Social referencing in the domestic horse

Dogs and cats use human emotional information directed to an unfamiliar situation to guide their behavior, known as social referencing. It is not clear whether other domestic species show similar socio-cognitive abilities in interacting with humans. We investigated whether horses (n = 46) use human emotional information to adjust their behavior to a novel object and whether the behavior of horses differed depending on breed type. Horses were randomly assigned to one of two groups: an experimenter positioned in the middle of a test arena directed gaze and voice towards the novel object with either (a) a positive or (b) a negative emotional expression. The duration of subjects’ position to the experimenter and the object in the arena, frequency of gazing behavior, and physical interactions (with either object or experimenter) were analyzed. Horses in the positive condition spent more time between the experimenter and object compared to horses in the negative condition, indicating less avoidance behavior towards the object. Horses in the negative condition gazed more often towards the object than horses in the positive condition, indicating increased vigilance behavior. Breed types differed in their behavior: thoroughbreds showed less human-directed behavior than warmbloods and ponies. Our results provide evidence that horses use emotional cues from humans to guide their behavior towards novel objects

Technical alignment

This essay discusses the importance of the areas of infrastructure and testing to help digital preservation services demonstrate reliability, transparency, and accountability. It encourages practitioners to build a strong culture in which transparency and collaborations between technical frameworks are valued highly. It also argues for devising and applying agreed-upon metrics that will enable the systematic analysis of preservation infrastructure. The essay begins by defining technical infrastructure and testing in the digital preservation context, provides case studies that exemplify both progress and challenges for technical alignment in both areas, and concludes with suggestions for achieving greater degrees of technical alignment going forward

Global Asset Allocation Shifts

We show that global asset reallocations of U.S. fund investors obey a strong factor structure, with two factors accounting for more than 90% of the overall variation. The first factor captures switches between U.S. bonds and equities. The second reflects reallocations from U.S. to international assets. Portfolio allocations respond to U.S. monetary policy, most prominently around FOMC events when institutional investors reallocate from basically all other asset classes to U.S. equities. Reallocations of both retail and institutional investors show return-chasing behavior. Institutional investors tend to reallocate toward riskier, high-yield fixed income segments, consistent with a search for yield

Dividend predictability around the world

© Michael G. Foster School of Business, University of Washington 2015. We show that dividend-growth predictability by the dividend yield is the rule rather than the exception in global equity markets. Dividend predictability is weaker, however, in large and developed markets where dividends are smoothed more, the typical firm is large, and volatility is lower. Our findings suggest that the apparent lack of dividend predictability in the United States does not uniformly extend to other countries. Rather, cross-country patterns in dividend predictability are driven by differences in firm characteristics and the extent to which dividends are smoothed

International diversification benefits with foreign exchange investment styles

This paper provides a comprehensive analysis of portfolio choice with popular foreign exchange (FX) investment styles such as carry trades and strategies commonly known as FX momentum, and FX value. We investigate if diversification benefits can be achieved by style investing in FX markets relative to a benchmark allocation consisting of U.S. bonds, U.S. stocks, and international stocks. Overall, our results suggest that there are significant improvements in international portfolio diversification due to style-based investing in FX markets (both in the statistical, and most importantly, in the economic sense). These results prevail for the most important investment styles after accounting for transaction costs due to re-balancing of currency positions, and also hold in out-of-sample tests. Moreover, these gains do not only apply to a mean-variance investor but we also show that international portfolios augmented by FX investment styles are superior in terms of second and third order stochastic dominance. Thus, even an investor who dislikes negatively skewed return distributions would prefer a portfolio augmented by FX investment styles compared to the benchmark

Currency momentum strategies

We provide a broad empirical investigation of momentum strategies in the foreign exchange market. We find a significant cross-sectional spread in excess returns of up to 10% p.a. between past winner and loser currencies. This spread in excess returns is not explained by traditional risk factors, it is partially explained by transaction costs and shows behavior consistent with investor under- and over-reaction. Moreover, crosssectional currency momentum has very different properties from the widely studied carry trade and is not highly correlated with returns of benchmark technical trading rules. However, there seem to be very effective limits to arbitrage which prevent momentum returns from being easily exploitable in currency markets

Protein-mediated RNA folding governs sequence-specific interactions between rotavirus genome segments

Segmented RNA viruses are ubiquitous pathogens, which include influenza viruses and rotaviruses. A major challenge in understanding their assembly is the combinatorial problem of a non-random selection of a full genomic set of distinct RNAs. This process involves complex protein/RNA interactions, which are often obscured by non-specific binding at concentrations approaching in vvo assembly conditions. Here, we present direct experimental evidence of sequence-specific inter-segment interactions in rotaviruses, taking place in a complex RNA- and protein- rich milieu. We show that binding of the rotaviral protein NSP2 to ssRNAs results in the remodeling of RNA, which is conducive to formation of inter-segment contacts. To identify the sites of these interactions, we have developed an RNA-RNA SELEX approach for mapping the sequences involved in inter-segment base-pairing. Our findings elucidate the molecular basis underlying inter-segment interactions in rotaviruses, paving the way for delineating RNA-RNA interactions that govern assembly of other segmented RNA viruse

Currency value

© The Author 2016. Published by Oxford University Press on behalf of The Society for Financial Studies. All rights reserved. We assess the properties of currency value strategies based on real exchange rates. We find that real exchange rates have predictive power for the cross-section of currency excess returns. However, adjusting real exchange rates for key country-specific fundamentals (productivity, the quality of export goods, net foreign assets, and output gaps) better isolates information related to the currency risk premium. In turn, the resultant measure of currency value displays considerably stronger predictive power for currency excess returns. Finally, the predictive information content in our currency value measure is distinct from that embedded in popular currency strategies, such as carry and momentum

Socio-cultural norms of body size in Westerners and Polynesians affect heart rate variability and emotion during social interactions

The perception of body size and thus weight-related stigmatization vary between cultures. Both are stronger in Western than in Polynesian societies. Negative emotional experiences alter one’s behavioral, psychological, and physiological reactions in social interactions. This study compared affective and autonomic nervous system responses to social interactions in Germany and American Samoa, two societies with different body-size related norms. German (n = 55) and Samoan (n = 56) volunteers with and without obesity participated in a virtual ball-tossing game that comprised episodes of social inclusion and social exclusion. During the experiment, heart rate was measured and parasympathetic activity (i.e., high-frequency heart rate variability) was analyzed. We found differences in both emotional experience and autonomic cardio-regulation between the two cultures: during social inclusion, Germans but not Samoans showed increased parasympathetic activity. In Germans with obesity, this increase was related to a more negative body image (comprising high rates of weight-related teasing). During social exclusion, Samoans showed parasympathetic withdrawal regardless of obesity status, while Germans with obesity showed a stronger increase in parasympathetic activity than lean Germans. Furthermore, we found fewer obesity-related differences in emotional arousal after social exclusion in Samoans as compared to Germans. Investigating the interplay of socio-cultural, psychological, and biological aspects, our results suggest influences of body size-related socio-cultural norms on parasympathetic cardio-regulation and negative emotions during social interactions