The Complete AP Biology Review Guide for 2019

The Complete AP Biology Review Guide for 2019 SAT / ACT Prep Online Guides and Tips Reviewing for the AP Biology exam can seem daunting. There's so much material to cover, and much of it is highly complex. However, if you plan your time well and use appropriate study materials and strategies, you can expect a great score on the exam. In this article, I'll give you an overview of what the AP Biology exam is like, what you need to know to ace it, and how you can use your study time effectively before the exam on Monday, May 14, 2018 at 8 am! What's the Format of the AP Biology Exam? The AP Biology Exam is a long test, three hours long to be exact. Like other AP tests, it has two parts, a multiple-choice section and a free-response section (each of which is worth 50 percent of your score), although these sections are divided further into different types of questions. The multiple choice section has 63 actual multiple-choice questions and six grid-in questions, which are essentially short-answer math problems. This section is one hour and 30 minutes total. Each multiple choice question has four choices, down from five in earlier versions of the exam. Even though you technically have more than a minute for each question, I would recommend keeping your time under a minute per multiple-choice question on your first pass through the section. You should also take into account the fact that the grid-in questions may be more time-consuming. There is no guessing penalty, so you should answer every question even if you have no idea which choice is correct (after you've tried to figure it out of course!). The free-response section has eight questions total: six short-response questions and two long-response questions. This section takes up the remaining hour and thirty minutes of time. There is a 10 minute reading period at the beginning of the free response section. You'll need to pace yourself wisely on this section as well. Try to spend no more than five minutes on each short free-response question. Even though they technically come after the long questions, I'd recommend doing the short questions first to get yourself warmed up. If you manage your time well, you'll have at least 20-25 minutes left for each of the long free-response questions. Here's a chart showing the format of the exam. Multiple-Choice Section Free-Response Section Length 90 minutes 90 minutes Number of Questions 63 multiple choice 6 grid-in 6 short response 2 long response Percentage of Total Score 50% 50% The AP Biology exam is a marathon, not a sprint. If it helps, during the test you can think about how lucky you are to be taking a test and not running an actual marathon. What Do Questions Look Like on the AP Biology Exam? Here's an example of a multiple-choice question you might see on the AP Biology exam: You don't necessarily need lots of in-depth biology knowledge to answer this. The answer is A because the total volume of gas wouldn't change (and oxygen consumption would be unmeasurable) unless the carbon dioxide produced by the organisms was removed from the environment. You can see this from the information contained in the question. This question is part of a group of three questions that pertain to the experiment and data chart. You'll see many question clusters like this in the multiple-choice section. Here's an example of a grid-in question: The grid-ins are usually straightforward math problems that relate to biological concepts (the answer to this question is 60). Note that you are allowed to use a calculator on the exam, and you'll get a list of formulas that pertain to the course along with your testing materials. Here's an example of a short free-response question from the 2013 exam: This question requires an understanding of how evolution shapes the formation of new species (one of the "Big Ideas" of AP biology, which I'll talk about in the next section). To get the correct answer, you have to know the facts about evolution, but you also need to be able to apply that knowledge to make inferences about this specific scenario. This is why a deeper understanding of the main topics in AP Biology is so critical- the difference between knowing the facts about something and comprehending how it works can be surprisingly large. Here's an example of a long free-response question: This question is also heavier on analysis than straight up biology knowledge. You need to be able to read and understand the graphs and table so you can use them to inform your answer to the question. Once again, an understanding of evolution and the ability to apply that knowledge to a specific scenario is critical. What Topics Does the AP Biology Exam Cover? The College Board says in its Course Description that AP Biology has changed its focus from the more memorization-based curriculum that defined the course and exam in the past. The goal is for students to gain a deeper conceptual understanding of topics in biology. Reasoning skills and knowledge of the process of scientific inquiry are more important on the current AP Biology test than they have been before. The College Board has tried to structure the exam so that content knowledge and reasoning skills are intertwined. This can be both good and bad: the good is that you won't necessarily have to memorize as many little tidbits of information, the bad is that it can be harder to study for a test like this that covers more abstract forms of knowledge. More on how to manage this in the "How to Review" section! The exam and curriculum as a whole will be centered around your understanding of these four "Big Ideas," which each cover a bunch of different topics. Your success on the exam rests on being able to connect specific concepts with the overarching Big Ideas that define the course. Big Idea 1: The process of evolution drives the diversity and unity of life Includes: Natural selection Hardy-Weinberg Biodiversity and categorization of organisms Charles Darwin married his first cousin. You'd think he would know better. Big Idea 2: Biological systems utilize free energy and molecular building blocks to grow, to reproduce and to maintain dynamic homeostasis Includes: Molecular biology Biological systems and reactions Photosynthesis Cellular respiration Cell structure Cell membrane properties (diffusion and osmosis, proteins) Thermodynamics/homeostasis Immune response Photosynthesis is way more elegant than eating. Then again, flowers will never taste ice cream, so I kinda feel sorry for them. Big Idea 3: Living systems store, receive, transmit and respond to information essential to life processes Includes: Genes and gene mutations DNA/RNA Cell cycle (mitosis, meiosis) and cell communication Mendel and laws of inheritance Viruses Endocrine system Nervous system Deoxyribonucleic acid: It's DNAmazing!