Markowitz portfolio theory and capital asset pricing model for Kuala Lumpur stock exchange: a case revisited

Capital Asset Pricing Model is widely used by investors to estimate the return or the moving behavior of the stock and Markowitz Model is employed to achieve portfolio diversification. This study examine whether CAPM is valid to forecast the behaviour of the each individual stock and its return as well as its validity in the portfolio with stocks listed in Malaysia. Second, it evaluates the suitability of Markowitz Model to evaluate the performance of the Malaysia investment portfolio. This is done within the framework of 2010 to 2014 using weekly data of 60 companies. OLS unbiased estimator, autocorrelation and heterodasticity problems are to be conducted to test the validity of the model. It is concluded that CAPM is reasonable to be the indicator of stock prices in Malaysia as well as in portfolio basket. It proves that there is linearity in CAPM but unique risk and systematic do not need to be captured. Managers can use CAPM as a proxy to estimate their stock return and diversify the portfolio to reduce the unsystematic risk to enable them to execute the right policy in their management in order to maximise profit at the same time increase shareholder wealth maximisation. Furthermore, it is suggested to apply Markowitz portfolio diversification to reduce the unsystematic risk. Overall, portfolio diversification could build up the investors’ confidence towards the investment decision and to develop a sound investment financial market in assisting Malaysia to achieve its mission to be a developed country in 2020

Clinical effects research of the excision of pterygium combined with limbal epithelial autograft with conjunctival grafting on recurrent pterygium

AIM: To observe the clinical effects of the excision of pterygium combined with limbal epithelial autograft with conjunctival grafting on recurrent pterygium. <p>METHODS: Totally 84 patients(84 eyes)with first recurrent pterygium were allocated two groups: excision pterygium with limbal epithelial autograft with conjunctival(group A, 43 cases with 43 eyes)and excision of pterygium with conjunctival autograft(group B, 41 cases with 41 eyes), the post-operative follow-up period of 12 months, we analyzed the repair time of epithelium, tear break-up time(1 month and 3 months), Schirmer l test(1 month and 3 months), corneal fluorescence staining test(1 month and 3 months), and recurrent rate. <p>RESULTS: The group A had a shorter repair time of epithelium and lower recurrent rate, compared with the group B, which had statistically significant difference(<i>P</i><0.05), but there was no statistically significant difference in the tear break-up time, corneal fluorescence staining test and the Schirmer l test in 1 month and 3 months between the two groups(<i>P</i>>0.05). <p>CONCLUSION:Limbal epithelial autograft with conjunctival transplantation is a convenient, safe, effective method for the treatment of recurrent pterygium

Influence of macroeconomics factors and legal stability to the insurance growth in the ASEAN-5 countries

This paper examines the influence of legal stability and macroeconomics factor to the non-life insurance development. In light of the growing significance of foreign direct investment (FDI) and trade that stimulate insurance sector, and the stress placed on legal stability of the countries, investigating the role of legal stability is crucial to sustain a country’s financial development. This study employs a panel data analysis spanning 20 years in the selected developing countries. The findings suggest that higher trade, higher income, higher stock market trading activities and higher availability of finance credit will enhance the non-life insurance development. Legal stability such as enhancement on the property right and government integrity will improve the non-life insurance development. When the legal environments in emerging countries are more stable, the FDI and stocks market will become more encouraging and stimulate non-life insurance development. The policy makers should improve the legal stability in emerging countries to improve the financial development for minimizing the gap with developed countries. This study includes the institutional factors components in addition to the macroeconomics factors could provide a complete picture towards the improvement of non-life insurance development in emerging and transition countries

Impacts of risk based capital regulation in Malaysian Islamic insurers (Takaful)

Risk Based Capital framework for Takaful operators (RBCT) is enforced by the Central Bank of Malaysia with the aim to ensure that Takaful operators have adequate capital to provide sound financial service. The objectives of this article is to examine the impacts of RBCT on efficiency, productivity and competitiveness level of Family Takaful Operators (FTO) and the relationship between efficiency and competitiveness in FTO in Malaysia. This study employs three methods namely Data Envelopment Analysis (DEA), Malmquist Productivity Index (MPI) and Panzar Rosse (PR) to investigate the impacts of RBC on the efficiency, productivity and competitiveness of FTO in Malaysia. The efficiency results indicate that after RBCT comes into effect, the cost efficiency has achieved higher efficient level. Although the productivity efficiency are improving, the technological systems of FTO are yet to achieve a reasonable level. From competitiveness results, the FTO are less competitive prior the implementation of RBCT, but has become more competitive after the regulation of RBCT framework. Furthermore, the more efficient of a Takaful market, the more competitive the market is. The implication of this study is that regulators need to impose prudent risk based capital regulation because it will improve the efficiency and competitiveness of Islamic insurers

Markowitz Portfolio Theory and Capital Asset Pricing Model for Kuala Lumpur Stock Exchange: A Case Revisited

