Analysis Of Ready Player One By Ernest Cline - 856 Words

The novel, Ready Player One, by Ernest Cline, follows Wade Watts, or Parzival, and Nolan Sorrento, two very different characters, Wade Watts, or Parzival, and Nolan Sorrento. Using a structuralist critique, Parzival and Sorrento differ in the amount of knowledge each possesses on James Halliday and how much violence each will use to obtain the egg, yet they both share a strong determination to discover the egg. Nolan Sorrento will kill innocent people in order to obtain the egg, while Parzival does not want to harm anyone. Furthermore, Parzival is extremely knowledgeable on James Halliday, while Sorrento cheats by hiring people to study Halliday for him. However, both Parzival and Sorrento are exceptionally determined to find the egg.†¦show more content†¦While Parzival does not wish to hurt anybody in the contest for Halliday’s fortune, Sorrento is not opposed to killing people if it will benefit his chances of winning. During Parzival’s meeting with Sorrento , Sorrento threatens to kill Parzival if he does not help the Sixers. Sorrento says he will blow up Wade’s trailer, which is full of other people, just to take him out of the contest. Parzival thinks â€Å"[Sorrento] had to be bluffing†¦ They would never kill all those innocent people just to get me† (142). Parzival himself would never hurt anybody to win the contest, so he is shocked to discover that Sorrento will not hesitate to murder random people to get ahead. Once Parzival accuses Sorrento of lying about the explosives, Sorrento states â€Å"‘No Wade. I’m not†¦ There are billions of dollars at stake here†¦ This is much more than a videogame contest’† (143-144). Sorrento proceeds to blow up Wade’s trailer, not killing Wade, yet ending the lives of many innocent people with no regret or guilt. Wade, peaceful and not out for blood, contrasts greatly with Sorrento, who intends to mercilessly kill any gunter who stands in his way of victory. Parzival and Sorrento alike are devoted to the hunt and determined to be the first to find the egg. After the Sixers explode Wade’s trailer, he changes his name and moves to a safe apartment. Once he settles into his new home, Wade â€Å"made a silent vow to [himself] not to go outside again until [he] hadShow MoreRelatedLiterary Analysis : Ready Player One By Ernest Cline1794 Words   |  8 Pagesthis intention, literature glorifies the oversimplification of reality to a great extent as readers become enticed by the prospect of living a less complex life. Notably, Ready Player One by Ernest Cline, examines the challenges and benefits of physically living in one reality while mentally living in a virtual reality. Cline introduces the virtual reality OASIS, as the primary reason to why the protagonist, Wade, continues to exist. However, by dedicating his life to OASIS and deciding to oversimplify

Reason For Referral - Original Writing - 1099 Words

Reason for Referral A.D. and her father state that she finds math to be challenging. A.D. states that she is easily confused in math class when her teacher provides instructions without a verbal explanation. She reiterates that she finds math harder when her teacher does not provide oral directions. A.D. remains focused in math class, with her eyes on her teacher and/or on the board, as well as participates in class lectures by raising her hand when her teacher asks questions. A.D.’s father believes that his daughter performs well in math and enjoys the subject, but she is easily confused when it comes to completing her homework and what is expected of her to complete. A.D. states that she enjoys learning math and working through problems, but dislikes when she finds herself unaware of what to do, which in return leaves her struggling with new math concepts. In order to provide the best instructional methods to meet A.D.’s specific learning needs, the purpose of this Psychoeducationa l assessment is to gather information regarding how A.D. learns, specifically how A.D. learns mathematic concepts. The problem question is listed as follows: How does A.D. process information? Specifically, how does A.D. process information concerning math? This information is needed in order to determine the best methods to implement to improve A.D.’s performance in math. Background Information A.D. is a seventeen-year-old female who lives in Snellville, Georgia with her mother,Show MoreRelatedErr Questions - Childcare Apprenticeship1128 Words   |  5 Pagesproblems relating with your employment and that any issues should be resolved if possible. The grievance policy is there if you want to formally complain about something which is usually by making a written record encase it is needed for future referrals. 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Ict and Nigerian Banks Reforms free essay sample