â„ ¢ Big Idea 4: Biological systems interact, and these systems and their interactions possess complex properties Includes: Enzymes Plant structure and systems Circulatory system Digestive system Musculoskeletal system Ecological principles Fun digestive system fact: If you eat a watermelon seed, a watermelon will grow inside your stomach. The ideal climate for watermelon growth is 96 degrees and highly acidic. Apart from background knowledge of this content, it's also important to understand your labs and the basic underlying principles that govern scientific experiments. If you know the ins and outs of experimental design, you'll earn a lot of points on the exam. I recommend the CliffsNotes AP Biology 4th Edition review book as a helpful resource for going over labs, but you should also look back at what you did in your class. I'll provide more details on this in the next few sections. Important Lab Topics Include: Artificial Selection Modeling Evolution Comparing DNA Sequences Diffusion and Osmosis Photosynthesis Cellular Respiration Mitosis and Meiosis Bacterial Transformation Restriction Enzyme Analysis of DNA Energy Dynamics Transpiration Animal Behavior Enzyme Catalysis Microscopes show us that the world around us is far creepier and grosser than we ever imagined. AP Biology Review Preview: Important Tips to Keep in Mind In this section, I'll give you some preliminary study tips that will help you get the most out of your AP Biology review time. Tip 1: Plan Out Your Time First of all, you should think about how much time you have left before the AP test. This will affect the structure of your study plan. If you're taking other AP classes or have a lot of commitments in general, you might want to start earlier depending on your confidence with the material. Consider your schedule and the time you're willing to spend on AP Biology. Since there's so much content in this course, I think 20 hours of studying is a reasonable goal. However, if you find that you're already scoring at a high level (a high 4 or anywhere in the 5 range), you might aim for just 10 hours or so. You should balance your time relatively evenly between studying the material and taking practice tests. In AP Biology, you might benefit from devoting a bit more time to practice testing. Since the test is now more targeted towards assessing analytical skills, practicing real AP questions may help you more than memorizing content (although both are still important!). I'll give you more information about how to use practice tests and review materials effectively in the next few sections. Tip 2: Use Appropriate Review Materials The importance of using the right review materials can't be overstated, especially in the case of AP Biology. With the recent changes to the test, it's critical that you don't use old study materials and assume they will give you all the tools you need to succeed in the new format. From reading student feedback on many AP Biology review books, it seems like some prep companies have struggled to adapt their practice questions and review methods to this version of the test. However, there are still resources out there that can help you. Review books that people found most useful include CliffsNotes AP Biology 5th Edition for content review and Sterling AP Biology Practice Questions for practice questions that will give you a good sense of what the new test is like. Pearson's Preparing for the AP Biology Exam book also has some good reviews and may be a nice source of practice free response questions. Strangely enough, the most popular prep companies, like Princeton Review and Barron's, have been less successful in updating their review materials to match the new test. If you get their review books, you should supplement them with practice questions from other sources. Avoid using practice questions that come from exams before the 2013 test, when the changes were implemented. You might still be able to use them to refresh your memory on certain topics, but they won't really prepare you for the more analytical framework of questions on the current test. Tip 3: Memorization Isn't Enough Even though AP Biology still involves a fair amount of memorization, you shouldn't focus exclusively on content knowledge and assume you'll do great on the test. Questions will test your critical thinking skills and logical reasoning abilities along with your knowledge of biology. That's why it's so important to spend a significant amount of time doing practice questions in addition to content review. Don't let the test surprise you! Tip 4: Don't Forget About Labs Revisiting old labs is not super fun (well, it wasn't for me), so you might be tempted to ignore them and just focus on studying content outside of the lab context. Try to avoid this temptation! Go through your labs, and make sure you understand their methodologies and the reasoning behind the results. Understanding the scientific method and the components of a good experiment is absolutely key on the AP Bio exam. The more lab review you do, the more comfortable you'll feel during the test. Remember the lab where you melted down entire trees into a mysterious green serum? No? Well then, you better get studying! How to Review for the AP Biology Exam When you're studying for the exam, follow the five steps below to make sure your AP Bio review is as effective as possible. Step 1: Take a Diagnostic Test The first step of your AP Biology review is to take a practice exam so you can see how much you'll need to study (and which areas need the most work). You should take your first complete practice test no later than the beginning of your second semester. You can use a practice exam from a review book or search online for a practice test. The review books I mentioned in the previous section have some good materials. When you take a practice test, make sure it's the new version of the exam. If you see practice tests that have 100 multiple choice questions in the first section, you're looking at an old version of the AP Biology Exam. You won't be able to rely on your scores on this version to get a clear picture of where you fall on the new