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Chp_3_The_brain

Course: PHIL 111, Spring 2006
School: Cal Poly
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Brain Your Health The single greatest system ever designed in the history of the universe is your brain. It is responsible for your every thought, emotion, and behavior. We do not know much about our brains Its time to change that. The BRAIN Weighs 2-4 pounds Is comprised of 60% fat and is the fattiest system in your body Consumes 25% of blood from every heart beat New Ideas about your BRAIN The human...

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Brain Your Health The single greatest system ever designed in the history of the universe is your brain. It is responsible for your every thought, emotion, and behavior. We do not know much about our brains Its time to change that. The BRAIN Weighs 2-4 pounds Is comprised of 60% fat and is the fattiest system in your body Consumes 25% of blood from every heart beat New Ideas about your BRAIN The human brain (like the animal brain) can generate new brain cells (neurogenesis) The human brain is now thought to have neural plasticity or be a system that is highly dynamic, constantly recognizing, and malleable It is shaped by environmental input. Our brains need exposure to environments that are enriched and complex. Those that are not do not help the health of your brain. Examining the Brain Brain controls every thought, action, and feeling Studying for a long periods of time requires more energy and causes more aches and pain that jogging.. The Hemisphere Brain is divided into 2 halves. Separated by a Fissure- lengthy depression marking off one are of the brain from the other Hemisphere- each half of the brain Left Hemisphere controls Right side of body Right Hemisphere controls Left side of body Corpus Callosum Corpus Callosum- large bundle of nerve fibers that transfer info from one half of brain to the other The Lobes 4 major sections called Lobes Frontal Parietal Occipital Temporal Frontal Lobe Front-most area that contains the motor strip and frontal association area The frontal lobe has a major role in the planning and execution of movements. Parietal Area behind the frontal lobe and above the temporal lobe. Contains the Sensory strip The parietal lobe contains the Sensory Strip through which sensations, such as touch and pressure, are felt. In addition, it has a key role in spatial orientation and information processing. Occipital The occipital lobe is located posterior to (behind) the temporal lobe and is the visual center of the brain. Very back of brain that is devoted to visual info from the eyes Temporal The temporal lobe is located inferior to (below) the frontal and parietal lobes. It is primarily involved with auditory processing and memory. Responsible for hearing and some speech functions Wernicke and Broca Brocas area- area of the left of the frontal lobe that directs the muscle movements in speech Wernickes area of the left temporal lobe involved language comprehension Frontal Association Area Forward portion of the brain that engages in elaborate association or mental connections Plays an important part in integrating personality and in forming complex thoughts Interprets what is going on and tells us what to do, how to feel Phineas Gage 1840s railroad worker 4 ft iron rod enter his brain Friendly and normal to someone who swore, undressed whenever, went to the bathroom in public places Social control Starter Question Name the part of the brain that is probably most active during the following activities? Watching a movie Running Listening Deciding whether or not to yell at someone who has knocked you over Faces Activity Which face looks happier? 1 or 2 Most people choose Face 1 as happier. Right hemisphere- objects in space, art, music, mathematical reasoning, emotional material. Left- verbal or speech SO- more Right hemisphere used SO left side of each face gets special attention and seems more prominent. Why does the right hemisphere tend to be dominant in this task?? Right hemisphere seems to specialize in patter recognition Simple faces can be considered patterns Hemispheres and Handedness 10% people in population are left handed How did this happen? Left hemisphere controls the Right side of body and visa versa.. But when it comes to small, fine movements, one hemisphere has dominance Not necessarily genetic- twin studies Tasks of the Hemispheres Right hemisphere- non-linguistic functions including recognition of faces, places, and sounds (music) objects in space, art, music, mathematical reasoning, emotional material. studies of Damage to one hemisphere (I.e. Brocas area) Split-brain subjects Left- verbal or speech, language, logic, and complex motor behavior. Helps with reading the directions and understanding the task The hemispheres work together in everything we do! RAP # 3 What is the frontal association are responsible for? If it was damaged, what are some of the effects? Identify as either