, every title, accumulated by Heafstaag during his long and illustrious career. As the challenge of the song was competition between the tribes, the listing of titles and feats was a personal competition between men, especially kings, whose valor and strength reflected directly upon their warriors. Beorg had dreaded this moment, for his rival’s list exceeded even his own. He knew that one of the reasons Heafstaag had arrived last was so that his list could be presented to all in attendance, men who had heard Beorg’s own herald in private audience upon their arrival days before. It was the advantage of a host king to have his list read to every tribe in attendance, while the heralds of visiting kings would only speak to the tribes present upon their immediate arrival. By coming in last, and at a time when all the other tribes would be assembled together, Heafstaag had erased that advantage. At length, the standard bearer finished and returned across the hall to hold open the tent flap for his king. Heafstaag strode confidently across Hengorot to face Beorg. If men were impressed with Heafstaag’s list of valor, they were certainly not disappointed by his appearance. The red-bearded king was nearly seven-feet tall, with a barrelshaped girth that dwarfed even Beorg’s. And Heafstaag wore his battle scars proudly. One of his eyes had been torn out by the antlers of a reindeer, and his left hand was hopelessly crumpled from a fight with a polar bear. The King of the Tribe of the Elk had seen more battles than any man on the tundra, and by all appearances he was ready and anxious to fight in many more. The two kings eyed each other sternly, neither blinking or diverting his glance for even a moment. â€Å"The Wolf or the Elk?† Heafstaag asked at length, the proper question after an undecided challenge of the song. Beorg was careful to give the appropriate response. â€Å"Well met and well fought,† he said. â€Å"Let the keen ears of Tempos alone decide, though the god himself will be hard-pressed to make such a choice.† With the formalities properly carried out, the tension eased from Heafstaag’s face. He smiled broadly at his rival. â€Å"Well met, Beorg, King of the Tribe of the Wolf. It does me well to face you and not see my own blood staining the tip of your deadly spear!† Heafstaag’s friendly words caught Beorg by surprise. He couldn’t have hoped for a better start to the war council. He returned the compliment with equal fervor. â€Å"Nor to duck the sure cut of your cruel axe!† The smile abruptly left Heafstaag’s face when he took notice of the dark-haired man at Beorg’s side. â€Å"What right, by valor or by blood, does this weakling southerner have in the mead hall of Tempos?† the red-bearded king demanded. â€Å"His place is with his own, or with the women at best!† â€Å"Hold to faith, Heafstaag,† Beorg explained. â€Å"‘This is deBernezan, a man of great import to our victory. Valuable is the information he has brought to me; for he has dwelt in Ten-Towns for two winters and more.† â€Å"Then what role does he play?† Heafstaag pressed. â€Å"He has informed,† Beorg reiterated. â€Å"That is past,† said Heafstaag. â€Å"What value is he to us now? Certainly he can not fight beside warriors such as ours.† Beorg cast a glance at deBernezan, biting back his own contempt for the dog who had betrayed his people in a pitiful attempt to fill his own pockets. â€Å"Plead your case, southerner. And may Tempos find a place in his field for your bones!† deBernezan tried futilely to match the iron gaze of Heafstaag. He cleared his throat and spoke as loudly and confidently as he could. â€Å"When the towns are conquered and their wealth secured, you shall need one who knows the southern marketplace. I am that man.† â€Å"At what price?† growled Heafstaag. â€Å"A comfortable living,† answered deBernezan. â€Å"A respected position, nothing more.† â€Å"Bah!† snorted Heafstaag. â€Å"He would betray his own, he would betray us!