Academic literature on the topic 'I-mean market adjusted return'

This paper examines Multinational Stock Price reactions to foreign currency translation, using three alternative residual methodologies. The results reveal that when a crude measure such as Mean Adjusted Return, which makes not explicit risk adjustments is used, the null hypothesis of zero abnormal return is rejected in three out of six events. However, market and risk adjusted residual returns reveal that the null hypothesis of zero abnormal return cannot be rejected.

The paper revisits the two major concepts for average historical returns, i. e., the arithmetic mean and the geometric mean, in order to clarify which approach must be used for which application. Conducting a rigorous derivation with a geometric Brownian motion, we can explain that the appropriate discount rate refers to the mean discrete return and, therefore, to the arithmetic mean rather than the often wrongly applied geometric mean. Likewise, the prominent CAPM relationship between the expected asset return and the expected market return is only valid for the arithmetic mean rather than the geometric mean. Using historical data for the German stock index, we illustrate that an inconsistent application can cause severe deviations from the meaningful ex-ante expected performance of an asset, the true discount rate, the true CAPM risk-adjusted return, and the intended performance scenarios of packaged retail and insurance-based investment products (PRIIPs) within the key information documents (KIDs).

Purpose This paper aims to investigate whether real estate investment trust (REIT) initial public offerings (IPOs) are exposed to abnormal initial-day performance. Previous studies have predominantly focused on REITs listed in the USA and Australia, only a few studies have utilised a multi-country approach and only one study has used a multi-region approach. This paper adds to the literature by, for a global sample, analysing variables proven important in explaining REIT IPO performance but never used in a global sample before by extending the investigation of initial-day return patterns for new REIT types and by offering the first insights from emerging REIT markets. Design/methodology/approach Initial-day raw and abnormal returns were calculated for a sample of 445 IPOs in 26 countries over the period from 1996 to 2014. The returns were partitioned according to a select set of themes and multiple regression analysis was used to isolate the relationship between the explanatory factors and underpricing. Findings For the sample as a whole, the mean initial-day raw return is 3.94 per cent and the mean market-adjusted initial-day return is 4.01 per cent. Even though the initial-day return for a REIT IPO typically is positive, negative mean returns are observed for a few countries and during certain years. Investors should note that for European markets, new property type exhibited a robust positive association with abnormal return, and underwriter reputation exhibited a robust negative relationship with abnormal return. Originality/value This paper fulfils the need to test important concepts on global REIT IPO markets.

This article investigates the effect of Islamic debt announcement on stock returns. Using data from 80 Malaysian firms and 20 Indonesian firms, which span from 2000 to 2009, an event study analysis is employed in this study; hence, the data of the daily closing stock prices for 2 years prior and 1 year after the announcement date are required in order to calculate the abnormal return using the abnormal return benchmark (mean adjusted return, market adjusted return and market model return). The findings for the event study analysis, using three benchmarks, reveal that there is a negative and significant impact for both average abnormal returns (AAR) and cumulative average abnormal returns (CAAR) for Malaysia. In contrast to the findings for Malaysia, the impact of Islamic debt announcement, using three benchmarks, is positive and significant for both AAR and CAAR for Indonesia. The unit root test result for Malaysia indicates that the market is efficient in the context of weak form efficiency, which suggests that the price movements are unpredictable. In contrast to Malaysia, the unit root test result for Indonesia indicates that the market is inefficient in the context of weak form efficiency, which suggests that the price movements are predictable.

This paper investigates the capital market reaction to the first detection of the COVID-19 in Bangladesh. Using a sample of 314 listed firms in Dhaka stock Exchange (DSE), this study employed the event study methodology (ESM) to find any abnormal return (AR) associated to the first COVID-19 detection announcement. Three different return models namely mean-adjusted return, market-adjusted return and market model have been used to calculate the abnormal return and test the statistical significance using both parametric crude dependence and standardised cross-sectional T test along with non-parametric generalised sign-test and Corrado rank-test. The findings suggest that, despite the perceived weak market efficiency, the announcement of the first COVID-19 detection has a significant negative impact on overall market return on the event day. Additionally, the result exhibits the indifferent market reaction of different industry segments such as manufacturing, service, financial, non-financial, pharmaceuticals and IT and telecommunication sectors. The results would be useful for investors, industrial and financial analysts in accessing volatile systemic risk and building an optimal portfolio to solve the pandemic dilemma effectively.

