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圣安德鲁斯大学论文代写 – Overvaluation of the Stock Market




Stock markets are considered to be among the most preferred investment platforms by investors, as they generate a high return on investment (Fong, 2014). There are many underlying reasons for this high return, one of which may be the valuation of the financial commodities traded in the stock market (Chang, 2005). Some financial analysts believe that the stock markets are extremely overvalued (Phoenix, 2014), while there are others who consider them as being slightly overvalued (Rosenberg, 2010). Another school of thought has a viewpoint that they are fairly valued (Wolf, 2008); while, some hold the opinion that they are undervalued (Pan, 2009). Due to these differences in viewpoints, it becomes difficult to gauge the extent to which stock markets are overvalued. The reasons for these differences in opinions are the different geographical locations (Tan, Gan and Li, 2010) and the different assumptions made in comparisons (Cheng and Li, 2015). The difference in the methods used for valuation also turns out to be one of the reasons, as every method has its merits and demerits (Khan, 2002). Stock market overvaluation may have severe negative effects including a market crash or increasing organisation’s agency costs, which need to be considered by managers in organization-wide strategic management (Jensen, 2005).

Methods used for Stock Valuation

Various methods are used for stock valuation; some of the common ones include Price to Earnings ratio (Stowe et al., 2008), Knowledge Capital Earnings (Ujwary-Gil, 2014) and Dividend Discount Model (Adiya, 2010). The price to earnings ratio is the most common method used to evaluate stock markets, whereby the company’s current stock price is compared with the predicted earnings it will yield in future (Stowe et al., 2008). Knowledge Capital Earnings – KCE is another method through which a company’s intellectual capital can be gauged and interpretation of the extent to which it is overvalued can be given (Ujwary-Gil, 2014). The KCE method, however, is specifically subjective if the analyst is interested in estimating the potential future earnings of an organization (Ujwary-Gil, 2014).

The Dividend Discount Model is based on the assumption that the price of a stock at equilibrium will be equal to the sum of all its upcoming dividend yields discounted back to its current value (Ivanovski, Ivanovska and Narasanov, 2015). One of the shortcomings of this model is with the company’s growth estimation, in which the averaged historical rates do not provide an accurate picture, as they ignore the ongoing economic conditions and the changes that take place in the company (Ivanovski, Ivanovska and Narasanov, 2015). Another issue identified by Mishkin, Matthews and Giuliodori (2013) is related to the accuracy of dividends forecasted based on the company’s past performance and the predicted future trends of the market; critics cast doubts on the accuracy of these figures, as they are purely based on estimation of analysts and may not be always correct.

Stock Markets are Extremely Overvalued

Hussman (2014), who is well-known for his accurate insights about the financial markets, comments in one of his speeches that due to their Zero Interest Rate and Quantitative Easing policies, the central banks have driven the stock prices up to twice as high as they are supposed to be. This imparts the stock markets to be overvalued by 100%. While different authors argue that every evaluation metric has its merits and demerits, which makes it difficult to conclude whether stock markets are overvalued when calculated via a specific metric, a Phoenix (2014) report provides evidence of the fact that stock markets are overvalued by almost every metric used for valuation. According to Autore, Boulton and Alves (2015), short interest rates are also a determinant of stock valuation; the lower the short interest rate of the initial stock, the more overvalued the stock will be.

An example could be that of the U.S. stock market which is analysed to be overvalued by 55% (Lombardi, 2014), while it is estimated to be overvalued by 80% according to another research (Heyes, 2015). Lombardi (2014) identifies it to be overvalued to such an extent due to the increasing presence of bullish stock advisors as compared to bearish advisors, which results in the investors being complacent without being anxious about a huge market sell-off. By evaluating the market through various methods, Tenebrarum (2015) established an opinion that the U.S. stock market is valued at its highest peak to date. Additionally, Lombardi (2014) recognises these indicators to be similar to those before the stock market crash in 2007. Hence it may lead us to a prediction that history might repeat itself, as specialists have already expected the forthcoming crash (Heyes, 2015).

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牛津大学论文代写-Sensational Sensors




The power of electricity was tested to discover the different ways electricity can be impacted upon. Distance was specifically experimented upon to see if the amount of space effected electricity’s ability to sense electrical charges. The problem of the experiment was tested by creating a homemade electrical field detector to put to test against three electricity inducing objects such as a balloon, a comb, and a plastic cup. The objects were each placed at a starting distance of 3 inches in front of the detector and gradually moved back until the LED light went out.  At the end of the experiment what was surprisingly discovered was that the detector was not able to pick up on any charge presented from any of the objects resulting in a failure to be able to answer the problem of the experiment.

Background Research

The experiment in question explains the basic workings and capabilities of a simple electric field detector. Every circuit, transistor, wire, and resistor is arranged meticulously to create a large array of detectors to fit a specific purpose. The purpose is to expand knowledge and understanding of the natural forces, like electricity, that occur in nature. The research gathered from utilizing the electrical field detector reveals new scientific terminology and procedures. The research opens a new point of view into the true capabilities of electricity.

The experiment frequently refers to electric fields making a point to the term being a crucial part of the topic of the experiment. According to Thought Co. an electric field is, “regions of space around electrically charged particles or objects in which other electrically charged particles or objects would feel force” (Thought Co.). Electrical fields are produced when a positive charge shifts into a negative, and the direction the field moves towards is decided by which charge is active at the moment. When the electric field is repelled positive charges are in play. When a negative charge is in play the field will move towards the negative charge.