test. Step 2: Calculate Your Score and Set a New Goal Once you've taken a diagnostic test, you can calculate your score on the 1-5 AP scale. According to the CliffsNotes review book that I mentioned above, you can calculate your score using the following method: Multiply the number of questions you answered correctly in section 1 (multiple choice and grid-in) by 0.725 Multiply the number of points you earned in section 2 by 1.25 Add those two numbers together to get your raw score Then convert the raw score to an AP score: Raw Composite Score AP Score 60-100 5 50-59 4 41-49 3 33-40 2 0-32 1 For example, if you got 42 questions correct on the multiple choice/grid-in section and earned 25 points on the free response section, your raw score would be (42*.725) + (25*1.25) = 61.7 = just barely made it into the 5 category! This is without taking the curve into account, which is different every year, but it should give you a rough idea of where you stand. Unless you're scoring a really high 5 (90+), you should still put in a bit of study time to make sure you're fully prepared. If you score low (a 1 or a 2), you might make it your goal to raise your score to a 3. Just keep in mind that some schools don't accept 3s for college credit, so you may want to aim higher after you make it to this first milestone. Most colleges consider a 4 to be the standard cutoff for AP credit, so you should try for at least a 4 if you're hoping to get a head start in college. Once you're consistently scoring in the 3 range, you can set a 4 or 5 as your goal. Even if you're already at the 4 or 5 level, you probably still have some room to improve. It's nice to get in some extra practice so that you feel very comfortable on the real test. Depending on how much you need to improve and how long you want to spread out your studying, you might come up with different plans. To improve by one AP score point, you can get away with studying only two months or so in advance. If you're hoping to improve by 2 or more AP score points, you should try to start midway through the school year if you want to avoid cramming. Confidence is key. If you need to wear a business suit to the test to make yourself feel in control, go for it (I am not responsible for the relentless mocking you will endure from your peers). Step 3: Analyze Your Mistakes This is the most critical part of the review process, and it's particularly important for AP Biology. There's a lot of material to learn, and you don't want to waste time going over concepts that you already have down. Comb through your mistakes on the diagnostic test to see where the most errors happened and why. Did your problems center more around lack of knowledge of background information or difficulty analyzing the scenarios presented to you on the test (you knew the information, but you couldn't get the question because it confused you)? You will most likely have a little of each type of problem, but if one is more prevalent than the other, you should take that into account for your studying strategy. For example, it wouldn't be a good idea to keep drilling yourself on basic content knowledge if most of your mistakes came in the form of misinterpreting complex questions or reading diagrams incorrectly. You would want to devote less of your time to reviewing biological terms and more of your time to doing real practice questions. Even in those cases, you'll probably still have at least a few issues with content knowledge. As you go through your mistakes, keep a running list of the ideas you need to revisit in your notes or review book. If you're caught off guard by your unfamiliarity with a certain topic, you should pay special attention to that topic in your studying. You may also notice mistakes due to carelessness or time pressure that aren't directly related to your knowledge of the material or understanding of the question. In this case, you'll need to think about revising your basic test-taking strategies. In the next step, I'll go into more detail on this. Do some practice test detective work! I think this is a detective. Either that or a random guy smoking a pipe and trying to figure out how bad the pimple on his nose looks. Step 4: Fix Your Mistakes There are a few things you can do to revise your strategies for taking the exam and effectively review concepts that you didn't understand. The obvious first step is to go back into your textbook, your notes, or a reliable review book (or even all three!) and brush up on the information you forgot. Sometimes for biology, this is a little overwhelming because of the complexity of the material. If you're trying to understand systems or processes, I'd recommend testing yourself by drawing diagrams of how they work. This will allow you to make connections between dry facts presented in the text and the biological reality of what's happening in the system. It will help you not only in your content knowledge but also in your ability to analyze related scenarios on the test. You can use this strategy for many concepts in AP Biology, and it will make them much simpler to understand. To correct your other mistakes that have more to do with question comprehension, you'll need to focus on doing similar practice questions. I'd recommend getting this book of Sterling AP Biology Practice Questions for some questions that are organized logically by topic area and well-aligned with the new exam format. More practice is also a good remedy for careless errors and time management problems. You can learn how to better identify the key parts of each question and avoid distractions that might throw you off. Underlining the most important parts of the question can be a good strategy if you're prone to careless errors. If time management is a problem, put some thought into why you ran out of time. Did you linger for too long on difficult questions? Remember, it's a smart idea to skip questions that are giving you a lot of trouble (not answerable within a minute) and come back to them later once you've gotten through the whole section. Practice makes perfect. Maybe you can compose an AP Biology song to help you remember stuff. "Now enzymes....BREAK IT DOWN!" Step 5: Take Another Test and Repeat Previous Steps Now that you've analyzed and fixed your mistakes on the diagnostic test and done some more targeted studying, it's time to take another practice test. Score the new test, then repeat steps 3 and 4. You should notice improvements as you continue to repeat this process and gain