Surprising Reasons Why Men Leave (and How to Handle It)

Author: Brenda Shoshanna

After a relationship ends, whether it’s a 20 year marriage or a promising romance, women ask themselves over and over, what went wrong? They ask themselves, their girlfriends and their therapists. Sometimes they even spend weeks and months blaming themselves and become afraid to try again. Once they know what really happened, it’s always easier to move on.

Below are some top reasons men leave and some guidelines on how to handle this.

They’re Waiting For The Perfect Partner

Some men have a secret fantasy which whispers that a perfect partner is somewhere, around the corner, waiting for him. This perfect partner will not only accept him as he is fully, but he’ll finally be able to express the parts of himself that are hidden. She’ll bring out the best in him. Rather than criticize and make demands, the perfect partner will give unconditionally and fulfill his every need. This fantasy should not be discounted, as it fuels much of this man's inner life. When a woman understands this fantasy fully, she has a secret for helping the man really thrive.

They Hear A Call To Adventure

As soon as some men see a relationship as stifling his basic need for adventure, he can feel himself to be trapped in a prison without bars. Many men then blame the relationship for the dilemma he is in. They do not realize that their true need is to find adventure in the relationship. A woman who does best in this kind of relationship is one who provides challenge.

They Suffer From A Fear Of Commitment

The fear of commitment is widely misunderstood. Commitment is inevitable when a man is living from the truth of who he is. When a man, however, is in a relationship out of obligation, guilt, on or to fulfill a false sense of self-esteem, no real commitment is possible. If he’s not committing, it’s because he doesn’t feel things are right for him.

They Fear That They Can’t Satisfy The Woman

There are some women who can never be satisfied no matter how much a man gives or tries to please. Some men become tied up in knots in these relationships and start to feel terrible about themselves. No matter how hard they try, they can’t get the approval they are hungry for. Some just live for those rare moments when they are acknowledged and thanked.

He’s Acting Out The Repetition Compulsion

The Repetition Compulsion is the unconscious compulsion to repeat a painful situation or relationship over and over, in the hopes it will turn out differently this time. Usually each time is worse, brings more pain and disappointment. Even in the rare instances when the person gets what he wants, the original hunger does not subside. The only solution to this compulsion is to go back to the original trauma, face it fully and work it out.

He’s Involved With The Ghost Of A Past Relationship

These Ghosts are memories, dreams and longings that linger from past relationships, which have been finished but are not over. A man can hold onto the memory of a former wife or lover and idealize her to such an extent, it prevents him from being available to anyone in the present. These memories can also become projected on the current relationship. These men must learn to say forgive the past, say good-bye, and develop the courage to love again.

Here are some Touchstones, (guidelines) for both women and men to help understand relationships better and behave in a way that is helpful for all.

Touchstones For Women

- Realize the turbulence a man goes through often has nothing to do with you - and cannot be avoided.

- Give him space to discover himself, without guilt. His changes do not mean he does not love you. Allow him to be all that he is. Acceptance is love.

- Get busy becoming all the person you can be too. There is nothing worse for a relationship than a man feeling you are clinging to him for your life.

Touchstones For Men

- Restlessness and painful feelings come so you can understand yourself better. Don’t blame them on the relationship. This is not a time to run away, but stay put and understands what is going on inside.

- While you are unsettled and confused is not the best time to act. Choices made during this time are often ruled by feelings and needs from the past.

- Make sure you help the woman realize what you are going through. Do not blame her for it. Be patient with her and yourself.

- Understand that craving other women can become an addiction and escape from intimacy, bringing only more pain and repetition in its wake.

Cc/Dr Brenda Shoshanna/2007

Article Source: http://www.articlesbase.com/relationships-articles/surprising-reasons-why-men-leave-and-how-to-handle-it-243912.html

About the Author

Hear men tell you in their own words why they left and what makes a relationship work in eye-opening book on modern relationships - Why Men Leave, http://www.whymenleave.com. Top psychologist,speaker, mediator,and author offers unique guidelines and instructions. Contact at mailto: mailto:topspeaker@yahoo.com. Get free ezine and articles http://www.brendashoshanna.com/ Go to: http://www.whymenleave to get your copy right now.

How conflict affects men - More about relationship psychology

Author: Joe Bisley

Psychology teaches us why men and woman react differently when they are in a position of conflict. There are always going to be periodic disputes when you live with someone.

The situation worsens, however, when their differing conception of the problem causes them to worsen it. Couples often turn to counseling when there is a serious relationship problem,

and most counseling is oriented towards helping them understand how their partner is thinking in a given situation.

The National Institute of Mental Health funded a study which showed that most couples together for just a few weeks and were aged between 18 and 21, avoided intimacy and being dependent on their other half. They were apparently anxious that they might be rejected or abandoned. There were different categories of anxiety; those who felt more secure in themselves had lower levels and the level of anxiety in others varied because of the way they managed their anxiety.

It also transpired that the results were very different between the men and the women.

Tests showed that male reaction was easier to discern. Most of the men showed increased

anxiety whereas only the most evasive of the women indicated any real difference.

The women wanted to lead the debate in trying to settle a relationship conflict; they were perceived as wanting to find a solution to the crisis. For them stress fell as the confrontation advanced. They were happier when the conflict was sorted out rapidly.

The men took a more passive role in settling the relationship crisis. They also wanted matters resolved but they tended not to want a head on dispute. The men with the most secure female partners showed less stress than the others, during the tests. There was no change in the stress displayed by the women following the level of security of their partner.

