Optimal Investment and Portfolio Strategies with Minimum Guarantee and Inflation Protection for a Defined Contribution Pension Scheme

Abstract: We study the optimal investment and optimal portfolio strategies with minimum guarantee and inflation protection in a defined contribution (DC) pension scheme. We assume a market structure that is characterized by a cash account, an indexed bond (i.e., inflation-linked bond) and stock. We obtain optimal share of portfolio values (that depend on the minimum guarantee) in the indexed bond and stock for the pension plan member (PPM) at time t. We find that in the presence of indexed bond in the investment strategy, the inflation risk that is associated with the PPM’s contributions and minimum guarantee is hedged. Hence, indexed bond can be used to hedge inflation risk that is associated with a contributory pension funds scheme. We also find in our numerical result that, with effective management of the pension funds by pension fund administrators (PFAs), PPMs will have high returns from their investment. From our results, we find that the optimal terminal wealth that will accrue to the PPM and PFA to be N1.97*1022 . We also find that the minimum guarantee that will accrue to the PPM at retirement to be N3.05*108 . The portfolio values in stock, indexed bond and cash account are 0.5, 3.1, and -2.6, respectively. Therefore, more investment should go to indexed bond and stock since they yield positive portfolio value. Key words: Optimal Investment; Portfolio Strategies; Minimum Guarantee; Defined Contributio

Cross Talk on SARS-CoV-2 and Human Immunity

Severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), the virus that causes coronavirus disease 2019 (COVID-19) is now the leading cause of death globally. This review elaborated the human immune response to SARSCoV-2 and its immune evasion mechanisms as well as factors that determine the case fatality rate and effective immunity using articles selected from PubMed, Medline, Google Scholar and Science Direct that provided an in-depth knowledge of the immunopathogenesis of SARS-CoV-2. Findings from the forty eligible reviewed articles revealed that the host-viral interaction to SARS-CoV-2 involves the recognition of SARS-CoV-2, recruitment of adaptor proteins and antigen presentation which activates both innate and adaptive immunity involved in inhibition of viral replication (interferons), destruction of virus-infected cells (natural killer cells and CD8 cells) and viral clearance. However, SARS-CoV-2 subverts human immunity using multiple strategies such as production of double membrane vesicles, repression of adaptor proteins, interferons and antigen presentation. Accumulating shreds of evidence have shown that several factors such as age, sex, comorbidities, obesity, and lifestyle factors affect immune responsiveness to SARS-CoV-2. Hence, better knowledge of the viral interactions with the host and factors determining prevalence and severity is fundamental to the management and development of effective and biocompatible prophylactic and therapeutic options.&nbsp

Appraisal of Marketing Communication Tools for Effective Country Rebranding Campaign of Nigeria

The study was on appraisal of marketing communication tools for effective country rebranding campaign of Nigeria. It was an offshoot of the perennial erroneous perceptions of Nigerians and the consequent negative image equation in the international circles. This is in spite of the various federal government’s Rebranding Nigeria project. The objectives of this study were to: ascertain if the right marketing communications messages, right marketing communications media, and right marketing communications personnel were used in the rebranding Nigeria projects. Survey technique was employed in the study, which targeted a cross section of Nigerians of varied social, economic and political classes. The area of coverage was limited to two cities: PortHarcourt and Lagos, where Nigerians of all ethnic persuasions live and work there in large numbers. From a working population of 1,200,000, a sample size of 350 was determined. Data were analyzed with the Chi-square (X2) statistical tool, at a confidence level of 95% and a 5% margin of error. Results reveal that: the wrong marketing communications messages were used in the execution of the rebranding Nigeria project; the wrong choice of media channels were used in the rebranding Nigeria exercises and majority of the personnel used in the rebranding Nigeria programmed did not have the requisite marketing communications skills. Based on this, it was recommended that trained marketing communications’ practitioners and appropriate media should be used in future rebranding Nigeria exercises. Keywords: Marketing Communications, Country Rebranding, Media, Personnel

Validation of Global Digital Elevation Models in Lagos State, Nigeria

International audienceSatellite-derived Digital Elevation Models (DEM) are fast replacing the classical method of elevation data acquisition by ground survey methods. The availability of free and easily accessible DEMs is no doubt of great significance and importance, and a valuable resource in the quest to accurately model the earth's surface topography. However, the suitability of Digital Elevation Models in simulating the topography of the earth at micro, local and regional scales is still an active area of research. The accuracy of Digital Elevation Models vary from one location to another. As such, it is important to conduct local and regional assessments to inform the global user community on the relative performance of these DEMs. This study evaluates the accuracy of the 30-metre Advanced Spaceborne Thermal Emission and Reflection Radiometer Global Digital Elevation Models version 2, the 1-kilometre GTOPO30, the 90-metre Shuttle Radar Topography Mission v4 and the 1-kilometre Shuttle Radar Topography Missionv2.1 Digital Elevation Models by validating with highly accurate GPS check-points over Lagos, Nigeria. With a Root Mean Square Error of 3.75m, the results show that Shuttle Radar Topography Mission v4 has the highest vertical accuracy followed by Shuttle Radar Topography Mission v2.1 (Root Mean Square Error: 5.73m), Advanced Spaceborne Thermal Emission and Reflection Radiometer (Root Mean Square Error: 21.70m), and GTOPO30 which shows the lowest vertical accuracy (Root Mean Square Error: 29.41m). By conducting the accuracy assessment of these products in Lagos, this study informs efforts directed at the exploitation of these Digital Elevation Models for topographic mapping and other scientific and environmental application