familiarity with the format and content of the test. If you don't notice positive changes from one test to the next, it may be time to reevaluate your review techniques. Depending on how early you start studying and how much you want to improve, you might go through these steps once, twice, or seven times. You can continue the process until you achieve your score goals or run out of study time! Conclusion The AP Biology test is a long exam, and it covers a wide range of material. Recently, the test was updated to focus less on information recall and more on analytical thinking, which can be good and bad. You won't have to rely on memorization as much, but your score will be highly dependent on your ability to think through complicated scenarios that are presented on the test. In your AP Biology review, you should still go over all of the information you learned in the course. However, you should also devote a significant amount of your time to practice testing so that you can learn to think the way the test wants you to think. If you plan your study time wisely and learn how to solve the types of questions that are most difficult for you, you'll be on your way to a great score! What's Next? Ready to jump into reviewing biology concepts? We have guides to help you review cell theory, enzymes, and homologous and analogous structures, as well as quick looks at parts of the cell (cell membrane and endoplasmic reticulum) and the photosynthesis equation. Wondering exactly how much time you have before your AP tests? Here are the AP test dates and times for 2020. If you're in AP Biology, you should consider taking the Biology SAT Subject Test as well. Find out the difference between AP tests and SAT Subject Tests and which are more important for college. Considering an AP Calculus course? Read this article for some guidance on deciding whether you should take AP Calculus AB or BC. Want to improve your SAT score by 160 points or your ACT score by 4 points? We've written a guide for each test about the top 5 strategies you must be using to have a shot at improving your score. Download it for free now:

An Overview of Solstices and Equinoxes

An Overview of Solstices and Equinoxes The June and December solstices mark the longest and shortest days of the year. The March and September equinoxes, meanwhile, mark the two days of each year when day and night are of equal length. June Solstice (Approximately June 20-21) The June solstice begins summer in the Northern Hemisphere and winter in the Southern Hemisphere. This day is the longest of the year in the Northern Hemisphere and the shortest of the year in the Southern Hemisphere. North Pole: The North Pole (90 degrees north latitude) receives 24 hours of daylight, as it has been daylight at the North Pole for the last three months (since the March Equinox). The sun is 66.5 degrees off the zenith or 23.5 degrees above the horizon.Arctic Circle: It is light 24 hours a day north of the Arctic Circle (66.5 degrees north) on the June solstice. The sun at noon is 43 degrees off the zenith.Tropic of Cancer: On the June Solstice the sun is directly overhead the Tropic of Cancer (23.5 degrees north latitude) at noon.Equator: At the equator (zero degrees latitude), the day is always 12 hours long. At the equator, the sun rises daily at 6 a.m. local time and sets at 6 p.m. local time. The sun at noon at the equator is 23.5 degrees off the zenith.Tropic of Capricorn: In the Tropic of Capricorn, the sun is low in the sky, at 47 degrees from the zenith (23.5 plus 23.5).Antarctic Circle: At the Antarctic Circle (66.5 degrees south), the sun makes the briefest of appearances at noon, peeking at the horizon and then instantaneously disappearing. All areas south of the Antarctic Circle are dark on the June Solstice. South Pole: By June 21, it has been dark for three months at the South Pole (90 degrees south latitude). September Equinox (Approximately September 22-23) The September equinox marks the beginning of fall in the Northern Hemisphere and spring in the Southern Hemisphere. There are 12 hours of daylight and 12 hours of darkness at all points on the earth’s surface on the two equinoxes. Sunrise is at 6 a.m. and sunset is at 6 p.m. local (solar) time for most points on the earth’s surface. North Pole: The sun is on the horizon at the North Pole on the September equinox in the morning. The sun sets at the North Pole at noon on the September equinox and the North Pole remains dark until the March equinox.Arctic Circle: Experiences 12 hours of daylight and 12 hours of darkness. The sun is 66.5 degrees off the zenith or 23.5 degrees above the horizon.Tropic of Cancer: Experiences 12 hours of daylight and 12 hours of darkness. The sun is 23.5 degrees off the zenith.Equator: The sun is directly overhead the equator at noon on the equinox. On both equinoxes, the sun is directly over the equator at noon.Tropic of Capricorn: Experiences 12 hours of daylight and 12 hours of darkness. The sun is 23.5 degrees off the zenith.Antarctic Circle: Experiences 12 hours of daylight and 12 hours of darkness.South Pole: The sun rises at the South Pole after the Pole has been dark for the past six months (since the March equinox). The sun rises to the horizon and it remains light at the Sout h Pole for six months. Each day, the sun appears to rotate around the South Pole at the same declination angle in the sky. December Solstice (Approximately December 21-22) The December solstice marks the beginning of summer in the Southern Hemisphere and is the longest day of the year in the Southern Hemisphere. It marks the beginning of winter in the Northern Hemisphere and is the shortest day of the year in the Northern Hemisphere. North Pole: At the North Pole, it has been dark for three months (since the September equinox). It remains dark for another three (until the March equinox).Arctic Circle: The sun makes the briefest of appearances at noon, peeking at the horizon and then instantaneously disappearing. All areas north of the Arctic Circle are dark on the December solstice.Tropic of Cancer: The sun is low in the sky, at 47 degrees from the zenith (23.5 plus 23.5) at noon.Equator: The sun is 23.5 degrees from the zenith at noon.Tropic of Capricorn: The sun is directly overhead the Tropic of Capricorn on the December solstice.Antarctic Circle: It is light 24 hours a day south of the Antarctic Circle (66.5 degrees north) on the June solstice. The sun at noon is 47 off the zenith.South Pole: The South