When you come looking for help to sort out your relationship, the counselor will help you to see why and how men and women think in different ways.

Interpreting the above tests will make it easier for you to realize why men and women act differently when faced with conflict

The above research on studying the effects of relationship conflict in men and women will help you know why the react the way that they do. You will both be better armed now to resolve your relationship conflict.

Joe Bisley

For further information click here     http://mylove-breakup-makeup.com

Article Source: http://www.articlesbase.com/relationships-articles/how-conflict-affects-men-more-about-relationship-psychology-854534.html

About the Author

Joe Bisley writes articles about human relationship problems.

Author: Pick Up Guide

Are you looking for opportunities to connect with a girl? Then holding her hand is the perfect means of reaching out to her. Whether you are beginning a relationship or growing it, here are three sure ways to connect and hold her hand.

Gimme Five

Gimme five is a classic opportunity to hold hands. Well, technically, you don't hold hands, but touch hands, and that should be a good start. Use this technique if you are not entirely sure about your feelings towards a girl, or if you are still testing the waters.

As you go on about your friendship, there will be an opportunity to connect, to feel without committing, to see if sparks will fly. When you share a victorious moment, say winning a foosball game or finishing a project, ask the girl to give you five by holding out your palm facing up and say, "Gimme five!" With such a friendly and risk-free move, she will definitely oblige. As soon as she slaps your hand, momentarily close your eyes and savor the experience. If you felt sparks, then she's definitely a keeper. If not, then don't lose hope, there are other opportunities to physically connect with her and test if the relationship is headed somewhere.

I Got You

This opportunity to hold a girl's hand arises when the girl is about to overcome an obstacle and would need support, say as she alights from a vehicle or flight of stairs or when leaping across a puddle of water. Do the following:

As the girl is about to embark on the activity, look into her eyes and convey, without words, that you are there for her. If she's looked away and is concentrating on the obstacle in front of her, then bravely declare that you are there by saying, "I got you" or " here," and simultaneously hold out your hand with the palms up and fingers slightly cupped. No girl can resist a helping hand and an assured voice.

As she takes your hands, you will feel that she will cup her hands onto your palms, as if securing herself on you and may put on some weight, especially when she's on her way down.

Respond by securely cupping your fingers and locking your elbows and shoulders to accept the added weight that she will put on you. Just be conscious not to grip too hard, as she may feel a strain if her hands are squeezed too tight.

As she overcomes her obstacle, gently ease the grip, but don't let go of her hands just yet. This is a decision moment for you, whether to take the opportunity to continue holding her hand, or to let her go and hope for a next time.

If you decide to hold on, then ease into to the next type of holding hands, for a more comfortable connection.

If you decide to let go, then make sure she remembers the experience. As you ease-up the grip, warm up her hands to convey the honor and pleasure you experienced in the opportunity to secure her. Caress her hand by sliding your thumb on top of her hand or sliding you fingers at the side of her hand. At the same time, ask if she's ok, or if she's ready to go. Soon as she say's she's ok, gently let go and politely bid her to, "take care on your way," or "have a good walk."

Locked to Me

If you are in a stable relationship, then you know that physical intimacy is part of fostering your bond. Holding hands is an intricate part of your relationship. Whether you do it in private or public, holding hands does not only connect your emotions but enhances it as well. One of the most common types of holding hands is the "locked to me" way.

This style has to do with interlocking your fingers with hers, as you hold hands. Do this by putting your palms together, as if in prayer.

As your palms align, the fingers will naturally align. However, to be intertwined, pivot your palm slightly sideways and open up the spaces in between your fingers.

As your fingers open up, the girl's fingers will naturally fall into the spaces in between, so both your fingers alternate with each other. Just curl your gingers to the back of the other's palms and your fingers and hands become locked to each other.

As your relationship grows, you may discover other ways of holding hands, and those that will suit yours and her hand type. The important thing is never letting go, for as long as your hands are together, you and her become one.

Article Source: http://www.articlesbase.com/dating-articles/how-to-hold-a-girls-hands-21355.html

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For more great tips on dating and picking up women, check out our free dating articles at Pick Up Success Guide

Author: Lita Stone

Why should we read “1000 Questions For Couples”?
Currently the divorce rate of couples is increasing. The reason leads to this tragedy is the couples don’t know how much they actually know their partner. Even you are acquaintance, you have to know his character, temper, beliefs, habits and so on to have a overall understanding of your friends. So, the couples should have a better knowledge of their partners which can decrease their suffering and improve happiness in the later life after marriage. At the beginning period of marriage or the period of honeymoon, they focus on the sweet days and have no eye on a matter for a long lasting relationship. So, once they finished this period, they have to face the reality. Something maybe varies from their thoughts for the image of marriage. With time goes by, the differences growing up. The marriage may become unsteady. So, one should do relationship quizzes to avoid going wrong with your relationship with your partner. You can open aspects of your relationship
and interpersonal skills in dealing which you never noticed with not only your life partner and your friends. So, how to do the relationship quiz?

