Comparing different philosophical theory Assignment

Comparing different philosophical theory - Assignment Example The opposite of determinism is the principle called indeterminism which states that all situations do not have a cause and may occur on their own. The strength of determinism is that it considers human beings as rational decision makers. Determinism accepts that all human being make decisions on the basis of a cost and benefit analysis and then they perform the act. This means that an individual is already aware of the negative outcomes of an act even before he performs that act. Another strong point of determinism is that it is quite scientific in nature. The weakness of determinism is that it does not explain why certain events may have occurred without a preexisting cause. Compatibilism is another philosophical position which is even regarded as soft determinism and this position holds the view that it is true that determinism exist (Russell 381). This means that those philosophers following this principle accept that every action has a preexisting cause. It even states that all the actions that are performed by an individual are controlled by an individual’s desire. The theory rejects the claim that individuals have a freedom of willingness and that individuals actually are free. This means that an act performed by an individual is only free to the degree that an individual is not being limited by external forces. The theory even states that all activities that are performed by an individual take place due to a particular condition that is being experienced by the individual and this condition is regarded as desire. The strength of this theory is that it believes that human actions are governed by their mental state. This helps in explaining w hy a particular human being performed a particular negative or positive action. It even helps in understanding why a person who follows and accepts moral standards end up performing ethically correct acts while a person who lacks morals indulge in unethical activities. The weakness of the theory is

Review of The augmented CAPM Literature Example | Topics and Well Written Essays - 4000 words

Of The augmented CAPM - Literature review Example was criticized by various authors and a new augmented CAPM was devised in order to take systematic risk into account while investing in stock market and completely ignore the unsystematic risk. This augmented CAPM is accurate for applying in the Hong Kong market and thus, its validity is checked through this literature (Hearn, n. d.). Asset pricing models are defined as frameworks that are devised for identifying and measuring risk. The models also identify the rewards that are attached with risk bearing. The theories attached to the models helps in realizing reasons for expected returns on the government bonds to be less than that on the stocks. It also assists in developing idea behind two stocks with different expected returns. The change in expected returns over time is also explained through this model (Hearn, n. d.; Huang, Yang and Hu, 2000). The basic premises of asset pricing model are that the investor’s desires for higher expected returns. The investors do not like to take risk and hold diversified portfolios so that the risk is distributed in different sectors. The models also specify fair rate of return for particular asset. The information regarding rate of return is very crucial for taking any investment decision for corporations who evaluate projects and the formation of portfolios for inves tors. The theories related to models helps in characterizing the risk of a project or acquisition and also examine the discount rate associated with the risk. The asset pricing model was first developed by Sharpe (1964) and Lintner (1965). However, there had been lot of advancement in asset pricing for the past 35 years. The progress was important for understanding the issues encountered while implementing asset pricing models in any emerging market. So, this model should be followed and also modified over time, while investment situation changes due to several challenges. The first asset pricing theory is known as Capital Asset Pricing Model (CAPM) developed