R or L or both hemispheres Studying concepts from psychology Daydreaming about a holiday Doodling Cerebral Cortex and the Lower Brain Cerebral cortex- units that cover the lower brain and controls mental processes such as thought. Outermost layer (3.2) controls high level of thought Takes up 2/3 of the brains nerve cells (100 billion) Human cannot live without the lower brain cortex = bark; bark on a tree. Remember Phineas Gage- lost higher order processing and left with only lower level processes. Frontal lobes are involved in movement, attention, planning, memory, and personality. Cerebral Cortex Functions of cerebral cortex: Provides for flexible control of patterns of movement Permits subtle discrimination among complex sensory patterns Makes possible symbolic thinking Symbolic thought is the foundation of human thought and language Information from the one visual field is usually transmitted to the opposite visual cortex The corpus callosum serves to integrate the two hemispheres Cutting the corpus callosum can result in information only reaching one hemisphere What happens when there is damage to certain areas of the brain? Frontal Lobe Damage: Phineas Gage Difficulty reasoning, making decisions Inability to control emotions Goal directed behavior impairments Occipital Lobe Damage Blindness/visual hallucinations Temporal Lobe Damage Wernickes Area Receptive Aphasia (listening difficulty) Brocas Area Expressive Aphasia (talking difficulty) Thalamus Acts as relay station for information in and out of forebrain Hypothalamus Controls hunger, thirst, and body temperature; involved in emotions; helps control the endocrine system Amygdala A role in emotional responses to unpleasant or punishing stimuli Hippocampus Memory storage, navigation, and response to new or unexpected stimuli Thalamus pair of ovoid structures- mass of nerve cells incoming sensory information relays in the thalamus before entering the cerebral cortex. many sensory, motor, and cognitive functions highly organized connections with cortex connections are mostly reciprocal Cerebellum two hemispheres motor control, particularly in making postural adjustments and in finetuning movements. (balance and accuracy) higher cognitive functions, including language. Ex: Auto driven and your automatically there Catching a ball Hypothalamus Basic Needs hunger, thirst fight or flight responses, emotional responses Pleasure, fear, rage sexual behavior Hypo- below thalamus Rage center- if electrically stimulated, can cause a person to smash things Are you hungry right now? If yes, you blood sugar and body temp are probably low Hypothalamus uses cues to tell us were hungry As we eat, our bs level and temp rise and hypothalamus uses NEW cues to tell us eventually that were full. Why some people sweat when they eat Or why we eat less when were hot Reticular Activating System reticular formation- reticular- net that catches nerve impulse Sits at the base of the brain inside the spinal cord. Alertness control center of the brain that regulates the activity level of the body. Regulates how alert or sleepy you may be Many things going on manyimpulses arrivealertness Quietsleep HittotheheadoverloadoftheRAS circuitsunconsciousness Emergencystirsitupfrantic Frontal Association Area Frontal Temporal Occipital Parietal Motor strip Sensory strip Wernikes Brocas Thalamus Hypothalamus RAS The Acquired Aphasias Acquired loss of language as a consequence of brain damage What happens when there is damage to certain areas of the brain? Frontal Lobe Damage: Phineas Gage Difficulty reasoning, making decisions Inability to control emotions Goal directed behavior impairments Occipital Lobe Damage Blindness/visual hallucinations Temporal Lobe Damage Wernickes Area Receptive Aphasia (listening difficulty) Brocas Area Expressive Aphasia (talking difficulty) Brocas aphasia: Symptoms: (a) Agrammatism: tendency to omit function words (e.g., a/ of/ is) (b) Slow and effortful speech (c) Relatively good comprehension Expressive Aphasia (talking difficulty) *Left frontal lobe - Speech Muscles via motor cortex Wernickes aphasia Symptoms: (a) fluent but frequently ungrammatical speech (b) word substitution errors (c) impaired language comprehension Receptive Aphasia (listening difficulty) *Left Temporal Lobe Brain Communication ALL parts of brain have to communicate with one another. Info transfers from lobes, body part to the motor strip to cerebellum to muscle and so on Electricity in nerve cells. What do you think of when you think of the color red??? A nerve connects red to the idea of a rose etc.. We need MANY nerve cells that are separate, yet are able to alternate signals from one circuit to another. The Neuron Neuron: nerve cell, transmits electrical and chemical info (via neurotransmitters) throughout the body Anatomy of a Neuron cell body (or soma) Dendrites- part of the nerve cell that receives info from the axons of other nerve cells Axon- part of the neuron that carries messages away from the nerve cell to the