Monday, June 8, 2020

A critical analysis of the merits of the Capital Asset Pricing Model - Free Essay Example

Critically Analyse the Relative Merits of Capital Asset Pricing Model (CAPM) and empirical approaches to asset pricing such as Fama and French model. People always search for new tools or better techniques that allow a job to be completed faster and better. It applies to every field including the finance field. Capital Asset Pricing Model (CAPM) is used to calculate the cost of capital and measure portfolio performance since 1970s. In 1990s, Fama and French show the CAPM is wrong and they proposed a better three-factor model. One would expect practitioners switching to the new better asset pricing model immediately. However, in a survey conducted by Graham and Harvey (2001), 73.5% of 392 U.S. CFOs relies to some extent on the CAPM when estimating the cost of equity. Brounen, Abe de Jong and Koedijk (2004) conducted a similar survey for 313 European firms and around 45% of on average relied on the CAPM. Why practitioners do not use the three-factor model as Fama and French (2004) claimed? There may be some possible answers. The practitioners may not know the three-factor model; or it is not cost effective to collect the extra information required by the three-factor model; or the practitioners think the three-factor model does not help much, i.e. the Fama-French three-factor model is not alw ays better than the CAPM. Now let us see what CAPM model really is and what are its main properties , its relative merits and demerits and its practical implication with respect to another famous model the Fama and French Model. The CAPM is concerned with the pricing of assets in equilibrium. The CAPM tells us how investors determine expected returns, and asset prices, as a function of risk. The model bases on the idea that not all risks should affect asset prices. In particular, a risk that can be diversified away when held along with other investments in a portfolio is not a risk at all. Only those systematic risk is counted when determining the price. The CAPM model is the extension of one period mean- variance portfolio models of Markowitz (1959) and Tobin (1958) .CAPM is based on numerous assumption and these assumptions become to some sort of basis for criticism by many people as they claim them to unrealistic. The assumptions are as follows and must be kept in mind. Investors choose their investment portfolios on the basis of expected return and variance of return over single period; It is assumed that the diversified portfolio is held by Investors Investors have the same estimates of mean, variance and covariance of all assets; The capitals markets have no transaction costs; Perfect capital market. All assets are perfectly divisible; Single-period transaction horizon. No restriction on short sales; It is also assumed as Investors can borrow and lend at the risk-free rate of return . ( means that a holding period of almost one year is required) No Taxes No commission Basically the assumptions made by the CAPM focuses on the relationship between the risk ( systematic Risk) and return is not as what happens in the real world in which all these decisions are made by companies and individuals. Well if we have a look at capital markets of the world which are not perfect but still this is a point of argument that efficient stock markets which are in developed countries are efficient enough, still there lies some chance of stock market to be priced incorrectly and which further prevents returns not to be plotted on security Market line. We can therefore see that the assumption we took for the single period transaction therefore seems reasonable enough. Investors want to hold a portfolio that reflects the whole stock market. It is very easy for the investors to diversify risk ( specific and Unsystematic) and to make portfolios which track up the stock market. Is it possible to have at a risk free rate in todays world? but in this case it is assumed that such is the case and because the investors to borrow at risk free rate because the individual investor involves more risk as compared to the risk associated with government and resultantly if we are not able to borrow at a risk free rate then the security Market line will be shallower than what we studied in the theory. Regarding the assumption of investors only receiving compensation for systematic risk seems to be very fair to me and is practically acceptable. In my view the assumptions of the CAPM seem to be idealised slightly than the real view and i think there might be some chances of existence of relationship between required return and Risk. The equation for CAPM to find the expected rate of return is mentioned below. E(ri) = Rf + ÃÆ'Ã… ½Ãƒâ€šÃ‚ ²i(E(rm) Rf) Explaining the equation . 1) Rf = Estimate the risk free rate, generally treasury bill rate. 2) Bi = Estimate the stocks beta coefficient, b, which is an index of systematic ( or non-diversifiable market) risk. 3) rm = Estimate the rate of return on market portfolio, such as standaed poors 500 stock composite index. 4) Example : Treasury bill rate ( risk free) = 8% , Bi = 1.5 market portfolio = 12% = E(ri) = 8% = 1.5 ( 12% 8%) = 14% 14% = { 8% risk free rate { 6% risk premium, stock price is 1.5 times more volatile than the market portfolio ADVANTAGES OF THE CAPM The CAPM has several advantages over other methods: It considers only systematic risk, reflecting a reality in which most investors have diversified portfolios from which unsystematic risk has been essentially eliminated. It generates a theoretically-derived relationship between required return and systematic risk which has been subject to frequent empirical research and testing. Another advantage which makes it superior than others is that it calculates cost of equity by taking into account level of risk with respect to stock market. Discount rates are used in investment appraisal which makes it a better model then weighted average cost of capital. DISADVANTAGES OF THE CAPM Besides advantages it also has some disadvantages like in order to compute CAPM we need to assign values to risk free rate of return, the equity risk premium, beta and return on market. The risk free rate of return for which we use yield on short term Government debt changes on daily basis according to different conditions prevailing. Proxy beta for the investments must be different from the companies equity beta. If the proxy for the market portfolio isnt mean-variance efficient then we wont identify the correct CML and the expected returns estimated using CAPM are unlikely to match actual returns. Similarly using a broad stock market index as proxy for the market portfolio may be inappropriate. Another difficulty is that proxy company betas uses information that may not be readily available. More over other issues regarding estimating the expected returns for individual stocks based on Capital Asset Pricing model are Do dividend adjustments in the index matter? It is assumed in C APM that Market portfolio returns includes dividends. It is therefore relevant to ask that number of indexes constructed without dividends do matter in obtaining a best estimate to see whether or not dividends are included in the index used. So where it is possible that the indexes with or without the dividends are considered here. What data frequency and time period should be used? As we know regarding estimation that the more observations we take the better the results are. If we follow this then we should be using long time periods as possible. Similarly if we take long estimation period for the beta and it is possible that the value of the actual beta will change over time and the consequential estimate for beta will be prejudiced. Naturally when this happens we will have to shorten the period. Now as we have to collect more