Pole (90 degrees south latitude) receives 24 hours of daylight, as it has been daylight at the South Pole for the last three months (since the September equinox). The sun is 66.5 degrees off the zenith or 23.5 degrees above the horizon. It will remain light at the South Pole for another three months. March Equinox (Approximately March 20-21) The March equinox marks the beginning of fall in the Southern Hemisphere and spring in the Northern Hemisphere. There are 12 hours of daylight and 12 hours of darkness at all points on the earth’s surface during the two equinoxes. Sunrise is at 6 a.m. and sunset is at 6 p.m. local (solar) time for most points on the earth’s surface. North Pole: The sun is on the horizon at the North Pole on the March equinox. The sun rises at the North Pole at noon to the horizon on the March equinox and the North Pole remains light until the September equinox.Arctic Circle: Experiences 12 hours of daylight and 12 hours of darkness. The sun is 66.5 off the zenith and low in the sky at 23.5 degrees above the horizon.Tropic of Cancer: Experiences 12 hours of daylight and 12 hours of darkness. The sun is 23.5 degrees off the zenith.Equator: The sun is directly overhead the equator at noon on the equinox. During both equinoxes, the sun is directly over the equator at noon.Tropic of Capricorn: Experiences 12 hours of daylight and 12 hours of darkness. The sun is 23.5 degrees off the zenith.Antarctic Circle: Experiences 12 hours of daylight and 12 hours of darkness.South Pole: The sun sets at the South Pole at noon after the Pole has been light for the past six months (since the September equinox). The day begins on the horizon in the morning and by the end of the day, the sun has set.

Bus law Case Study Example | Topics and Well Written Essays - 2500 words

Bus law - Case Study Example The Verbal Negotiations Winston Graham, a partner of antic dealers, went to Daly Car Sales Ltd., a commercial vehicle dealer, to purchase a van after one of their three delivery vans was â€Å"written-off† in an an accident. Graham conveyed that he was in search for a replacement vehicle that can load up to 1 ton and a cubic capacity of 200 feet. He also explained that the vehicle will be maximized for regular delivery of furniture, their business, and that the average journey would involve normally four or fine large items of furniture. Immediately, Alan Daly retorted that there was an available van that will befit Graham needs. He was referring to a White Transit XL which he warrants as a van with capacity to run at a distance of 48,000 miles on the clock and the storage capacity suitable enough for delivery of furniture. ... The asking price was L4,800 (plus VAT) but Winston counter-offered a price of L 4,500 (plus VAT). Mr. Daly finally accepted Winston’s offer and they proceeded in signing the contract of sale, the latter was a standard form contract, the nature of which implied â€Å"take it or leave it† concept. Daly wrote â€Å"White, Transit XL, 48,072 miles† as details of the object of the contract. A week after the delivery of van, the firm’s driver reported a serious oil leak and a technical problem with its clutch. These problems were conveyed to Mr. Daly via telephone who assured Graham that his company would look into the problem if it will be returned to them before the end of the week. Graham failed to follow Daly’s advice following series of delivery schedules. Said van collected five antique desks and other heavy items which reached approximately the weight of 1 ton, just when its brake failed to stop the vehicle at a junction. Luckily, they were able to escape possible accident. But such experience made the driver decide not ever to use the new van for deliveries and collection to evade possible circumstance that an accident could happen anytime van’s defective engine and brake. The firm however used the van for â€Å"light duties† until it finally came to a halt. After thorough mechanical inspection, it was reported that the van necessitate complete replacement of engine and of clutch. Report also bared that the damage is attributable to constant loss of oil. The van’s total repair will cost more than L 1,000. While at this state, Graham discovered that the vehicle has only a cubic capacity of 150 feet and a load of half a ton. The Exclusion Clause The contract of the sale of van had an exclusion clause under Clause

Critical overview of the enforcement of foreign arbitral awards in Dissertation - 1

Critical overview of the enforcement of foreign arbitral awards in Saudi Arabia - Dissertation Example The onset of globalization, which is characterized by the drastic integration of international trade into one single market, further underscored this as trade disputes and disagreements between countries emerge with the increase in international commerce. According to Lu, Verheyen and Perera, arbitration has been the most common dispute resolution mechanism today both in the international market and among parties that conduct business with sovereign states that the enforceability of awards has become increasingly important and practical.1 (p. 163-164) According to FINRA, parties may even prefer arbitration than a juridical process because the process is faster and more effective.2 Currently, the multilateral arbitration mechanism that most states are subjected to is the Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 otherwise known as the New York Convention. As of 2009, 142 out of the 192 members of the United Nations signed the convention. The majo rity of global trading organizations such as the World Trade Organization (WTO) and the North American Free Trade Association (NAFTA) also accede to this convention. It mandates all courts of the ratifying states to enforce and recognize private agreements and â€Å"arbitral awards made in the territory of a State other than the State where the recognition and enforcement of such awards are sought, and arising out of differences between persons, whether physical or legal.