Primary data was employed, which was analyzed using cross-tabulations and regression technique built on the framework of technical progress. Factors such as bankers’ age, educational qualification, computer literacy and type of ICT gadgets, were found to influence banks’ degree of ICT usage, while ICT impacts significantly the speed of banking operations, productivity and profitability. The need for the banks to regularly train their workers, and procure quality ICT gadgets, which will enhance efficiency, etc, was stressed. This is crucial in the sector’s current reforms where attention is focused on the ability of banks to attract and retain customers, which is mainly feasible through efficient service delivery that depend, to a large extent, on the use of ICT. In recent times, Information Communication Technology (ICT), which basically involves the use of electronic gadgets especially computers for storing, analyzing and distributing data, is having a dramatic influence on almost all aspects of individual lives and that of the national economy- the banking sector inclusive. The increasing use of ICT has allowed for integration of different economic units in a spectacular way. This phenomenon is not only applicable to Nigeria but other economies of the world, though the level of their usage may differ. In Nigeria, ICT usage especially in the banking sector, has considerably improved, even though it may not been as high as those observed for advanced countries (Adeoti, 2005; Adeyemi, 2006). The use of ICT in the banking sector became of interest to this study due to the significant role it plays in the economy. It helps in stimulating economic growth by directing funds to economic agents that need them for productive activities. This function is very vital for any economy that intends to experience meaningful growth because it makes arrangements that bring borrowers and lenders of financial resource together and more efficiently too than if they had to relate directly with one another (Adam, 1998; Ojo, 2007). In essence, the banking sector acts as a bridge that connects lenders and investors in the economy. Hence, the need for reforms in the sector initiated by the Federal Government via the instrumentality of the Central Bank of Nigeria-CBN. The bank reforms (especially the recapitalization that specifies a minimum capital base of 25 billion naira for commercial banks), are pursued with a view to making the sector realize its objectives in advancing the economy (CBN, 2006). It is expected that the impact of these reforms will be enhanced with the use of ICT because it will create some form of competitive advantage and improve banking services through accuracy and efficiency in their transactions. In other words, it will change the nature of banks’ services in terms of quality which will culminate in greater service delivery and productivity. This is in tandem with the findings made by Adeoti (2005) that the use of information technology has the ability of improving the competitiveness of Nigerian manufacturing industries. 67 Global Journal of Business Research, Vol. 2, No. 2, 2008 Osabuohien, E. S. C. From the above discourse, this paper seeks to carry out an empirical analysis on the anticipated role of ICT in enhancing the operations of selected Nigerian banks in the light of current reforms in the sector. To achieve this objective, three commercial banks were selected, viz; Union Bank of Nigeria Plc-UBN, United Bank for Africa Plc- UBA and Wema Bank Plc-Wema. The study is structured into sections. Next to this introduction is the literature review, followed by the analytical framework and methodology. Section 4 is analyses of data, summary of findings and recommendations. The last section is the conclusion. LITERATURE REVIEW The Concept of ICT and a Perspective of Nigerian Banks Technology can be referred to as the application of knowledge for the execution of a given task. It entails skills and processes necessary for carrying out activities (works) in a given context. While ICT encompasses computer systems, telecommunication, networks, and multimedia applications (Frenzel, 1996). It came into use in the late 1980’s replacing earlier terms like Electronic Data Processing (EDP), Management Information System (MIS), although the latter terms are still in use (Frenzel, 1996). ICT has transcended the role of support services or only electronic data processing; its fields of applications are somewhat global and unlimited. Its devices especially the Internet through the World Wide Web (www) and modern computer email facilities have further strengthened early innovations like the telephone and fax. Other ICT devices include data recognition equipment, factory automation hardware and services, tele-computing and teleconferences using real time and online system (Adeoti, 2005). It is a concept that is having a remarkable effect on almost entire aspects of the human endavours. This connotes that it involves the application of principles to engage physical component in achieving an intended goal. The convergence of computer and telecommunication after about four decades of applying computers to routine data processing, mainly in information storage and retrieval, has created a new development where information has become the engine of growth around the world. This development has created catch-up opportunities for