† The giant king tore the axe from his belt and lurched at deBernezan. Beorg grimmaced, knowing that this critical moment could defeat the entire plan. With his mangled hand, Heafstaag grabbed deBernezan’s oily black hair and pulled the smaller man’s head to the side, exposing the flesh of his neck. He swung his axe mightily at the target, his gaze locked onto the southerner’s face. But, even against the unbending rules of tradition, Beorg had rehearsed deBernezan well for this moment. The little man had been warned in no uncertain terms that if he struggled at all he would die in any case. But if he accepted the stroke and Heafstaag was merely testing him, his life would probably be spared. Mustering all of his willpower, deBernezan steeled his gaze on Heafstaag and did not flinch at the approach of death. At the very last moment, Heafstaag diverted the axe, its blade whistling within a hair’s breadth of the southerner’s throat. Heafstaag released the man from his grasp, but he continued to hold him in the intense lock of his single eye. â€Å"An honest man accepts all judgments of his chosen kings,† deBernezan declared, trying to keep his voice as steady as possible. A cheer erupted from every mouth in Hengorot, and when it died away, Heafstaag turned to face Beorg. â€Å"Who shall lead?† the giant asked bluntly. â€Å"Who won the challenge of the song?† Beorg answered. â€Å"Well settled, good king.† Heafstaag saluted his rival. â€Å"Together then, you and I, and let no man dispute our rule!† Beorg nodded. â€Å"Death to any who dare!† deBernezan sighed in deep relief and shifted his legs defensively. If Heafstaag, or even Beorg, ever noticed the puddle between his feet, his life would certainly be forfeit. He shifted his legs again nervously and glanced around, horrified when he met the gaze of the young standard bearer. deBernezan’s face blanched white in anticipation of his coming humiliation and death. The standard bearer unexpectedly turned away and smiled in amusement but, in an unprecedented merciful act for his rough people, he said nothing. Heafstaag threw his arms above his head and raised his gaze and axe to the ceiling. Beorg grabbed his axe from his belt and quickly mimicked the movement. â€Å"Tempos!† they shouted in unison. Then, eyeing each other once more, they gashed their shield arms with their axes, wetting the blades with their own blood. In a synchronous movement, they spun and heaved the weapons across the hall, each axe finding its mark in the same keg of mead. Immediately, the closest men grabbed flagons and scrambled to catch the first drops of spilling mead that had been blessed with the blood of their kings. â€Å"I have drawn a plan for your approval,† Beorg told Heafstaag. â€Å"Later, noble friend,† the one-eyed king replied. â€Å"Let tonight be a time of song and drink to celebrate our coming victory.† He clapped Beorg on the shoulder and winked with his one eye. â€Å"Be glad of my arrival, for you were sorely unprepared for such a gathering,† he said with a hearty laugh. Beorg eyed him curiously, but Heafstaag gave him a second grotesque wink to quench his suspicions. Abruptly, the lusty giant snapped his fingers at one of his field lieutenants, nudging his rival with his elbow as if to let him in on the joke. â€Å"Fetch the wenches!† he commanded. How to cite The Crystal Shard 3. The Mead Hall, Essay examples

Comparison of How Shusaku Endo in Wonderful Fool and Albert Camus in the Outsider Have Used Moral Issues to Develop Their Works Essay Example

Comparison of How Shusaku Endo in Wonderful Fool and Albert Camus in the Outsider Have Used Moral Issues to Develop Their Works Essay Comparison of how Shusaku Endo in Wonderful Fool and Albert Camus in The Outsider have used moral issues to develop their works It is debatable whether morality is a code of conduct that is considered right by society or whether it is a code unilaterally decided upon by an individual. When we consider morality as a tool used by both Shusaku Endo in Wonderful Fool and Albert Camus in The Outsider, this debate holds immense relevance. Wonderful Fool, heavily influenced by Christian doctrine, addresses the degeneration of Japanese society and the way moral issues are presented in the novel reflects this. In Wonderful Fool Shusaku Endo looks upon morality as the value system defined by the Bible, where Jesus Christ is regarded as the epitome of true goodness. In his portrayal of the main character he draws upon examples from Christ’s life to recreate a character whose morality is nearly flawless. The Outsider as a philosophical social commentary uses moral issues to demonstrate the absurdity of existence. Camus chooses to present morality as the code of conduct that an individual chooses to uphold regardless of the views of society or religion. He creates a character that lives according to his own â€Å"morality†. We will write a custom essay sample on Comparison of How Shusaku Endo in Wonderful