The main parts used to execute a detector’s ability to sense electric fields are semiconductors and circuit diagrams. Semiconductors are a special material fitted with the ability to partly import current. Semiconductor’s conductivity levels are moderate hence having the prefix semi-, meaning half or partly, added to the word semiconductor. There are two specific types of semiconductor used when constructing an electric field detector. P-type semiconductors are used to develop free electrons as minority charge carriers. Holes are the majority charge carriers. The exact opposite occurs within n-type semiconductors. N-type semiconductors use minority charge as free electrons and holes are the majority charge.

Charge carriers are the particles, such as free electrons and holes, that carry the electric current and charge from one place to another. A large amount of charge carriers are called majority charge carriers. Majority charge carriers handle most of the transportation of electrical charge or current. Minority charge carriers have a small charge. The very small amounts of electrical charge or current are left up to the minority charge carriers. Though on most occasions the majority charge carriers take care of the very small amounts as well.

A circuit diagram acts as the blueprints for the electrical circuitry used in the construction of the detector. The diagrams are generally represented using specific symbols to show the different circuits needed for each section. There are two types of circuit diagrams used called pictorial and schematic. Pictorial style uses basic symbols and shapes to easily represent circuit diagrams to less experienced viewers. The schematic style uses standard industry symbols to give a more technical presentation of the circuit graph to more experienced personnel.

The detector’s ability to sense and detect the nearly invisible forces of electricity is fascinating. There are factors to look for when studying the power of electricity. Though the factors are used to discover ways to harness electricity’s raw power. The reason for seeking out ways to use the data is to advance growth in society. The advancement of society could lead to further extraordinary discoveries in the world of science.

Biblical Application

In the Bible there are stories of God’s work on Earth and human life. One of His most celebrated works is the creation of the Earth. God created the terrain, flora, vegetation, and the changing seasons. In the experiment the power of electricity is tested to see how electricity is impacted. Electricity is a force of nature, as well as, a gift from God that contributes to many of today’s modern-day inventions. God’s gift of life can be seen in Nehemiah 9:6 which states, “You are the Lord, you alone. You have made heaven, the heaven of heavens, with all their host, the earth and all that is on it, the seas and all that is in them: and the host of heaven worships you.”

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The success of a company is strongly influenced by its ability to identify and implement strategies which will help it in maintaining or enhancing its competitive position. The objective of this essay is two folds: to review the use of environment analysis in generating strategic options, and to measure the performance of a strategy. The business environment is changing rapidly, and companies need to change their strategies to adapt to changes in environment to prosper or just to survive (Wu, 2010). With external environment, and to some extent internal environment, of a firm changing quickly, it is important for a firm to review them when formulating and evaluating strategic options. The BCG matrix, Porter’s generic strategies and the Suitability, Feasibility and Acceptability framework are useful in generating strategies. The application of an environment analysis in generating strategies by using these three strategic management tools is reviewed in this essay.

The success of a strategy in achieving its objectives is also dependent upon the ability of a business to measure its performance so that corrective actions can be taken to improve performance. The two tools analysed in this essay for measuring the performance of a strategy are the benchmarking and the Balanced Scorecard.

Generating strategic options

“A strategy of a corporation forms a comprehensive master plan that states how the corporation will achieve its mission and objectives” (Wheelen and Hunger, 2006, p. 14). Strategies are developed to maintain or enhance the competitive advantage of a firm. According to Saloner et al. (2001), the two main groups of competitive advantage are based on the firm’s position and the firm’s capabilities. The firm’s position reflects its place in an external environment, and the firm’s capabilities corresponds to its internal environment. This implies that external and internal environmental analyses has a vital place in generating strategic options.

An analysis of external and internal environments helps in identifying the strategy that fits the firm most. Porter’s Five Forces and SWOT analysis show the information which can be collected from the external and internal environment analysis to be used for developing a strategy. The tools reviewed in this essay for generating strategic options after conducting an environment analysis are BCG matrix, Porter’s generic strategies and the Suitability, Feasibility and Acceptability framework.

Porter’s Five Forces

The external environment analysis is useful in understanding the factors which are influencing a firm, but are beyond its control. External environment analysis can be done with strategic tools, such as PESTEL (political, economic, social, technological, environmental and legal) and Porter’s Five Forces. The Porter’s Five Forces framework helps in understanding the position of a firm relative to customers, suppliers, competitors, new entrants and substitute products, and these are useful in generating strategic options.


The SWOT (strengths, weaknesses, opportunities and threats) analysis is useful to a firm wishing to follow the cost leadership strategy to understand whether it has the desired set of resources to do that. A review of resources and capabilities can show whether the firm has the cost leadership abilities, and which can be maintained in the future. The internal resources of a firm play a significant role in deciding the strategic option that a firm can use to grow its business (Becerra, 2009). The SWOT analysis can also help in identifying the internal weaknesses and external threats which should be factored in deciding which one of the Porter’s generic strategies should be adopted by a firm. The selection of generic strategies would be less effective if the firm does not know whether it has the desired set of resources to defend the strategy. The SWOT analysis is useful in deciding the strategic option to choose by making the best match of the abilities of a company with market opportunities (Spulber, 2004).

BCG Matrix

The BCG matrix is a useful tool for evaluating the relative performance of markets in which an organisation operates. The BCG matrix analyses each business segment in terms of a company’s market share and market growth (Figure 1) (Grant, 2013). The four categories are Star, Cow, Question mark and Dog. The BCG matrix can be used to identify the markets that the firm should focus on to improve its performance. This is based on the results of the external environment analysis which shows growth and relative positions of competitors in different market segments.