Stock returns and noise trading: Domestic and international evidence

In recent years there has been a growing debate on the possible linkages between the behavioral aspects of investors and stock prices. The financial economics have become more receptive to imperfect rational explanations and in this regard, investor psychology has emerged as a major determinant of stock prices. Under this approach, the central task is to examine how stock prices are related not only to risks, but also to the noise (Hirshleifer, 2001). After decades of study, the sources of risk premium in purely rational dynamic models are well understood; while, dynamic psychology based asset pricing theories are still in the infancy stage. This debate surrounding asset pricing has identified two prime suspects in setting stock prices: fundamentals and investor sentiments. The theoretical framework describing the role investor sentiments play in determining stock prices is provided by researchers such as Black (1986), Trueman (1988), DeLong et al. (1990), Shleifer and Summers (1990), Lakonishok et al. (1991), Campbell and Kyle (1993), Shefrin and Statman (1994), Palomino (1996), Barberis et al.(1998), Daniel et al.(1998) and Hong and Stein (1999). A direct implication of these studies is certain groups of investors (noise traders) who often do not make investment decisions based on a company\u27s fundamentals are capable of affecting stock prices by way of unpredictable changes in their sentiments. Despite a substantial amount of literature on the role of investor sentiments in determining stock prices, there is still no coherent answer on whether these effects can be attributed entirely to investor exuberance, or to fully rational expectations based on the risk factors, or both. Using a unique monthly database of investor sentiments at the individual and institutional level, and by employing recent multivariate techniques, this study sheds new light on the issue of investor rationality. The results of the generalized impulses generated from vector auto regression (VAR) models suggest the following: first, individual investor sentiments have a greater effect on the U.S. stock market returns, while institutional investor sentiments have a greater effect on large stocks; second, individual investors are more likely to be the noise traders in the case of the overall market, while institutional investors are more likely to be noise traders in the case of large stocks; third, the effect of sentiments induced fundamental trading is greater than the effect of sentiments induced noise trading in the cases of both the overall market and the large stocks; fourth, both the individual and institutional investors display significant extrapolation bias and undertake positive feedback trading; fifth: there is an asymmetric response to fundamental and noise trading by individual and institutional investors during optimistic and pessimistic periods; sixth, the institutional investor sentiments are transmitted internationally from the U.S. stock market to a greater extent than the individual investor sentiments; and lastly, the iv international effects of the U.S. stock market can be attributed to fundamental trading and not noise trading in the U.S. The results lend more support to the risk based explanations of asset pricing. Investors could therefore improve their portfolio performance by considering the stability in risk factors as determinants of stock prices. Policy makers can concentrate their efforts to attain stability in fundamentals in order to reduce volatility and minimize investor uncertainty

The Statistical Properties of Superfluid Turbulence in 4^4He from the Hall-Vinen-Bekharevich-Khalatnikov Model

We obtain the von K\'arm\'an-Howarth relation for the stochastically forced three-dimensional Hall-Vinen-Bekharvich-Khalatnikov (3D HVBK) model of superfluid turbulence in Helium ($^4$He) by using the generating-functional approach. We combine direct numerical simulations (DNSs) and analyitcal studies to show that, in the statistically steady state of homogeneous and isotropic superfluid turbulence, in the 3D HVBK model, the probability distribution function (PDF) $P(\gamma)$, of the ratio $\gamma$ of the magnitude of the normal fluid velocity and superfluid velocity, has power-law tails that scale as $P(\gamma) \sim \gamma^3$, for $\gamma \ll 1$, and $P(\gamma) \sim \gamma^{-3}$, for $\gamma \gg 1$. Furthermore, we show that the PDF $P(\theta)$, of the angle $\theta$ between the normal-fluid velocity and superfluid velocity exhibits the following power-law behaviors: $P(\theta)\sim \theta$ for $\theta \ll \theta_*$ and $P(\theta)\sim \theta^{-4}$ for $\theta_* \ll \theta \ll 1$, where $\theta_*$ is a crossover angle that we estimate. From our DNSs we obtain energy, energy-flux, and mutual-friction-transfer spectra, and the longitudinal-structure-function exponents for the normal fluid and the superfluid, as a function of the temperature $T$, by using the experimentally determined mutual-friction coefficients for superfluid Helium $^4$He, so our results are of direct relevance to superfluid turbulence in this system.Comment: 12 pages, 3 figure

Development of WC-Feal Composite by Stir Casting Method

In this paper author make an effort to develop a new material for fulfill the need of present requirement. This material is developed by the using of stir casting method. A AMMC’s composite are developed to fulfill the need of present requirements. This composite material is prepared by the use of 3 metals. These metals are iron (Fe), aluminum (Al) and tungsten carbide (WC).Thus this composite come under metal matrix composite. This composite is WC – FeAl composite. This is prepared by the use of stir casting method. The base metals are iron and aluminum. These are having equal quantity by weight. In this the sample is prepared by the change the of percentage reinforcement. This is varying from 0 to 3%. A test is conduct to check their tensile strength as well as compressive strength. By these test it is confirm that with the increase the percentage of reinforcement in the composite their tensile strength is decrease but their compressive strength is increase

Do European Stock Markets Affect Latin American Stock Markets?

