“Software Defined Networking” approach to open it App App App Network Operating System App App App Operating Operating System System App Specialized Specialized Packet Packet Forwarding Forwarding Hardware Hardware App App App App Operating System System Specialized Packet Forwarding Forwarding Hardware Hardware App Operating System System App Specialized Specialized Packet Packet Forwarding Forwarding Hardware Hardware App App Operating Operating System System App App App Operating Operating System System Specialized Specialized Packet Packet Forwarding Hardware Forwarding Hardware Specialized Specialized Packet Packet Forwarding Hardware Forwarding Hardware
View full slide show




Current Internet Closed to Innovations in the Infrastructure Closed App App App Operating Operating System System App Specialized Specialized Packet Packet Forwarding Forwarding Hardware Hardware App App App App Operating System System Specialized Packet Forwarding Forwarding Hardware Hardware App Operating System System App Specialized Specialized Packet Packet Forwarding Forwarding Hardware Hardware App App Operating Operating System System App App App Specialized Specialized Packet Packet Forwarding Hardware Forwarding Hardware Operating Operating System System Specialized Specialized Packet Packet Forwarding Hardware Forwarding Hardware 3
View full slide show




Jensen’s Alpha (6/6) • The cumulative return graph on the previous page illustrates graphically why it is so difficult to statistically conclude that PEP outperformed the market. In particular, PEP is much more volatile than the S&P 500. • The annualized volatility of PEP is 28%, in comparison with S&P’s volatility of 19%. • The higher the volatility, the greater the alpha would have to be before we can conclude that PEP has beaten the market. • Given the volatility, we can observe (by experimentation) that PEP would have to beat the market by about 1.5% a month for 5 years for us to be certain that PEP has outperformed. • However, given the last five year return history, we cannot say with any certainty that PEP has truly outperformed the market.
View full slide show




Jensen’s Alpha and PEP (4/6) • Over the period, 1997-2001, the cumulative return on PEP over this period was 21%, in comparison with an S&P 500 return of –10%. • A regression of the monthly excess return against that of S&P 500 gives an alpha of 0.56% (or about 7% annualized) with a t statistic of 0.60. As the t-statistic is less than 2, we cannot say with confidence that PEP has a positive alpha. • Despite the fact that has beaten the market by 7% annualized over 5 years, we still cannot say statistically that PEP has outperformed the market. • There are two questions we need to ask: – Why is it statistically so difficult to conclude that PEP has beaten the market? – By how much would PEP have to outperform the S&P for us to be certain of the result?
View full slide show




Adding PEP to the Market • The Sharpe ratio of a 100% investment in the S&P 500 is : (Rm-Rf)/(Vol of SPX) where Rm is the required (or expected) return on the market (SPX) and Rf is the riskfree rate. – The volatility of SPX is 0.153913. • How much risk does PEP add to this portfolio? Let us add a small quantity of PEP, and see what its effect is. Construct a portfolio of 0.1% in PEP and 99.9% in S&P 500, and measure its volatility (see spreadsheet). The volatility of this portfolio is 15.3883%. • Therefore, the Sharpe ratio of a 99.9% investment in the S&P 500 and a 0.1% investment in PEP is: (0.999Rm + 0.001 RPEP - Rf)/0.153883, where RPEP is the required return on PEP.
View full slide show




Limitation of the Use of the Beta to Calculate Correlation (2/2) • The use of the beta for calculating the correlation implicitly assumes that the KO and PEP are correlated only because they are each, individually, correlated with the market. The market is the only common factor that affects both KO and PEP returns. • However, KO and PEP most likely have additional common factors. Thus, if you use the beta to estimate the correlation, then you will underestimate the real correlation between the two stocks. For example, the real correlation between KO and PEP is 0.55, much higher than 0.17. • The underestimate of the correlation suggests that there are other common factors between KO and PEP, besides the market. This is not surprising as both KO and PEP belong to the same industry, and they are likely to have many common factors.
View full slide show




Finding my way around • UT Martin App • Don’t Be Afraid to Ask Someone! • PEP Leader
View full slide show