“1,000 questions for couples” is the very method. In getting along with your life with your partner, you should ask many questions about career, money, children, child rearing, morals, personality, past and present relationships, beliefs and conviction and also sex. By asking such questions, you may explore a new knowledge and understandings of your partner. This may decrease embarrassment and confirm your relationship in the marriage. As you all know, one may feel embarrass to ask such questions. Don’t worry. This book also helps you to develop the atmosphere to ask them. If you want to keep the intimate relationship and hold the happiness; if you want to grasp how your partner think about your relationship and what is her thinking, don’t hesitate to read Michael webb’s
Grab A Copy Click here

Article Source: http://www.articlesbase.com/marriage-articles/quiz-questions-about-couples-1855731.html

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1000 Questions For Couples Complaints

The Pros And Cons Of Chat Rooms

Author: Teri Plaxton

Socialization on the through internet chat rooms has become a growing trend. Online communications is quickly becoming a subsitute for face to face communications. The increasing availability of online communication tools has not only increased the efficiency in which humans interact, but has also brought about changes in the way humans interact. Due to the interpersonal boundaries of internet chat rooms, it is easy for people to express themselves in manners that would less likely take place in a more personal setting. Some would even go so far as to say an internet chat room is a state of anarchy due to the lack of control and regulation.

Chat rooms can be used for students to talk "live" to other users that are online at that time. This is called "synchronous" communication. Chat rooms can have specified topics that students talk about or can be open for any topics. Many dangers have been associated with open chat rooms where users really do not know who they are "chatting" with and inappropriate discussions may take place.

Chatting with friends online - via services like MySpace and Bebo - is beginning to take over from watching TV as the main hobby of many young people. Much of the chat is happening in what are called 'community websites'. Unlike chat rooms, they are not open to everyone: each person has to be invited to join in. A safer alternative is a private chat room where only certain known users are allowed into the chat room. This can be useful for students in a class to have a discussion with one another, for students to work in groups or for private interviews with a few people. It is not as useful if students are in different time zones since the discussion takes place in real time. Asynchronous chatting can be done through discussion boards.

Chat rooms (synchronous discussions) seem to have few advantages over news groups, listservs, or mailing lists (asynchronous discussions) - with one exception. Discussions on complicated concepts, when conducted in asynchronous mode, can take many days, or even weeks, to complete. In a chat room, the same discussion may be completed in a much shorter time. This can be very important in teaching math, science, and technology.

However, the concept has recently evolved in such a way that it mostly refers to simultaneous ("synchronous") discussions. This means that the participants are at their computers at the same time, and respond to each other's messages immediately, much like a discussion between people in a room.

1.The major disadvantage of chat rooms is that the participants need to schedule to meet at a particular time. As with any other meeting, this may be inconvenient, and may take much administration to achieve with busy people.

2.At present, not many regular public chat rooms have been established for educational purposes.

While public chat rooms for the purpose of school education are few, there are many (the great majority, and those most easily accessible, by all appearances) which are devoted to sexually explicit discussions of a kind that is most unsuitable for most school children. It is rumoured that some persons with a taste for sexual abuse of children have used chat rooms to make contact with child victims. Many people may not be familiar with how an internet chat room works. Upon entering a chat room, a person will be provided with an id. This can be an id specific to a particular chat room or depending on the service provider, it can be ones login id for their internet service. These ids are usually anynomous in nature.

An internet chat room offers an environment that is anynomous and one that allows for uninhibited freedom without fear of being indentified. This allows people to stay in control and make expressions that may not normally be made in a face to face interaction.

Article Source: http://www.articlesbase.com/relationships-articles/the-pros-and-cons-of-chat-rooms-121188.html

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If you want to find out the secrets of popular dating sites or free personal ads, read the free articles.

Coaching Generation X

Author: Gaurav Walia

It has been said that Generation X is the most ignored, misunderstood, and disheartened generation our country has seen in a long time. No one can define who belongs to Generation X. While most agree that there is a generation after the Boomers, no one agrees on who it is. In a September 23, 1996, article in USA Today, six experts defined Generation X, each with a different answer. They ranged anywhere from those born between 1961 to 1981 (78 to 85 million) to those born between 1965 to 1976 (46 million). Although Generation X appears to be the accepted term, other labels have been applied. William Strauss and Neil Howe refer to them as the Thirteenth Generation (the thirteenth generation since the founding of our country). Baby Busters and Twenty-something’s have also been used.

One of the most fundamental requirements for effective coaching is the ability to understand others' motives, values, and goals, not enforcing one's own on others. A slight variation of the Golden Rule-instead of "treating others as you want to be treated," coaches should "treat others as they want to be treated." This means understanding, and accepting, that people are all different. It also means that there is no "script" for coaching-it is different for every person you coach.

The need to understand differences is especially apparent in the ongoing conflict between Baby Boomers and Generation X. These struggles are rooted in the desire (on both sides) to want everyone to be alike. This would certainly make our lives and relationships easier, but it is not based in reality. Of course, clashes between generations are not new. Remember the generation gap in the 1960s between the Boomers and the Silent Generation?

The fact remains that Generation X are the employees in the workforce today; they are the future. They aren't going away, nor are they likely to conform to the previous generation's definition of work. Boomer managers cannot continue to ignore Xers' differences and try to manage them according to their own mindset. This does not mean agreement with a Xer's attitude but, understanding them to make coaching easier. The better you know them, the more likely you are to have insight to their "hot buttons"-what motivates them. And, at the very best, understanding them may begin to remove the conflict and hostility that exists between the generations and will lead to positive actions and results that are mutually beneficial to the individual and the organization.

The problem with generalizations is that they only go so far and stereotyping runs the risk of alienation. There are always exceptions to the rule, those who will say "that's not me". I can sometimes identify with Boomers and sometimes with Xers (you guess my age!). It is impossible to suggest a prototype for how to coach 46-85 million people. As a start, the generalizations made here are based on a review of the relevant literature and personal observations/discussion with coaches-all with the hope of understanding this generation and offering suggestions on how to effectively coach them. To successfully coach and help Generation X, we must learn what they want, how they feel, and how they view their world.