Purpose The purpose of this paper is to examine the behavior of the stock market returns in the different days of the week and different months of the year in accordance with the Islamic calendar. Further, the study estimates the risk-adjusted returns to test the performance of the indices during the Ramadan and non-Ramadan days. Finally, the study investigates the impact of Ramadan on the returns and the volatility of the stock market indices in India. Design/methodology/approach Initially, the study applies the Ordinary Least Square method to test the day-of-the-week and the month-of-the-year effect of the common and Shariah indices. Next, the study employs the risk-adjusted measurement to examine the underperformance and over-performance of the indices for both the periods. Finally, the study estimates the GARCH (1,1) and GJR-GARCH (1,1) models to observe the impact of Ramadan on the returns and the volatility of the Shariah indices in India. Findings The study finds that an average return of the indices during the Ramadan days are higher than non-Ramadan days. Further, the average returns of the Shariah indices are significantly higher on Wednesday than other days of the week. In addition, the highest and significant mean returns and mean risk-adjusted returns of the indices during the Ramadan days are observed. Finally, the study finds an evidence of the Ramadan effect on the returns and volatility of the indices in India. Originality/value The study observes evidence that the Ramadan effect influences the Shariah indices, but not the common indices in the stock market of the non-Muslim countries. It indicates that the Ramadan creates the positive mood and emotions in the investors buying and selling activities. The study suggests that investors can buy the shares before Ramadan period and sell them during the Ramadan days to get an abnormal return in the emerging markets.

Investors’ decisions on capital markets depend on their anticipation and preferences about risk, and volatility is one of the most common measures of risk. This paper proposes a method of estimating the market price of volatility risk by incorporating both conditional heteroscedasticity and nonlinear effects in market returns, while accounting for asymmetric shocks. We develop a model that allows dynamic risk premiums for the underlying asset and for the volatility of the asset under the physical measure. Specifically, a nonlinear in mean time series model combining the asymmetric autoregressive conditional heteroscedastic model with leverage (NGARCH) is adapted for modeling return dynamics. The local risk-neutral valuation relationship is used to model investors’ preferences of volatility risk. The transition probabilities governing the evolution of the price of the underlying asset are adjusted for investors’ attitude towards risk, presenting the asset returns as a function of the risk premium. Numerical studies on asset return data show the significance of market shocks and levels of asymmetry in pricing the volatility risk. Estimated premiums could be used in option pricing models, turning options markets into volatility trading markets, and in measuring reactions to market shocks.

This article reviews empirical methods to assess risk and return in private equity. I discuss data and econometric issues for fund-level, deal-level, and publicly traded partnerships data. Risk-adjusted return estimates vary substantially by method, time period, and data source. The weight of evidence suggests that, relative to a similarly risky investment in the stock market, the average venture capital (VC) fund earned positive risk-adjusted returns before the turn of the millennium, but net-of-fee returns have been zero or even negative since. Average leveraged buyout (BO) investments have generally earned positive risk-adjusted returns both before and after fees, compared with a levered stock portfolio. Based on an expanded set of risk factors from the literature, VC resembles a small-growth investment, while BO loads mostly on value. I also discuss the empirical evidence on liquidity and idiosyncratic volatility risks.