†3 Saudi Arabia has been receptive of foreign arbitration awards in the past and rarely elevated disputes to international fora but its courts do not automatically endorse foreign judgments.4 In April 19, 1994, the country signed the convention. Some changes have been effected with regards to enforcement of arbitration awards. When Saudi signed the convention, a royal decree (No. M/11 of 16/7/1414) was released, which provided that recognition and enforcement of foreign awards should be limited to those made in the territory of States, which have also acceded thereto.5 This among other factors such as the persistence of Islamic law and the effects it entail in doing business in the country has made the situation complicated and at times problematic particularly in terms of the enforcement of arbitral awards. This problem would be investigated by this research, with the initial expectation that there are numerous variables that hinder and limit such enforcement particularly in the religious and bureaucratic spheres. 3.0 Scope of the Study In pursuing the research objective, this research would focus on two important conventions that Saudi is party to: the Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 and the Riyadh Convention. These mechanisms would be used as the standards by which arbitration awards enforcement are either successful or a failure exclusively in the Saudi experience. 4.0. Methodology Since this is a descriptive and analytical research, this study will not use models for empirical inquiries. Instead, this researcher will use a combination of ‘black-letter' doctrinal analysis and ‘law in context' approaches. The idea is to capture the complexity of having to discuss the general subject of

Capital Asset Pricing Model importance in financial world

Capital Asset Pricing Model importance in financial world Capital asset pricing model popularly referred to as CAPM has been of great importance in the asset pricing world. There have been wide acceptances as well as strong arguments regarding the validity of the model over the years, with regards to the fundamental assumptions of the model and the practicability of the model (Bodie, Kane and Marcus, 2005). (Bodie, Kane and Marcus, 2005) The capital asset pricing model provides a yardstick rate of return for appraising possible investments. The standard rate of return is a fair return given the risk involved in the investment. The model also helps us make an educated guess as to the expected return on assets that has not yet been traded in the market place. (Bodie, Kane and Marcus 2005) The CAPM assumes that the security market is large and investors are price takers, there are no taxes or transaction costs, all risky assets are publicly traded, investors can borrow and lend any amount at a fixed risk free rate, all investors analyze securities in the same way and share the same economic view about the world. (Bodie, Kane and Marcus 2005) The organisation of this write-up is as follows a detailed introduction of the capital asset pricing model (CAPM), followed by a literate review of the model which goes into an in-depth analysis of the model as regards to its functions, compatibility and suitability as it relates to asset pricing. Finally, in conclusion a capsulation of the defects, modification and significance of CAPM. J.Balvers, 2001 The Capital Asset Pricing Model (CAPM) is the most popular model of the determination of expected returns on securities and other financial assets. It is considered to be an asset pricing model since, for a given exogenous expected payoff, the asset price can be backed out once the expected return is determined. Additionally, the expected return derived within the CAPM or any other asset pricing model may be used to discount future cash flows (J. Balvers, 2001.p.35). Furthermore according to Bodie, Kane and Marcus, 2005, described CAPM as a method suitable for determining required rate of return of an asset. The model is considered as an extension of Markowitzs portfolio theory. It is expressed in a linear relationship between the return required on an investment and its systematic risk. As described below: E [Ra] =RF + ÃŽÂ ²a [E (Rm) RF), Where, E [Ra] is expressed as the required return on financial assets. Rf is the risk-free rate of return, E [Rm] is the expected market return and ÃŽÂ ²a is the measure of risk [Beta]. CAPM advocates; investors need to be rewarded in two ways: firstly for the time value of money and secondly risk associated with the security. The first half of the formula represents risk free return (Rf) that compensates the investors for placing money in any investment over a period of time. The other half of the formula represents [ÃŽÂ ² E(Rm Rf)] risk premium for bearing additional risk. (Hanif and Bhatti 2010) A more graphical and pictorial representation of CAPM is expressed in the Security Market Line (SML); the line shows the most efficient risk and return to an investor. It shows the expected rate of return of an individual security as a function of systematic risk (beta). FIGURE 1: THE SECURITY MARKET LINE Y X Source: Balvers,(2001:41) The Y-intercept (beta=0) of the SML is equal to the risk-free interest rate. The slope of the SML is equal to the market risk premium (Â µm -rf) and reflects the risk return trade off at a given time: SML: E(Â µM) = Rf + ÃŽÂ ²i [E(Â µm)-Rf] The risk expected return relationship is called the security market line (SML).The expected return on security equals the risk free rate plus the risk premium. In CAPM the risk is measured as beta times the expected return on the market minus the risk free rate. The risk premium of a security is a function of the risk premium of the market and varies directly with the level of beta, no measure of non-systematic risk appears in the risk premium, as CAPM assumes that diversification has eliminated it. (Mullins 2000.) LITERATURE REVIEW Beta is the standard CAPM measure of systematic risk, one way to think of beta is that it gauges security volatility relative to the market volatility (Mullins, 2000,p.108). Stock whose beta are greater than 1 has a high level of systematic risk and are very sensitive to the market changes, stock with beta less than 1 has a very low level of systematic risk and less sensitive to market changes, stock whose beta is equal to 1 as an average level of systematic risk, rise and falls at the same percentage as the broad market index. (Mullins, 2000) In a freely competitive financial market described by CAPM, no security can sell for long at a price low enough to yield more than its appropriate return on the SML. The security will be very attractive compared with other securities of similar risk and investors would bid its price up until its expected return fell to the appropriate position on the SML. Conversely, investors would sell off any stock, selling at a price high enough to put its expected return below its appropriate position. The resulting reduction in