observations over shorter time we can do this by increasing the sampling frequency. What index should be used? As we know CAPM is very precise about the ind ex. Value weighted index which consist of all assets in world should be used. As we know that very limited and small portion of assets are traded on the stock exchanges so its not possible to make such a index so we make a proxy instead. Regarding proxy the most commonly used are equal weighted and value weighted index. There are many of its anomalies which were later on discovered in the 80s and 90s, they in fact became a challenge to the CAPM as the market beta does not suffice to explain expected stock returns. The anomalies were Earning price ratio. Size Leverage Book to Market equity ratio. Basu (1977) shows that when common stocks are sorted on earning price ratio , earning price future return on high EP stocks are higher than those predicted by CAPM. Banz (1981) documented about a size effect that stock of small i.e low market value stocks earned a higher return the predicted by CAPM.small stocks have higher betas and higher returns then large stocks but the difference was mo re than what was predicted by CAPM. Bhandari ( 1988) illustrated that leverage is positively related to stocks expected returns. As we know that leverage is measured by book value of debt over market value of equity. Therefore Fama and French (1992) state the earlier findings of other researchers like , higher book to market equity ratios , ratio of book value to market value , have higher returns that are not captured by market beta which is why Fama and French launched a challenge. The Fama-French three-factor model This Model as previously discussed was put forward by Fama and French in response to the CAPM in which they think had flaws or deficiencies which were therefore overcome in their model. Fama French ( 1992) discussed about the book to market equity ratio, leverage, size and earning to price ratio and according to them the book to market equity has a greater and stronger power then the size but on the other hand, book to market equity ratio cannot be replaced by size in explaining the average returns. A three factor model was therefore proposed by Fama and French for expected returns to show more factors which could be involved and influence the expected returns which the CAPM was not able to include according to them. Variables include the return on stock index, excess returns on portfolio of small stocks over a portfolio of large stocks and excess return on portfolio of high book to market stocks over a portfolio of low book to market stocks. Following is the equation for computat ion put forward by them. (Rit Rft) = ÃÆ'Ã… ½Ãƒâ€šÃ‚ ±i + ÃÆ'Ã… ½Ãƒâ€šÃ‚ ²1i (Rmt Rft)+ ÃÆ'Ã… ½Ãƒâ€šÃ‚ ²2i SMBt + ÃÆ'Ã… ½Ãƒâ€šÃ‚ ²3i HMLt + ÃÆ'Ã… ½Ãƒâ€šÃ‚ µit In the equation, as discussed before SMB (small minus big) is the difference of the returns on small and big stocks, HML(high minus low) is the difference of the returns on high and low book-to-market equity ratio (B/M) stocks, and the betas are the factor sensitivities of the state variables. Fama and French argue if asset pricing is rational, size and BE/ME must proxy for risk. SMB captures the risk factor in returns related to size, HML captures the risk factor in returns related to the book-to-market equity and the excess market return, Rm R captures the market factor in stock returns. However, Fama and French (1992) show that it is unlikely as they find market betas alone has no power to explain average returns. They also find the averages of the monthly cross-sectional correlations between market betas and the val ues of these two state variables for individual stocks are all within 0.15. According to Fama and French (1995) the weaker firms which show a continuous trend of less earning over time and having high book to Market value and have positive slopes on the High minus Low , similarly the firms with a consistent trend of higher earning tend to have lower book to market value and show negative slopes on the HML. According to them, the variation in the risk factor which is relevant to earning performance is captured by HML. Similarly stocks with the property of lower returns over long term which we may refer as the losers tend to have a positive SMB and HML slopes the reason being as they are smaller and financially distressed and resultantly higher future returns. On the other hand stocks with the property of higher long term returns which we may refer to as the winners tend to have negative slopes and low future returns. Fama and French also say that market beta is not able to capture th e co variation in the returns of small stocks and which is compensated in average returns. Fama and French also show the existence of co variation in the returns on small stocks that is not captured by the market betas and is compensated in average returns. Fama and French (1993, 1996) have interpreted their three- factor model as evidence for a distress premium. Small stocks with high book- to-market ratios are firms that have performed poorly and are vulnerable to financial distress, and hence investors command a risk premium. However, the model cannot explain the momentum effect. The Fama-French three-factor model predicts the reversal of future returns for short-term winners and losers. Hence, the continuation of short-term returns is left unexplained by the model. CONCLUSION As we have been through both CAPM and Fama and French models to help investors understand the risk/reward trade-off which they face when making investments. We first introduced the CAPM, with its inherent simplicity, linking market covariance risk to expected returns. Its simplicity helps to build intuition around the concept of modelling return as a function of risk. The CAPMs simplicity is also its greatest shortcoming, as the underlying assumptions limit its ability to explain and predict actual returns. The Fama-French Three-Factor Model expands the capabilities of the model by adding two company specific risk factors SMB and HML. The three factors in concert explain most of the returns due to risk exposure, but it has its own limitations too. CAPM has stood up well against all the attacks and criticisms against it , although these criticisms have increased in the recent years , but in my view CAPM remains a very useful tool in the financial management. In my view with these M odels investors are able to make more informed investment decisions with respect to personal preference regarding the risk/reward trade-off. REFERENCING Bartholdy.J and Peare.P, (2004) , Estimation of expected return: CAPM vs Fama and French, page 1-8. Banz, R.W, (1981), The Relationship between Return and Market Value of Common Stocks, Journal of Financial Economics 9. 3-18. (https://thefinanceworks.net/Workshop/1002/private/3_Asset%20pricing/Articles/Banz%20on%20small%20firm%20effect%201981%20JFE.pdf) French.R and Fama.F (2003), The CAPM: Theory and Evidence, Centre for Research in Security Prices (CRSP) University of Chicago. French.R and Fama.F ( 1996), The CAPM is Wanted, Dead or Alive, The Journal of Finance, Vol. 51, No. 5. Lam Kenneth ,( 2005), Is The Fama-French Three Factor Model Better Than The CAPM,. Page 1-6. Megginson W L,( 1996.) Corporate Finance Theory, Addison-Wesley, p10, Project-specific discount rates, student accountant, April 2008. Russo. Francesco ( 2005) , C APM : The challenges of globalization. International Financial Management. Available at ( https://people.hbs.edu/mdesai/IFM05/Russo.pdf) Shapiro Alex, The Capital Asset Pricing Model (CAPM), Foundations of Finance Note 9, (pp 1-5). Watson D and Head A, 2007, Corporate Finance: Principles and Practice, 4th edition,FT Prentice Hall, pp222-3. Available at ( https://accounting-financial-tax.com/2010/06/more-advance-with-cost-of-capital-analysis/)