dendrites on another nerve cell Anatomy of a neuron Each nerve cell is separate from one another Neuron structure varies Info comes to a receptor on a dendrite Dendrites Cell body Axon Axon Terminals Axon Terminals sit opposite a receptor for another neuron There is a space between axon terminals and receptors of another neuron Synapse Typical Neuron: 1,000 10,000 Synapse- Junction point of two or more neurons; connection made by neurotransmitters Chemical transmission across the synapse Neurotransmitters are released into synaptic cleft Neurotransmitter binds to receptor on the receiving neurons membrane When enough neurotransmitter is released, it prompts chemical changes that occur faster than the blink of an eye Neurotransmitters diffuse across the synapse and binds to receptors on the membrane of the next neuron Depolarization Repolarization Each neuron both receives signals and sends signals to other neurons, it carries on conversations with many different neurons at the same time You cut your finger An electrical impulse goes up to the brain How does the brain know its a pain message and not message to kick your foot?? Drugs and Neurotransmitters Chemicals in the endings of nerve cells that send info from axon the across the synapse Enhancement- speed up Impediment- obstruct Info comes to a receptor on a dendrite Dendrites Cell body Axon Axon Terminals Synapse Neurotransmitter Receptor of another neuron Vesicle- bubblelike Containers of neurotransmitters, located at the end of an axon Three classes of neurons: Sensory: Transmit information from sensory receptors to the brain (afferent) Body to the brain Motor: Transmit commands from the brain to the muscles and glands of the body (efferent) Brain to the body Interneurons: Interconnect neurons Connect sensory and motor The All-or-None Law A neuron either fires or it doesnt. The action potential does not vary in size depending on stimulus intensity Conduction Within Neuron Conduction Action potentials All-or-none Between Neuron Conduction Neurotransmitter accumulation Each Basically, each Neurotransmitters has receptor is designed a specific molecule to only accept a for a specific activity specific type of chemical molecule Pain, movement, pleasure, etc. Electrical impulse for movement axon terminal. Stops at synapse Vesicles with movement molecules neurotransmitters go towards synapse Binds and lock to terminal Channels open up releasing movement neurotransmitters into open space. In open space, chemicals float to specific dendritic receptors (movement) Once movement receptors accept, excites the dendrites of another neuron and begins again UNTIL ends at MUSCLE receptors and causes movement! (pain) Dendrite axon neurotransmitter synapse Acetylcholine (Ach) Neurotransmitter that regulates basic bodily processes such as movement. Botulism- food poisoning- shut off release of Ach Without Ach- paralysis Dopamine Neurotransmitter involved in the control of bodily movements Lack of DopamineParkinsons Given drugs that help produce dopamine addiction Dopamine is similar to adrenaline. Dopamine affects brain processes that control movement, emotional response, and ability to experience pleasure and pain. Drugs such as cocaine and amphetamines produce their effects by changing the flow of neurotransmitters The Brain Marijuana, Cocaine, Opiates Reward: Drug Self-Administration Rats will press a bar to get an injection of cocaine or heroin (selfadministration). The rat keeps pressing to get more cocaine or heroin because the drugs make the rat feel so good. This is called positive reinforcement, or reward. Natural rewards include food, water and sex - each is required to maintain survival of our species. Animals and people will continue to exhibit a behavior that is rewarding and they will cease that behavior when the reward is no longer present. There is a part of the brain that is activated by natural rewards and by artificial rewards such as addictive drugs. This part of the brain is called the reward system. Neuroscientists have been able to pinpoint the exact parts of the brain involved, with the help of the rats. Rats will also self-administer addictive drugs directly into their brains, but only into a specific area of the reward system. If the injection needle is moved less than a millimeter away from this crucial area, the rat won't press the lever for more drug. So based on information from working with the rats, scientists have drawn a map of the brain, and located the structures and pathways that are activated when an addictive drug is taken voluntarily. Endorphins Neurotransmitters that relieve pain and increase our sense of well being Naturally made by the body itself (endo) Acts as natural form of morphine Endorphins act by locking into receptors in the nervous system for chemicals that transmit pain messages to the brain. Once the endorphin, or the "key", is in the "lock," pain causing chemicals are prevented from transmitting their messages. Endorphins interact with the opiate