The Risk Involved In Investing In Real Estate Finance Essay - Free Essay Example

Sample details Pages: 13 Words: 3851 Downloads: 2 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? When a person acquires real estate, she/he also acquires a set of rights, including possession, control and transfer rights. In order to achieve capital appreciation investment in real estate involves the commitment of funds to property with an aim to generate income through rental or lease. However, the real estate income can be highly unpredictable and consequently investment in real estate is very risky as it is the case with investment in equity. Don’t waste time! Our writers will create an original "The Risk Involved In Investing In Real Estate Finance Essay" essay for you Create order One of the main reasons for the collapse of even the largest financial institutions, in the recent times, leading to the recession of major economies of the world is due to the collapse of the real estate business. This global crisis could have been prevented if the potential risk factors leading up to it had been identified at an early stage. But the risk assessment associated with this strategic investment was not properly followed. Thus, in order to be able to increase chances of investments in real estate returning profitable margins, it is critical that risk factors are identified and a proper investment strategy put into place. 1.1 Real Estate Classification Mughees Shaukat in his paper (2010) defined real estate as land Buildings associated with it. This definition is used because land associated buildings are finite and can be used for transaction purpose. Procuring the Real Estate is used as a hedge for inflation. In his paper, he classified real estate into six categories: Residential Family housing, Apartments. Commercial Shopping centers, Malls, Clinics and Multiplexes etc. Industrial manufacturing plants, warehouses, etc., used by businesses for production and storage of goods. Office Office buildings, Towers. Hospitality Hotels and Resorts. Land Typically includes land without any buildings or agricultural land. 1.2 Returns on Investment ÂÂ  Sirmans, G Stacy (2001) in his paper observed the return patterns and classified returns in broad categories. He also concluded that the returns are dependent upon the market efficiency and argued that the microeconomic variables may help in measuring the variations in Real Estate Returns. 1.2.1 Returns from Housing Property: Case etal (1990) in their paper studied the single family home prices. His findings were the returns on investment are dependent on the location. For example, the metropolitan areas housing (flats/single housing) will have a better return than the rural areas. Also it is dependent on other factors such as income, population growth and material/construction cost. 1.2.2 Diversification and portfolio optimization benefits: Liang etal (1995) defined diversification and portfolio optimization benefit as the difference between the return on the portfolio and the required rate of return for the investments. Seiler etal (1999) on the same subject concluded that the return on real estate requires mixed portfolio. Some researchers questioned the wisdom of Seiler and remarked do the returns from real estate behave like stocks bonds?. However, the research by other researchers shows that the returns have low or negative correlation with other types of investment returns so the real estate adds significant diversification benefits to a mixed portfolio. 1.2.3 Inflation and real estate returns: It is a common belief that the performance of real estate value depends on the inflation. Wurtzebach etal (1991), studied on the impact of inflation on the value of assets. In their study, they showed that real estate does provide an inflation hedge. They concluded that when market imbalance occurs the risk increases and the returns suffer regardless of inflation. Rubens etal (1989) in their paper stated that Real Estate hedge against inflation depends on the type of real estate. Other studies also showed that mix of commercial and residential properties provide a better inflation hedge. 1.3 Risk Classification Any investment requires certain strategies to handle risks. Real Estate investment is of no exception. The risk of investment in properties depends on the type, location and the status of the property in terms of its development. Giliberto, (1993) in his paper classified the risks as Low Risk-properties in major metropolitan cities with stable long-term cash flow. For example, leased office buildings in metropolitan cities. This is because tenants are usually signed to multi-year leases. Moderate Risk- properties with less predictable cash flows, either as a result of their location, or their status. For example, a shopping center in the process of being leased up or an older mall in need of complete renovations and re-leasing; etc. or Hospitality properties as their cash flow is less predictable because the guests in a hotel sign up very short-term leases when reserving a room. High Risk- properties with limited or no cash flow, because of their current status where the i nvestments tend to be in longer term which requires a greater degree of skill in execution. They also tend to provide the greatest return over the long term. 1.4 Risk Assessment There have been lots of academic studies and articles on the ways of increasing the efficiency of Real Estate Investment. The academicians have studied both at micro and macro level. The ideas of real estate risk management comes under the domain of financial transactions with regard to properties buy or sell at an opportune time where it could provide high yield. Real estate investment exposed to different risks. Some of the researchers have advocated for the creation of Real Estate Investment Trust (REIT). They also advocated the selection and portfolio construction criteria should be based on operating efficiency. Markowitz (1952) developed Modern Portfolio Theory (MPT) , which is based on simple assumption that the risk is defined as volatility (price fluctuations). As per MPT, the investors are willing to take more risks when there is a chance for more profit. Initially the researchers and academicians found this logic is compelling as it is easy to understand it als o makes perfect sense. The MPT is based on certain assumptions. Some of the important assumptions are: The investor do not consider buying / selling cost, tax , dividend and capital gains while making investment decisions Market liquidity is infinite. The investors are aware of all the risks; for more volatility the investor will look for more return. Selling of assets is only motivated for higher rate of return in a shorter time span. Politics and investor psychology have no effect on the markets. Now the question became how to determine the expected returns, volatility and correlations between them? Markowitz assumed these questions. His recommendation was to keep or watch the market data for some time. However, he had hoped better methods which will take into account more information. But after 60 years still today the researchers do not have a definite methodology to tackle this problem. 