Sunday, May 17, 2020

Functional Safety, Fire Protection And Radiation Protection

Functional Safety Student: Ken Kaufmann S14004464 Lecturer/Tutor: Fatima Mansour Table of contents 1 Introduction 1 2 Standard definitions 1 2.1 IEC 61508 1 2.2 IEC 61511 1 3 Case study 2 4 Conclusion 2 5 List of references 2 6 List of Figures 3 1 Introduction The increasingly extensive automation of complex system, presents completely new challenges to the development of technical solutions. The complexity of systems, whose malfunctions cause’s significant damages, are able to cause of most errors. In work areas such as aerospace or in power stations, there has always been ahead of awareness. There are international standard and guidelines available, which defines the requirements for safety-related equipment in different depths and classifications. 2 Functional Safety Functional safety refers to the part of the security of a system, which depends on the correct function of the safety related system and other risk mitigation techniques. Functional safety does not include electrical safety, fire protection and radiation protection. Systems which are consisting out of electrical and electronic components are used since many years to perform safety functions within the most application areas. Programmable electronic systems or also called computer based systems, are used in every application area, to perform non-safety functions and recently safety functions. [1] Within every industry sector, functional safety is applicable as concept. For SafetyShow MoreRelatedSmoke Alarms1556 Words   |  7 PagesEach year most people are in disbelief and doubt that something as critical as a fire could happen to them, this skepticism has led to more deaths and property damage than should have occurred. In the current generation smoke alarms are mandatory and advancements to the technology have been occurring rapidly. 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Wednesday, May 6, 2020

What I Have Learned About Research - 1270 Words

What I have learned about research is that it is a process, a scientific process that psychologist and scientist develop that includes many different approaches and that is carefully peer reviewed and evaluated. There is what is called the Scientific Approach where scientist have an idea or theory and based on their observation will either support the theory or the theory can be falsified by their peers. Data also goes through a review period before it is published in a scientific journal by scientist who have the knowledge and expertise to evaluate it. I also learned the difference between basic and applied research where basic research focuses mostly on things such as emotion, cognition, social behavior, personality development, learning, and neuropsychology. Basic research will be more helpful for answering fundamental questions about the nature of behavior. Applied research however, addresses more of a specific problem with a possible solution. 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Encyclopedia of Cryptography and Security †MyAssignmenthelp.com