WHAT WON'T MOTIVATE?

Generation X won't do things because they have a deep sense of mission, or loyalty to an organization. They have nothing but disdain for corporate politics and bureaucracy and don't trust any institution. They grew up watching their parents turn into workaholics, only to be downsized and restructured out of their chosen careers. They believe work is a thing you do to have a life (work doesn't define their life).

During the practice situations in our coaching workshops, the coach will often say-"Your behavior is affecting the company and if you don't change, we won't be in business in the long term." They raise the company flag and pull out the loyalty line. This means nothing to Xers-it will not capture their interest, raise their awareness, or stir them to new thoughts, feelings, and actions.

Xers have no expectation of job security, so they tend to see every job as temporary and every company as a stepping stone to something better, or at least to something else. They have been accused of not wanting to pay their dues. But, in todays changing workplace, anyone who is thinking about doing a job long enough to pay dues is out of touch!

Because they won't put in long hours at what they mostly term "dead end" jobs (Douglas Copland coined the term "Mcjobs,") and they don't exhibit the same loyalty as Boomers do towards an organization, they have been called slackers. However, Xers will work very hard for a job that they believe in, for something that challenges them. In a l995 survey, Babson College Professor Paul Reynolds found that "10% of Americans between the ages of 25-34 are actively involved in creating a start-up company, a rate about three times as high as any other age group...it should help dispel once and for all the myth that today's youth are motivationally challenged." (U.S. News and World Report, September 23, 1996)

WHAT DOES MOTIVATE?

Value The Individual and Nurture Relationships

Although there doesn't seem to be one description of Generation X, most will agree that a defining characteristic is that they don't like to be characterized (as I'm doing in this article!). They don't want to be treated as a single entity, but want to be looked at as individuals. In addition, this is the first wave of latchkey kids to hit the work force. They are homesick for the home they never had (due to both parents working). Their focus on relationships over achievement is what leads Boomers to complain about their laziness. Isn't this strong sense of community and personal relationships in the workplace just what we need?

Challenging Work

This generation has sometimes been called the MTV Generation because of their short attention span. Xers want new challenges and the opportunity to build new skills. Training is one of the best motivators. They have a tremendous capacity to process lots of information and concentrate on multiple tasks.

They don't want to spend a lot of time talking about things or having meetings. They want to get in, do the work, and move on to the next thing. If you're looking for someone to deliver a report every week, you don't want a Xer. I recently brought up the subject of understanding twenty-something’s during a coaching workshop. Immediately a manager complained, with a lot of emotion, that kids today don't want to work and will only stay for a week or so and then leave. Well, the job was very repetitive and offered little challenge. No wonder!

Freedom to Manage Time and Work

Xers don't want over-your-shoulder, in-your-face managers who constantly check what they're doing. Perhaps as a result of their latchkey childhood, these young workers are not used to being closely supervised and are remarkably good at working on their own.

Feedback and Recognition

On the other hand, members of Generation X seem to crave time with their bosses and can never get enough feedback on their performance. They may be searching for what was missing when they were growing up. Because of their short attention span, recognition and rewards must arrive quickly. Employee of the month doesn't do anything for them.

CONCLUSION

The characteristics for which Generation X has received such bad press are the very qualities that make them valuable. We say we want an empowered work force...give Xers the ball and they will run with it...we want a self-directed work force...these workers have been self directed from a very young age...we want computer literacy...Generation X comes out on top...we want flexible, adaptable workers-right on again.

Xers will respond to Boomer managers if they put meaning, into the buzzwords they use so often-empowerment, teamwork, communication. Create an environment where they are challenged by and enjoy their work, where they're measured on performance rather than on which clothes they wear, where they are informed, included and recognized. Gee, maybe Xers aren't so different from anyone else!

Article Source: http://www.articlesbase.com/training-articles/coaching-generation-x-372943.html

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i m Gaurav Walia. i m good author

Author: jason bb han

Are you trying to find a poem to win your girlfriend back? Maybe you are not too sure if poems will do the trick. Will poems work? Well, maybe. Or maybe not. Who know?

Well, it really depends on your situation. What is the reason for your break up? If you have done something very wrong, like cheating on her, you couldn't possible expect a poem to do miracles for you. Though it might help to appease her a bit.

If your break up is only due to a small misunderstanding, then poems may just do the trick. Regardless of whether poems work or not, if you really want to send your girlfriend a poem, make sure that you are sincere about it.

Here are a few guidelines to follow if you want to send her a poem. As mentioned above, sincerity is most important. You do not need to be the most poetic person in the world. So, how can you express sincerity?

Well, one way is to handwrite the poem. Don't type it out. Don't print it out. Write the poem with your own handwriting. It doesn't matter if you think your handwriting is ugly. Just make sure that it is at least legible.

Also, make sure you girlfriend understand what your poems is talking about. You do not want to be soo poetic that you girlfriend doesn't even know what you mean. You are not participating in a poem competition. You are just trying to win your girlfriend back by choosing or writing a poem that you girlfriend will understand.

Article Source: http://www.articlesbase.com/relationships-articles/poems-to-get-your-ex-back-does-poems-work-936676.html

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Poems To Get Your Ex Back

Are you making these 3 mistakes? Watch a 9 minutes video to find out what these mistakes are and what you should do instead.