1.4.1 Arguments by other researchers on MPT Jose Castro (2008) in his paper argued that that the risk of a portfolio can be minimized without reducing the expected return when there is a low correlation between the fixed assets. The reason he cited that the risk is quantifiable but can be classified in two segments parts: Systematic risk, which cant be ignored, Diversifiable risk which is the component of an asset that is not linked with the market, which is called Idiosyncratic Risk. Young Graff (1995) while assessing Real Estate Risks used MPT in their research and observed that the strategic risks on investment can be minimized by combining different stocks for investment. For example, Webb and Okeefe (2002) suggested that 10-20% of total stocks should be of real estate. The rest should be into bonds, currencies, international stocks bonds. Brown (2000) in his paper extensively worked on the use of MPT which can be used in Risk Assessment. Brown was the first one who introduced the concept of three tier real estate based on public private use. Simons et al (2002) took this research one step further by reviewing literatures on international direct real estate investment and tried to analyze how the real estate portfolios are being analyzed. Anderson (2003) extensively studied the works of other researchers (Anderson etal 2000) on the risk of Real Estate Investment both at the macro and micro level. They defined that at the macro level the competition in the real estate market makes the risk minimum. Whereas at micro level, the risk is greater if the market is inefficient. They then advocated that the strategic risk may be minimized by establishing diversified real estate portfolios. Brown (2004) investigated the risk in real estate investment by conducting theoretical and empirical analysis of risk and returns accruing to individuals who were involved in real estate investments. He claimed that the returns are not normally distributed and that private real estate investors compensate for the distribut ional burdens imposed by market upon them by carefully assessing and controlling unavoidable non-systematic risk. Hutchison etal (2005) in their paper argued that the risks in real estate investment is attributed to the valuation of property done by the valuers. This means, the risk assessment measures need to be more rigorous to minimize the risk of investment. Therefore, they suggested that an investor is exposed to many risks notably valuation accuracy valuation variance. The authors also suggested that the real estate investment has certain forms of risks in terms of valuation of the property. They recommended that investment risk will be minimized by improving the valuation methods. The authors then defined investment risk as the probability that the cash flows and the resulting target rate of return will not be realized. Earlier both empirically and theoretically researchers have analysed risks and returns. Area of common interest is performance of investment and the as sociated risk which is found in both commercial and individual real estate. Researchers do agree that real estate do provide an inflation hedge. It is also a general belief that real estate assets provide a protection blanket against any sorts of negativity that may creep in due to unexpected inflation. The question now comes how to minimize the risks of investment? Nitish (2006) in his paper cited that choosing a prime location will be the main component for minimizing investments. To substantiate his argument he developed a price model based on the structure, location and rent of various cities in Germany. However, it does not fully assess the elements of risk fully. Even though MPT is the major breakthrough in the financial world some real estate researchers have tried to use this theory with some mixed reservations, because in MPT the risk is not properly represented by volatility. Another reservation is that portfolio selection building too often rely on the past perform ance. In other words, MPT requires three types of data. They are: Future return potential of each portfolio Correlation of each portfolio with another Volatility of each portfolios H. Mohd Ali (2006) in his research paper has done extensive investigation and found that MPT without major modifications cannot be used as is risk assessment in real estate. Cotter etal (2006) in their paper argued that the inclusion of REIT equity options will increase the fund flow. They observed that real estate prices are subject to inflation and requires hedging against inflation. Their model on REIT daily volatility has become very useful tool in managing real estate risk. McGreal etal (2009) have made an extensive study in risk management in real estate for both UK USA. Their summarization is that there is a need for diversifying the investment portfolio in order to reduce the risk. Diavatopoulos etal (2010) examined the effect of real estate risk management by examining the c haracteristics of REIT equity options. Their analysis showed that in 1996 only 5% of REIT had traded options increases to 35% by 2006. This proves that the REIT traded option has become a useful tool in real estate risk management. 1.5. Volatilities in Real Estate investment There have been lots of studies undertaken by the researchers on the fluctuations or volatilities of the real estate market in order to minimize the risk in real estate investment. Hung et al (2009) in their paper studied the relationship between the different type of volatilities by using a mathematical model (GARCH-in -model) on the returns using the concept of REIT. Their findings were: Momentum returns has asymmetric volatility Momentum returns are higher when the volatility is higher REIT with lowest past returns has higher risks than those with higher past returns. There is a positive relation between asset returns and aggregate market volatility. In essence, when the volatility is high the investors require higher returns for their investment to mitigate the inflationary pressures. 1.6 Standard Practices in Real Estate Risk Management As noted above the standard practice in real estate risk management has been to work with REIT indices mixed with various equity indices. However, this does not consider the basic question on when to buy a real estate property and when to sell the same. 1.7. Why is this Research? The activities of risk management in real estate investment are largely similar to the activities of financial methods. However, by surveying the available literature material it can be concluded that the following factors are ignored. 1.7.1. Large commercial properties have been widely studied. Little has been done on medium sized real estate risk analysis (see Brown (2004)). 