Question: Discuss about the Encyclopedia of Cryptography and Security. Answer: Introduction Cloud security is the wide range of approaches and strategies of securing data and information with the help of cloud computing. Several technologies are utilized in this process. These technologies and strategies are given to the user to secure their data perfectly and safely. The infrastructure of cloud computing is also involved in this security procedure (Rong, Nguyen Jaatun, 2013). It is the sub part of information security and network security. The Department of Administrative Services or DAS gives various services to the Australian State Government. The services are procurement, payroll, human resource management, personnel management and contractor management. Due to the recent changes in the policies of the government, Department of Administrative Services is shifting to a new approach known as the Shared Service approach (Almorsy, Grundy Mller, 2016). This particular approach means that a fixed number of services will be controlled by DAS for the benefit of the Whole of G overnment (WofG). DAS has to follow various strategies and tasks. The following report outlines a brief description about cloud security for the case study of Department of Administrative Services or DAS. The report provides a privacy strategy proposal for DAS. It includes the collection and control of applied personal data, utilization and security of various digital identities, securing and accessing personal data, rectifying personal data and proper recommendations to control and secure data with cloud computing (Liu, 2012). The report also covers a strategy to secure and protect personal data with proper recommendations. The description of the above discussion is given in the following paragraphs. Department of Administrative Services or DAS gives various services to the Australian State Government. The services are procurement, payroll, human resource management, personnel management and contractor management. Due to the recent changes in the policies of the government, Department of Administrative Services is shifting to a new approach known as the Shared Service approach (Behl Behl, 2012). This particular approach means that a fixed number of services will be controlled by DAS for the benefit of the Whole of Government (WofG). DAS has to follow various strategies and tasks. DAS gives the integrated services to the remaining agencies and departments of the government. There is another policy of the government, which is the Cloud First approach. This is utilized for upgrading and obtaining various services. The various tasks that are to be done by DAS are purchasing a personnel and HR management application. This particular application will give a human resources suite, prov iding a perfect management of performance (Lee, 2012). The employees of DAS will store the information directly into this particular application with the help of a secured URL. A secured application of transferring data will upload huge amount of data. It is the responsibility of DAS to check whether the data entered in correct or not. There will be a new application known as the Commercial Off The Shelf or COTS will control the public cloud section. All the authenticated credentials of the authorized users are uploaded to enable the users to access the payroll of the agency. It is noticed that authentication is done only by utilizing the agency ID credentials of the users (Aljawarneh, 2012). All the agencies in the Whole of Government are required to utilize the Active Directory Federated Services of ADFS for federation to the Azure AD instance for authorization and authentication. Privacy Strategy for Personal Data Department of Administrative Services or DAS will have to secure their personal data through a good quality of privacy strategy. There are various steps to protect their personal data (Tsai et al., 2012). The most important step is to manage their personal information so that it is not accessible by hackers or unauthorized people. The steps to secure the personal data of DAS are as follows: Secured Browser: Utilization of a safe and secured Web browser is the first and the foremost step in managing the personal data (Tianfield, 2012). This can help to prevent from entering into the unauthorized websites and all sorts of virus attacks. Passwords: Utilization of several passwords is another important step to prevent all types of data hacking (Kulkarni et al., 2012). DAS should keep specific passwords in all of their private information and they should change those passwords on a regular basis. Collection and Management of Solicited Personal Information a) Logging Out: This is an important step to secure the data form hacking. Every time the users should log out from the system so that other people are not able to access their data. b) Anti Virus: This is the most basic and the easiest way to secure personal data. DAS should install antivirus software in their cloud to protect their personal data from virus attacks (Chou, 2013). DAS can secure their personal information by blocking the access to the systems and personal websites (Suresh Prasad, 2012). The disclosure and utilization of personal information can lead the organization into serious security problems. Use and Security of Digital Identities A digital identity is data of an organization that is utilized to depict an external representative (Iankoulova Daneva, 2012). This particular representative can be an individual, an organization or an application. Digital identities has several advantages. The main advantages of digital identities are as follows: Security: The main advantage of digital identity is its security. The data is extremely safe and secured with the help of digital identity. Data Integrity: The integrity of the data is not lost because of digital identity. This is another important advantage of digital identity. Simple: Digital identity does not require many complexities and time to get implemented (Salah et al., 2013). This is extremely simple and thus this is another important advantage of digital identity. Fast: Digital identities are extremely fast and this is another important advantage of digital identity. However, implementing digital identities in DAS can sometimes turn to be risky. These digital identities should be safe and secured so that there exists no loopholes of hacking in the data. The utilization and security of digital identities are the most important step to secure the cloud. Limited Access to Systems: All the users should not be allowed to use all the systems (Malik Nazir, 2012). DAS should allow and unauthorized users to access their computers and systems. Private WiFi Connection: DAS should install a private wireless connection for internet access. Security and access to personal information is another important step to save the privacy. The information should be secured so that the unauthorized access to various information is mitigated (Hamlen et al. 2013). Department of Administrative Services should secure their personal information by limiting the access to their personal information from unauthorized users. Quality and Correction of Personal Information The quality and the correction of personal information is another important step to