developing countries such as Nigeria to attain desired levels of development without necessarily ‘reinventing the wheels’ of economic growth. This new technology has brought far-reaching revolution in societies, which has tremendously transformed most business (banking) scenes (Ovia, 2005). With respects to the banks in Nigeria, the first bank was established in 1892 (then African Banking Corporation). However, there was no banking legislation until 1952 when three foreign banks (Bank of British West Africa, Barclays Bank, and British and French Bank) and two indigenous banks (National Bank of Nigeria and African Continental Bank) were established, with a total number of 40 branches (Iganiga, 1998). As at 1988, the Nigerian banking system consisted of the CBN, 42 commercial banks and 24 merchant banks (Iganiga, 1998; Adam, 2005). From 1970, the banking sector grew significantly in terms of number and coverage as a result of increase in economic activities. However, between 1970 and 1985, the growth of the sector was relatively slow due to predominant government regulations but the period 1986-2000 witnessed a phenomenal growth of the sector as a result of the financial deregulation policy, that is the Structural Adjustment Program-SAP of 1986 (Iganiga, 1998). This brought about the liberalization of bank licence leading to a rapid change in the sector. Some of the banks were characterized by paper oriented methods, rather than technological based systems and this resulted to slow pace of their operations vis-a-vis their employees’ productivity cum general performance. The use of computers and other ICT gadgets in their operations were limited. 68 Global Journal of Business Research, Vol. 2, No. 2, 2008 Osabuohien, E. S. C. This was one of the reasons adduced by Ojo (2007) as factors responsible for the Nigerian financial sector malaise. To mitigate the shocks experienced in the system, the Federal Government of Nigeria came up with the financial sector reforms through the CBN. The bank reforms entail other issues but this paper is dwelling manly on the bank consolidation that was initiated in 2004. The policy thrust on bank reforms encompasses the sum of the variations that occur in the direction of a comprehensive banking system. The bank reforms agenda, among others, specified a minimum capital base of 25 billion naira for the commercial banks that took effect in December, 2005 (Diamond Bank, 2005; CBN, 2006). This has reduced the number of commercial banks in Nigeria from 89 to 25, which was done via the processes of mergers, acquisition and the stock market (CBN, 2006; Ige, 2007). The major aim was to make Nigerian banks vibrant and resilient, clothed with efficiency and financial strength to absorb possible shocks, thereby instilling public confidence as well as global relevance (Soludo, 2004). ICT and Nigerian Banking Sector The revolution in ICT has made the banking sector changed from the traditional mode of operations to presumably better ways with technological innovation that improves efficiency. ICT can enhance efficiency via its use and in recent times banks have been encouraged by the rapid decline in the price of ICT gadgets. This has perhaps increased the bank level of ICT usage (Ovia, 2005). The increase might have also be attributable to business environment that became relatively flexible to accommodate new forms of technological change as a result of reforms in the country. Banking is becoming highly ICT based and because of its inter-sectoral link, it appears to be reaping most of the benefits of revolution in technology, as can be seen by its application to almost all areas of its activities (Akinuli, 1999). It has broadened the scope of banking practices and changed the nature of banking as well as the competitive environment in which they operate. A broad opening has been experienced around the world for banks and they are currently taking due advantage of these innovations to provide improved customer services in the face of competition and faster services that enhance productivity (Akinuli, 1999; Ovia,2005). Technological advancement facilitates payments and creates convenient alternatives to cash and cheque for making transactions. Such new practices have led to the development of a truly global, seamless and Internet enabled 24-hour business of banking. Technological advance in payments are important due to the fact that it will be feasible to outsource quite a number of the banks’ role in the payments system. Also banks’ regulation can be more technologically dependent and better focused rather than focusing on conceptual guidelines. ICT revolution both in terms of innovation rate, speedy operation, and cost per unit (portraying reduction in average total and marginal costs) has made a good number of banks embrace the use of ICT infrastructure in their operations (Akinuli, 1999). The technological innovation that is being witnessed currently in the Nigerian banking sector is possible of impacting on the banks’ mode of transactions especially in their payment systems. The payment systems are made feasible by ICT gadgets such as Automated Teller Machine (ATM), Electronic Fund Transfer (EFT), Clearing House Automated Payments (CHAPs), Electronic Purse (E-PURSE), Automated Cheque Sorter (ACS) and Electronic and Transfer at Point of Sale (EFTPOS), which have made transactions easy and convenient. This phenomenon is capable of bringing about speedy operations and enhanced productivity (Adeoti, 2005; Ovia, 2005). Though there may be little interruptions at times due to network failures, which may make customers unable to carry out transactions at that point in time. This little shortcoming is not in any way comparable to the days when banking halls were characterized by long queues mainly as a result of delays in the traditional banking operations. 