receptors in the brain to reduce our perception of pain, similar to the drugs morphine and codeine. The body's release of endorphins, however, does not lead to addiction like morphine and codeine might. Key Concepts Evolution has fundamentally shaped psychological processes because it favors genetic variations that produce adaptive behaviors The brain coordinates the bodys two communications systems: the nervous system and endocrine system Uses chemical processes to communicate with targets throughout the body The brain is composed of many specialized modules that work together to create mind and behavior Depression can result from a shortage of the neurotransmitter serotonin. The antidepressant drug Prozac works by blocking reabsorption of serotonin in the synapse, making up for the shortage. Alcohol and neurotransmitters RAS has to slow down before you sleep, so needs to turn off cells. Neurotransmitter arrives, cells turn off. ALCOHOL Cells begin to shut down turns RAS off Sleepy Vision problems Slurred speech Unsteady gait Increases Dopamine Alters Serotonin Serotonin Neurotransmitter that is synthesized, stored, and released by specific neurons in this pathway. It is involved in the regulation of mood, emotions, aggression, sleep, appetite, anxiety, memory, and perceptions. Ecstasy Increases serotonin in different brain regions that causes psychological effects. These include elevated mood and feelings of empathy. The ecstasy reinforcing, which means that its pleasurable properties increase the likelihood that the person will take it again. In a research setting, monkeys will administer ecstasy to themselves (they actually press a lever to obtain an injection), just as they do for other addictive drugs. In fact, all addictive drugs act in some way within the "reward pathway". Many of the psychological effects of ecstasy are due to its actions within the limbic system (the amygdala, and hippocampus). The ability of ecstasy to produce mild stimulation is due to its actions in another part of the limbic system -- the basal ganglia. It is here where ecstasy's effects on the dopamine system may be important. The heightened perceptions involve the actions of ecstasy in the neocotex. Ecstasy can also reduce the appetite, because it acts in the hypothalamus which controls feeding behavior. Spinal Cord Part of the body that functions as an automatic brain in its own right and is a relay station for impulses to and from the higher brain Three basic functions of the nervous system Reception input through the senses via receptors Reaction response through the muscles and/or glands Transmission & Integration Spinal Cord Reflex Emergency- Spinal cord reacts BEFORE brain Driving, touching something hot. Spinal neurons are short, direct, and powerful Few synapses Spinal cord could operate by itself Three classes of neurons: Sensory: Transmit information from sensory receptors to the brain (afferent) Body to the brain Motor: Transmit commands from the brain to the muscles and glands of the body (efferent) Brain to the body Interneurons: Interconnect neurons Connect sensory and motor Glandular System Nervous system reacts instantaneously. Endocrine system takes time to affect the body. Hormones- chemical regulators that control bodily processes such as emotional responses, growth, sexuality Released directly into blood stream so may take awhile. Glands- units of body that contain hormones Endocrine systemsystem of all the glands and their chemical messages taken together Endocrine Hormones Directly into the bloodstream Hormones work like neurotransmitters Special molecular structure that must match the structure of the receptor. Women giving birth Pituitary Gland Master gland of the body that 1.activates other glands and 2. controls the growth hormone Growth hormone- controlled by the pituitary that regulates the growth process Requires normal environment Diet affects pituitary Thyroid Gland Controls and regulates the speed of bodily processes called metabolism Hyperthyroid v. Hypothyroid Hypothyroid- Notably, women are far more likely than men to be afflicted with thyroid problems. Leads to fatigue, weight gain, depression, high cholesterol and other symptoms Adrenal Glands Cause excitement in order to prepare the body for an emergency or for some important activity Adrenaline- chemical that prepares the body for emergency activity by increasing blood pressure, breathing rate, and energy level. Near accident- spinal cord reflex RAS cerebralcortex You think about could have happened. Hypothalamus pituitaryreleaseshormones totheadrenalglands. Adrenalglandsreleaseadrenaline Adrenalinepreparesusforan emergency Rapidbreathing,exited,sweating,nervous Bloodclotsfasterjustincasewegetcut Gonads Sex glands Androgen- male sex hormone Starts sex drive for both males and females Not activated until puberty Estrogen- female sex hormone Neuter a dog- loses it desire to reproduce Humans- if you remove the source of hormones, sex drive will still remain. So starts off