keep the privacy of the data. DAS should focus on the quality of their information so that there exists no loopholes in the privacy (Liu, 2012). Moreover, the information should be corrected from time to time to avoid all sorts of errors in the information. DAS is dealing with several dangerous information that are highly confidential. There are various ways to mitigate these risks (Von Solms Van Niekerk, 2013). It is recommended that Department of Administrative Services should focus on their security of personal information. The three ways to mitigate the privacy risks of information are as follows: Encryption: The procedure of encrypting or encoding a particular message to maintain its security without changing the inner meaning is known as encryption. It encodes the entire message into a cipher text, which is only readable by the receiver. When a sender sends a message, he sends it in an encrypted form (Stallings Brown, 2012). This saves the message from getting theft and thus security is maintained. There are two main algorithms used for encryption. They are the Symmetric Key Algorithm and the Asymmetric Key Algorithm. The symmetric key algorithm is extremely simple. The sender and the receiver are provided with a key. The sender while sending a message with encodes the message with the key. Once, the receiver receives the message, he is able to decode the message with that particular key only. No other unauthorized users will get the access of the data and thus the data is absolutely secured through encryption (Van Tilborg Jajodia, 2014). The unencrypted message is known a s the plain text while, the encrypted message is known as the cipher text. The main advantage of encryption is that it is extremely secured. The second algorithm for encryption is the asymmetric algorithm. Here, the case is different from symmetric key algorithm. Here the sender and the receiver have two different keys to encode and decode the message. The sender encrypts the message with a particular key and the receiver decrypts the message with a different key. The main advantage of symmetric key algorithm is that it is extremely simple as both the keys are same. However, it has one disadvantage as well (Stallings Brown, 2012). Both the keys are same in symmetric key algorithm. Thus, if any one of them loses the key, there is a high chance that the data cannot be recovered any more. This can lead to major problem for any organization. The main advantage of asymmetric key algorithm is that the security is double than symmetric key. Since, there are two keys; there is no need to e xchange keys between the sender and the receiver. This helps to keep the keys safe and secured. However, there is a disadvantage as well. The main disadvantage of asymmetric key algorithm is its complexities. Both the keys are different and this makes it much complex than the symmetric key (Buchmann, 2013). Another disadvantage of asymmetric key algorithm is that the time consumption is more as the complexity is higher. It is highly recommended for DAS to opt for encryption, as encryption would secure their personal information. Digital Authentication: This is the second most basic and important recommended strategy to secure the data for DAS. The procedure of getting confidence in the identities of users digitally is known as digital authentication (Hamlen et al. 2013). The word authentication means to an electronic procedure, which enables any type of electronic recognition of a legal person. Authentication also saves the integrity of the data and thus it can be claimed as another strategy for privacy of data. The main advantage of digital authentication is that it mitigates the chance of data theft and fraud. In a digital authentication, the identities of the user are given to a particular information system electronically (Buchmann, 2013). There are three main factors of digital authentication. They are as follows: Knowledge Factors: These factors are nothing but the confidential knowledge of a user like the password, pin number. Ownership Factors: These factors are those that the user possesses like a credit card, one-time passwords. Inherence Factors: These factors are those factors that an user has got in inherence like the biometric identifications (Stallings Brown, 2012). Fingerprint and face recognitions are two famous inherence factors. Digital Signatures: This is the third important strategy to reduce the privacy risks is the implementation of digital signatures. DAS can protect their data by implementing this very safe and secured data security strategy in their organization. this is nothing but a digital code, which is created by public key encryption and is utilized to verify an users identity (Kahate, 2013). It also verifies the contents of the message that are sent over the network. DAS should implement digital signatures for their private cloud. The main advantages of digital signature are the speed, cost, security, authenticity, imposter prevention, time stamp and tracking. These advantages will help DAS to protect their data and thus the privacy should be secured. However, digital signatures do have some disadvantages (Salomaa, 2013). The disadvantages of digital signatures include expiry of the signatures, need for verification software, compatibility, need for implementation of digital certificates. In sp ite of these disadvantages, digital signatures are one of the famous strategies for privacy of data. It is highly recommended for DAS. Personal Data Protection Strategy Department of Administrative Services or DAS is having problems in securing their personal data. This type of data should be secured and safe on immediate basis. There is a high risk that the data will be lost and the hackers and the unauthorized users will be able to access them (Salah et al. 2013). The access should be authorized so that the integrity of the information does not get lost. This will create a major problem as every data and information are important for DAS. The access and disclosure of the personal information should be authorized so that there exists no chance of hacking and modification of personal information (Salomaa, 2013). There are several ways to stop this hacking like installing antivirus, firewalls. The procedure to prevent the identity of personal data is known as de-identification of personal data. There are several ways to stop the identification of the personal data of DAS. They will have to adopt certain measures to mitigate or reduce the hacking of data (Liu, 2012). The best ways to prevent identification of personal data is the antivirus, security policies and firewalls. Implementing these techniques can help DAS to prevent their data identification. Digital identities are an important solution to their problem. A digital identity is data of an organization that is utilized to depict an external representative. This particular representative can be an individual, an organization or an application (Ali, Khan Vasilakos, 2015). There are various advantages of digital identities. The advantages of digital identities are as follows: Security: The main advantage of digital identity is its security. The data is extremely safe and secured with the help of digital identity. Data Integrity: The integrity of the data is not lost