Evaluating the validity of the Automated Working Memory Assessment

The aim of the present study was to investigate the construct stability and diagnostic validity of a standardised computerised tool for assessing working memory: the Automated Working Memory Assessment (AWMA). The purpose of the AWMA is to provide educators with a quick and effective tool to screen for and support those with memory impairments. Findings indicate that working memory skills in children with memory impairments are relatively stable over the course of the school year. There was also a high degree of convergence in performance between the AWMA and the WISC-IV Working Memory Index. The educational implications are discussed

Hedging GNMA Mortgage-Backed Securities with T-Note Futures: Dynamic versus Static Hedging

This article proposes a dynamic hedging model for Government National Association Mortgage-Backed Securities (GNMA MBSs) that is free of the drawbacks associated with the static hedging strategies currently used. The simultaneity bias of the regression approach is dealt with by modeling the joint distribution of price changes of GNMA MBSs and 10-year Treasury-note futures. Error correction (EC) terms from cointegrating relationships are included in the conditional mean equations to preserve the long-term equilibrium relationship of the two markets. The time-varying variance-covariance structure of the two markets is modeled via a version of the bivariate generalized autoregressive conditionally heteroskedastic model (bivariate GARCH), which assures that the time-varying variance-covariance matrix is positive semidefinite for all time periods. This dynamic error-correction GARCH model is estimated using daily data on six different coupon GNMA MBSs. Dynamic cross-hedge ratios are obtained from the time-varying variance-covariance matrix using the 10-year Treasury-note futures contract as the hedging instrument. These ratios are evaluated in terms of both overall risk reduction and expected utility maximization. There is overwhelming evidence that dynamic hedge ratios are superior to static ones even when transaction costs are incorporated into the analysis. This conclusion holds for all six different coupon GNMA MBSs under investigation. Copyright American Real Estate and Urban Economics Association.