price would continue until the stocks expected return rose to the level defensible by its systematic risk. (Mullins 2000). On the SML the stocks with low beta will lead to a low risk premium. Despite the stocks high level of total risk, the market would price it to yield a low expected return. In practice such counterintuitive examples are rare, most companies with high total risk also have high betas and vice versa. Though according to CAPM the financial market cares only about systematic risk and price securities such that expected return lie along the SML. (Mullins 2000). One of the major purposes of the Capital asset pricing model is the determinant of the institutional demand for common stock. At the most basic level, institutional demand should be a function of the risk-return attributes of individual stocks. (Hanif and Bhatti 2010). It is mostly used by the finance managers and/or investors in finding the risk of the investment and to predict the expected return of the stock (Jagannathan and Wang, 1993). It is also used to find out the cost of capital, Capital budgeting is used by a firm to note profitable and unprofitable projects. A key variable in any capital budgeting procedure is the cost of capital, also referred to as the opportunity cost of the capital necessary to finance the project. The opportunity cost accounts for time preference as measured by the risk free interest rate and risk. It assumes that relevant risk is systematic risk that can be measured based on the (estimated) beta of the project and the anticipated market excess return. A related application is in regulation. In a case, for instance, where the government fixes the price of a particular service provided by a utility, the administered price depends on providing the utility with a fair return on capital. This fair return is often calculated by applying the CAPM to determine the systematic risk of the utilitys activities and thus obtaining the required return (J. BALVERS, 2001). CAPM is also an effective tool for portfolio return evaluation; it is used to find out how a managed portfolio has performed. This is because higher levels of systematic risk in the portfolio imply higher average returns. In practice it is used to adjust for risk and also differentiate abnormal returns from simply excess returns. (J. BALVERS, 2001) Mullins, 2000 states that CAPM as an idealized theory of financial markets is surrounded by some controversies in that the models assumptions are viewed as clearly unrealistic. But the true test of CAPM is naturally evident in how well it works there have been numerous empirical test of CAPM. Most of these have been examined in the past to determine the extent to which stock returns and betas have corresponded in the manner predicted by the security market line. With few exceptions the major empirical bodies in this field have concluded that betas are not fixed through time. This fact creates difficulty when betas estimated from historical data are used to calculate costs of equity in evaluating future cash flows. Beta which is used as a measure of risk appears to be associated to with past returns, due to the close link between total and systematic risk, distinguishing their effects will be difficult. Under CAPM it is believed that Beta should change has both company fundamentals and capital structure changes in reality. It is also argued that beta estimates from the past are subject to statistical estimation error. The estimate of the future risk free rate and the expected return on the market are also subject to error, although quite alot of research has concentrated on developing methods to reduce the possible error (Mullins, 2000). Reality matches what the CAPM foretell as the relationship between beta and past returns is linear. Also the relationship is positively sloped which implies that high returns are associated with high risk and low returns are associated with low risk (J. BALVERS, 2001) CONCLUSION In conclusion despite CAPM shortcomings in measuring the cost of capital and due to its single period model coupled with its inability to reflect all market information (efficient market hypothesis) (Johnson, Spearin Groenewegen 2006). Speaking of the inability of CAPM to fully capture and reflect a real life situation this can be better explained in the role CAPM plays in efficient market hypothesis (EMH). Basically there are three forms of market the strong form of market efficiency (EMH) in which the market prices reflects all available information which includes both the insider information and forecast information on a real time basis making asymmetry information absent. Though this cannot be totally assured in the two remaining forms of EMH the semi-weak and weak form of efficiency do no justice when it comes reflecting all available information present in the market on a timely basis and a more informed investor can outperform both uninformed investor and the market as a whol e (Z.A. Ozidemir 2008). In line with the above statement (Merton 1987) was of the notion that in reality some investors were better more informed than others to the extent that some less informed investors were not aware of the existence of some opportunities in the capital market. Despite this deficiency some investors still used CAPM to measure asymmetry information that was present in the market by modifying it to take care of the heterogeneous information. Which included the measurement of how asymmetry information influences stock prices and cost of capital (Easley and OHara 2004).An in-depth examination of the model proves that the use of CAPM both in theory and in practice cannot be totally discarded in that it has much to say as regards to the way returns are determined in the financial market as compared to other models. Its key advantage is that it quantifies risk and provides a widely applicable, relatively objective routine for translating risk measured into estimates of an expected return coupl ed with modification of the traditional CAPM contain the impact of changes in expected return distribution (Javed, 2000). Finally a major advantage of CAPM is the objective nature of the estimated cost of equity that the model can yield. CAPM cannot be used in isolation because it necessarily simplifies the world of financial markets. But financial managers can use it to supplement other techniques and their own judgement in their attempts to develop realistic and useful cost of equity calculations (Mullins, 2000).