Fool and Albert Camus in the Outsider Have Used Moral Issues to Develop Their Works specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Comparison of How Shusaku Endo in Wonderful Fool and Albert Camus in the Outsider Have Used Moral Issues to Develop Their Works specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Comparison of How Shusaku Endo in Wonderful Fool and Albert Camus in the Outsider Have Used Moral Issues to Develop Their Works specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Although supposed by most readers to be amoral, this character, Meursault appears to be true to his personal convictions of objectivism. Meursault’s commitment to objectivity makes him moral in my opinion. Coined post-Camus, moral objectivism in this context refers to objectivity being used to guide one’s actions as opposed to subjective emotions or traditions. Both writers utilize characterization to present moral issues concerning honesty, consistency and non-conformity in a manner that supports their respective viewpoints. In both texts characterization is frequently used as a vehicle through which morality is presented. In Shusaku Endo’s novel Gaston is presented as a clumsy ‘horse-like’ (Endo 43) Frenchman who is incongruous with the modern slick Japanese city of Tokyo. This ‘fool’ who descended from greatness (Napoleon) is very much like Jesus who is also an unwelcome descendant of a ruler (King David). Gaston, like Jesus, is not physically attractive . Both were rejected by people in society, especially the fashionable, rich or powerful. Jesus was rejected at Nazareth his hometown. People scoffed, â€Å"He’s just a carpenter, the son of Mary† (Mark 6:3), whilst Gaston is constantly referred to as the â€Å"foreigner,† never integrating into Tokyo. His rejection is best characterised by Tomoe. â€Å"’hope you are satisfied†¦bringing that fool into our home,’ she said with deep resentment† (Endo 51). She did not welcome his presence in her house. Gaston makes companions of the lowliest members of society: prostitutes, murderers, and stray dogs. In this way he resembles Christ who befriended the outcasts of his society, such as lepers and prostitutes. He demonstrates selflessness and patience as he attempts to befriend a thug that was beating him up. â€Å"No matter what trick†¦he was of such a temperament that he could not hate his persecutors† (Endo 83). This demonstrates a parallel with Christ who forgave those who taunted him on the cross. His self-sacrificing, unconditional ‘childlike faith’ (Psalm 116:6) in the goodness of people bears a strong resemblance to Jesus and this presents him to the reader as being morally good. Shusaku Endo uses Gaston’s character as a foil, against which he shows the individualistic nature of Japanese society. Endo conveys his disapproval of this societal trait by painting a positive picture of Gaston’s selflessness against the gloom of Japanese hedonism. Gaston is seen by the reader as being altruistic and therefore the reader is led to feel that Japan is self-seeking because of the harsh contrast between his magnanimity and the city’s self-absorbed nature. This contrast is created through other character’s response to Gaston as well as the scenes in which Gaston’s tale is told. The other characters in the novel respond to Gaston’s actions with disdain. For instance, when â€Å"Gaston took food from his own plate and threw it to the dog†¦Tomoe and Matchan looked away in disgust† (Endo 51). His simple act of kindness disgusted them. This contrast between the ideal (embodied by Gaston) and reality (of the character Japanese society) demonstrates Shusaku Endo’s disapproval of the judgemental society that Japan had become. Contrast is further evident in the following examples: the scene at â€Å"Hilltop Hotel† (a brothel), the incident at Sanya where â€Å"even the police†¦close their eyes to prostitution† and â€Å"extortion, theft and other such crimes flourish† (Endo 115). By playing out Gaston’s story in these places, which are hedonistic, dark and cruel, Gaston’s kindness and compassion is even more apparent as he unwittingly helps the prostitute in need. The writer places Gaston in the company of a murderer, Endo, â€Å"who was able to kill a man in cold blood† (Endo 118). Endo (the character) embodies the Japanese in a way that suggests they are self-serving as he acts without regard for Gaston trying to satisfy his own needs. Despite Endo’s aggression