Factor Model For Portfolio Management

Written by Sania Wilson Jun 07, 2009 www.jobsarticle.com

Before going further into the articles, let me give you a brief idea about Portfolio Management. Portfolio management is more than running multiple projects. Each portfolio needs to be assessed in terms of its'business value and adherence to strategy. Basically, a portfolio is designed to achieve a defined business objective or benefit.

The three-factor model, also known as the Fama and French three-factor model, and was developed in 1993 by Eugene Fama and Kenneth French. This three-factor model is widely canvassed by fund managers and investors to analyze and return consociated market/instruments to make the highest return for the risk taken.

CAPM (Capability Asset Pricing Model) model is the original model of the three-factor model. Hence, it is necessary to understand this model, for a good understanding of the three-factor model. The formula of CAPM is: R= Rf+ beta * (Rm -Rf), where R is the return, Rf is the return rate of risk-free investments, beta is the risk associated with a security market, and Rm is the return rate expected from the market. CAPM model successfully explains around 80% of returns.

The formula of three-factor model is: R= Rf + beta* (Rm-Rf) + Bs*SMB+ Bv* HML.SMB is called as the Small Minus Gap, and HML is known as "High Minus Low". Bs and Bv are beta corresponding to small cap and large cap portfolios having values of either 0 or 1.

The idea behind this model is that, value and small cap stocks often outperform large- cap stocks. The potential reasons for this could be a higher reward for making up higher risk taken and early mispricing of equities. Fundamentally small-cap companies often show better growth and this is reflected on their stock prices.

This model has helped a number of investors and fund mangers to calculate their risks and profits, thereby radiating their portfolio management and belittling risk strategies.

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What’S A Developer To Do? Staying “Fresh” In Down Econo

Written by Eddie Field Jun 07, 2009

There's no hiding it.? Turn on the news.? Open a paper.? Read your email.? Analyze your spam.? The answers all point to the same conclusion - recession, downturn, depression, rising unemployment, layoffs, downsizing, reduction in force, off-shoring, etc.? Have I got you despondent enough?? So now that we are facing this situation, how do we rise to the challenges before us?? How do we best prepare for the future?

1. Update your resume.? How long has it been since you took a bold, fresh look at your résumé?? Is your résumé the same resume you've had for years with the exception that you keep adding the last position?? Résumés, especially in competitive times, need to not only convey your experience.? They also need to "sell" you.? In a sense, your résumé is print advertising and the product is you.? Look at your résumé.? Would you "buy you"?? Go online and look at some samples.? Many professional résumé reviewers will even donate their time to quickly critique résumé layout and design.? Contact local recruiters to see what format they think best presents or "sells" their candidates.? They ought to know as their livelihood depends upon it.

2. Stay active.? Many who have been laid off make the mistake of treating a lay off as an unscheduled vacation.? These individuals soon find themselves running low on funds.? To avoid this situation and shortcoming, treat your extra time as an opportunity.? Staying active will not only keep you productive now but increase your preparedness for getting back to work once that time comes.

3. Stay current.? COBOL developers are very hard to come by; certainly harder to come by than 25 years ago.? There is a very good reason for that - there are fewer shops USING COBOL anymore.? Of course I'm using sarcasm to impress my point but the point is still valid.? Perhaps now is the time to retool a bit.? Are you a C++ developer in a C# .NET world?? Contact local recruiters and find out the TRENDS facing professionals in your area.

4. Learn something.? This is a great opportunity to pick up a new skill or enhance an existing one.? Community and technical colleges offer great training at a great price.? Recent news has actually reported these learning institutions are actually lowering their price because of the increased enrollment.? In addition to these schools, there are technology user groups that meet in local areas across the country.? If you live in any metropolitan area across the United States and Europe, chances are there is an entire group of active users of most technologies (from .NET to SAS, from SAAS to Java, from Linux all the way to Robotics).? Finally, there are excellent tutorial pages and lessons giving step by step tutorials.? More of a visual learner?? Hobbyists are going online in increasing numbers and recording demonstrations and lessons for posting on Google Video and YouTube.? These tutorials range from broad introductions to very specific detailed tasks.? You can also download and install trial software, Beta versions or Express editions (i.e.-Microsoft Visual Web Developer Express Edition).

5. Share what you've got.? You learned it on the playground in Kindergarten.? It's polite to share.? You have a skill and there are those who need your skill.? Teach them.? Just as you can learn from someone either online or in a user group, you can also teach someone.? Perhaps you might post a tutorial mentioned above.? Are you thinking you don't have any sought-after skills?? A simple search of what is out there will dispel that thought.? Volunteer to be a guest speaker at a local college or user group.? The bottom line is think of others.