The present study empirically examines the risk and return of the Nifty Shariah index and Nifty index during the period 2nd January 2007 to 31st December 2010. The sample period is further divided into bull market period and bear market period based on the movement of the both indices during the study period. The objective of the study is to analyse the performance of the Islamic index and common index and to test whether any significant difference between both indices in India. Based on the previous studies, the present paper employs Risk adjusted measurement such as Sharpe index, Treynor Index and Jensen alpha. The t- test is used to test the mean returns difference between both indices. The study found that Nifty Shariah has been underperformed during the sample and sub sample period. According to ttest, the mean difference between both indices has not been significant which reveals both are consistent. The risk adjusted returns for the both indices reveals that both were underperforming with respect to risk free rate of return. The study has also disclosed the low volatile nature of Nifty Shariah than Nifty index. Finally, the study concludes that Nifty Shariah and Nifty indices in India are performing in a similar manner.

Tujuan: Penelitian ini adalah menguji secara empiris reaksi investor pasca pengumuman unsuspensi saham dengan melihat abnormal return sebelum pengumuman suspensi dan setelah pengumuman unsuspensi.Metode: Penelitian ini merupakan studi peristiwa (event study), dengan menggunakan periode estimasi selama 100 hari dan periode jendela selama 6 hari yaitu 3 hari sebelum pengumuman suspensi, dan 3 hari pasca pengumuman unsuspensi. Hasil: Uji statistik menunjukkan bahwa pengumuman unsuspensi saham dengan melihat semua penyebab suspensi dan berdasarkan penyebab kenaikan harga saham yang signifikan, berpengaruh terhadap reaksi investor, yang ditunjukkan dari adanya perbedaan nilai rata-rata abnormal return saham yang signifikan secara statistik antara sebelum dan setelah pengumuman. Sedangkan untuk pengumuman unsuspensi saham akibat adanya informasi penundaan kewajiban emiten, tidak berpengaruh terhadap reaksi investor. Peneliti menggunakan model sesuaian rerata (mean-adjusted model), untuk mengestimasi return normal/return ekspektasian, penelitian selanjutnya dapat mempertimbangkan hal-hal berikut: menggunakan model pasar (market model), dan model sesuaian pasar (marked adjusted model), untuk mengestimasi return ekspektasian, memperbesar sampel dan memperpendek periode pengamatan.Kata Kunci: Studi Peristiwa, Unsuspensi, Reaksi Investor, Abnormal return

Bakgrund: De flesta svenskarna sparar i form av värdepapper för att investera sina pengar och få en avkastning. Vilket placeringsalternativ ska de välja mellan investering i traditionella eller speciella fonder? De traditionella fonderna har en relativ avkastning och en stor risk, medan de speciella eller hedgefonderna har en lägre risk och en absolut positiv avkastning oavsett marknadsläge.I denna studie kommer att undersökas om hedgefonders avkastningsmönster är trovärdig, och om deras målsättning har uppnåtts under åtta års period. Syfte: Syftet med denna studie är att undersöka om det finns ett samband mellan olika svenska hedgefonders investeringsstrategier och avkastningsmönster samt undersöka hur dessa hedgefonder skiljer sig från de traditionella fonderna och marknadsindexet. Delsyftet är att studera två olika perioder och urskilja hur fonderna presterar under hög respektive låg konjunktur läge. Metod: Studien är baserad på forskningsstrategin kvantitativa metoden. Sekundär data i form av historiska avkastningssiffror för åttaårsperiod är avhämtad. Olika nyckeltal är valda för uträckningen och analysen. Korrelation, regression och hypotesprövning är de utvalda statistiska metoder som ska leda författaren att analysera och dra slutsats. Slutsats: De hedgefonderna har under de olika perioderna genererat en genomsnittlig positiv avkastning trots de låga värden. De har lägre totalrisk samt marknadsrisk än de traditionella, och en låg korrelation mellan varandra. Vidare har studien visat att räntearbitrage och marknadsneutrala strategier har presterat bäst under låg konjunktur.Sammanfattningsvis hedgefonders avkastningsmönster skiljer sig mellan de olika strategierna och inom varje strategi. Trots på den låga positiva avkastningen anses hedgefonder ett bättre placeringsalternativ än traditionella fonder i tider där marknaden går ner.Avkastningsmönster är en fördom på kortsikt men anses vara en verklighet långsiktigt.
Background: The majority of the Swedish population saves in the form of securities to invest and receive a return. Which investment option should they choose? Should they invest in mutual or special funds? The mutual funds have a relative return and come with a high risk, while the special funds, also known as hedge funds, have an absolute positive return regardless of the market situation and this fund type accounts for a lower risk. This study will investigate whether the return pattern in the hedge funds are valid or not, and if their objective was achieved during this 8 year period. Purpose: The purpose of this study is to investigate if there is a relationship between Swedish hedge funds' investment strategies and their return pattern as well as examining how these hedge funds differ from the mutual funds and the market index. The sub focus is studying two different periods and discerns how the funds perform under high and low economic situation. Methodology: The study is based on results obtained from the research strategy, of a quantitative character. Secondary data in the form of historical returns for the eight-year period is utilized. Different ratios are utilized for calculations and analysis. Correlation, regression, and hypothesis testing are the chosen statistical methods that will lead the author to analyze and draw conclusions. Conclusions: The hedge funds have in the different periods generated an average positive return despite the low values. They have lower total risk and market risk than mutual ones, and a low correlation between each other. Furthermore, the study has shown that rate arbitrage and market neutral strategies perform best under low economy context.In summary, hedge funds' return pattern differs between the diverse strategies and within each strategy. Despite the low positive returns hedge funds are considered a better investment option than mutual funds in times when the market is unstable.The return pattern does not apply to short term investments but it does apply to long term investments.