because of digital identity. This is another important advantage of digital identity. Simple: Digital identity does not require much complexities and time to get implemented. This is extremely simple and thus this is another important advantage of digital identity. Fast: Digital identities are extremely fast and this is another important advantage of digital identity. Security of Personal Data Security and access to personal information is another important step to save the privacy. The information should be secured so that the unauthorized access to various information is mitigated (Katz Lindell, 2014). Department of Administrative Services should secure their personal information by limiting the access to their personal information from unauthorized users. Securing and archiving personal data is an important step to secure the personal information. DAS should implement various strategies to secure their personal information as it is important for their business (Ali, Khan Vasilakos, 2015). Personal data are protected and secured through several strategies. Three strategies are recommended for Department of Administrative Services. They are as follows: Periodic Back up and Recovery: Personal information should be recovered periodically and back ups should be taken time to time (Peltier, 2016). This will help Department of Administrative Services to recover their lost data and to will not lose their confidential data any more. Remote Data Movement: Real time and non real time movement of data from a particular storage to another secured storage is another strategy for protecting data and information. There is always a high chance of losing of data and information if they are stored for longer period of time (Ali, Khan Vasilakos, 2015). The system or the storage may be damaged and thus the data can be lost. Two popular forms of data movement are the replication and the remote copy. These two techniques will help DAS to save their data and to save the storage system. Data Lifecycle Management: DLM or Data Lifecycle Management is the automatic movement of data to offline and online storage (Von Solms Van Niekerk, 2013). The major features of data lifecycle management are keeping the data in a particular storage that is read easily and cannot be modified. These three strategies will help DAS to secure their personal information and the information will not be lost. Conclusion Therefore, from the above discussion it can be concluded that, Department of Administrative Services or DAS gives various services to the Australian State Government. The services are procurement, payroll, human resource management, personnel management and contractor management. Due to the recent changes in the policies of the government, Department of Administrative Services is shifting to a new approach known as the Shared Service approach. This particular approach means that a fixed number of services will be controlled by DAS for the benefit of the Whole of Government (WofG). DAS has to follow various strategies and tasks. They have to secure their data and information through various ways and strategies. The report provides a brief description on how to manage and control personal information, utilization and security of digital identities, security and access to personal information, quality and rectification of personal information. The report also provides perfect recommenda tions on several strategies to secure the privacy of personal information in DAS. The report further covers a personal data protection strategy for DAS with the ability to control the unauthorized access to the personal information. Proper recommendations are also provided to mitigate the security risks for the protection of data. References Ali, M., Khan, S. U., Vasilakos, A. V. (2015). Security in cloud computing: Opportunities and challenges.Information Sciences,305, 357-383. Aljawarneh, S. (2012). Cloud security engineering: Avoiding security threats the right way.Cloud Comput. Adv. Des. Implementation, Technol., 147. Almorsy, M., Grundy, J., Mller, I. (2016). An analysis of the cloud computing security problem.arXiv preprint arXiv:1609.01107. Behl, A., Behl, K. (2012, October). An analysis of cloud computing security issues. InInformation and Communication Technologies (WICT), 2012 World Congress on(pp. 109-114). IEEE. Buchmann, J. (2013).Introduction to cryptography. Springer Science Business Media. Chou, T. S. (2013). Security threats on cloud computing vulnerabilities.International Journal of Computer Science Information Technology,5(3), 79. Hamlen, K., Kantarcioglu, M., Khan, L., Thuraisingham, B. (2012). Security issues for cloud computing.Optimizing Information Security and Advancing Privacy Assurance: New Technologies: New Technologies,150. Iankoulova, I., Daneva, M. (2012, May). Cloud computing security requirements: A systematic review. InResearch Challenges in Information Science (RCIS), 2012 sixth international conference on(pp. 1-7). IEEE. Kahate, A. (2013).Cryptography and network security. Tata McGraw-Hill Education. Katz, J., Lindell, Y. (2014).Introduction to modern cryptography. CRC press. Kulkarni, G., Gambhir, J., Patil, T., Dongare, A. (2012, June). A security aspects in cloud computing. InSoftware Engineering and Service Science (ICSESS), 2012 IEEE 3rd International Conference on(pp. 547-550). IEEE. Lee, K. (2012). Security threats in cloud computing environments. InInternational Journal of Security and Its Applications. Liu, W. (2012, April). Research on cloud computing security problem and strategy. InConsumer Electronics, Communications and Networks (CECNet), 2012 2nd International Conference on(pp. 1216-1219). IEEE. Malik, A., Nazir, M. M. (2012). Security framework for cloud computing environment: A review.Journal of Emerging Trends in Computing and Information Sciences,3(3), 390-394. Peltier, T. R. (2016).Information Security Policies, Procedures, and Standards: guidelines for effective information security management. CRC Press. Rong, C., Nguyen, S. T., Jaatun, M. G. (2013). Beyond lightning: A survey on security challenges in cloud computing.Computers Electrical Engineering,39(1), 47-54. Salah, K., Calero, J. M. A., Zeadally, S., Al-Mulla, S., Alzaabi, M. (2013). Using cloud computing to implement a security overlay network.IEEE security privacy,11(1), 44-53. Salomaa, A. (2013).Public-key cryptography. Springer Science Business Media. Stallings, W., Brown, L. (2012). Computer security.Principles and practice (2 nd ed). Edinburgh Gate: Pearson education limited. Suresh, K. S., Prasad, K. V. (2012). Security issues and security algorithms in cloud computing.International Journal of Advanced Research in Computer Science and Software Engineering,2(10). Tianfield, H. (2012, October). Security issues in cloud computing. InSystems, Man, and Cybernetics (SMC), 2012 IEEE International Conference on(pp. 1082-1089). IEEE. Tsai, H. Y., Siebenhaar, M., Miede, A., Huang, Y., Steinmetz, R. (2012). Threat as a service?: Virtualization's impact on cloud security.IT professional,14(1), 32-37. Van Tilborg, H. C., Jajodia, S. (Eds.). (2014).Encyclopedia of cryptography and security. Springer Science Business Media. Von Solms, R., Van Niekerk, J. (2013). From information security to cyber security.computers security,38, 97-102.