Case Analysis Swatch Essay

In 1978, when Dr. Ernst Thomke became managing director of ETA, the position of this Swiss flagship industry had changed dramatically. Especially with the presence of a strong competency (Japan and U. S). Macro-environment: (PESTEL Analysis) * Economic: Threat: The market share had fallen from 56% to a mere 20%. Opportunity: The production had grown from 61 million to 320 million pieces and movements annually. Opportunity: the decline of the dollar was not quite as evident. Threat: Market share loss was more pronounced in finished watches (Japan was producing 50. million Electronic watch compared to Switzerland and had 21% of market share on finished watches) Threat: The situation was aggravated by adverse exchange rate movements relative to the U. S Dollar. Swiss watches was more expensive. Summary: The company had a great problem due to the high technologies of competitors, also their watches was more expensive so their market share had decreased. Industry Environment: 5 Forces of M. Porter: Threat of entry: * New entrants in the market of watches: Japan, Hong Kong. * Prices dropped dramatically from 1000/2000 $ in 1970 to merely 20/40 $ by the end of 70’s * In the 80’s, several competitors switched to the more sophisticated analogue models and thus created competition for the Swatch. Intensity of rivalry among existing competitors: Japan held the technological edge and created the new electronic watch to compete with Swatch. Most of the early American digital watch producers had started to withdraw from the watch business * Ebauches entered into direct international competition with Japanese, French, German and Soviet manufacturers. Bargaining power of Suppliers: * Ebauches S. A, of which ETA was part, was the major producer and supplier of watch movements for ASUAG, the main company (the Switzerland’s largest watch corporation). Bargaining power of Buyers: The third world and newly industrialized nations offer a previously unexplored market for Swatch * The Swiss exported movements and unassembled parts to foreign customers * ETA expanded its movements sales beyond its then current customers (Switzerland, France and Germany) to Japan, Hong Kong and Brazil. Substitute Products: * The invention of â€Å"Electronic Watches† by Japan. The new analogue watch designed by Swatch Key Success Factors: * The â€Å"Delirium† project with the objective to create the world’s thinnest analogue quartz movement. * Highly qualified labor, requiring flexibility, quality, and first-class styling at low-cost. The company adopted the strategy of differentiation and low-cost (economies of scale). * The Swiss company had their stronghold in assembly. * ETA and its parent company ASUAG have a long history of high quality watch design and manufacture. * As part of Switzerland’s largest watch company, ETA had the resources to mount a turnaround effort. * ETA claimed more control over its distribution channels and increased authority in formulating its strategy. The Swatch is produced in one single operation, which means that the production costs are lower. Attractive distributor margins and extensive training of the retailers sales personnel combined with innovative advertising ensure the unique positioning of the product. * The Swatch’s innovative design and production technology led to the creation of a low-cost, highly reliable watch; giving ETA a clear competitive advantage. * Strong brand and customer loyalty: †¢ Repositioning into in the fashion market. A wide range of products with different designs across all price points Mission, Goals, Objectives, Social Responsibility and Ethics: Objectives: Price: Quartz-analogue watch, retailing for no more than 50 Franc Suisse * Sales target: 10 million pieces during the first three years. * Manufacturing costs: Initially 15 SFr – less than those of any competitor. At a cumulative volume of 5 million pieces, learning and scale economies would reduce costs to 10 SFr or less. Continued expansion would yield long-term estimated costs per watch of less than 7 SFr. * Quality: High quality, waterproof, shock resistant, no repair possible, battery only replaceable element, all parts standardized, free choice of material, model variations only in dial and hands.

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