Impact of a Risk Premium on the Empirical Testing of FOREX Essay

Impact of a Risk Premium on the Empirical Testing of FOREX - Essay Example In line with this, the empirical tests test for the availability of atypical or risk –accustomed earning opportunities. However, in the case of ambiguity and uncertain venture such as spot and forward (JACQUE, 2014) speculation, it is complex to interpret the empirical tests relative to the market efficiency. The fundamental model applied in testing marketing efficiency is the joint hypothesis, which means that two hypotheses are tested at the same time. In such cases, when the risk premium is in existence it creates an impact which shifts the equilibrium return on currency trading toward a high point. This implies that, the profits attributed to the currency trading do not show market inefficiency if these returns are fewer than the suitable risk premium (ULLRICH, 2009). This impact can be explained by an example of a corporation, which hedges, and in return, its financial experience to the currency risk reduces. This implies that, in the absence of a risk premium, the firm d oes not sacrifice any return in the process of risk reduction. If the corporation faces high cost of financial misery, then this nature of reduced volatility will benefit its operations (RECORD, 2003). This implies that the effect of risk premium on a firm is immensely attributed to the hedging of a corporation when the risk premium exists. In addition, the risk premium on empirical testing invokes significance and negative relationship with the expected future spot rate. In addition, the premium risk offers a more explanatory note relative.

Is there racial profiling in nypd stop question and frisk Research Paper

Is there racial profiling in nypd stop question and frisk - Research Paper Example Although these immigrant become a cause of financial prosperity as they bring foreign exchange with them and turn the wheel of economic prosperity by forming revenue for the country. However, there are people who observe every stranger as intruder and suspect them of criminal activity due to their narrow thinking style. Prejudice towards a nation or society is commonly observed; since right after 9/11 incident. International media and the world not only got terrorized by the incident, but started accusing and treating all the people of Muslim community in the same manner. This conveniently spread the prejudiced feelings towards Muslim and now it is felt by all the other people of the world as well. All around the world several innocent Muslims are killed by people who count themselves as civilized and literate nations. On the other hand they subject, innocent immigrant who leave their homelands, only for the sake of education or financial prosperity; as subjects to criminal or terrorist activity. The wind of racial prejudice did not start only after 9/11 but it has a past which date backs 500-1000 years of western prejudice towards non western. Recently NYPD is observing Muslim students of many universities far more closely than ever. They are not only talking to their professors and acquaintance but also following them on trips outside the premises of colleges and universities. An undercover agent was sent on a rafting trip with a group of Muslim students to assess them. Police commissioner Raymond Kelly is facilitating this investigation on Muslim students only on the basis of their religious beliefs and practices. However, there is no such evidence found against these students, to be involved in terrorist activities so far. Several students are in a perplexed state after becoming a surveillance list member. These students felt discomfort and mistrust