Monday, April 20, 2020

Participative Leadership Strengths and Weakness

Table of Contents Introduction Overview Strengths and weakness Matrix Organizational example Conclusion References Introduction Organizations often desire to achieve high performance. According to scholars in organizational behaviour, organizational leadership is one of the key determinants of organizational performance. Organizational leaders need to choose the right approach of leadership that can help steer the organization towards meeting its goals. There are different approaches of leadership.Advertising We will write a custom essay sample on Participative Leadership: Strengths and Weakness specifically for you for only $16.05 $11/page Learn More Each approach or leadership has its strength and weaknesses; thus, organizational leaders have to be careful when choosing the leadership approach to adopt (Ballantyne, Berret Wells, 2011). This paper discusses participative leadership as one of the styles of leadership. The paper gives an overview of the approach, followed by the strengths and weakness of participative leadership. Overview According to Mumford (2010), participative leadership, which is also known as democratic leadership, is one of the most desirable approaches of leadership in contemporary organizations. It entails the involvement of all organizational members in key decision making. The final decisions are approved after wider consultations have been made across the entire organization. The presumption of this kind of leadership is that each employee has a given piece of information that can aid the organization in meeting its objectives. Therefore, employees are consulted on most of the wider plans of the organization. Here, organizational managers are often seen as facilitators of the leadership process in the organization. They code the ideas of organizational members into key decisions in the organization. In this era where more people are enlightened, most organizations are borrowing the principles of thi s approach of management in order to make the best use of the diverse knowledge and skills of their employees. This is replicated in the decisions of most organizations to form decision making groups, where all organizational members are given a chance to air their views on organizational decisions (Mumford, 2010). Strengths and weakness The participative approach of leadership has numerous strengths. First of all, participative leadership promotes a healthy working environment through making each member feel important and needed in the organization. This promotes self esteem of each member of the organization. It also raises the level of communication and cooperation in the organization.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More By allowing all members to participate in the decision making process, the quality of decisions reached are often of a higher quality. Lastly, the approach g ives employees room to gain understanding of the complex processes and issues in the organization (Mumford, 2010). This approach also has numerous weaknesses. Fist of all, the approach elongates the span of time that is taken to make decisions, thus it may not be favourable for responding to emergency situations. Secondly, the decisions reached may be too complex to implement. The rationale behind this is that the decisions are reached out of a wider consultation and input processes. Therefore, whereas the decisions may be of a high quality, they may as well be complex and hard to implement (Mumford, 2010). Matrix Participative leadership Key areas Strengths Weakness Goals Activities designed by all organizational members Time taken to make decisions is too long Behaviours Cohesiveness, high self esteem, and cooperation Desired outcomes Higher quality and inclusive decisions Complex decisions Organizational example An example of an organization that uses the participa tive approach of leadership is Microsoft Incorporated. Bill Gates, the president of the company, embraces participative leadership through empowerment of the subordinates who work on the innovative projects of the company. Employees at Microsoft are allowed to work in groups, where each employee gets a chance to come up with innovative ideas. One best way of participative leadership is providing employees with resources and allowing them to work on organizational projects (Nayab, 2011). Conclusion Organizational leadership, more so the approach of leadership is critical to the performance of an organization. The paper has explored the participative approach of leadership, where it has been noted that this is the most desired approach of leading contemporary organizations. The main strength of this approach is that it encourages the exploration of the skills of employees. Its main weakness is that it may take too long to make decisions. References Ballantyne, S., Berret, B., Wells, M. E. (2011). Planning in reverse: A viable approach to organizational leadership. Lanham, MD: Rowman Littlefield Education.Advertising We will write a custom essay sample on Participative Leadership: Strengths and Weakness specifically for you for only $16.05 $11/page Learn More Mumford, M. D. (2010). Leadership 101. New York, NY: Springer Pub. Nayab, N. (2011). Five Real-World Examples of Successful Leadership. Retrieved from https://www.brighthubpm.com/resource-management/120498-five-real-world-examples-of-successful-leadership/ This essay on Participative Leadership: Strengths and Weakness was written and submitted by user Carlos Munoz to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Sunday, March 15, 2020