1.7.2.Most of the research papers have also devoted their tools and their methodologies relate to stock market investments. However, none of them pinpoint the risks of investment which can be used by any investor to: Identify the sources of risk Measure and monitor those risks Devise an approach to control, mitigate or hedge The extreme important effects of real estate asset on savings and portfolio choice are undeniable. Moreover, the effect of real estate on consumption is significant and larger than the effect of financial assets (Fei 2009). Furthermore, the volatility of real estate pri ce is one of the key determinants of the options value realized by mortgage default and prepayment. The risks of real estate market will affect mortgage and mortgage related securities market and consequently as well as the institutional investors since they usually hold a notable part of their funds invested in mortgage related securities. Quite recently the financial market turmoil driven by the sub-prime mortgage and credit crisis has indicated again that the variations in housing market are extremely crucial to overall economy, the mortgage capital markets and the welfare of the society. In light of the above, the thesis addresses the questions when and what percentage of the share of a real estate project needs to be procured, when and what share of a real estate project to be sold, and when to completely withdraw from a real estate project. The scope of the paper will be limited to issues related to real estate owners requiring partnership mode of operations. Th e related issues that will be discussed are (a) the pattern of the volatility of real estate market, and (b) the growth pattern of the real estate investment process that will be developed in the paper. 1.8. Research Aim and Objectives The aim of this research is to develop a dynamic risk sharing model which can be applied by any individual investor who would like to know when and how much share of the real estate property to purchase and when and how much of the same to sell so that the risk is properly mitigated and yet earn a good margin. Objective 1: Develop an in-depth understanding of all the aspects in real estate risk management process. Objective 2: Construct a functional model based on the information gained through the available published /unpublished literature which will be used to update the estimates of the risk element in real estate investment. This model, an alternative to MPT Model, will help an investor to design Operating Rules and implement the same. Objective 3: Propose a methodology management process which can be used for using the model in calculating the risk. 1.9 Methodology Adopted in this Thesis The data that is required to develop the Operating Rules in real estate management is the time series data on real estate prices. The basic unit of return measurement is the incremental difference between current years and previous years prices, .. .. .. .. .. .. .. .. .. .. .. (1) where x(t) is return in the beginning of year t, P(t) is price in the beginning of year t and P(t-1) is price in the beginning of year t-1. The investor in financial assets has very little to do with how current years price of a stock differs from last years. Private real estate offers the opportunity for an investor to have a say in its value by adding his own management to the equation. Thus, by adding entrepreneurial labor to his investment, the private real estate investor/operator may positively influence P(t) and achieve a greater return. Of course, this means that a portion of the return we observe represents a return on the investors time as well as on his invested capital. Such a reality a dds yet another reason to the list describing why real estate is different. Unfortunately, there is no standard time series data on P(t) available in the form required for this study. The basic reason, amongst many others, is design variations that can be noted for different real estate properties. Prices of real estate vary from property to property even in the same geographic locality. There is no standard price pattern available for one to develop the Operating Rules. Pyhrr et al (1990) discussed developing dynamic investment strategy under alternative inflation cycle scenarios since real asset prices and inflation are highly correlated; but their discussion was not supported by proper data. Furthermore, their analysis is limited to comparing the outcomes of various investment periods. Any attempt in this direction has to be property specific. However, basic indicators for movement of real estate price are based on macroeconomic factors of a country or a geographical region. I n this regard many authors developed indices especially in the context of mixed-asset portfolios. From these indices one can get an idea of the trend of the prices and corresponding variability in addition to measures of covariance between real estate prices and stock prices. Accordingly, an attempt will be made in this thesis to develop a mathematical model for Pt, which will be used for simulating the effects of various Operating Rules. The model parameters will be estimated using varieties of results available in the literature in conjunction with methods based on value judgments to incorporate entrepreneurial labor mentioned above. In view of the above, an important consideration will be to enhance the core competencies in risk management. The first step in this regard is to develop a risk-shared dynamic mathematical portfolio selection model for real estate business to be used by private real estate investors. Using this model and simulation select Operating Rules to b e adopted by an investor. Based on the outcome of the simulation, a strategy for implementation for the selected Operating Rules will be developed. This will then lend immunity to any private investor against market instability, and other macro factors which influence the real estate market to a certain extent. This will help the investors who would like to share the risk with his partners as well as earn a good margin. Real-life data will be collected and will be used to test and validate the model. Last, strategies for implementation will be developed. 1.9.1. Validation In order to test and validate the mathematical model that will be proposed as an alternative to the MPT risk model, real world data needs to be gathered. The nature of the data to be collected is shown in chapter 5. Appropriate statistical methods and techniques like sampling, regression, analysis of variance, etc., whichever applicable, will be used to estimate the parameters of the model and test the reliability of the same. Next, appropriate non-linear mathematical programming technique that deals with dynamics of decision making will be used to derive the operating decision rules. Extensive simulation will be carried out to test the sensitivity of the parameters involved in the mathematical model and establish the limits of the operating policies. The statistical analysis will eventually be used to test the validity of the mathematical model using the European countries as empirical data. Furthermore, the rules for updating the estimates of the parameters from time to time will take into account the global perspectives that will be developed. In addition, strategies for the using the operating decision rules will be developed. 