I decennier har problematiken kring förvaltning belysts och i mångt och mycket har motpolerna aktiv- och passiv förvaltning jämförts. Tidigare forskning har påvisat att passiv förvaltning är att föredra framför aktiv förvaltning, bland annat på grund av de dyra förvaltningsavgifterna samt att förespråkarna antar en effektiv marknad. Ämnesområdet är ett väl utforskat område dock i högsta grad aktuellt. Tidigare forskning har inte belyst aktivitetsgraden i aktivt förvaltade fonder och därmed gavs implikation till fortsatt analysområde för den här studien. Syftet med uppsatsen är att analysera om aktivitetsgraden i aktivt förvaltade fonder kan förklara den riskjusterade avkastningen med hänsyn tagen till förvaltningsavgiften. En deduktiv ansats kommer tillämpas för utveckling av existerande teori. Utifrån uppsatsens syfte har en kvantitativ metod tillämpats för att analysera information som tilldelats av fondbolagens fondrapporter för att genomföra tester på olika tidsperioder. Uppsatsens resultat grundas på 81 aktivt förvaltade fonder vilka indikerar att det ej går att påvisa att en högre aktivitetsgrad leder till en högre riskjusterad avkastning. Likaså kan inte en högre förvaltningsavgift motiveras av aktivitetsgraden. Utfallet av analyserna beskrivs genom tabeller för att visualisera de statistiska analyserna. Förslag till fortsatt forskning inkluderar undersökning av vad fondbolagen definierar som krav för att klassificeras som aktivt förvaltade fonder. Utifrån att aktivitetsgraden är en ny infallsvinkel i utvärdering av aktiv förvaltning torde studiens resultat vara av intresse för gemene man då vi alla är investerare mer eller mindre i det privata livet. Investerare antas vara intresserade att veta vad som motiverar den höga förvaltningsavgiften samt hur investerade pengar blir förvaltade då konklusionen av studien är att aktivitetsgraden inte ger mervärde.
For decades, the problem of portfolio management has been discussed, specifically the comparisons between the opposite poles ‘active’ and ‘passive’ management. Previous research has shown that passive management is preferred over active management, predominantly because of the expensive management fees, as well as proponents assuming an efficient market. The subject area is a well- explored area yet, highly relevant. Previous research has not highlighted the trading frequency in actively managed funds and an implication for further analysis within this area was given. The purpose of this paper is to analyze whether the frequency of trade in actively managed funds may explain the risk-adjusted return, taking into account the management fees. A deductive approach will be applied to the development of existing theory. Based on the thesis purpose, a quantitative method was applied. As well as analyzing the information assigned by the mutual fund companies’ fund reports for conducting tests at different time periods. Results of the thesis are based on 81 actively managed funds, indicating that it is not possible to reveal that, a higher frequency of trade will lead to a higher risk-adjusted return. Likewise, a higher management fee is not justified by the level of activity. The outcomes of the analysis are depicted through tables to provide a visualization of the statistical and analytical questions explored. Suggestions for future research include; consideration of what the fund companies define as requirements that will be classified as actively managed funds. Based on the above notions the frequency of trade is a new approach to the evaluation of active management. Investors are presumed to have a known interest in what stimulates high management fees and how the money invested will be managed. With respect to the conclusion of this study; the level of the frequency in trade does not add any value.