Extreme Working Conditions Essays

Extreme Working Conditions Essays Extreme Working Conditions Essay Extreme Working Conditions Essay In order to answer to these severe challenges majority of the organizations are forced to cut costs In order to boost their performance; yet instead of seriously examining the options, they are primarily doing it through downsizing (Denis and Shame, 2005; Guthrie and Data, 2008). Therefore, even though human resources are widely recognized as the most Important value-add asset and the critical resource for overcoming the crisis, they are usually In the first line to be cut when crisis knocks on the door. Despite the fact that lay-off have become the fact of organizational life over the sat few decades, the great recession has made the rate of lay-offs take extreme proportions and made the unemployment rate an Issue number one worldwide (Data et al, 2010). It can be argued that the excessive downsizing approach is not the appropriate way of absorbing the shock of crisis, since it is bound to have serious repercussions on working conditions and behavior of the employees who stayed in the organization- the survivors (Icemaker-Mueller and Lila, 2006). For Instance, according to Matures and Figurers (2010) the survivors are most Likely to suffer from read Job insecurity long after the critical events took place. Adding to its importance, the Job insecurity is widely recognized as an extreme work-related stresses and therefore affects the attitudes and behavior of employees. More often than not the stress and pressure are the cause of workplace bullying which includes physical, verbal or psychological Intimidation (Bartlett et al, 2011). Bullying may include various types of behavior such us: yelling, gossiping, false accusations. Personal Jokes, threatening etc. And all of them undoubtedly have active impact on employees health and well being (D]uric et al. , 2005; Aggrieved, 2007; Bailing et al. , 2009). Some of the consequences of these behaviors are additional stress, chronic diseases, cardiovascular diseases, and various types of psychological issues (depression, PETS and even suicidal thoughts) (Johnson, 2009; pace and smith, 2009; Wildfire, 2009). According to Removal (2009), besides higher Job insecurity and stress, downsizing caused by crisis can also lead to .. Less teamwork, heavier workloads and sense of being less valued (p. 24). Likewise, both Moral (2009) and Mullah (2008) agreed upon the fact that employee reduction is rarely followed by decrease in workload and 1 OFF working noirs; as a matter AT Tact, ten workload Ana work noirs usually Increases since fewer people have to perform the same amount of tasks. Moreover, this fact has been confirmed by both French and European survey of working conditions, although they were conducted long before the great economic crisis of 2008 (Cartoon Global, 2002; Bastard et al. , 2003). As a result, pressure and stress put on the rest of the employees are increasing further and reversely affect their emotional and hysterical state negatively. Interestingly enough, even before the great recession, downsizing, long working hours and great work intensity have been identified as huge problems for majority of employees (White el al, 2004; Webb, 2004). Therefore, it can rightly be argued that these working conditions got worse or even extreme after the economic crisis occurred. Although the literature is scarce concerning this issue, some evidence that can support this fact do exist. Namely, according to a study conducted in a banking sector of Pakistan, employees who worked both before and after the crisis have ported that the recession influenced their workload, motivation, Job security and levels of stress in a negative way (Cabal and Meir, 2011). Furthermore, according to WAS Report (2010), almost 40% of the respondents have confirmed that the great recession has extremely worsened the working conditions in their organizations. Finally, the study conducted in the UK with over 2000 participants (employees) has displayed more specific changes in the working environment. For instance, 50% of respondents reported feeling more anxious than before the crisis, 38% have felt the increase in Job insecurity and 20% have reported being sick due to increased stress at work (Unloaded, 2009). Still, the question of whether all of these changes (extreme downsizing, higher Job insecurity, extreme work-related stress, bullying etc) in organizations have made the working conditions reach the extreme point or not is not yet supported by clear evidence and literature. On the one hand, the very fact that these working conditions are severely affecting employees health and quality of life can most certainly be considered as extreme (Bartlett, 2011).

Friday, February 28, 2020

Writing Project 2 Essay Example | Topics and Well Written Essays - 1000 words

Writing Project 2 - Essay Example The text is written in a way to criticize one’s self. Before anyone could call him an idiot or sick he calls himself ill-minded. The context of the song is the over popular rap image of hip hop artists. In today’s world, TV and media has made the youngsters believe that good life is about making money and doing drugs because that is what the superstars do. It is called the celebrity lifestyle. And everyone seem to join that club. It is just a smoke screen and people are wasting their lives, dreaming about that dream that someday they will have lots of money like those superstars they see on TV and then they will have ‘fun’. Hopsin 5 addresses this ‘fun’ in this song and trues to make a mockery of the vision it generates in people’s minds. Asking â€Å"Is that all you think life really is?† (Hopsin 5, 2012). It is very hard to find the subtext in this song. Rap songs are generally very explicit and there are usually not many hidden meanings. The general idea behind a rap song is ‘being real’ and not hypocritical; saying what you mean exactly how you mean it. Hopsin 5 does exactly that. He is trying to wake up his generation who in his opinion are like zombies. Their brain cells are rotting because of drugs and pop culture. At the start of the song Hopsin says this addressing the ‘kids’ he sees on the street. He says he has become a freak for those kids who stare at them. But in fact Hopsin 5 is observing them when they talk about cursing school and dropping out of school. Later in the song he addresses the same issue of dropping out and says that many kids are in school because their parents send them there, it is not their choice. Referring to a gift they have but they don’t appreciate. Hopsin 5 was not as famous as some of the rap superstars like Snoop Dog, Eminem or Jay Z. He starts his song by saying that he doesn’t like rap and shows his disgust. But he raps only b ecause it works, it delivers the message and more importantly he can â€Å"if the shoe fits, wear it". It is very hard to say that Hopsin was a credible figure at the time he released this song and that his image and his personality would have ‘sold’. He calls himself a freak that the kids stare at him, only to make him more difficult to agree with. Pathos of Hopsin 5’s argument is very strong. In fact it is the single most powerful aspect that actually convinces the listeners that what he has to say is the truth. It is the pathos (the emotional appeal) that has got him over 32 million views for his song on YouTube (Hopsin 5, 2012). He puts his heart in the song and its shows. Other than the context, subtext and intertextuality, the video shows him persuasively and even aggressively talking or even ‘rap lecturing’ some ‘kids’ (kids is a just a slang for youngsters, the age group can range from 13-30) who are doing drugs and acting †˜cool’. The song is filled with second person narrative. The word ‘you’ has been used extensively, for each and every listener of the song. And that makes the emotional exorcism even stronger. The listener immediately starts to analyze himself. The target is the kids that are hooked to hip hop and ‘you’ is used to give them the rap lecture. This ‘you’ is the main weapon of the pathos as Hopsin 5 delves into what ‘your’ image of a fantastic life is. He shows ‘you’ the mirror and rephrases the dreams these kids cook up; to sell drugs so they can make them lots of money, and showing their bullet scars as trophies and that it is fun to live life like that. In the song he talks to this girl who is pregnant. He tells him that she is pregnant because it’s her own fault. All that glitters is not gold. If girls go to the