6. Offer yourself. There are many organizations like non-profits who could benefit from your skills, abilities, talents but lack the capital to pay as much as their professional, industrial, corporate counterparts.

7. Think smaller. Perhaps you've been looking for the long-term perm position of the past. Now may be the time to consider a contract position. If you're used to longer 18-month contracts, now may be the time to seek a shorter 3 to 6 month contract. Shorter still there are project sites you can go to which list project descriptions and allow developers/engineers the opportunity to fixed-bid for participation in that project. Most of these sites even provide space to respond in detail as to how you envision the scope and/or design going to help substantiate your knowledge and experience.

Now may not be the worst time of your life.? Now may be the BEST time of your life.? It can be a time of tremendous opportunity -that is, if you make it such!

For more details and information contact Eddie Field at Summit Consulting Services (www.SummitConsultingServices.net)

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Some Reminders Before Accepting A Job Offer

Written by Mela Jun 07, 2009

In this day when unemployment rate is very high, one is very lucky to get a job offer. But since the profession/career you will pursue will play a big part in your future, it is also wise if you will allow yourself some time to think before accepting a job offer. The following are some things to examine before taking on a new job:

Scrutinize the job description. Review the responsibilities, basic tasks and requirements associated with the job that is being offered to you to get a glimpse of what you can expect from this employer.

Assess yourself. It is not wise to just plunge into something that you don't think will work for you so allow some time to ask yourself some questions. Will you be comfortable with the work schedules or routines? This is because some job requires you to wok at night or even on weekends. Will the work set up allow you to show your skills and be challenged? You may get bored and be an underachiever if the job is too easy or monotonous.

Do you think you can meet the standards and perform the tasks required? The job may be so demanding that your work experiences and skills may not be enough and you end up feeling frustrated.

Will the job simplify or make your life more difficult. Consider the office location; it might be too far that you will spend too much on transportation fares. You may also be required to dress in business attire all the time that you will end up using all your salary to buy clothes. Consider whether your salary will mostly go to work expenses or take too much time away from you and your loved ones.

Will you be comfortable in your new company? If you are someone that dislikes formalities and prefer to be very casual, you may not be able to function well in a very conservative or formal company setting. Consider the people in the company you are applying for. Will your personality and lifestyle blend well with the people you will be working with?

Work Salary and Benefits. Take a look at the compensation package. Is it at par with what other companies offer to people that have the same experience and skills as yours? Aside from the salary, consider also the benefits. Sometimes great work benefits can be more important than salary.

Are there opportunities for growth? Opportunities for advancement must be present in long term jobs so your job performance improved in time and you feel happy and satisfied.

Source: http://www.jobopenings.ph/article_item80/Some_Reminders_Before_Accepting_a_Job_Offer.html

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Top 5 Career Websites for European Jobs

Make no mistake: embarking on a new career in Europe is a definite challenge, and anyone who paints a different picture is misleading you. Finding your dream job in Europe takes determination and patience, not to mention skill and a well-constructed resume — but it can be done.

There are quite a few internet resources at your disposal for finding a good job in Europe. The top five career websites for European jobs include Monster.com, JobcentrePlus.uk, Stepstone.com, Careersineurope.com, and Jobnut.co.uk. These sites focus on many different types of jobs, including technical support jobs and related IT computer categories.

Each site is unique, and each can help you find a rewarding job in the European Union. Here is a little more information about each site:

http://www.Monster.com: It’s little wonder why Monster.com is so highly rated. With an estimated 6 million visitors weekly, Monster.com provides career seekers with an extensive job database highlighted by an “International Jobs” link, which will help you find a rewarding technical support job or other career in the IT industry in any country in the European Union! Not only that, Monster.com offers great advice on building your resume, attending job fairs, and even paying your taxes abroad.

http://www.JobCentrePlus.gov.uk: This is one of the UK’s largest and most popular career websites, and can boast nearly 2.5 million hits per week! This site offers a wide range of jobs, including technical support jobs and IT career fields, and also provides sound advice on living and working in Europe, worker’s benefits, and more.

http://www.stepstone.com: with nearly 2 million visitors weekly, Stepstone.com taps into some of the most popular careers in 13 countries. This comprehensive site offers online job boards and career advice for job seekers and also human resource organizations. Particularly emphasized are the IT career field and technical support jobs.

http://www.careersineurope.com: This site offers “virtual attendance” to live job fairs to many of the highest salaried careers in Europe, and at the same time offers a comprehensive database that is broken down by company or category.

http://www.jobnut.co.uk: This one is an easy-to-understand career website that breaks down listings into 32 different categories — including technical support jobs — which in turn link to countries throughout the European Union. Updated “daily vacancies” make this job site one not to miss.