I denna studie har aktieutvecklingen hos förvärvade börsnoterade företag vid budets offentliggörande studerats. Företagen som förvärvades under lågkonjunkturen år 2007-2009, och högkonjunkturen år 2001-2004 har undersökts för att se om det finns någon skillnad i aktieprisutvecklingen som skulle kunna bero på vilket tillstånd ekonomin i samhället befinner sig. Därefter utreds om det finns en skillnad beroende på vilken bransch företagen befinner sig i. Studien förankras teoretiskt ur den effektiva marknadshypotesen där en semistark effektiv marknad antas. Denna grad av effektivitet antas vanligen för finansiella marknader och är den form som eventstudier utgår ifrån. Den undersökningsform som används i denna uppsats är en eventstudie och denna statistiska metod mäter marknadens reaktion på ny information. Den abnorma avkastningen har beräknats vilket sedan belysts genom tabeller och diagram, vilka i sin tur tolkats av en analytiker. Studien resulterade i att företagsförvärv i lågkonjunktur har högre abnorm avkastning än uppköp som sker under högkonjunktur. Uppsatsen uppvisade även att kommunikationssektorn hade en högre abnorm avkastning än resterande branscher.
Share development of acquired companies listed at the bearer's publication has been studied. Companies acquired during the recession years 2007-2009 and the boom years 2001-2004 have been studied to see if there is any difference in the share price that would depend on what cyclical the economy in the society is. I have further investigated whether there is a difference depending on what industry the companies are active in. The study is anchored in theory from the efficient market hypothesis in which a semi-strong efficient market is assumed. This degree of efficiency is usually assumed in financial markets and is the form that event studies adopt. The survey form used in this paper is an event study and this statistical method measures the market’s reaction to new information. The abnormal return is calculated which is then illustrated by tables and charts, which in turn is interpreted by an analyst. The study showed that acquisitions in the recession had higher abnormal returns than purchases made during the boom. The paper also showed that the communications companies had a higher abnormal return than the remaining sectors.