69 Global Journal of Business Research, Vol. 2, No. 2, 2008 Osabuohien, E. S. C. Now banks can provide comprehensive services to their customers by making them access their accounts via online services. These instruments have an edge over the traditional payment instruments because it is safer, more efficient, convenient and cost effective. Before the introduction of these ICT services in the banking industry, manual processing of documents were in use. The bankers were made to cope with this onerous task, and the process made business transactions minimal. Besides several hectic procedures, people had to contend with, banks’ customers were inevitably made to spend several hours in the congested banking halls in carrying out their transactions (Ovia, 2005). The ICT culture in Nigerian economy can be said to be on the increase. Nigeria is the largest Internet subscriber in Africa with about 100,000 Internet users as at 2000, which was estimated to have grossly increased (Balancing Act, 2007). It has also been observed that Nigeria’s teledensity had remarkably increased by more than 2,550% from 0. 35% in 1992 to 9. 3% in 2004, thereby greatly exceeding the International Telephone Union’s (ITU) benchmark of 1% (Ndukwe, 2005). This phenomenon has helped banks keep substantial information on-line which reduces the cost of marketing their products. Being a competitive tool, it enhances the creation of customized services, reduces the cost of operation, and improves productivity as well as profitability. More interestingly, almost all the banks in Nigeria have internet and on-line real time banking facilities which has improved the scope of Nigerian banking1. It has aided transfer of funds from one location to another without any involvement of facial transactions thereby reducing the incidence of loss of funds to stealing and the likes. Another recent one is the telephone banking technology that allows customers to have transactions on their accounts by calling a particular telephone number, through voice activation, and using a tone pad. All of these improve the comfort of banking transactions. ANALYTICAL FRAMEWORK AND METHODOLOGY Analytical Framework and Models Formulation The study employs the concept of technical progress as framework in underpinning the anticipated impacts ICT has in the selected Nigerian banks. Technical progress involves discovering new methods of production, developing new products and introducing new techniques. It also implies the process by which firms in a given economy change over time, in terms of their products and production processes. It refers to an idea or a model for a new improved device, while innovation connotes its commercialization (Frenzel, 1996). Thus any change made in the method of firm’s operations is expected to precipitate progress in that organization In this formulation, when there is technical progress in a particular sector of the economy (banking for instance), it leads to increase in the productivity of labour as well as other factor inputs. The involvement of technical change will therefore enhance increased efficiency and effectiveness in the sector. Technological diffusion (i. e. increasing use of technology-ICT) is essential in realizing large scale economy benefits rooted in productivity gains. The productivity gains from the adoption of new technologies could be one of the major factors behind rising wages, while the introduction of new products could also be a factor accounting for the creation new jobs in the sector. The evolutionary perspective of technical progress connotes the ability for firms in a given sector of the economy to have sustainable improvement which depends on their ability to generate technological change. This means that one of the major ways Nigerian banks can achieve their anticipated development is to embrace significant investment in ICT. This will be enhanced by improving the interaction with one another in knowledge creation and use that is capable of improving output via faster mode of operations as well as service delivery. 