Careers in the European Union can’t really be pigeon-holed into one specific category, as each country has its own demands. For example, in Italy there remains a great need to fill skilled positions such as electricians and pipe-fitters, while at the other end of the spectrum sales opportunities abound. In Germany, IT jobs such as software engineer, IT trainer, computer technician, and network developer are in high demand, while other countries such has Austria have a great demand for technical writers and web developers.

The best advice: narrow your search for a specific job in a specific European country and start submitting a resume that is crafted to the career of your choice.

-career advice-

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How to Ask for a Raise During A Recession

Asking for a raise at any time is usually a hard undertaking; but asking for a raise during a recession is even harder, even for those with amazing negotiation skills.


Yet it may still be the right thing to do, especially if you feel that you are being paid far below what you are worth, or far too little for the effort you are putting in.

Another situation in which asking for a raise during a recession is justifiable is in the cases where when you were hired (before the recession really manifested) you took up a job with evidently lower pay, with a promise of a more realistic pay package once you proved yourself on the job after so many months.

Failing to ask for the raise can lead to feelings of apathy towards your job, which could result in poor performance, with the consequent tragic effects on your career. Being paid far less than you are worth could also lower your self esteem, impeding your general sense of happiness in life.

The Importance of Justifying Your Reasons for a Raise

Studies show that, during a recession, companies tend to lay off redundant or in-competent staff. But, surprisingly, employers will raise the salary of competent staff to keep up their morale. Before you ask for a raise, think about if you belong to the competent group!

Review your past work and what you have done to help advance the company. What have you contributed? Are you directly involved in the revenue-generating operations for the company? If not, can you make that connection?

It is important for you to justify your own reasons for a salary raise. The easiest way to sort that out is to relate your work to any possible contribution to your company’s revenue. Think about this creatively.

Even if you are not in the sales positions to generate direct business revenue, you can think about ways you have helped the company save money by enhancing internal efficiency or reducing man power.

This helps enhance your negotiation skills when bargaining and it helps your boss agree with your justifications more easily.

The Importance of Proper Timing

The key to successfully asking for a raise during a recession is proper timing. You don’t start hustling your boss for a raise just as he has received a report painted in red circles. Asking for a raise is bad news in itself for your boss.

The reality of the matter is that you are a resource (a human resource) to your boss, and a raise for you means increased cost for the business. This is bad news for a manager, whose brief is to minimize costs and maximize profits.

The worst thing, then, that you could ever do then is to bombard your boss with such ‘bad news’ when he has just received some other bad news from elsewhere — and bad news for businesses is not in short supply during a recession.

Not even excellent negotiation skills are likely to help you if you bring up the issue during a time like this. Therefore, you should try to ensure that your raise request coincides with a positive time for your boss and the company.

The good news we are talking about here need not be good in absolute terms. Absolutely good news for businesses is a rarity during a recession. The good news we are talking about includes relatively good news, like when the business, on landing a certain deal, realizes that the effects of the recession won’t be so hard on it, after all.

The Risks

Keep it in mind that asking for a raise (even in a flourishing economy) is always a risky but often necessary. Also remember that asking for raise is sure to induce your boss to reconsider his options, at least momentarily, so make sure that you are worth the money you are asking for and that you have the negotiation skills to back it up.

In the end, a properly timed salary increase request, even in a recession, is bound to be looked at favorably, if not immediately honored.

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What to Do When You Have Lost Your Job During a Recession

It is an incontestable fact that the world economy is currently in a
recession mode, with no clear exit anywhere near in sight. The
recession period is a time of great turmoil in many workplaces.
Everyday there is bad news of companies reducing their headcounts, and
no one really knows where the axe will fall next.

Here are a
few tips to help you cope, and get started on your next executive
career search, if the axe happens to fall on you during the recession.

Don’t take it personally.
If the official position given for your lay-off is the recession, make
the choice to believe it. Sure, it goes against the grain, but it is
still the right attitude to hold. It is a far more empowering choice of
attitude than choosing to think that the boss has recommended you for
the axe for personal reasons, which is where the mind is likely to go
by default. Yet, if you choose to take the recession-induced lay-off
personally, you might find your self-esteem shattered, which might lead
to anger and deep depression, making the task of starting an executive
career search and securing another job a difficult, if not impossible,
undertaking.

