Investment Risk and Returns: The Relationship Between A Stock and An Index Using the Modern Portfolio Theory

The aim of this report is to examine investment risk and returns by looking at the relationship between a stock and an index using the Markowitz Modern Portfolio theory. Monthly Data on IBM and Dow Jones were obtained from yahoo finance for the period 1995 to 2015. A linear regression was utilized to analyze the relationship between the Dow Jones index and the IBM stock returns. The results revealed that there is a positive relationship between IBM stock returns and the Dow Jones index. In their decision making, investors and policy makers are, recommended to additionally consider the micro and macro demand and supply forces that could possibly influence ROI. In other to avoid or reduce risk. Keywords: Portfolio, investment, risk, index, relationship, stock

Impact of Basel Iii Regulations on Banks: Evidence from Afriland First Bank in Cameroon

Bank financing is an engine of economic growth, mainly where financial intermediation is more advanced. The public authorities are therefore faced with the obligation to advocate for the resilience of the financial system. As part of their assignments, supervisors are working to put in place prudential regulation that would require banks to have a solid financial base to face the various risks and perils. Although the financial crisis has confirmed the need for adjustments in prudential regulation, the financial institutions have denounced the high cost of the new Basel requirements, a cost that would inevitably weigh on the banking activity and, consequently, on the economic activity. Based on this observation, we are conducting an impact study whose objective would is to evaluate and demonstrate the impact of the implementation of the Basel III agreements in Cameroon. Keywords: Banking; Basel III regulations; solid financial base; financial institutions; DOI: 10.7176/RJFA/10-13-05 Publication date:July 31st 201

Modelling Default Risk of Borrowers: Evidence from Online Peer to Peer Lending Platforms in Australia

Peer to Peer lending has the capacity to transforming the mass banking industry worldwide but credit risk modelling remains the core challenge of the platform. The general objective of this study is to analyse the credit default risk of borrowers of Peer to Peer online lending platform based in Australia. Specific objectives include the following; To identify the loan information applicants provide to request for a loan facility,Using RateSetter.com published data on loans to predict the likelihood of credit risk of the platform. In this article, we employed binary logistic regression model to assess the likelihood of loan default. Based on the mathematical approach and the nature of dependent variable, we grouped variables into categorical, numerical-continuous as well as binary. The dependent variable is dichotomous whilst real-life dataset was retrieved from a popular and competitive online lending platform based in Australia from 2014-2017. We identified that early repayment, no mortgage tenant; car, debt consolidation, investment, major events, professional services, 3-year loan duration, 4-year loan duration, interest rate and income have significant influence on borrowers’ likelihood to default. Our empirical coefficients suggest that, there is 83.4% likelihood of borrowers default rate and hence recommended a critical examination of borrowers’ information presented to the platform. This paper fulfills the need to examine the credit information provided by loan applicants. Similarly, it endeavors to predict the possibility of borrowers default risk and the reasons contributing to online lending credit default risk. Keywords: Credit Risk, Peer To Peer Online Lending, Binary Logistic Regression DOI: 10.7176/RJFA/10-2-0

Physical mechanisms for the offshore detachment of the Changjiang Diluted Water in the East China Sea

Author Posting. © American Geophysical Union, 2008. This article is posted here by permission of American Geophysical Union for personal use, not for redistribution. The definitive version was published in Journal of Geophysical Research 113 (2008): C02002, doi:10.1029/2006JC003994.Physical mechanisms for the summertime offshore detachment of the Changjiang Diluted Water (CDW) into the East China Sea are examined using the high-resolution, unstructured-grid, Finite-Volume Coastal Ocean Model (FVCOM). The model results suggest that isolated low salinity water lens detected west of Cheju Island can be formed by (1) a large-scale adjustment of the flow field to the Changjiang discharge and (2) the detachment of anticyclonic eddies as a result of baroclinic instability of the CDW front. Adding the Changjiang discharge intensifies the clockwise vorticity of the subsurface current (originating from the Taiwan Warm Current) flowing along the 50-m isobath and thus drives the low-salinity water in the northern coastal area of the Changjiang mouth offshore over a submerged plateau that extends toward Cheju Island. Given a model horizontal resolution of less than 1.0 km, the CDW front becomes baroclinically unstable and forms a chain of anticyclonic and cyclonic eddies. The offshore detachment of anticyclonic eddies can carry the CDW offshore. This process is enhanced under northward winds as a result of the spatially nonuniform interaction of wind-induced Ekman flow and eddy-generated frontal density currents. Characteristics of the model-predicted eddy field are consistent with previous theoretical studies of baroclinic instability of buoyancy-driven coastal density currents and existing satellite imagery. The plume stability is controlled by the horizontal Ekman number. In the Changjiang, this number is much smaller than the criterion suggested by a theoretical analysis.The development of FVCOM is supported by the Massachusetts Fisheries Institute through NOAA grants DOC/ NOAA/NA04NMF4720332 and DOC/NOAA/NA05NMF4721131 and also the U.S. GLOBEC Northwest Atlantic/Georges Bank program through NSF grants OCE-0234545 and OCE-0227679, NOAA grant NA160P2323 and ONR subcontract grant from Woods Hole Oceanographic Institution. P. Ding is supported by the Chinese National Key Basic Research Project grant 2002CB412403. X. Mao is supported by the National Natural Science Foundation of China (NSFC) grant 40576079

Myeloid-Derived Suppressor Cells Induce Podocyte Injury Through Increasing Reactive Oxygen Species in Lupus Nephritis

The expansion of myeloid-derived suppressor cells (MDSCs) has been documented in murine models and patients with lupus nephritis (LN), but the exact role of MDSCs in this process remains largely unknown. In this study, we investigated whether MDSCs are involved in the process of podocyte injury in the development of LN. In toll-like receptor-7 (TLR-7) agonist imiquimod-induced lupus mice, we found the severe podocyte injury in glomeruli of lupus mice and significant expansion of MDSCs in spleens and kidneys of lupus mice. The function of TLR-7 activated MDSCs was enhanced including the increased generation of reactive oxygen species (ROS) in vivo and in vitro. Moreover, the ROS production of MDSCs induced podocyte injury through activating the p-38MAPK and NF-kB signaling. Furthermore, we verified that podocyte injury was indeed correlated with expansion of MDSCs and their ROS secretion in LN of pristane-induced lupus mice. These findings first indicate that the podocyte injury in LN was associated with the increased MDSCs in kidney and MDSCs may be a promising therapeutic target of LN in the future