EVALUATION OF THREE CLASSIFICATION RULES FOR MIXTURE OF DISCRETE AND CONTINOUS VARIABLES

The best classification rule is the one that leads to the smallest probability of misclassification which is called the error rate. This work focused on three classification rules for mixture of discrete and continuous variables with the aim to evaluate the performance of these rules to in classification of individuals into several categories. Applications were done using simulated data and real life data. The result obtained revealed that the location model achieved better result than the other two rules in minimizing the average error rate in both datasets. Keyword: Location Model, Linear Discriminant Models, Quadratic, Discriminant Model, Error Rate

A COMPARISON BETWEEN MAXIMUM LIKELIHOOD RULE AND LOGISTIC DISCRIMINANT ANALYSIS IN THE CLASSIFICATION OF MIXTURE OF DISCRETE AND CONTINOUS VARIABLES

An optimal measure of performance is the one that lead to maximization of average error rate or probability of misclassification. This paper aimed to compare between the maximum likelihood rule and logistic discriminant analysis in the classification of mixture of discrete and continuous variables. The efficiency of the methods was tested using simulated and real dataset. The result obtained showed that the maximum likelihood rule performed better than the logistic discriminant analyses, in maximizing the average error rate in both experiment conducted. Keyword: Maximum likelihood rule, Logistic discriminants, error rate, Likelihood ratio, Discriminant analysis

Does Multilateralism Crowd Out Intra-Group Trade? Evidence From Some Developing Regions

The literature is ambiguous on the nature of the relationship between multilateral trade negotiations and growth of intra-group trade. However, both the WTO and proponents ofliberalization maintain that the relationship is positive and that the WTO supports regional bodies and intra-group trade. But does evidence support this? It is possible that the WTO supports regional bonding, while its existence discourages growth of actual trade and development of institutions within regions. Our findings seem to support this view, particularly for southern countries as shown by trends in intra-group trade captured in this work

The Theatre and Sustainable Human Development: Fumes of Fuel and Boundless Love as Paradigms

The performing Arts encompass a wide range of disciplines which are invariably synonymous with creativity, thus, creativity is the hallmark of performance. For the sake of clarity, Performing Arts comprise Theatre Arts, Music, Dance and Choreography and the electronic media of Radio, Television and film commonly referred to as the audio-visual or media arts. Development is invariably measured by performance using certain indices. It is also part of the function of the performing arts to project development as well be evidence of development themselves. For instance, it is a sign of development to produce a play before an audience, particularly an audience composed of persons saddled with the responsibility of showing the direction for the development of a certain society. This paper will use the plays, Fumes of Fuel and Boundless Love to expound on the relevance of the Performing Arts in human and societal development.Keywords: Performing Arts, Creativity, Development and Humanity

Earnings Management of Quoted Corporate Firms: Detecting and Rethinking the Key Drivers in an Insensitive Capital Market as a Panacea for Investors’ Resource Abuse

Both mechanistic and positive accounting theories were postulated to explain the drivers of earnings management. Scholars postulated the theories perhaps under the belief that market would always be sensitive to firm performance reports. Since the emergence of these theories, many empirical researches have been based on such a framework. They found that positive relationship exists between capital market and earnings management. The key questions we want to address in this present study is whether the direction will remain unaltered if market goes insensitive. In addition, if it has altered, what key factors could determine earnings management in the turn of the market? Given that some developing economies capital markets are now insensitive to performance stimuli for over a long period, the reality of metrics constituting the real drivers of earnings management needs rethinking for avoidance of investors’ resource misallocation. In this study, we examined variables that could really constitute the key drivers using a cross-sectional survey research design in an insensitive market among the quoted firms in Nigeria. We analyzed data we obtained from survey using logistic regression model, which helped us to detect earnings management maximum likelihood in an insensitive stock market. The result revealed that market capitalization and compensation contracting based on share options negatively drive managers to engage in earnings management as opposed to mechanistic theories if market turns insensitive to performance. However, non- market based factors including debt covenant, compensation based on cash options, loss deletion and regulation positively drive managers to engage in earnings management practices whether market is sensitive or insensitive to performance report. Therefore, we found the key drivers of earnings management in an insensitive market to constitute non-market based compensation incentives. We recommend that in order to encourage earnings quality and eschew investors’ resource misallocation, earnings management containment based on the efficient, sensitive market premises should be reviewed, and emphasis should be placed on non-market based containment strategies. Key Words: Earnings; Earnings Management; Drivers, Market Capitalization; Market Sensitivity; Capital Market Insensitivit