1.10 Road Map Chapter 1 deals with real estate investment scenario along with risks that are associated with real estate investment. This chapter also aims and objectives, methodology and research approach. Chapter 2 presents a review of the existing literature detailing the hypotheses used and statistical and mathematical models used by the researchers in the past. Chapter 3 presents the detailed description of the methodology how the data will be collected which will be the back bone of dynamic risk-sharing mathematical model. Chapter 4 presents the nature of the data collected and the methodology used for estimating the various parameters used in the mathematical model and test their sensitivity using appropriate hypothesis testing techniques. Chapter 5 presents the operating rules derived by using appropriate non-linear mathematical programming technique. Chapter 6 presents the sensitivity analysis of the parameters and the limits of the operating decision rules using simulati on methodology. Chapter 7 gives the strategies to be adopted for using the operating decision rules and the procedures for updating the parameters from time to time as required. Finally, conclusions and future direction of studies are presented in Chapter 8. LIST OF ORIGINAL PAPERS The following papers have been reviewed: Mughees Shaukat, (2010). The Benefits and Importance of Commercial Real Estate, MPRA Paper Number 28268, posted 20, January 2011. Sirmans, G Stacy (2001). Returns and Risk on Real Estate and Other Investments: More Evidence. Journal of Real Estate Portfolio Management. Vol. 7, No. 3, 2001. Case and Shiller (1990). Returns and risk on real estate and other investments: More evidence Journal of Real Estate Portfolio Management. July 1, 2001 Liang etal (1995), Seiler etal (1999), Wurtzebach etal (1991), Giliberto, S. M., Measuring Real Estate Returns: The Hedged REIT Index, Journal of Portfolio Management, Spring 1993 Jose Castro (2008) Young and Graff (1995). Real estate portfolio analysis under conditions of non-normality: The case of NCREIF.Journal of Real Estate Portfolio Management Webb, B and OKeefe, J. (2002) The Case for Global Real Estate, Working paper published by UBS Global Asset Management Simons et al (2002), R.I. Anderson, (2003), Journal of Real Estate Portfolio Management. R.I. Anderson and T.M. Springer (2005). Investor Perception of Retail Property Risk: Evidence from REIT Portfolios, Journal of Shopping Center Research, 12: 104-120 Roger J. Brown, (2004). Risk and Private Real Estate Investments Journal of Real Estate Portfolio Management. N.E Hutchison (2005), Nitish (2006), Hishamuddin Mohd Ali (2006). Modern Portfolio Theory: Is There Any Opportunity for Real Estate Portfolio? Cotter, J . and S . Stevenson. Multivariate Modeling of Daily REIT Volatility. Journal of Real Estate Finance and Economics, 2006, 32:3, 305-25. Stanley McGreal, Alastair Adai r, James R. Webb (2009). Optimal Diversification in U.S./U.K. Private Real Estate Only Portfolios: The Good, the Bad, and the Uncertain. Journal of Real Estate Portfolio Management .1083-5547 Diavatopoulos, D., J. Doran, and D. Peterson. The Information Content in Implied Idiosyncratic Volatility an d th e CrossSection of Stock Returns: Evidence from the Option Markets. Journal of Futures Markets, 2008, 28:11, 1013-16. Szu-Yin Kathy HungÂÂ  andÂÂ  John L. Glascock (2009). Volatilities and Momentum Returns in Real Estate Investment Trusts. The Journal of Real Estate Finance and Economics. Volume 41, Number 2,ÂÂ  126-149 Fei 2009 (Refer Dr.Sinhas Chapter 3) Pyhrr et al (1990) (Refer Dr.Sinhas Chapter 3)

Essay on Slaughterhouse Blues Book Review - 1587 Words

Mo . [Email address] Mo . [Email address] ANTH 3330 S. Metress ANTH 3330 S. Metress Slaughterhouse Blues: Book Review Michael Farhoud Slaughterhouse Blues: Book Review Michael Farhoud In Slaughterhouse Blues, anthropologist Donald Stull and social geographer Michael Broadway explore the advent, history, and implications of modern food production. The industrialized system behind what we eat is one of the most controversial points of political interest in our society today. Progressions in productive, logistical, retail, and even biological technologies have made mass produced foods more available and more affordable than ever before. This being said, the vague mass production of ever-available cheap â€Å"food† carries with it several hidden†¦show more content†¦Cecile Steele, who ended up becoming a broiler chicken farmer due to a mistaken order. Utilizing her example, the chicken industry took off. Before long, it was figured out that by taking advantage of supplements and vitamins, growers could raise poultry completely indoors. Chicken yards and coops turned into little metal pens and cages. By the 1930’s big business was already getting its hands into the industry by way of men like John Tyson and Frank Perdue, who achieved vertical integration by combining production, processing, and distribution to build regional and national businesses. Contracted chicken growers working for these businesses under their specifications came to replace independent chicken farmers working for themselves. Becoming more and more efficient as they went on, poultry companies all but destroyed the marketability of the goods for the independent farmers, pushing them almost completely out of the picture. In chapter four, it is said that from colonial times to the 1950’s when it was overtaken by beef, pork was the major source of meat for Americans. Pioneers kept hogs as free-range animals that foraged for their food. Corn-fed pigs grew faster and bigger, so it was common practice to round up surplus hogs and corn-feed them in the weeks before they went to market (value is weight-based). In 1818, the first meatpacking plant in Cincinnati was opened and became the dominating entity in pork production until the civil war,Show MoreRelatedCritical Book Review of Slaughterhouse Five2406 Words   |  10 PagesIn Slaughterhouse Five, Kurt Vonnegut explains his experience of the World War II bombing of Dresden, Germany. Vonneguts creative antiwar novel shows the audience the hardships of the life of a soldier through his writing technique. Slaughterhouse Five is written circularly, and time travel is ironically the only consistency throughout the book. Vonnegut outlines the life of Bi lly Pilgrim, whose life and experiences are uncannily similar to those of Vonnegut. In Chapter 1, Kurt Vonnegut non-fictionallyRead MoreDesigning Architecture And Urban Planning Essay1529 Words   |  7 Pagessurroundings. The form of the modern art museum is a spiral rotunda that is architecturally significant. For the reason that it has a unique shape and form; also it is controversial among people especially art critics and architects. A passage in the book â€Å"How Architecture Works: A Humanist’s Toolkit† describes the way the museum looks to pedestrians â€Å"The first view for most pedestrians walking up Fifth Avenue is a tantalizing glimpse of a fragment of what appears to be a giant cream colored-coloredRead MoreVonnegut s Slaughterhouse Five 1807 Words   |  8 Pages In Vonnegut’s novel Slaughterhouse-Five, he has a way of not only revealing truth but hiding it as well. Many view this novel as an anti-war book and with that one could infer that the main truth he would wish to reveal is the sadness, horror and truth of war. However, there