Abstracts in English, Afrikaans and Zulu
The advancement and development of the financial sector is fundamental for building an efficient economic system that enhances foreign and domestic investments. The aim of this study was to compare the relationship between the price performance of initial public offerings and macroeconomic indicators in the South African and the Nigerian economy. With the increase of IPO listing on both stock exchanges, it is of paramount importance that an analysis and examination of IPO performance and its contribution to the economy is conducted. Using the 91 and 19 initial public offerings that were listed on the Johannesburg Stock Exchange and the Nigerian Stock Exchange respectively during the years 2005 to 2015, price performance was measured by using the market-adjusted abnormal returns and the wealth relative model. The linear ordinary least squares regression model was used to measure the relationship between initial public offering performance and macroeconomic indicators. Based on the mean market adjusted returns, initial public offerings listed between 2005 and 2015 were under-priced. The regression model established that the first day, week and month price changes in Nigeria were 0.19, 0.48 and 0.77 times higher respectively than to South Africa. The regression analysis found that inflation and interest rates were positively correlated with price changes at the end of the first month of trade, whereas gross domestic product growth was not statistically significant. Therefore, to evade financial loss, investment decision making processes should consider factors such as geographic location, interest rates, inflation and the industry prior to making the decision.
Die bevordering en ontwikkeling van die finansiële sektor is fundamenteel vir die ontwikkeling van ʼn doeltreffende ekonomiese stelsel wat buitelandse en binnelandse investering aanmoedig. Die doel van hierdie studie was om die verhouding tussen die prysprestasie van aanvanklike openbare aanbiedinge en makro-ekonomiese aanwysers in die Suid-Afrikaanse en Nigeriese ekonomie te vergelyk. Met die toename in AOA-notering op albei aandelebeurse, is dit uiters belangrik dat ’n ontleding van en ondersoek na AOA-prestasie en sy bydrae tot die ekonomie uitgevoer word. Deur gebruikmaking van die 91 en 19 aanvanklike openbare aanbiedinge wat onderskeidelik op die Johannesburgse Effektebeurs en die Nigeriese Effektebeurs gedurende die tydperk 2005 tot 2015 genoteer is, is prysprestasie gemeet deur gebruikmaking van die markaangepaste abnormale opbrengste en die rykdomrelatiewe model. Die lineêre gewone kleinste kwadrate-regressiemodel is gebruik om die verwantskap tussen die prestasie van aanvanklike openbare aanbod en makro-ekonomiese aanwysers te meet. Op grond van die gemiddelde markaangepaste opbrengste was aanvanklike openbare aanbiedinge wat tussen 2005 en 2015 genoteer is, onderprys. Die regressiemodel het vasgestel dat die eerste dag-, week- en maandprysveranderinge in Nigerië onderskeidelik 0.19, 0.48 en 0.77 keer hoër as in Suid-Afrika was. Die regressieontleding het bevind dat inflasie en rentekoerse ’n positiewe korrelasie gehad het met prysveranderinge aan die einde van die eerste handelsmaand, terwyl bruto binnelandse produk se groei nie statisties beduidend was nie. Derhalwe, om finansiële verlies te ontduik, behoort investeringbesluitnemingsprosesse faktore soos geografiese ligging, rentekoerse, inflasie en die bedryf in aanmerking te neem voordat besluite geneem word.
Ukuqhubekela phambili kanye nentuthuko yomkhakha (sector) yezezimali kubalulekile ekwakheni inqubo yezomnotho esebenza kahle neqhubekela phambili ukutshalwa kwezimali zangaphandle kanye nezangaphakathi ezweni. Inhloso yalolu cwaningo bekuwukuqhathanisa ubuhlobo phakathi kokusebenza kwentengo yama-initial public offerings kanye nezinkomba zama-macroeconomic kumnotho weNingizimu Afrika kanye nowase-Nigeria. Ngokwenyuka kwe-IPO listing kuwo womabili ama-stock exchange, kubaluleke kakhulu ukuthi kwenziwe uhlaziyo nohlolo lokusebenza kwe-IPO kanye nomthelela wakho kumnotho kumele kwenziwe. Ngokusebenzisa ama-initial public offerings ka 91 no 19 kwi-Johannesburg Stock Exchange kanye nakwi-Nigerian Stock Exchange ngokuhambisana phakathi kweminyaka ka 2005 kanye no 2015, ukusebenza kwamanani entengo kwakalwa ngokusebenzisa ama-market-adjusted abnormal returns kanye ne-wealth relative model. Imodeli ye-linear ordinary least squares regression model kwasetshenziswa ukukala ubuhlobo phakathi kwama-initial public offering performance kanye nezinkomba ze-macroeconomic. Ngokulandela i-mean market-adjusted returns, ama-initial public offerings okwafakelwa kuhla phakathi kweminyaka ka 2005 kanye no 2015 kwakufakelwe ngentengo ephansi. I-regression model yathola ukuthi ngosuku lokuqala, ngeviki, kanye nenyanga, ukushintsha kwamanani entengo eNigeria, kwakungu 0.19, 0.48 kanye ne 0.77 ngezihlandla eziphezulu kuneNingizimu Afrika. Uhlaziyo lwe-regression analysis lwathola ukuthi i-infleshini kanye namazinga enzalo achaphazeleka ngendlela enhle ngokuhambisana noshintsho lwentengo ekupheleni kwenyanga yokuqala yokuhwebelana, lapho khona ukukhula kwe-gross domestic project kwakungakhulile kakhulu ngokwezibalo. Ngakho-ke, ukugwema ulahlekelo kwezezimali, izinqubo zokuthatha izinqumo ngotshalo-mali kumele kubonelele izinto ezifana nendawo okuyi-geographical location, amazinga enzalo, i-infleshini kanye nemboni ngaphambi kokuthatha isinqumo.
Finance, Risk Management and Banking
M. Com. (Business Management)

