An Empirical Study on the Hedging of CSI 300 Index Futures for the Risk Management of the Commerce Style Fund Investment of Shanghai Stock Exchange
This paper examines the hedging of CSI 300 index futures for the risk management of fund investment in China stock market. The data used in the analysis covered the period of one and a half year, from April 16, 2010 to September 23, 2011, comprising 353 observations. Two models (OLS and VECM) are used to estimate constant hedge ratio. To estimate dynamic hedge raito, we use GARCH (1, 1) model. In?sample and out?of?the?sample analysis were employed in this paper. The estimation period of in?sample is the whole period while the estimation period of out?of?the?sample is the period from the start to 343rd observations. That is, hedge performance was measured and analyzed by using the last 10 observations. According to the results of hedging effectiveness analysis, we can address the following conclusions : First, the ADF and PP unit root test values of their first difference sequences are stationary at 1% level. Second, the results of cointegration test suggest that there is a long term relationship between CSI 300 index futures and Commerce Style Fund. Third, hedge ratios estimated by VECM model are more efficient in reducing the risk of Commerce Style Fund Index. Finally, there are no significantly differ in hedging performance calculated by several models.
Teaching Economics through Content Based Instruction
The traditional method of teaching English as a second (ESL) or foreign language (EFL) is language focused and curriculum centered. Even though the Korean classroom has adopted the Communicative Language Theory (CLT), instructors hope to stimulate students with random topics in the hopes that they will be able to communicate effectively in real world situations. This method of teaching English is outdated and not always applicable to Korean learners but still continues to thrive in classrooms. Content based instruction (CBI) is a learner centered approach that deals with actual material and circumstances that will encourage students to develop their language skills through meaningful content. This paper discusses the theoretical basis and models of CBI, and a practical application of teaching Economics in the Korea classroom through CBI. Introductory courses should first be taught through theme based instruction to become familiar with the terminology and basic tenets of Economics, followed by core courses taught through sustained content based instruction.
Natural Philosophy, Abstraction, and Mathematics among Materialists: Thomas Hobbes and Margaret Cavendish on Light
The nature of light is a focus of Thomas Hobbes’s natural philosophical project. Hobbes’s explanation of the light (lux) of lucid bodies differs across his works, from dilation and contraction in Elements of Law to simple circular motions in De corpore. However, Hobbes consistently explains perceived light (lumen) by positing that bodily resistance (endeavor) generates the phantasm of light. In Letters I.XIX–XX of Philosophical Letters, fellow materialist Margaret Cavendish attacks the Hobbesian understanding of both lux and lumen by claiming that Hobbes has illicitly made abstractions from matter. In this paper, I argue that Cavendish’s criticisms rely on an incorrect understanding of the nature of Hobbesian geometry and the role it plays in Hobbes’s natural philosophy. Rather than understanding geometry as wholly abstract, Hobbes attempts to ground geometry in different ways of considering bodies and their motions. Furthermore, Hobbes’s own criticisms of abstraction suggest that he would share many of the worries she raises but deny that he falls prey to them.