Poems To Get Your Ex Back

Impact of Risk Free Rate on Stock Retuns Evident From Karachi Stock Exchange Pakistan

Author: S.M. Zahid

Abstract

The current study looked at the relationship between risk free rate and stock market return. A five year monthly basis time series data from 2003-2007 of T-bills and KSE-100 index were taken for research study. For the analysis of data, simple regression model approach was applied. Stock market return was taken as dependent variable whereas Risk free rates as independent variables. Also, Pearson Correlation Matrix was also obtained through correlation model. The results suggested that risk free rates had no effect on dependant variable. Furthermore, no correlation between risk free rate and stock market return was found. Consequently, a bivariate relationship cannot exist between risk free rate and stock market return. A multiple regression model of the risk free rate and stock market return exhibits a strong autocorrelation, indicating that the stock market return is a function of more variable than risk free rate.

1. Introduction:

The risk free rate is the return on the security or a portfolio of securities that is free from default risk. Theoretically, the return on a zero-beta portfolio is the best estimate of the risk free rate. The CAPM predicts the relation ship risk of an asset and its expected return. This relationship is very useful in two important ways. First, it produces a benchmark for evaluating various investments. Second, it helps us to make an informed guess about the return that can be expected from an asset that has not been traded in the market.

Risk free rate is an increasingly essential ingredient of every return computed on financial assets. The security market line (SML) predicts a simple linear relationship between expected return and standard deviation while capital market line (CML) contributes a relationship between risk free rate and straight line emanating from risk free rate(Rf) to tangential to the efficient frontier.

Investors combine their uncorrelated securities help to lesson the risk of a portfolio. They want to know the reasonable level of risk reduction about their portfolios. Research studies look at what happens to portfolio risk as randomly selected stocks are combined to form equally weighted portfolios. When we begin with single stock, the risk of the portfolio is only the standard deviation of that one stock. As the number of randomly selected stocks held in the portfolio is increased, the total risk of the portfolio is reduced.

The total risk of comprise systematic risk and unsystematic risk. Systematic risk is due to risk factors that affect the overall market- such as changes in the nation’s economy, world energy situation, world political and economic situation. This kind of risk is not diversifiable even the well-diversified portfolio expose to this type of risk. The second component, unsystematic risk, is unique to particular company. It is independent to all factors regarding systematic risk. Investors always want to be compensated for taking systematic risk. They should not, however, expect the market to provide any extra compensation for bearing avoidable, diversifiable, unsystematic risk. It is this logic that lies behind capital asset pricing model (CAPM).

2. Significance of study:

This study aims to investigate the relationship between risk free rate (T-bills) and market return of Karachi stock exchange KSE-100 index. There was a controversy among the investors; some were of the view that Risk Free Rate affects the market positively while others were of the view stock market return moves independently irrespective of Risk Free Rates.

Thus in order to resolve this controversy, current study was conducted with the following objectives.

3. Objectives of study:

The following objective would be fulfilled during the study:

·        To see quantitative impact of Risk Free Rate on Stock market return.

·        To workout the correlation between risks free rate and stock market return.

·        Suggestions and recommendation for investors.

4. Literature Review:

Peter Easton at el (July 2000) elaborated the empirical estimation of the expected rate of return on a portfolio of stocks. They inverted residual income valuation model to obtain an estimate of the expected rate of return for a portfolio of stocks. They used analogous approach in estimation of internal rate of return on a bond using market value and coupon payments. They contributed through the use of stock price and accounting data to simultaneously estimate the unique implied growth rate and internal rate of return. They recommended adjusted growth rate for valuation return of stocks. They proved that estimated market premium over the risk free rate is closer to the historical premium that that obtained by other studies using earning forecast data.

Roger G. Ibbotson (July 2002) estimated long run stock market return participating in the real economy. He decomposed the 1926-2000 historical equity return into supply factors including inflation, earnings, dividends, price to earning ratio, dividend payout ratio, book value, return on equity and GDP per capita. He concluded that the growth overall economic productivity is in line with the growth of corporate productivity measured by earnings. The bulk of return comes from dividend payment and nominal earning including inflation and earning growth. In order to calculate incremental risk and return, bonds have been used as reference point.

Christian Lundblad (February 2004) discussed risk-return tradeoff which is fundamental to finance. Previous studies found weaker relationship between the risk premium on the market portfolio and variance of its return in spite of the positive relationship. He explained this weakness is due to the fact of small nature of available data, as an extremely large number of time- series observations are required to precisely estimate this relationship.  His main focus was on large span of data of each component required to compute the risk-return trade off which is indispensable for theory of finance.

Hui Guo and Robert F. Whitelaw (April 2005) developed evidence of intertemporal capital asset pricing model (ICAPM) and proved with the positive the relationship between stock market risk and return and  the extent to which stock market volatility moves stock prices. They provided new evidence on the risk-return relation by estimating a variant of Merton’s (1973) intertemporal capital asset pricing model (ICAPM). They identified the two components of expected return- the risk component and the component due to the desire to hedge changes in investment opportunities. They proved that the estimated coefficient of relative risk aversion positive, statistically significant.

Rong Huang at el (May 2005) in the study of BM company, used residual-income valuation model simultaneously to estimate relationship between long term growth rate in abnormal earnings and cost of capital. They related forward, earnings-to- price (FEP) and book- to-market ratio in a linear fashion. The slope coefficient on BM is the long-term growth rate of abnormal earnings (g), and the constant term is the effective cost of capital, i.e., the difference between the cost of capital (r) and the growth rate in abnormal earnings. To empirically implement this valuation representation, they used the analysts’ one-year-ahead earnings forecasts to compute FEP and  regressed  the difference between FEP and the risk free rate (rf) on BM diminished by one, such that the intercept captures the firm-specific risk premium (rp) and the slope coefficient captures the firm-specific, long-term growth in abnormal earnings (g). They extracted the risk-free rate from FEP to account for the covariance in FEP and the risk-free rate.