In this study, we examine the response of Latin American stock markets to movements in European stock markets using VAR models. Our results vary depending on the openness of the country in terms of international trade. We find evidence that Latin American stock markets are responsive to changes in the stock market from Spain. Additionally, during the second and third subperiods, Spain has much stronger ties with Brazil, and this might explain why Brazil responds more to the shocks originating from Spain than from France. In conclusion, this study uncovers two important findings. First, Spain influences Latin American markets but these responses are not homogeneous across markets. Second, the influence of Spain has different magnitude in the three subperiods.Emerging Markets, Latin America, Stock Markets Interdependence, VAR

PLA Microparticles for Pulmonary Delivery of AntiTB drugs: Biodistribution study

A dry powder inhalable (DPI) microparticles comprising anti-tuberculosis drugs incorporated in biodegradable polymers was developed for the treatment of pulmonary tuberculosis (P. Muttil _et al_. 2007). Poly L-lactic acid (PLA) microparticles incorporating a high payload of rifabutin and isoniazid were fabricated by spray drying (Buchi 190). Microparticles were composed of PLA and the drugs (rifabutin and isoniazid) at a 2:1:1 weight ratio. Microparticles of desired high encapsulation efficiency and sustained release characteristics were produced having a diameter range of 2-10 µm (Malvern Mastersizer 2000). Differential scanning calorimetry (DSC) was carried out to study drug polymer interaction. The time course of tissue biodistribution following a single inhalation dose of microparticles was evaluated. 
Thirty-two BALB/c mice were divided into groups of four and administered the DPI using an in-house (nose only) apparatus (Kaur _et al_. 2008; Verma _et al_. 2008). A validated HPLC method was used for determination of rifabutin and isoniazid in the lungs (target organ), liver and kidneys (major sites of toxicity) at different time-points after inhalation. A comparison was made with mice receiving free drugs (intravenous) at equivalent doses. Deposition of microparticles in lungs of mice following aerosolization was also evaluated. Pharmacokinetic parameters in different organs were calculated using WinNonlin software version 5.2. Area under the concentration-time curve observed (AUC~obs~), C~max~, half-life (t~½~) and clearance (CL) in lungs following inhalation /intravenous administration were:
*Rifabutin*: AUC~obs~-96h= 1697.39 ±154.67 (187.63 ±23.93) µg/ml^-1^hr^-1^; C~max~ = 33.42±3.80 (4.17±0.31) µg.ml^-1^; t~½~= 78.08±9.42 (34.00 ±3.31) and Cl= 1.16±.22 (0.68 ±0.45) ml.h^-1^.
*Isoniazid*: AUC~obs~-24h= 566.31±123.96 (99.85 ±14.24) µg/ml^-1^hr^-1^; Cmax= 24.02±1.71 (8.16±0.93) µg.ml^-1^; t~½~= 25.88±12.16 (6.45±3.24) h; and Cl= 5.47±1.30 (0.96±0.14) ml.h^-1^.
The relative bioavailability of both drugs incorporated in microparticles was significantly higher compared with free drugs. Peak levels of isoniazid and rifabutin in lungs (target organ) were much higher than those in the liver and kidney of mice in case of inhalation as compared to intravenous administration. Inhalation of microparticles resulted in targeting both drugs to the lungs, with the effect being more pronounced in the case of rifabutin than isoniazid. High and prolonged drug concentrations and increased AUC values (~9-fold and ~6 fold increase of rifabutin and isoniazid in case of lungs) with respect to free drugs were observed. Significant decrease in drug concentration was found in the liver and kidneys. Drug levels were maintained above the minimum inhibitory concentration (MIC) in organs through out the study after administration of encapsulated drugs. Based on favorable biodistribution kinetics, these microparticles hold great potential in reducing dosing frequency and toxicity of antituberculosis drugs.
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Response of RLC network circuit with steady source via rohit transform

The electric network circuits are designed by using the elements like resistor R, inductor L, and capacitor Ϲ. There are a number of techniques: exact, approximate, and purely numerical available for analyzing the R L Ϲ network circuits. Since the application of numerical method becomes more complex, computationally intensive, or needs complicated symbolic computations, there is a need to seek the help of integral transform methods for analyzing the RLϹ network circuits. Integral transform methods provide effective ways for solving a variety of problems arising in basic sciences and engineering. In thispaper, a new integral transform Rohit transform is discussed for obtaining the response of a series RLϹ electric network circuit connected to a steady voltage source, and a parallel R L Ϲ electric network circuit connected to a steady current source. The response of a series R L Ϲ network circuit connected to a steady voltage source via the application of Rohit transform will provide an expression for the electric current, and that of a parallel R L Ϲ network circuit connected to a steady current source will provide an expression for the voltage across the parallel RLϹ electric network circuit. The nature of the response of such series (or parallel) network circuits is determined by the values of R, L, and Ϲ of the electric network circuit. The Rohit transform will come out to be a powerful technique for analyzing such series or parallel electric network circuits with steady voltage or current sources

Topological nonsymmorphic insulator versus Dirac semimetal in KZnBi

KZnBi was discovered recently as a new three-dimensional (3D) Dirac semimetal with a pair of bulk Dirac fermions in contrast to the $\mathbb{Z}_2$ trivial insulator reported earlier. In order to address this discrepancy, we have performed electronic structure and topological state analysis of KZnBi using the local, semilocal, and hybrid exchange-correlation (XC) functionals within the density functional theory framework. We find that various XC functionals, including the SCAN meta-GGA and hybrid functionals with 25$\%$ Hartree-Fock (HF) exchange, resolve a topological nonsymmorphic insulator state with the glide-mirror protected hourglass surface Dirac fermions. By carefully tuning the modified Becke-Jhonson (mBJ) potential parameters, we recover the correct orbital ordering and Dirac semimetal state of KZnBi. We further show that increasing the default HF exchange in hybrid functionals ($> 40\%$) can also capture the desired Dirac semimetal state with the correct orbital ordering of KZnBi. The calculated energy dispersion and carrier velocities of Dirac states are found to be in excellent agreement with the available experimental results. Our results demonstrate that KZnBi is a unique topological material where large electron correlations are crucial to realize the Dirac semimetal state