Gaston’s response to Endo is one of concern for him as opposed to worry for himself. This relationship further emphasises the idea of the Japanese being too egotistical by contrasting Endo’s selfishness with Gaston’s unselfishness. Albert Camus has a similar approach in his choice of characteristics for his principle character. Meursault, as the title implies, is an outsider and apathetically goes about life. Meursault appears not to concern himself with the conventions of his society. When his mother died Meursault’s response was one of indifference as he concerned himself more with the date and logistics than acknowledging the gravity of her death. â€Å"Mother died today. Or maybe yesterday†¦I’ll come back tomorrow† (Camus 9). However he is not completely indifferent; truth is of great importance to him. Like Gaston he never wavers from his belief system, upholding objectivity without compromise. He is honest and true as a result. By the end of the text when Meursault is offered an alternative to execution in exchange for his faith in God he refuses. †Ã¢â‚¬ ¦with God’s help he would do something for me† (Camus 67) †¦ [he asked] me if I believed in God. I said no† (Camus 68). He sees no need for a lawyer, â€Å"I could answer for myself† (Camus 66). His unwillingness to compromise or immersion in his ‘simple’ belief system turns Meursault almost into a martyr, dying for his belief. Meursault’s commitment to honesty to himself overrides the instinctive response of self-preservation. He is a non-conformist and does not understand society. This emphasizes how this judgmental society imposes its own belief system on individuals, requiring assimilation. Meursault, like Gaston, is consistent in his conduct, not lying once in the text, making him moral in his own mind. Similar to Shusaku Endo, Camus uses the contrast of the ideal characterised by Meursault to highlight a fault in the society he presents. Meursault’s objectivity demonstrates, through juxtaposition, the absurdity of our society. He comments on how murder is murder, thus it makes no difference if a man is shot once or four times, or if a man is killed by a stranger or his own son. During the trial his lawyer asks, â€Å"Is he being accused of burying his mother or of killing a man? † (Camus 93). This question showing how the court or society was judging him based on â€Å"exposing the dark workings of this criminal soul† (Camus 96), as opposed to the arbitrary shooting. The murder was not malicious. He only killed the man as a response to â€Å"a red hot blade gnawing at [his] eyelashes† (Camus 60). Although Meursault speaks the truth he is judged by a system which does not recognise his moral code. This system views murder as immoral regardless of the intention, whilst Meursault sees no shame in his action as it wasn’t borne from malice. In effect he is convicted for not conforming. In the Afterword Camus says â€Å"the hero of the book is condemned because he doesn’t play the game† (Camus 118). Meursault pulled the trigger out of tension from the heat and was not out of revenge or hatred towards the Arab. If morality is an individual’s set code of conduct, independent of society, a society’s morals could then be called ‘ethics’. Camus creates a character that is moral as he is true to his own beliefs, whilst at the same time the character is unethical. It was the skill involved in playing a character’s private beliefs against those of a society that made me enjoy these texts. In each text, a character’s personality conflicts with a society’s personality and to me this was a most effective way of exploring the society’s flaws. Both writers utilize characterization to present moral issues concerning honesty, consistency and non-conformity in a manner that supports their respective viewpoints. As these characters show the ideal, society is painted as being imperfect. Through characterisation both writers present the flawed world and a consistent character to the reader. The reader then chooses which is right and which is wrong based on the biased information given by the writer. This then means the reader identifies the society as flawed and the writer has fulfilled his purpose and conveyed his message. Word Count: 1,497 words Bibliography Camus, Albert. The Outsider. English Translation: Joseph Laredo. Penguin Books Ltd, London; 1983. Endo, Shusaku. Wonderful Fool. English Translation: Francis Mathy. Peter Owen Publishers, London; 2002.