Mika Vaihekoski (2007) discussed how to compute risk free rate from money market instruments, especially for test of capital asset pricing model and event studies. He used US T-bills and CDs for calculation. He presented two alternative approaches: the interest compounding approach and price difference approach. He concluded that the price difference approach is superior to commonly used compounding method. He did event studies and time series with the help of US T-bills whereas they are used for calculation of risk free rates.

Tamal Datta Chaudhuri (April 2008) used a structural approach to stock market return, risk-free rate and Capital Asset Pricing Model (CAPM). He developed a structural model, which shows interdependent relationship between risk free rate and stock market returns. It gives a new macroeconomics structural features which shape the price movement in stock exchange. He used a Granger test and a Sims test to prove the interdependence of two variables. He suggested that instead using of exogenous values of stock market returns and risk free rate, one should use estimated values of these variable form reduced form equation of Capital Asset Pricing Model (CAPM). He tested and proved with the data of individual companies.

5. Methodology:

5.1              Data collection

In order to conduct the current study all the stock markets of Pakistan were proposed, to be taken for study purpose. The stock markets in Pakistan were Lahore stock exchange (LSE), Islamabad stock exchange (ISE) and Karachi stock exchange (KSE) with different indices. Among these all, KSE-100 index was most important and working at top level in Pakistan. One hundred top companies from Karachi Stock Exchange comprise KSE-100 index. Historical data indicated that most of the investors were investing in the KSE-100. The performance of the total businesses of Pakistan can be viewed by the movement of KSE-100 index. Keeping in view, the importance of KSE-100 index, a sample of indices from (2003-2007) was selected for data collection and was taken as dependent variable.

Similarly T-Bill is an important instrument of monetary policy, operated by State Bank of Pakistan. Through the T-bills, the central bank of Pakistan controls the economy and interest rate of the country. T-bill rates were collected from the State Bank of Pakistan for same period and were taken as independent variables. Then the data were feed into the computer software in the work sheet form.

5.2              Hypothesis Formulation

Ho:         The risk free rate has no impact on market return.

Ha:         The risk free rate has impact on market return.

5.3              Hypothesis Testing

In order to test these hypotheses, simple regression model in the following form was applied. The regression model was as under:

Y = ? +? X1 + €

Where

X1       =         values of risk free rate

?          =         Y intercept

?          =         Slope coefficient

Y          =         values of stock market return

€          =         Error Term

It is estimated by the regression equation.

Where

?           =         values of stock market return in the sample

a          =         y intercept

b          =         slope coefficient.

x          =         values of risk free rates in the sample.

Whereas

b          =         slope of estimated regression equation

X         =         values of the risk free rates

Y          =         values of the stock market return

=         Mean of the risk free rates.

=         Mean of the Stock market return

n          =         Number of observations in the sample

Whereas

=         Mean of the Stock market return

=         Mean of the risk free rates

a          =         y intercept

b          =         slope coefficient.

The coefficient of determinant, R2 measures how well independent variable explains the dependent variable, that is, the degree of association between dependent variable and independent variables.

The applied model included one dependent variable and one explanatory variable. In the current study the risk free rate was considered as explanatory variable while market return as dependent variable.

6. Results and discussions:

Data collected from 2003-2008 years on monthly basis was analyzed by applying Simple Regression Model Approach in the following form.

Y = a +b X1 + €

Whereas

Y          =         Stock Market Return

X1        =         Risk Free Rate

b          =         Coefficient of X1

a          =         intercept

€          =         Error

6.1              Empirical Results

Empirical results drawn through regression model approach are given in the table below.

Table -1

Variables

Coefficients

t-Stat

Intercept

0.0399

2.782

Risk free rate

-0.0055

-0.843

R Square

0.012

6.2              Hypothesis Testing:

Ho       =         0

Ha       ?         0

Data in the table (1) revealed that there was negative association between risk free rate and market return. But statistically this variable was found insignificant. Thus null hypothesis was accepted that risk free rate was not significant explanatory variable. Alternative hypothesis was rejected. Figure (a) also indicates that there is no relation between them.

6.3               Coefficient of determination (R2)

It is the primary way, we can measure the extent or strength of association that exists between two variables, dependent and independent variables or in other way the coefficient of determination is developed to measure the amount of variation in dependent variable that is explained by the regression line.

Data given in the table-1 indicated that the estimated value of R2 was 0.0123 showing that the strength of association between stock market return and risk free rates was very poor or in other words, only 1.2% of the total variation in stock market returns was being explained due to independent variable.

Figure a

6.4              Correlation Coefficient

Coefficient of correlation is the second measure that can be used to describe how well one variable is explained by another variable. When study is based on some sample date, then coefficient of correlation is denoted by (r) and statistically is the square root of sample coefficient of determination.

Coefficient of correlation (r) = 2     ------------------ (b)

When the slope of estimation equation (b) is positive r is the positive square root but if (b) is negative, r is the negative square root. Thus sign of r indicates the direction of relationship between two variables-stock market return and risk free rate.

In the present study scenario the value of (r) coefficient of determination was found

r   = -0.11

Thus relationship between two variables was negative indicating that slop is negative. The amount of r was 0.11 which indicated that risk free rate was poor explanatory variable for stock market return.

In order to see the two way relationship between the two variables that is RFR and market return.  Pearson Correlation Matrix was obtained by analysis the data, through correlation model.