70 Global Journal of Business Research, Vol. 2, No. 2, 2008 Osabuohien, E. S. C. The paper formulated two models that would be fitted into the data. The first explores the possible factors that could determine the rate at which banks use ICT (i. e. the intensity of ICT use) while the second elucidates the anticipated impacts of ICT on the operations of the banks. The model on intensity of ICT Usage in the Banks relates the use of ICT (ICTUSE) to po ssible factors that could explain the rate at which it is used in the banks. The explanatory variables included were: Age, Sex, educational qualification (Edu), computer literacy (Clit) and the type of ICT gadgets used by the banks (Type). This is represented in a functional form below: ICTUSE= f (Age, Sex, Edu, Clit, Type, ? ) 1 The above equation can be written explicitly as: ICTUSE= B0+ B1Age + B2Sex + B3Edu + B4Clit +B5Type +? 2 Where; ICTUSE : intensity of ICT used in the banks Age : age of the bankers Sex : gender of the bankers Edu : educational qualification of the bankers Clit : their level of computer literacy Type : type of ICT gadgets used in the banks. :error term capturing other explanatory variables not explicitly included. The ‘Bi’s (i= 1,†¦. 5) are the coefficients to be estimated which show the nature of relationship between dependent and explanatory variables while B0 is the intercept of the regression line. The aprori is such that Bi (i= 0, †¦. ,5) 0. This means positive relationship between dependent and explanator y variables. In the above model, the extent at which the features of the bankers and type of gadgets used could influence the intensity of ICT usage in the banks is being investigated. This is essential given the fact that it is the bankers that make use of the installed ICT gadgets and for it to have the anticipated impacts in the operations of the banks it must have to be used efficiently. The second model is on the impacts of ICT on the operations of the banks. It relates the usage of ICT (ICTUSE) to some of the variables believed to measure the performance of the banks such as enhancement in speed of banking operations and efficient service delivery (Spid), improvement of workers productivity (Wopd) and inducement in bank’s profit level (Pfit). This model seeks to capture the anticipated impacts that ICTUSE will have in the banks. It is being represented thus; (Xi = f (ICTUSE, ? ) 3 This can further be expressed as: (Xi= ? 0+ ? k ICTUSE + ? Where; Xi : vector of the dependent variables (viz: enhanced speed of banking operations-Spid; improved workers’ productivity-Wopd; and induced bank’s profit-Pfit). ?0 is the constant while ? k (k =1,2,3) shows the variations in dependent variables with respect to independent variable. The aprori is given as ? k 0. Others are as earlier defined. Research Design and Sources of Data Primary data was used with the aid of structured questionnaire in analyses. The population of the study consists of the 25 consolidated Nigerian Banks while the sample is made up of three banks, namely: UBN, UBA and Wema representing about 12%. This is quite adequate as a sample of 0. 05 proportion of the population is believed to be satisfactory in making inferences (Amadi, 2005). These selected banks have elements of the old and new generations, as some of them acquired/merged with other banks during 71 Global Journal of Business Research, Vol. 2, No. 2, 2008 Osabuohien, E. S. C. he consolidation process of 2005. They operated paper based systems at inception and later adjusted at the dawn of ICT revolution. With regards to branch networks, the selected banks have national coverage. UBA which was founded in 1946 merged with Standard Trust Bank Plc in August 2005 and later acquired Continental Trust Bank Plc and Trade Bank Plc in December 2005 and December 2006 respectively, has a bout 500 branches in different parts Nigeria. This made it to be the bank with the highest number of branch networks and first to reach one trillion naira in balance sheet (UBA, 2007). UBN was established 1917 and acquired Universal Trust Bank Plc, Broad Bank Ltd and Union Merchant Bank Ltd in 2005, has 379 branches. While Wema was incorporated in 1945 and merged with National Bank has 110 branch networks2. The target respondents were the bankers (cahiers and managers). This is because they make use of ICT gadgets in the banks; hence, they have adequate information of their operations. The location used was Victoria Island, Lagos (a commercial hub of Nigeria) where most banks have their head offices from where decisions about the use of any ICT gadget are usually initiated and first implemented. Therefore, it is believed that the type of ICT gadgets used in this location would be the same across their branches. This corroborates the fact that the banks have the same mode of operations in all their branches as they are normally networked where one can access his/her account from any of them. The Structured questionnaire drew responses on the following; age, sex, highest educational qualification, marital status, working experience, type of ICT gadgets they use and how significant is its use in carrying out their jobs, among others. 80 questionnaires were distributed to the respondents (60 for each bank) using a purposive sampling technique. This is because the author was interested in eliciting responses from individuals that have a relatively good knowledge of the concepts.