Works Cited: • (1) Martin, Anthony J. Introduction to the Study of Dinosaurs (2006). Page 10. Table 1.1 Summary of different major clade groups use to classify dinosaurs, general descriptions of anatomical characteristics for each group and genus examples. • (2) Martin, Anthony J. Introduction to the Study of Dinosaurs (2006). Page 266. • • • • • • • • • (3) Martin, Anthony J. Introduction to the Study of Dinosaurs (2006). Page 267. (4) Martin, Anthony J. Introduction to the Study of Dinosaurs (2006). Page10. (5) Martin, Anthony J. Introduction to the Study of Dinosaurs (2006). Page 258. (6) Martin, Anthony J. Introduction to the Study of Dinosaurs (2006). Page 257. (7) Martin, Anthony J. Introduction to the Study of Dinosaurs (2006). Page 125. (8) Martin, Anthony J. Introduction to the Study of Dinosaurs (2006). Page 260. (9) Martin, Anthony J. Introduction to the Study of Dinosaurs (2006). Page 259. (10) Martin, Anthony J. Introduction to the Study of Dinosaurs (2006). Page 268. Farlow, James O., Surman, Brett M. K. Walters, Robert F. The Complete Dinosaur (1999) . Page 228. Currie, P.J. Tanke, D.H. “Head-Biting Behavior in Theropod Dinosaurs: Paleopathological Evidence” 1998 GAIA N 15 167-184. Bakker Robert T. “Brontosaur Killers: Late Jurassic Allosaurids As Saber-tooth Cat Analogues” 1998 GAIA N 15 145-158. • •
View full slide show




Bully algorithm (Assumes that the topology is completely connected) 1. Send election message (I want to be the leader) to processes with larger id 2. Give up your bid if a process with larger id sends a reply message (means no, you cannot be the leader). In that case, wait for the leader message (I am the leader). Otherwise elect yourself the leader and send a leader message 3. If no reply is received, then elect yourself the leader, and broadcast a leader message. 4. If you receive a reply to the election message, but later don’t receive a leader message from a process of larger id (i.e. the leader-elect has crashed), then re-initiate election by sending election message.
View full slide show




PEP and Its Effect on the Sharpe Ratio • How do we figure out the effect of PEP on the market’s return-variability ratio (Sharpe ratio)? • We can ask ourselves how much the Sharpe ratio changes when we add a very small quantity (say, 0.1%) of PEP to the market portfolio. This will enable us to generate a relation between the return we expect from PEP and the return we expect from the market. • We will compare a portfolio of 99.9% in S&P 500 and 0.1% in PEP to a portfolio of 100% in S&P 500.
View full slide show




“Beta” of PEP (2/2) • With some algebraic manipulation, we get: • RPEP = Rf + 0. 8091 (Rm - Rf). • Thus, the excess return (RPEP-Rf) that investors require from PEP is 0.8091 times that required from the market portfolio. • The number 0.8091 is what we earlier called the beta of the PEP. • If PEP is priced as per its beta, then the Sharpe ratio of the portfolio of PEP and SPX is the same as the Sharpe ratio of 100% in SPX.
View full slide show




29 How to evaluate useful apps  Go to the iTunes App store. Enter a search using key word (s).  Read reviews posted by other users regarding the app.  Review the screen shots to see if the app appears to suit your needs.  Follow the link to the developer’s website and search the site for demonstrations of the app.  Search the app on YouTube and view tutorials and reviews posted by others who have used the app.  Categorize the app by type (“reading,” “organizations,” etc.) the search the internet for the “best (type) apps” and review the lists and reviews that have been created and generated by others.  Analyze what you want to use the app for the see if it meets your criteria and is suitable for your user’s age group.  Download and test out a “lite” or free version of the app before purchasing the full version, if possible.
View full slide show




APP INVENTOR terminologies • • • • • • • • • • • • App Inventor account (at “My Projects” on the CLOUD) Project (a program, app, software) Design Window (via Browser connecting to your account) Block Editor (a window to edit blocks in your app) Emulator (a pretend phone, in a window) Connect (to run the app on the phone/emulator) Save (record changes in your project/app) Checkpoint (save the current version of your project) Download (get the files for your project/app to your PC) Upload (put your project files to your account) Packaging (create executable code for your project/app) Bar Code: each app has a bar code to download to phone VP Lecture Note by Dr. Hanh Pham 25
View full slide show