The results obtained through this analysis are given in the table-2.

Table-2

Correlation

RFR

M Return

RFR¹                Pearson Correlation

Sig. (2-tailed)

1.00TEMPLATE

-0.11TEMPLATE

0.403

M Return²        Pearson Correlation

Sig. (2-tailed)

-0.11TEMPLATE

0.403

1.00TEMPLATE

¹ Risk Free rates

² Stock Market Return

The above table-2 indicates that the correlation between risk free rate and stock market return is negative. The correlation -0.110 is in-significant as the P value is 0.403 > 0.05.

Data given in the table-2 indicated that there was found no significant relation between these two variables; it was found that RFR and Market return move independently with each other.

7. Conclusion:

Correlation coefficient is a standardized statistical measure of linear relationship between two variables. A positive correlation coefficient indicates that the returns from two securities generally move in the same direction, while a negative correlation coefficient implies that they generally move in opposite direction. A zero correlation coefficient implies that implies that the returns from two securities are uncorrelated; they show no tendency to vary together in either positive or negative linear fashion.

The current study had the prime objective to identify the some relationship between risk free rate and stock market return. It was concluded that the risk free rates had no effect upon stock market return. These variables move independently ineffective from each other as there was very poor correlation and weak association between the two variables. These results also consistent with the study of Confidence A. Amadi, (Associate Professor of finance at Florida A &M University) who conducted the study on the relationship between the market risk premium and risk free interest rate.

8. Recommendations:

In the current scenario of Pakistan, it was the dire need of the investors to find the securities having less correlation that can be used to diversify their portfolios for investments. In the volatile markets like Karachi Stock Exchange (KSE), the T-bill is a useful instrument for investors who want to shuffle and readjust their portfolios. Keeping in view the findings and conclusion of the current study, it was proposed and recommended for the investors that they may include T-bills in their investment portfolios in order to save their investments from total collapse. Such diversified investment reduces the risk and increase returns comparatively more. The applied regression model also supports this recommendation.

References:

1.              Empirical estimation of the expected rate of return on a Portfolio of stocks by Peter Easton 2000.

2.              Stock market returns in the long run: participating in the real economy by Roger G. Ibbotson, PhD. July 9, 2002.

3.              A structural approach to Stock Market Returns, Risk Free Rate and CAPM Tamal Datta Chaudhuri Investment Bank Of India, ltd. - Ibs Kolkata the ICFAI journal of applied finance, vol. 14, no. 4, pp. 21-31, April 2008.

4.              The risk return tradeoff in the long-run: 1836-2003 Christian Lundblad¤ October 2004 uncovering the risk–return relation in the stock market Hui Guo and Robert F. Whitelaw working paper 2001-001c January 2001 revised April 2005.

5.              An Intertemporal capital asset pricing model by Robert c. Merton Econometrica, vol. 41, no. 5. (Sep., 1973), pp. 867-887.stable URL: econometrica is currently published by the econometric society.

6.              On The Calculation of the Risk Free Rate for Tests of Asset Pricing Models Mika Vaihekoski* Comments are Welcome 01-03-2007.

7.              BM Company, Residual-Income Valuation Model to Estimate Relationship between long term growth rate in abnormal earnings and cost of capital. Rong Huang at el  (May 2005) Accounting Association, Goteborg

8.              Wadhwani, S.B., (1999) “The US Stock Market and the Global Economic Crisis,” National Institute Economic Review, 86-105.

9.              Stock Market Risk-Return Inference, an unconditional non-parametric approach by Thomas Mikosch and C¸At¸Alin St¸Aric¸a and the Danish Research council grant no 21-01-0546.

10.          Bond Portfolio Optimization A Risk-Return Approach by Olaf Korn and Christian Koziol Prof. Dr. Olaf Korn of Corporate Finance, ( March,2002) Aduate School of Management, Burgplatz 2, D-56179 Vallendar, Germany Dr. Christian Koziol, Chair of Finance, University of Mannheim, D-68131 Mannheim, Germany.

11.          On the relationship between the market risk premium and the risk-free interest rate by confidence w. Amadi (Sep, 2005) Finance at Florida A&M University.

Article Source: http://www.articlesbase.com/investing-articles/impact-of-risk-free-rate-on-stock-retuns-evident-from-karachi-stock-exchange-pakistan-694525.html

About the Author

I am student of MS. Finance Working on research paper for the prepreation of Research Thesis in next final semester Muhammad Ali Jinnah University Islamaba Pakistan.

Do You Wish For A More Satisfying And Fulfilling Marriage Relationship?

Author: Calle Zorro

What value, benefit, and blessing does your spouse gain from being with you?

What is it that you bring to your spouse that really augments, enhances, and improves their life?

What do you offer your spouse that is significant and meaningful to them?

What about the other way around...

What value, benefit, and blessing do you gain from being with your spouse?

How does your spouse augment, enhance, and improve your life?

What does your spouse share with you that's significant and meaningful to you?

Sadly, for too many people, their marriage relationship is really nothing more than a "boarding arrangement"...two humans helping each other survive...two people pooling their resources and splitting costs...two friends helping each other with chores and responsibilities...two roommates filling in or standing in for each other when needed.

And, while it is good to have someone standing with you in this manner, it is not enough to satisfy and fulfill a person. If it was, people would just continue living with their brothers and sisters or they would continue to "dorm" with their guy friends or gal friends.

But, it is not enough...people want more...they thought they were getting more when they married...and too often, they end up with nothing more...sometimes even less...than what they had before they married.