are other smaller truths one come to uncover as they read on. This book becomes an analysis by one, and reading is when they analyze his words how they want. Here is how I see his truths, whether being revealed or hiddenRead MoreBelonging Essay4112 Words   |  17 PagesStephen, Billy Elliot Making Multicultural Australia, www.multiculturalaustralia.edu.au It is also suggested you choose 3-4 related texts as you will have more to discuss. You do not have to read a full book; a story from an anthology can be enough. You can also choose a poem, a picture book, film or photographs. Remember though that you will need to discuss at length the relevance of the chosen piece to write about how belonging is represented in the text, how are the ideas about belonging broughtRead MoreDollar to Fall as World Currency12311 Words   |  50 Pagestried to counter the inflation by imposing price controls. But when inflation continued, the government price controls made the price producers were getting so ridiculously low that they simply stopped producing. bakers stopped making bread... slaughterhouses refused to sell meat to the stores... other stores closed down So what did the government do next to try to curb inflation? Well, one bright idea they had was to force stores to fill out government documents every time they increasedRead Morewisdom,humor and faith19596 Words   |  79 Pagesany supposed inferior group. Humor is also sometimes an inappropriate response to an event. Hearing of evils like the killing of an innocent person, the demeaning of a child, or the rape of a woman should elicit not humor but sorrow. As the Bible’s book of Ecclesiastes says, there is â€Å"a time to weep, and a time to laugh; a time to mourn, and a time to dance.† Enlightening comments on the relationship of humor to wisdom were once made by Reinhold Niebuhr (1892-1971), perhaps the twentieth-century’sRead MoreFundamentals of Hrm263904 Words   |  1056 PagesSinclair Sandra Dumas Susan McLaughlin Kevin Murphy Laura Ierardi Allison Morris Hilary Newman mb editorial services David Levy  ©Michael Eudenbach/Getty Images, Inc. This book was set in 10/12 ITC Legacy Serif Book by Aptaracorp, Inc. and printed and bound by Courier/Kendallville. The cover was printed by Courier/Kendallville. This book is printed on acid free paper. Copyright  © 2010, 2007, 2005, 2002 John Wiley Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored inRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 PagesJayawardena, â€Å"Migration and Social Change: A Survey of Indian Communities Overseas,† Geographical Review 58, no. 3 (1968): 426–449; Amarjit Kaur, â€Å"Indian Labour, Labour Standards, and Workers’ Health in Burma and Malaya, 1900– 1940,† Modern Asian Studies 40, no. 2 (2006): 425–475; Dudley L. Poston Jr. and Mei-YuYu, â€Å"The Distribution of the Overseas Chinese in the Contemporary World,† International Migration Review 24, no. 3 (1990): 480–508; and various other sources. A  majority of Asians also moved

Bio 30 4th Exam Reviewer Free Essays

string(28) " have been due to mutation\." BIO 30 4TH EXAM REVIEWER Merlyn S. Mendioro Delayed and Extra-chromosomal Inheritance 1. ) Genetic factors that are located outside the chromosome: plasmagenes, plasmons, cytogens, plasmids. We will write a custom essay sample on Bio 30 4th Exam Reviewer or any similar topic only for you Order Now 2. ) Plasmid inheritance implies: perpetuation through DNA Replication. 3. ) Killer gene particulate material in Paramecium aurelia: kappa 4. ) Mirabilis jalapa shows extrachromosomal inheritance in the ___________. When a pale male parent is crossed with a green female the result usually is __________. : chloroplast, green 5. Hereditary mitochondrial diseases are transmitted only through the ____________ line since ______________ can hardly contain mitochondria. : maternal, spermatozoa 6. ) Gradual loss of the ability to control eye movement: Progressive External Ophthalmoplegia 7. ) Occurs during childhood characterized by a combination of anemia, reduction of all blood cells, dysfunction of the pancreas, liver and kidneys: Pearson Syndrome 8. ) Cytoplasmic nuclear male sterility: 9. ) Mothers transmit virus-like particles called sigma. What is this? Infective Heredity 10. Extrachromosomal particles/plasmids free of the host organism or integral of the organism chromosome that are infective. For example E. Coli’s fertility trait. Episomes 11. ) What are the different criteria for extrachromosomal inheritance? : Difference in reciprocal cross results, Maternal Inheritance, Non-mappability, Non-segregation, Non-Mendelian Segregation, Indifference to nuclear substitution, Infection-like transmission 11a. ) Difference in reciprocal crosses – if the normal cross is equal to the reciprocal cross Maternal inheritance – if the traits are mainly from the mothers because of the cytoplasm contributed. Non-mappability – the extra-chromosomal gene cannot be mapped. Non-segregation – failure to show segregation merits extrachromosomal heredity Non-Mendelian Segregation – does not follow Mendelian proportions. Indifference to nuclear substitution – when characteristic persists in presence of nuclear transmission. Extrachromosomal inheritance comes into play. Infection-like transmission – transmitted without nuclear transmission, IT IS Extrachromosomal. Quantitative Genetics 1. ) A quantitative trait is _________. Quantitative effects are __________ if they can be added to produce phenotypes, the sum total of the negative and positive effects of individual ____________: polygenic, additive, polygenes 2. ) The several basic assumptions for polygene hypothesis: Gene determining quantitative traits = Gene determining qualitative traits only that the former has NO INDIVIDUALLY RECOGNIZED PHENOTYPIC EFFECT Series of genes independent of one another governs a quantitative trait Genes have cumulative effect Dominance is ordinarily absent The F1 appears intermediate of the parents There is an appreciable influence of the environment on the expression of the trait The only adequate system of classification is through measurement of the trait 3. ) Contributory effect per allele = large phenotype-smallest phenotype2n 4. ) Finding the frequency of each combination: Use binomial distribution or Pascal Triangle 5. ) (a+b)2n , where n is the number of gene pairs, 2n is the number of alleles. 6. ) Problem Solving I: The gene AA controls for the phenotype of length of corn. Three genes are responsible for the length of corn. The longest measurement of corn in a sample of 1000 is 130cm while the shortest is 24 cm. Find all the possible progenies of the parent corn and their respective measurements. Include their frequencies. 130 cm – 24 cm = 106 cm 106cm / 6 alleles = 17. 67 cm per allele Gene| aaaaaa| Aaaaaa| AAaaaa| AAAaaa| AAAAaa| AAAAAa| AAAAAA| Length| 24cm| 41. 67cm| 59. 34cm| 77. 01cm| 94. 68cm| 112. 35cm| 130. 