Corporate Financial Management Sensitivity Analysis

Question: Discuss about the Corporate Financial Management for Sensitivity Analysis. Answer: Introduction: Sensitivity analysis can be defined as an analysis that helps in knowing how sensitive an output can be to a change in the input while keeping other input constant. When it comes to corporate finance, it is defined as an evaluation of how a particular variable of an input in a capital budgeting decision like the discount rate, growth rate, etc influences the net present value, IRR or any other input with the other variables as constant. Sensitivity analysis is helpful in the manner as it addresses the user of the model how dependent the value of output is on each input. It provides a general notion of how much room is present for each variable to go into an adverse mode. It helps in the evaluation of risk (Davies Crawford, 2012). It is useful for a business because it helps in estimating what will happen to a project if the estimation turns out to be unreliable in nature (Albrecht et. al, 2012). It involves altering the estimates in a form of calculation to witness the impact on the finance of a project. In this manner, it helps the manager of the business to take a proper stand if the business does not lead to an expected result. Hence, the project can be evaluated beforehand and hence, the decision for investment can be taken accurately. Computation When it comes to the calculation of capital budgeting, evaluation alters one estimate at a particular time to witness the change in outcome. For instance, a business my forecast to earn $1000, $1500 and $1500 in the initial three years of the project. If an initial investment of $4000 is made by the business then the expenses will be recouping in three years. Further, the performance of the project may be enhanced as compared to the expectation that leads to a generation of $2000 on an annual basis in the second and third year respectively. The break-even of the business will happen in two years. If we consider a manager Mr. A who wants to know the influence of increment of the customers on sales. Considering the entire study, he derived at an understanding that the sales are a function of the volume of the transaction and the goods prices. The goods prices stand at $2000 per piece and in the past year, a total of 200 pieces were sold in the previous year. Hence, the entire revenue stands at $400000. The manager Mr. A judges the pattern of various customer sales and observed that an increment of 20% in the base of the customer will lead to enhancing the sales by 10%. This data will enable preparation of a financial equation and sensitivity analysis that are linked to the situation of what-if. As per the sales of the present year and an estimation of the projection in the base of the customer, Mr. A can derive at the sensitivity analysis of the scenario. Hence, from the above example, it is crystal clear that sales are strongly linked to the changes in the base of the customer (Brealey et. al, 2011). Scenario Analysis It is a tool that enables to evaluate the uncertainty by considering the outcomes of alternative nature. It need not be ascertained as a mechanism that is predictive in nature rather should be used a tool of analysis. For possible outcomes, three different scenarios can be judged like the base case, the best case, and the worst case. The base case is the one that contains the highest probability. The best case is the one where it is ascertained that all things move in the right direction and the worst case is deemed as a case where all the assumption makes no sense and fails miserably (Brigham Daves, 2012). Therefore, the analyst needs to take steps so that the present risks should be covered that might lead to negative conditions. However, the specific situation is not known rather a notion is developed. When it comes to a normal course of time, there is less surety is regarding the variables and the estimates in the case of capital budgeting. This is done to eliminate the uncertainty so that decision-making can be smooth and sensitivity analysis can be stretched to scenario analysis. It is the situation that determines the assumption and the change that is needed. One method of scenario analysis used in capital budgeting is utilizing the end in the case of extreme situations. As put to discussion in the above study that the best and the worst case situation are contrasted with the base case so that preventive measures can be taken into consideration leading to positive scenario (Ferris et. al, 2010). If the case turns out to be adverse than the scenario analysis will support the investors to be away from the situation that leads to adverse happening. As per the discussion, it can be commented that both the method that is the scenario, as well as sensitivity analysis, are useful in knowing the best investment plan. However, there is a strong difference between the two. It needs to be noted that a scenario analysis might take the help of sensitivity analysis but it is not compulsory that the sensitivity will require the use of scenario analysis (Brigham Ehrhardt, 2011). Moreover, the sensitivity analysis will enable the investor to understand various difficulties that are linked to the investment project that is proposed in nature. However, the scenario analysis will help in the evaluation of the various situation and the manner in which the impact in done on the result of the project. Capital Asset pricing model The capital asset pricing model