3/26/2020 0 Comments
Examination the differences between the ethical and conventional investment mutual funds - Research Paper Example This led to investorsâ€™ social awareness; thus, the concept was to make sure that any form of investment followed ethical criteria. This led to the creation of ethically managed investment funds that have been steadily increasing and represent a large amount of money invested in a country like the United States. About 12% of funds that are being professionally managed are part of a socially responsible mutual fund or of other private portfolios. The fact that there is a very large amount of money invested in this manner has led researchers to attempt to answer the question whether these ethical investment mutual funds are more expensive to run and perform better than the other conventional investment mutual funds. Initial research shows that the ethical investment mutual funds do not invest as widely as the conventional ones. However, there is no major difference between the amounts of money earned by the ethical investment mutual funds when compared to the conventional ones (Diltz, 1995). Statistics also showed that there is no difference in the areas that the two types of investment mutual funds tend to invest in (Sauer, 1997). Most of the evidence necessary to make the important comparisons between the two types of investment mutual funds is mostly found in the United States and the United Kingdom. Additionally, there is no pattern of investment that can conclusively determine the differences between the two types of investment mutual funds. However, when the ethical investment mutual funds are compared according to investment in small companies with the other non-ethical ones, a bias is found (Luther & Matatko, 1994). It showed that the ethical funds were the better performing and earned more than the conventional ones in these small companies. A different study that was conducted by Mallin et al. (1995) attempted to erase the problem of the benchmark that was set on the small companies and the investment by the ethical investment mutual funds. In this study, they considered the size of the ethical fund and the date that it was created. A method of statistics referred to as the Jensenâ€™s alpha was used to analyze their findings. They concluded that ethical funds outperform the other funds using this criterion. The small cap bias that was cited by Luther and Matatko (1994) and that Mallin et al. (1995) attempted to correct led to further research by Luther and Matatko which concluded that using the size of the fund and applying the 2-factor Jensenâ€™s alpha method; there was no conclusive evidence that reflected a difference in the financial performance of both investment mutual funds and that the small cap bias still existed. The study of the differences between the two types of investment mutual funds was complicated at this point. It was further complicated when Dibartolomeo (1996) and Kurtz (1997) claimed that the better performance of the ethical investment mutual funds was due to â€œlarge-cap growth exposuresâ€ and not due to the social factors essentially considered. This presented further biases attributed to sector and style. The purpose of this paper is to examine subsequent research in order to uncover the differences between the ethical investment mutual funds and the conventional investment mutual funds in order to determine whether the former performs better than the latter. This paper will not aim to discredit any research conducted, nor will it seek to be investigative but it will simply
12/13/2019 0 Comments
Social problems - Coursework Example
On the other hand, the subjective element of social problems refers to the belief that a certain social condition is harmful to the society, or to a section of the society and it can be changed. Problems such as drug addiction, poverty, crime and pollution do exist. These conditions are not considered as social problems but they can cause a lot of destruction is a society (Eitzen and Zinn 2).
What is the difference between norm violations and social conditions as types of social problems? Which is a person blame and which a systems blame approach? Why doe the authors of this book believe the focus should be on social conditions (system blame) rather than norm violations (person blame)? Do you agree with them? Why or why not?
As social problems, norm violations tend to assume that there is a standard behavior. People studying norm violations are normally interested in failures in the society criminals, the school dropouts, and the mental ill. On the other hand, norm violations are symptoms of social problems and not the problem itself. For example, deviants are victims who need to entirely carry the blame. The second type of social problems involves conditions that tend to cause material and psychic suffering for some people. In addition, there is the person-blame approach which is the approach of understanding peopleâ€™s social problems. In this approach, those who deviate are considered as the source of trouble. The authors of this book believe that the focus should be on system blame and not person blame since blaming an individual gives the government a chance to take control of dissidents more easily. In most cases, deviants are normally sent to hospitals or prisons for rehabilitation. It is therefore right for the authors to base on system blame (Eitzen and Zinn 4).
Welfare state capitalism is a type of capitalism is a type of capitalism that has
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