Don’t go into denial. The earlier you accept
the sad fact that the inevitable has happened, the better for you.
Harboring the illusory thought that the company is likely to reconsider
their decision and reinstate you is likely to do you more harm than
good. Remember, everything happens for a reason, and your lay-off could
actually be a blessing in disguise. In fact, you have the power to make
your lay-off a blessing (at least in some way), if only you choose to
use that power. You could, for example, use the period between your
lay-off and getting another job for self discovery, which can then lead
to lifelong happiness.

Get Moving Immediately. A
recession-induced job loss is not like being fired for other reasons.
You don’t need to put yourself in an extended period of mourning and
torture yourself with extended soul-searching. Instead, you need to
start looking for other opportunities immediately; knowing full well
that getting a job in a receding economy is likely to take longer than
it would otherwise take. So the earlier you start the search, the
better for you. You don’t need a situation where you end up exhausting
all your savings before you get your next job and earn your first
paycheck. A good place to start is with an executive career search.

Improve on Your Skill Base. If
getting another job during the recession indeed takes longer than you
had anticipated, use the increased free time to update your existing
skills, and develop other skills relevant to your career. This is bound
to increase your marketability in the job market, and help your
executive career search go more smoothly, as job tasks tend to get
consolidated (to save on the headcount) during the recession. This
task consolidation in turn favors multi-skilled individuals. Moreover,
updating your existing skills and developing others is bound to keep
your mind occupied during the period between your lay-off and getting
another job, thus immunizing you from the negativity which tends to
take root during such hard periods.

As discussed in some of the
articles in this site, make sure to take classes and complete
certification programs to boost your skills in various areas. Refer to
the section Further Study on this website, to read more about this topic.

With
aid of these tips, you can keep yourself afloat, or at least keep your
head above the waters, even after falling victim to the recession axe.

-career advice-

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The Older You are, the More Eligible You are for a Career Change, Here is Why

Career Change for Old People

Deciding to make a career change isn’t an option reserved for younger workers. Older members of the workforce are still in demand and will find many opportunities when it comes to making changing careers.

The following statistics show that employers value older and more experienced employees:

* The Australian Bureau of Statistics has found that from August of 1989 to August of 2003, more than 380,000 jobs were lost by workers ages 15-24 in favor of older workers. Some of this was brought on by younger workers becoming full-time students, but it also shows that Australian employers sought out older workers.
* In the Netherlands, according to figures from December of 2000, over 500,000 employees are age 55 and older. This number has grown steadily since 1995.

If you’re an older worker who has decided to make a career change, here are some tips for getting the job you desire.

Career Change Tip – Emphasize Experience

When older workers update their resumes, they should highlight their experience and accomplishments. In most cases, these will outweigh the experience of younger applicants and give the older applicant a definite advantage.

Employers often look a steady employment history and for long periods with the same employer. Since employment history is one of the most important parts of the resume, older workers should focus on it.

Older workers who have frequently changed jobs and only spent a short amount of time with each employer should de-emphasize this in their resumes. Many employers see frequent job changes as a negative.

For more information about putting together a strong resume, visit The Nuts and Bolts of Writing a Good Resume
Career Change Tip – Update your Skills

Update your job skills when making a career change. If you are seeking employment in a professional field, look into certification programs. Read up on new developments and trends in your chosen field.

Read this section on Further Studies to Advance your Career for more information.

Career Change Tip – Conduct an Online Job Search

Conduct an online search for job openings. Some employment agencies advertise jobs for seniors online. Using internet search engines, you can narrow your search to the jobs which you’re interested in and to the geographical area where you want to work.

The following resources are available for older workers making a career change who live outside the United States.

For Asian jobs, visit The Top 5 Career Websites for Asian Jobs.

For European jobs, visit Top 5 Career Websites for European Jobs.

For Indian jobs, visit Top 5 career websites for Indian Jobs.

Career Change Tip – Suggested Jobs for Older Workers

Jobs that are not limited to younger workers include the following:

1. Specialized professional work, such as medicine or engineering. Experience is a strong factor when being hired in these fields.

2. Lecturing and public speaking. There is no age requirement for speakers who are invited to lecture on a specific topic. Knowledge and experience are determining factors for this type of job.

3. Writing. Non-fiction and fiction writing require good writing skills. Many writing jobs can be done at home, which is a plus for older workers. With more writing opportunities opening up on the internet, this is a good area for a career change.

-career advice-

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