Decision Usefulness approach vs. Measurement Approach Research Paper

Decision Usefulness approach vs. Measurement Approach - Research Paper Example This research will begin with the Decision Useful Approach. This approach motivates the application of decision models. The approach is based on the concept that if financial statements cannot be prepared correctly, then financial statements must be presented in such a manner so as to reflect useful information focusing on users and the decision problems that they face. The approach assumes that if the financial and accounting is useful to investors, then trading volume of stocks should experience a surge and securities prices are also expected to increase or respond in predictable manner relative to publicly available accounting information. The Single-Pearson decision theory aims to understand how an investor makes rational decisions under circumstances of certainty. The theory appreciates the concept of information and enables decision makers to keep informed and modernize their beliefs. The concept uses the publicly available financial statements as source of information. The rat ionale or principle of portfolio diversification is as follows: Maintain a balance between risk and return Assurance that the different securities held for investment are negatively correlated which will give an assurance of protection in case of any market shortfall and an expectation of positive returns. Diversification of investment reduces the risk underlying the investment. Investment in a single stock of a particular company increases the substantial risk attached with the particular investment. The Optimal Portfolio Investment The concept of optimal investment falls under modern portfolio theory and assumes that investors prefer to minimize risk while striving for maximizing their expected returns. (Source: Spreadsheetml.com, http://www.spreadsheetml.com/finance/freeportfoliooptimization.shtml, 2013) The theory states investors will act rationally and thus they will always make decisions that will aim at maximizing their expected return for given tolerable level of risk. Portfolio Risk It is one of the concepts used in risk-return analysis that gives an estimate of actual returns relative to expected returns of an investment. Important factors which are considered in measuring portfolio risks are standard

Hypnotherapy - Understanding of Conscious and Sub Conscious Processing Essay

Hypnotherapy - Understanding of Conscious and Sub Conscious Processing - Essay Example Even though this method is considered unscientific as it leads to abreaction, it has been verified to work on problems or conditions such as managing pain for those with chronic illnesses, depression, anxiety, irritable bowel syndrome, addictions, insomnia, phobias, eating disorders and even weight loss among many others. Since this technique explores the subconscious, care should be taken as to how it is being explored as it can lead to creation of false memories or quick awakening before preparation can cause partial amnesia as some of the memories are temporarily erased. Charles Tebbets was a renowned hypnotherapist and he explained that the subconscious must be known and understood from its functions to its principles in order to understand how hypnotherapy works. According to Tebbets, there are six functions of the subconscious and five principles that convince the subconscious and they will be discussed in detail below. The subconscious is a memory bank. Every action, feelings and experiences an individual has ever undergone through is stored in the subconscious without even the knowledge of the individual. These are the forgotten memories and hence do not come up when the person’s mind is not at ease or conscious. When hypnosis is however employed, the defences to the mind are eliminated and these memories are able to be accessed and they can explain various causes of the problems and conditions in a person’s life. The subconscious controls as well as regulates the functions of the body that are involuntary such as breathing and digestion among others. When an individual is under stress, these involuntary functions are affected through inhibition and they may eventually lead to psychosomatic illnesses. With hypnosis, these involuntary functions are able to be restored as it touches the controlling aspect. Tebbets explains that the subconscious is the seat to our emotions