02cm| Frequency| 1/64| 6/64| 15/64| 20/64| 15/64| 6/64| 1/64| 7. ) Finding the gene pairs: 8. ) The tendency of the offspring of extreme parents to deviate from the mean by a lesser amount than their parents. Regression 9. ) There will be no regression if there is no dominance, no epistasis, and no environmental effects. True 10. ) Number of facets in Bar-eyed Drosophila is a gene effect specifically? Multiplying effects 11. ) The measure of resemblance between relatives is called? Heritability 12. ) Why is heritability in the narrow sense important to plant breeders? Because it indicates that the selection of parents bearing particular measurements that are favorable will produce offspring of similar phenotype. They want favorable traits to be passed on to the next generation as intact. 3. ) Why is heritability in the broad sense important to human geneticists? Because they want to know how much an individual’s phenotype is affected by his genotype. They want to assess the relative influence of the genotype and environmental factors. Population Genetics 1. ) It studies the genetic constitution of populations and how this genetic constitution changes from generation to generation. Population Genetics 2. ) A community of sexually interbreeding or potentially interbreeding individuals sharing a common gene pool. Population 3. Refer to the proportions of the different alleles of a gene in a population. Gene frequencies. 4. ) The sum total of genes in the reproductive gametes of all the individuals in a population. Gene Pool 5. ) The formulators of the Hardy Weinberg are: Godfrey Hardy and Wilhelm Weinberg 6. ) State the Hardy-Weinberg Equilibrium: The frequency of the dominant and recessive alleles remained constant at whatever value applied to the previous generation. 7. ) State the factors that disrupt the Hardy-Weinberg Equilibrium: Mutation, Selection, Migration, Genetic Drift 8. Mutation occurs only in one direction, False 9. ) What are the three basic kinds of selective effects? Stabilizing Selection – tends to eliminate the phenotypic extremes Directional Selection – one of the extremes in the phenotypic range becomes most fit and thus it is preserved. Disruptive Selection – Both extremes of the phenotypic range are selected for. 10. ) Selection is both a long term and a short term process. True 11. ) The reproductive success of one phenotype as opposed to alternative phenotypes. Fitness 12. ) The force acting upon a phenotype to reduce its fitness or adaptive value. Selection Pressure. 13. ) Selection against a genotype may occur either in gametes or in zygotes. True 14. ) In this selection, there is no difference between the dominant and the recessive alleles since both genotypes are phenotypically expressed. Gametic Selection 15. ) In this selection, three possible genotypes for a single gene difference are observed. Zygotic Selection. 16. ) A situation where two or more forms of a population coexist in the same habitat in such a proportion that even the least frequent form could not have been due to mutation. You read "Bio 30 4th Exam Reviewer" in category "Essay examples" Balanced Polymorphism 17. ) A type of assortative (non-random) mating where mates are more closely related to each other. Inbreeding 18. ) This is where inbreeding brings out deleterious recessive genes that were previously concealed by their dominant alleles. Inbreeding Depression 18a. ) Sample Question: Why is human mating in relatives forbidden by law? Because of deleterious recessive infirmities. There is a large chance for a concealed gene say lethal gene to be expressed when you breed with a relative rather than random mating individuals. 19. The effects of inbreeding depression can be reversed by? Hybridization 20. ) Hybrids show marked increase in fitness: increased size, fertility etc. This is called as? Hybrid Vigor/Heterosis. 21. ) When there is migration, two factors are important to the recipient population. What are they? The difference in gene frequencies between two populations and the proportion of migrant genes that are incorporated each generation are the two facto rs. 22. ) A non-directional force that changes gene frequency in an unpredictable rate from generation to generation. Genetic Drift 23. The number of parents in the population which is important in determining genetic drift. Effective Population Size 24. ) Severe reduction in population size due to a deleterious, external event. Bottleneck 25. ) A small part of the population moves to an uninhabited area. Founder’s Effect. 26. ) Defined as populations of organisms that differ in the relative frequency of some genes or genetically distinct populations of the same species. Races 27. ) Defined as a group of interbreeding natural populations that are reproductively isolated from other such groups. Species 28. In separate groups (Allopatric) or within an area of overlap (Sympatric), speciation can take place by chance. 29. ) Prevent the formation of hybrid zygotes. These include ecological, temporal, behavioral, mechanical and gametic isolation. Prezygotic barriers. 30. ) Conseque nces of genetic incompatibilities or nuclear-cytoplasmic irregularities. Postzygotic Barriers. 31. ) 5 Types of Isolation (Pre-Zygotic Barrier): Habitat Isolation, Temporal Isolation, Behavioral Isolation, Mechanical Isolation, Gametic Isolation. Habitat Isolation – organism, isolated from others by habitat. Temporal Isolation – organism, is not in right time for reproduction. The mates are only reproducing in other timeframes. Behavioral Isolation – Sexual attraction is weak or absent between sexes. Mechanical Isolation – Pollen, gametic transfer is rendered physically impossible because of differences in size or structure of the reproductive organs. Gametic Isolation – The male and female gametes fail to fuse or the spermatozoa or pollen are inviable. 32. ) 3 Kinds of Post-Zygotic Barriers. Hybrid Inviability – hybrid zygotes fail to develop, or fail to reach sexual maturity. Hybrid Sterility – hybrids fail to produce functional gametes. Hybrid Breakdown – The viability or fertility of the hybrids is greatly reduced. 33. ) Speciation that is faster which are due to chromosomal changes. Rapid Speciation Human Genetics 1. ) The affected individual through whom the pedigree is discussed. Proband 2. ) 22II + XX/XY + I21/Trisomy 21 Down’s Syndrome 3. ) 22II + XX/XY + I16,17,or18, or Trisomy in either 16, 17, 18th chromosome. E Trisomy 4. ) 22II + XX/XY + I13,14,or15 or Trisomy in either 13, 14, 15th chromosome. D Trisomy 5. ) Sex chromosome Aneuploid. 22II + XO. 9% of affected fetuses die before birth. Sexually Infantile. Turner’s Syndrome 6. ) 22II + XXY. Mental Retardation, Rambling talkativeness, dependent, submissive, rudimentary testes. Klinefelter’s Syndrome 7. ) 22II + XXX. Tallness, menstrual irregularities, Subnormal Mental Abilities. Triplo X Syndrome 8. ) 22II + XYY. Violent Behavior. Acne. Speech and Reading Probl ems. Jacob Syndrome 9. ) 22II + Xy. Has both ovary and testes. Mentally retarded. Has congenital anomalies. Hermaphrotidism 10. ) 5p-. Deletion on the terminal end of the 5th Chromosome. Small Epiglottis. Cat-like cry. Cri-du-chat Syndrome 11. ) No dystrophin synthesized. Deletion of a small segment in X chromosome. Duchenne Muscular Dystrophy 12. ) Lesser dystrophin synthesized. Becker Muscular Dystrophy 13. ) Reciprocal translation of chromosomes 2 and 20. Alagille Syndrome. 14. ) Translocation involving chromosomes 9 and 22 resulting in chronic myelogenous leukemia. Philadelphia chromosomes. 