Capital Asset Pricing Model is widely used by investors to estimate the return or the moving behavior of the stock and Markowitz Model is employed to achieve portfolio diversification. This study examine whether CAPM is valid to forecast the behaviour of the each individual stock and its return as well as its validity in the portfolio with stocks listed in Malaysia. Second, it evaluates the suitability of Markowitz Model to evaluate the performance of the Malaysia investment portfolio. This is done within the framework of 2010 to 2014 using weekly data of 60 companies. OLS unbiased estimator, autocorrelation and heterodasticity problems are to be conducted to test the validity of the model. It is concluded that CAPM is reasonable to be the indicator of stock prices in Malaysia as well as in portfolio basket. It proves that there is linearity in CAPM but unique risk and systematic do not need to be captured. Managers can use CAPM as a proxy to estimate their stock return and diversify the portfolio to reduce the unsystematic risk to enable them to execute the right policy in their management in order to maximise profit at the same time increase shareholder wealth maximisation. Furthermore, it is suggested to apply Markowitz portfolio diversification to reduce the unsystematic risk. Overall, portfolio diversification could build up the investors' confidence towards the investment decision and to develop a sound investment financial market in assisting Malaysia to achieve its mission to be a developed country in 2020. Keywords: Capital Asset Pricing Model, Risk and Return, Markowitz Portfolio Diversification JEL Classifications: G11, G1

Effect of seaweed powder on the quality of the Pineapple-Chili sauce

This study was conducted to produce pineapple-chili sauce mixed with seaweed (Kappaphycus alvarezii) based on the best formulation, to determine nutritional composition of the control and the best formulation and to determine the effect on quality of this product. A total of 3 formulations had been developed using different composition of seaweed powder at 2.0%, 2.5%, 3.0% and were undergo sensory evaluation and physicochemical analysis to choose the best formulation. The selected and control samples were then analysed for proximate values. The increasing in seaweed powder composition influenced significantly (p0.05) the total soluble solids, total acidity and pH. The results of proximate analysis shown the composition of the best formulation was 72.54% moisture content, 23.44 % carbohydrate, 2.70% ash, 0.81% crude fibre, 0.37% crude protein and 0.14 % rude fat showed significantly higher (p<0.05) in ash, crude protein, and crude fibre compared to control

A fluorescent probe based on cucurbit[7]uril for the selective recognition of phenylalanine

© 2020 Elsevier B.V. Herein we describe a simple fluorescence quenching method for the selective recognition and determination of the amino acid phenylalanine (Phe). The use of 1H NMR spectroscopy revealed that the alkaloid palmatine (PAL) can encapsulated partially into the cavity of cucurbit[7]uril (Q[7]) in aqueous solution to form a stable 1:1 host−guest inclusion complex. This host-guest complex exhibits fluorescence of moderate intensity. Interestingly, the addition of the Phe results in a dramatic quenching of the fluorescence intensity associated with the inclusion complex. By contrast, the addition of other natural amino acids resulted in no change in the fluorescence. Based on the linear relationship between the fluorescence intensity and the concentration of Phe, the detection of the concentration of Phe in aqueous solution is facile. Thus, a new fluorescence quenching method for the recognition and determination of the Phe has established herein

Comparison of Halo Detection from Noisy Weak Lensing Convergence Maps with Gaussian Smoothing and MRLens Treatment

Taking into account the noise from intrinsic ellipticities of source galaxies, we study the efficiency and completeness of halo detections from weak lensing convergence maps. Particularly, with numerical simulations, we compare the Gaussian filter with the so called MRLens treatment based on the modification of the Maximum Entropy Method. For a pure noise field without lensing signals, a Gaussian smoothing results a residual noise field that is approximately Gaussian in statistics if a large enough number of galaxies are included in the smoothing window. On the other hand, the noise field after the MRLens treatment is significantly non-Gaussian, resulting complications in characterizing the noise effects. Considering weak-lensing cluster detections, although the MRLens treatment effectively deletes false peaks arising from noise, it removes the real peaks heavily due to its inability to distinguish real signals with relatively low amplitudes from noise in its restoration process. The higher the noise level is, the larger the removal effects are for the real peaks. For a survey with a source density n_g~30 arcmin^(2), the number of peaks found in an area of 3x3 sq.deg after MRLens filtering is only ~50 for the detection threshold kappa=0.02, while the number of halos with M>5x10^{13} M_{\odot} and with redshift z<=2 in the same area is expected to be ~530. For the Gaussian smoothing treatment, the number of detections is ~260, much larger than that of the MRLens. The Gaussianity of the noise statistics in the Gaussian smoothing case adds further advantages for this method to circumvent the problem of the relatively low efficiency in weak-lensing cluster detections. Therefore, in studies aiming to construct large cluster samples from weak-lensing surveys, the Gaussian smoothing method performs significantly better than the MRLens.Comment: 16 pages, 8 figures, accepted for publication by RA