This chapter examines the effects of high-frequency trading (HFT) and algorithmic trading (AT) activities, which represent important technological developments in financial markets in the past two decades, on Borsa Istanbul in terms of volatility. To clarify stock market behaviors in terms of volatility, asymmetry, and risk return after the BISTECH transition, the GJR-GARCH-in-Mean and I-GARCH models were used. The dataset consists of the daily stock return series of the main and sub-sector indexes of Borsa Istanbul, covering the period from October 24, 2012 to June 1, 2018. Although there are mixed results for the sub-indexes, it is observed that in the post-BISTECH period, volatility increases significantly in the BIST 100 and BIST 30 indexes, where AT and HFT activities are used more frequently. In particular, the duration of volatility returns to average after shock increases about seven times for BIST 100 and about eight times for the BIST 30 in the post-BISTECH period. Overall, the results indicate that AC and HFT activities may have disruptive effects on financial markets.

In large-scale immersive virtual reality (VR) environments, such as a CAVE, one of the most common problems is tracking the position of the user’s head while he or she is immersed in this environment to reflect perspective changes in the synthetic stereoscopic images. In this paper, the authors describe the theoretical foundations and engineering approach adopted in the development of an infrared-optical tracking system designed for large scale immersive Virtual Environments (VE) or Augmented Reality (AR) settings. The system is capable of tracking independent retro-reflective markers arranged in a 3D structure in real time, recovering all possible 6DOF. These artefacts can be adjusted to the user’s stereo glasses to track his or her head while immersed or used as a 3D input device for rich human-computer interaction (HCI). The hardware configuration consists of 4 shutter-synchronized cameras attached with band-pass infrared filters and illuminated by infrared array-emitters. Pilot lab results have shown a latency of 40 ms when simultaneously tracking the pose of two artefacts with 4 infrared markers, achieving a frame-rate of 24.80 fps and showing a mean accuracy of 0.93mm/0.51º and a mean precision of 0.19mm/0.04º, respectively, in overall translation/rotation, fulfilling the requirements initially defined.

A player brings capital to the competitive arena and walks away with profit determined by the rate of return where the capital was invested. The market production equation predicts profit: invested capital, multiplied by the going rate of return, equals the profit to be expected from the investment. You invest a million dollars. The going rate of return is 10 percent. The profit is one hundred thousand dollars. Investments create an ability to produce a competitive product. For example, capital is invested to build and operate a factory. Rate of return is an opportunity to profit from the investment. The rate of return is keyed to the social structure of the competitive arena and is the focus here. Each player has a network of contacts in the arena. Something about the structure of the player’s network and the location of the player’s contacts in the social structure of the arena provides a competitive advantage in getting higher rates of return on investment. This chapter is about that advantage. It is a description of the way in which social structure renders competition imperfect by creating entrepreneurial opportunities for certain players and not for others. A player brings at least three kinds of capital to the competitive arena. Other distinctions can be made, but three are sufficient here. First, the player has financial capital: cash in hand, reserves in the bank, investments coming due, lines of credit. Second, the player has human capital. Your natural qualities—charm, health, intelligence, and looks—combined with the skills you have acquired in formal education and job experience give you abilities to excel at certain tasks. Third, the player has social capital: relationships with other players. You have friends, colleagues, and more general contacts through whom you receive opportunities to use your financial and human capital. I refer to opportunities in a broad sense, but I certainly mean to include the obvious examples of job promotions, participation in significant projects, influential access to important decisions, and so on. The social capital of people aggregates into the social capital of organizations.