15. ) Genes that convert normal cells into cancer cells. Oncogenes 16. ) Accumulation of galactose in blood. Consequences include muscle weakness, mental retardation, and liver disease. Galactosemia. 17. ) Resistance to malaria but has severe hemolytic anemia. Favism/Primaquine Sensitivity. 18. ) PKU stands for. Phenylketonuria. 19. ) Normal hemoglobin A is replaced by abnormal hemoglobin S. Substitution of amino acid valine for glutamic acid. Sickle Cell Anemia. 20. ) Persistence of fetal hemoglobin. Too few beta globin chains. Thalassemia. 21. ) Caused by a deletion of a single amino acid of the CFTR. Lung infection. Pancreatic insufficiency. Cystic Fibrosis. 22. ) Predisposition to allergy was found out in a single dominant gene in the long arm of? Chromosome 11 23. Loss of ability to organize thoughts. Was found out to have a heritability of 80%. A normal person can have this by living with someone who has this. Schizophrenia 24. ) 2 Common Eating Disorders. Anorexia Nervosa/Bulimia Nervosa 25. ) Eating disorder where males see themselves as too small and they take more amino acid. Bigorexia/Muscle Dysmorphia. 26. ) Has a high heritability of 40-60%. Gene for do pamine contributes to this too. Drug Addiction 27. ) Environmental effect on IQ declines as an individual advances in age. The heritability of an adult IQ is 80%. True 28. The candidate gene for intelligence. N-CAM (Neural Cellular Adhesion Molecule) 29. ) The candidate chromosome for intelligence. 4 30. ) Republic Act No. 9288. Newborn Screening Act 31. ) Disorders included in Newborn Screening: Congenital Hyperthyroidism Congenital Adrenal Hyperplasia Galactosemia Phenylketonuria Glucose 6-Phosphate Dehydrogenase Deficiency Genetic Engineering and Biotechnology 1. ) Steps in Recombinant DNA Technology. Restriction Endonuclease/DNA Ligase Cloning Vehicle/Vector Functional Host Multiplication of Recipient Cells. 2. ) Initial success of Recombinant DNA Technology. Insulin in E. Coli 3. ) HUGO stands for. Human Genome Mapping Organization 4. ) The technique of DNA fingerprinting involves the use of. Restriction Fragment Length Polymorphisms 5. ) DNA Markers Useful in Genome Mapping RFLP Tandem Nucleotide Repeat Markers Polymerase Chain Reaction Based Marker Random Amplified Polymorphic DNA Simple Sequence Repeat (SSR) Single Nucleotide Polymorphism 6. ) Executive Order 514 series of 2006 established? National Biosafety Framework 7. ) NCBP stands for. National Committee on Biosafety of the Philippines. Bonus Questions on Human Genetics . ) People with urine that smells like Maple Syrup. Maple Syrup Urine Disease 2. ) Have formation of plaque on the inner wall of coronary arteries. Angina. Arrythmia. Heart Failure. Shortness of Breath. Coronary Heart Disease 3. ) Manifested absence of polyuria, normal/slightly decreased concentrating urine ability. Autosomal Recessive. Gitelman’s Syndrome 4. ) Microcephally. Synephrys. Thick Eyelashes. Sho rt Upturned nose. Downturned lips. 1 to 10,000 to 30,000. Cornelia de Lange Syndrome 5. ) Neurodevelopmental disorder that affects girls exclusively. Has 4 stages. Last stage is scoliosis and the loss of walking ability. Rett Syndrome 6. ) Experience accumulation of glycogen that leads to progressive weakness of the muscles. Ventilator dependence. Pompe Disease 7. ) Mean age of 36. Mean survival after diagnosis is 2. 8 years. Dyspnea. Fatigue. Syncope. Chest Pain. Edema. Familial Pulmonary Arterial Hypertension (FPAH) 8. ) Has a multifactorial inheritance pattern. Chronic disease characterized by recurrent attack of breathlessness and wheezing. Allergic and Respiratory Asthma 9. ) Excessive Hunger. Excessive thirst. Frequent Urination. Weight Loss. Diabetes Mellitus Type 2 10. ) Nearsightedness or shortsightedness. Myopia 11. ) Autoimmune disease that can affect any part of the body. It is caused by the malfunction of the immune system. Systemic Lupus Erythematosus (SLE) 12. ) Bloating. Stomach Cramps. Flatulence. Slight Nausea. Diarrhea upon intake of lactose. Lactose Intolerance 13. ) Neurodegenerative disease that commonly affects people over the age of 60. Parkinson’s Disorder 14. ) Sporadic, non-contagious multifactorial disease in which progressive, patchy or loss of pigmentation of skin, overlying hair, and often mucous membranes. Vitiligo 15. ) Congenital Paresis (Paralysis of the Face). Inability to suck. Excessive Drooling. Moebius Syndrome 16. ) Small head circumference, high pitched cry, seizures increased. Microcephally 17. ) Average intelligence. Speaking in monotone. Develop intense interest in a particular subject. Asperger Syndrome 18. ) Generalized blistering and mucosal involvement present at birth. Non Herlitz Junctional Epidemolysis Bullosa 19. ) Manifestations of bone fracture, without known trauma, bone deformity and blue sclera. Osteogenesis Imperfecta How to cite Bio 30 4th Exam Reviewer, Essay examples

Arguments Against Chinua Acebes An Image of Africa Racism in Conrads Heart of Darkness free essay sample

Literature and Composition 6 March 2013 An Image of Africa: Not Racism in Conrad’s ‘Heart of Darkness’ People of dark skin have been wrongly discriminated against by racists for hundreds of years. From the first time Europeans stepped onto Africa and deemed black skin inferior till now, black people have been fighting for the right to be called equal. During the last century Africans have made great strides in fighting against racism. Many black leaders have risen up and confronted those racist against them. However, there are also times when people have gotten up in arms and have attacked others over misunderstandings. An example of this is Chinua Achebe’s essay â€Å"An Image of Africa: Racism in Conrad’s ‘Heart of Darkness,’† in which he attacks Joseph Conrad’s Heart of Darkness. In his essay, Achebe presents several reasons as to why Conrad is racist in his novel and why Conrad is a racist himself. Although Achebe is a celebrated author and is called the â€Å"father of African literature,† his reasons for calling Conrad and his book racist are unjust and flawed. Although his essay is titled, â€Å"Racism in Conrad’s ‘Heart of Darkness,’† Achebe sets out to prove that both Conrad and his book are full of racism. To do this he opens his essay by stating that Heart of Darkness creates an image of Africa as the opposite of civilization; the opposite of Europe. Afterward, he makes several points to prove Conrad’s racism. Achebe heavily criticizes Conrad’s diction and questions the use of certain words. He states that Conrad enjoyed things that stayed in their place, implying that Conrad wanted black people to â€Å"stay in their place† under the white man. He says that because the main character, Marlow, is racist, Conrad is racist. He chastises Conrad’s depiction of the continent even though he has been there himself. Achebe even brings in different sources to prove Conrad’s racism, managing to use quotes from the missionary Albert Schweitzer to support his argument. Although the amount of evidence Achebe has is plentiful, many of his assertions are exaggerated, extreme, and just incorrect. Many of his arguments have one of