can be said to be a model that helps in knowing about the fair value of an investment. CAPM computes the risk of the asset by evaluating the risk premium for every unit across the overall assets and evaluating the means of market beta. Hence, the CAPM module has a linear link between the market beta and the assets risk premium that can be considered as a risk that is methodical in nature. CAPM even illustrates that the return of an asset is affected due to the beta of the asset (Deegan, 2011). This model is based on the idea that the expected return will satisfy the investors for the return that is expected. Hence, the major consideration is the compensation to the investors in two major ways that are the time value and the risk. The formula of the asset can be written as Expected return (ef) = Risk free rate + Beta*(Risk premium) In simple terms, CAPM provides a prediction that is commanding in scenario regarding the way to evaluate the risk and return relationship. It needs to be noted that the CAPM empirical evidence cannot be said to be a major influencer. The assumption plan of CAPM I not aloof from the bias of data snooping (Libby et. al, 2011). Capital Market Line There are two main methods to attain the CAPM that is the capital market line and the security market line. When it comes to CAPM, the pricing of the securities is done in a manner so that the risk that is expected can be compensated by the expected returns. The capital market line (CML) provides the return of an investor for the portfolio. There appears a linear movement between the risk and return on the portfolio that is efficient. The CML is used to achieve the return from the portfolio. CML provides a rate of return and the one derived from it fluctuate as per the return that is risk-free and the level of risk as ascertained by beta for a particular portfolio (Graham Smart, 2012). It is done by drawing a line of a tangent from the efficient frontier point to the stage where the risk-free rate and return that is expected tends to be equal in the scenario. CML and CAPM Similarity One of the main methods to achieve the CAPM is the CML and the SML. Hence, it is clear that CML is derived from CAPM. Hence, CML is unique in the sense that it helps in attaining the CAPM. Therefore, the features of the CAPM are embedded in CML. During the time of risk adjustment of an asset by utilizing the risk-free rate than the investor is at ease to alter the risk profile. When CML is considered, the market portfolio is comprised of the combined potent of the assets that are prone to risk and utilize the value of the asset market to predict the weights (Damodaran, 2012). The capital market line is generated from the CAPM and is used to drive at the exact rate of return that is needed. CML is powerful as compared to the efficient frontier and the risk-free asset that is present in the portfolio. The CAPM highlights the portfolio that is present in the market and is the efficient frontier. Hence, CML is an element of the CAPM and is a line that helps in projecting the return for e fficient portfolio depending on the rate that is risk-free and the level of the risk. Hence, the features of the CAPM are involved in CML and therefore, features of CAPM are projected in CML. Difference between CAPM and CML There is hardly a big line of difference between the CAPM and CML. The CAPM is a method that that helps in the pricing of the securities so that the investor can understand the risk that is expected. CAPM is a holistic model while CML is a part of it that comes under the concept of CAPM. Therefore, CAPM can be stated as the best method to evaluate the return of an investor where the compensation will be made for the risk that is the systematic risk as diversification is not possible. However, the expectation from the investment can be done as per the involvement of the risk (Damodaran, 2010). The CML takes into consideration the addition of asset that is risk-free and hence, it is classified better as compared to the efficient frontier. Each portfolio comprises of a Sharpe ratio in contrast to the market portfolio. When it comes to buying or investing, it is vital that the capital market line and Sharpe evaluated in tune with the portfolio (Bodie et. al, 2014). Hence, as per the similarity and difference, it can be said that both the model are equally important in deciding the required rate of return for a portfolio. The similarities are more in nature and carry a very little line of difference (Bodie et. al, 2014). As per the report, it can be commented that both the method are equally important and used together that provides a better answer. Conclusion Going by the overall analysis it can be commented that taking financing decision is the need of the hour. It requires certain specific skills and effective tools. In this scenario, both the method sensitive and scenario analysis plays a predominant role in capital budgeting. The user can take an effective result and proceed with the investment. On the contrary, CAPM and CML help in deriving the expected return and used together. Both the concept focuses on the expected return and gives an emphasis to the risk prevalent in the market. References Albrecht, W., Stice, E. Stice, J 2011, Financial accounting, Mason, OH: Thomson/South-Western. Bodie, Z., Kane, A. Marcus, A. J 2014, Investments, McGraw Hill Brealey, R., Myers, S. and Allen, F 2011, Principles of corporate finance, New York: McGraw-Hill/Irwin. Brigham, E. 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