How and why does this happen more often than not?

It happens BECAUSE of how each person RELATES to the other. Too frequently, the way people RELATE is based on:

1. Ignorance - primarily, this is a lack of understanding about the opposite sex but it can also be other forms of ignorance such as poor people skills.

2. Selfishness - where a person cares only about their self and their interests, projects, and happiness.

3. Insecurity - fear that causes a person to shut-down and close-up which distances them from their companion.

4. Entitlement - the belief that my spouse should just give me whatever I want with little to no effort or contribution on my part.

5. Laziness - the knowledge that one should and could relate to their spouse in a better way but lacking the desire or motivation to do so.

Without fail, these kinds of RELATING will assuredly drain the very life out of a relationship...draining it of respect, appreciation, attraction, honor, adventure, passion, and fun...leaving people in the "boarding arrangement" that is so unfulfilling and unsatisfying to them.

Soon, bitterness, resentment, and anger begin to build because people feel stuck and trapped. They have children and other long-term obligations and responsibilities that ethically and morally "locks" them into their "boarding arrangement".

But, how come so many people can't seem to fix their marriage relationship?

They can't because they are so actively engaged in pride, ego, stubbornness, resentment, anger, bitterness, hatred, and other negative-emotions that it's easier for them to either distance themselves from their spouse and "live" in an imaginary / pretend / fantasy world...or to step out and seek affection, intimacy, sex, fun, and adventure with an outside person.

What many people don't realize is that there are easy ways to "save face" and let go of pride, ego, and negative-emotions so that a person can do the "right thing" and create the happy, satisfying, fulfilling marriage relationship of their dreams with the spouse they already have.

Having said that, some people don't want to have the relationship of their dreams with their current spouse. They WANT it to be ANOTHER person. Well, that's the pride, ego, and negative-emotions that's driving that kind of response. And, here's what such a person should know: your unhappiness is INSIDE of you and will REMAIN WITH YOU...no matter who the other person in your life is. Your unhappiness will continue wreaking havoc in YOUR life UNTIL you learn how to rise above pride, ego, and negative-emotions.

Actually, your situation will only get worse for you because each new person you move to will only ADD TO the unhappiness that's inside of you.

So, a person must learn to conquer the pride, ego, and negative emotions that block them from the satisfying, fulfilling marriage they so want...they must learn how to relate with their spouse in a way that produces the marriage satisfaction and fulfillment they so strongly desire...they must get the deep-level insight into their spouse...such that with this knowledge (versus ignorance) their marriage relationship is forevermore more satisfying and fulfilling.

Copyright 2010, Article by Calle Zorro of HusbandWifeHelp.com

Article Source: http://www.articlesbase.com/marriage-articles/do-you-wish-for-a-more-satisfying-and-fulfilling-marriage-relationship-2165796.html

About the Author

Would you like to zap away everything that's unhappy and unpleasant from your marriage?  Would you like to start afresh and anew...remaking your marriage into the wonderful relationship it's supposed to be?  Would you like to get the marriage you thought you were getting when you first got married?  Whether you need a marriage tune-up, a marriage makeover, or a marriage miracle, and especially, if you've sought marriage counseling or marriage help before and it didn't work, go here:  www.HusbandWifeHelp.com

Pros And Cons Of The Age Gap

Author: Graham Billingham

Being with someone who is several years older or younger than you can be both a blessing and a curse. Before you decide to get serious, you should know what you're getting into.

If you're younger...

PROS

You get to be with someone mature. Someone who doesn't "act out" or throw tantrums just because you happened to mention that you have a crush on a celebrity. Also, because of your lover's life experience, he/she can dish out valuable advice that you couldn't get from your friends.

You can learn a thing or two - and I'm not just talking about life lessons. Older people have had more sexual experiences, and if you've got the right lover, he or she won't hesitate to teach you some new "moves".

Your lover is more interesting than people your age. Again, this is mostly because of life experiences. Older men and women have gone through enough problems and opportunities, and they have several funny, inspiring, painful, and horrifying stories to tell. Also, if the age gap is wide enough, the type of music or movies that he or she likes may be completely different from yours, and getting a taste of these "oldies" can help you grow culturally.

CONS

Emotional baggage. The older man and the older woman have enough emotional baggage to drag you down. Beware of verbally psychoanalyzing their actions - it's unlikely that they want a "kid" to tell them what they did wrong in their lives. Instead, be understanding and make sure that your older lover isn't an emotional vampire who will suck you dry.

If you're older...

PROS

The younger man/woman can inspire you with a sense of awe. Having a young, new body next to you can knock a few years off of your own age. You get to do more youthful things, and you tap the mindset of today's youth.

The younger lover doesn't have that much emotional baggage. This means that things are more "happy-go-lucky" and smoother with the younger lover. You won't get late night conversations about every ex that's ever broken his or her heart. Also, there's not much that you can get compared to. Odds are, if he or she says that you're the best sex in his/her life, it's true.

The younger lover looks up to you. This is because of all the advice and life lessons you have to offer. You've been through a lot, and your lover knows this. Odds are, you're the first one he or she talks to during times of conflict.

CONS

The younger lover can be immature. Sometimes, young lovers are such perfectionists that they seek all sorts of things that you can't give. This is why, if you want to go out with someone younger, make sure that he or she is mature for his or her age.

Article Source: http://www.articlesbase.com/dating-articles/pros-and-cons-of-the-age-gap-136232.html

About the Author
Graham Billingham writes for DrDating.com a site filled with help and advice for online dating, relationships and love.