two things wrong about them; he either has faulty logic or fails to take into consideration crucial factors that happen to contradict his ideas. Throughout his essay, Achebe continually presents ideas that have numerous flaws and can be very easily argued against. One of Achebe’s main ideas behind his essay is the idea that Marlow’s and Conrad’s thoughts and racisms are one in the same. He believes that Conrad’s attempt to distance the ideologies of Marlow and himself through the use of two narrators is â€Å"totally wasted because he neglects to hint however subtly or tentatively at an alternative frame of reference by which we may judge the actions and opinions of his characters† (Achebe 5). It is a good thing Achebe did not pursue a career in law because he has deemed a man guilty on the charge that he has not declared himself innocent. Simply put, Achebe believes that because Conrad has not given another source from where his character’s opinions could have come from, those opinions must have come from his frame of reference. Achebe is simply jumping to conclusions without proper evidence. He does this several more times while making a lengthy argument about how Conrad’s depiction of Africa is racist. When Conrad describes Africa Achebe argues that he makes it far too primordial than it should be. He supports this idea by presenting an event that happened shortly after Conrad wrote his book. An event in which a European man is given a mask by a native, who then shows the mask to Europe’s top artists. Achebe then says, â€Å"The event [†¦] marks the beginning of cubism and the infusion of new life into European art [†¦. ] The point of all this is to suggest that Conrad’s picture of the people of Congo seems grossly inadequate† (8). This is another example of Achebe jumping to conclusions. While fine art is a symbol of refinement and sophistication in Western countries, the same cannot be said about Africa. The art of one tribe does not make all of Africa more civilized and refined if other tribes continue to cannibalize each other. It makes no sense for Achebe to stretch his information so far to come to this conclusion. It also makes no sense for Achebe to question Conrad’s description of the continent while Conrad has made the trip into the country. Achebe says, â€Å"I will not accept just any traveler’s tales solely on the grounds that I have not made the journey myself† (7). Achebe has never been to the Congo like Conrad has, yet he has the audacity to question what Conrad witnessed there while Achebe’s father was a baby. Achebe accuses Conrad of depicting Africa incorrectly without having ever having stepped foot into the continent, which makes him even more clueless to the Africa of Conrad’s age. He declares that Conrad of making Africans seem more savage than they actually were, while unable to even imagine how they were so long ago. Achebe charges Conrad with racism and ignorance while completely dismissing his own. Although Achebe is a celebrated author, at many points during this essay his arguments are weak, even pathetic because of the irrational conclusions that he comes to. This gives a preview to the carelessness of his essay that becomes evident upon further inspection. In his essay Achebe seems to forget to (or chooses not to) discuss many factors that go against his argument. He states that Conrad enjoys things that stay in their place. Achebe believes that the African’s proper place is found when Conrad writes about Kurtz’s African mistress. He says, â€Å"She was a savage and superb, wild-eyed and magnificent [†¦] She stood looking at us without a stir and like the wilderness itself, with an air of brooding over an inscrutable purpose† (142). According to Achebe, Conrad believes that the African’s place is one that is wild and close enough to look at from â€Å"civilization† but distant enough to be separated well. Thus, Achebe implies that Conrad wants Africans to stay in their proper place, where the wildness is far from the Europeans. However, this argument is invalid when considering how Marlow feels about Kurtz. Marlow is unsure about how to feel about Kurtz, but he certainly does not hate Kurtz and has decided to side with Kurtz at the end of the book, so it can be assumed Kurtz is closer to Marlow’s good side than not. However, Marlow describes Kurtz as having no place. He says, â€Å"There was nothing either above or below him, and I knew it. He had kicked himself loose of the earth† (149). Marlow says this because he knows Kurtz is between Europe and Africa. Kurtz has no real place in the world, but Marlow has sided with him. Since Achebe has equated Marlow’s thoughts to Conrad’s, Marlow should hate Kurtz, but he does not. Thus, when Kurtz is taken in as a factor this argument is null and void, much like when Achebe attempts to compare Albert Schweitzer to Conrad. Achebe writes, â€Å"Albert Schweitzer, who sacrificed brilliant careers in music and theology in Europe for a life of service to Africans in much the same area as Conrad writes about, epitomizes ambivalence. In a comment which has often been quoted, Schweitzer says, ‘The African is indeed my brother but my junior brother’† (5). He then continues to criticize Conrad for only go as far to call the African his kin, not his brother. By the standard of Achebe’s day this sentiment could most definitely be considered racist; however, Achebe fails to take into account the simple fact that the standards of his day cannot be applied to Conrad. Conrad is from a much different time, where white men were raised to believe that black men were under them. For him to consider them kin is already a radical thought. Achebe seems to want to ignore the fact that he is criticizing a book written seventy years prior, as he makes this mistake once again. Achebe quotes Conrad’s account of his first encounter with a black man. Achebe writes: â€Å"A certain enormous buck nigger encountered in Haiti fixed my conception of blind, furious, unreasoning rage, as manifested in the human animal to the end of my days. Of the nigger I used to dream for years afterward. † Certainly Conrad had a problem with niggers. His inordinate love of the word itself should be of interest to psychoanalysts. (6) In this excerpt Conrad speaks of only one black man, not of all men of the color, thus it is wrong to assume that he has a problem with â€Å"niggers† from this passage. As far as his use of the word â€Å"nigger,† Achebe seems to ignore the fact the word was used quite commonly during the time period. Even in Achebe’s time the word is used very often in certain areas. Furthermore, the word â€Å"nigger† is used 219 times in Mark Twain’s the Adventures of Huck Finn, yet Mark Twain was one of the greatest advocates for the humanity of African-Americans of his time. In his essay â€Å"An Image of Africa: Racism in Conrad’s ‘Heart of Darkness’† Chinua Achebe makes many points to support his idea that Joseph Conrad and his book, Heart of Darkness are racist. However, many of these points are not very good ones. Although his intentions are good, he is blinded by his quest to attack racists and ended up putting an innocent man, who also had good intentions, under fire.