with hormones, but is taken over by cerebral cortex (mental processes, thought) Cortex controls sex- so it is learned by humans Cortex allows feelings of love, hope, respect, care AND fear, anxiety, psychological pain Without the cortex dogs Starter Question What part of the brain did the procedure in Eternal Sunshine of the Spotless Mind have an effect on? Think of the characters symptoms and characteristics Would you want this procedure done to you if you had a bad memory you wanted to erase Do you know someone that could benefit from this procedure considering the experiment was flawless? Essay Question Mary, a smart and sharp woman, cuts her finger while chopping vegetables. He initially says, Ouch, but smiles when it brings back fond memories of her father cooking. Analyze this situation by describing, step- by step, the possible internal reaction that Mary has. Your analysis should be divided into 4 parts. (More than one answer can apply to each part. Be sure to justify your answer) 1. 2. 3. 4. First, describe how neurons in Marys body are activated using the terms synapses, axons, dendrites, and neurotransmitter. Second, assume these neurons send the message to different parts of the lower brain. Choose any two parts and describe how those two parts would react to the message it has received. Third, assume that the lower brain sends the message to the cerebral cortex. Choose any two parts of the cerebral cortex and describe how those parts might respond. Finally, assume that the cerebral cortex sends the message to some glands. Choose any one gland and describe how this gland might respond. How would the glands reaction affect the body Midline View of Human Brain Medulla: Controls heart rate, respiration Cerebellum: Coordinates smooth movements, balance, and posture Pons: Involved in the control of sleep
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Cal Poly - PHIL - 111
Katherine ArellanoAP Psych-AMs. HermosuraOctober 8, 2008http:/cwx.prenhall.com/bookbind/pubbooks/morris5/chapter2/deluxe.htmlIntro:This section is based on the roots of thoughts, feelings and actions. It also goes into depth on thenervous system an
Cal Poly - PHIL - 111
About me:Burrhus Frederic Skinner was raised in a small Pennsylvania town with his father, whowas a lawyer and his mother, who was a smart housewife. Skinner grew up in a hardworking environment and continues that conduct throughout his life. He attende
Cal Poly - PHIL - 111
Katherine ArellanoSeptember 4, 2008AP Psychology- AVOCABULARYResearchAPA Ethical Guidelines: Guidelines and conduct that is accepted by another person.Central Tendency (the 3 Ms): [Mean, Mediem, Mode] the average of a selectionmiddleCorrelation Coe
Purdue - ECE 201 - ECE201
Purdue - ECE 201 - ECE201
Homework 5Due: Friday, September 21In the circuit of Figure 1, suppose V2 = 45V . Find the voltage produced by thesource Vs , the current owing out of the positive terminal of the source Is , and thepower delivered by the source.Figure 1: Model circ
Purdue - ECON - 251
9160335_CH02_p031-052.qxp6/22/098:55 AMPage 312The EconomicProblemAfter studying this chapter,y ou will be able to:Define the production possibilities frontier and calculateopportunity costDistinguish between production possibilities and prefer
Purdue - ECON - 251
9160335_CH03_p053-080.qxd6/22/098:56 AMPage 53PA RT TWO How Markets Work3Demand and SupplyAfter studying this chapter,y ou will be able to:Describe a competitive market and think about a price asan opportunity costExplain the influences on dema
Purdue - ECON - 251
9160335_CH04_p081-102.qxd6/22/098:57 AMPage 814ElasticityA fter studying this chapter,y ou will be able to:Define, calculate, and explain the factors that influencethe price elasticity of demandDefine, calculate, and explain the factors that inf
Purdue - ECON - 251
CHAPTER1| Economics:Foundations and ModelsChapter Summary and Learning Objectives1.1Three Key Economic Ideas (pages 47)Explain these three key economic ideas: People are rational. People respond to incentives. Optimaldecisions are made at the margi
University of San Francisco - ECON - 313
Chapter 1 - Features of Debt Securities1.Introduction Definition of a fixed income security concept of borrower andlender (creditor)The promises of the issuer and the rights of the bondholders are set forth in greatdetail in the bond indenture. Affir
University of San Francisco - ECON - 313
Chapter 2Risks Associated With Investing in Bonds1.Key risks Interest rate, call and prepayment, yield curve, reinvestment, credit,liquidity, exchange-rate, volatility, inflation and eventCR = YTM => PRICE = PAR: Discount, Premium and Par value p1Bo
University of San Francisco - ECON - 313
Chapter 6 International Bond Portfolio Management1.2.3.4.5.6.7.8.9.Benchmark currency positions: Unhedged, Partially hedged andfully hedged portfolios and benchmarksDiversification benefits low correlation with other asset classesand hence lo
University of San Francisco - ECON - 313
Chapter 3 - Overview of Bond Sectors and Instruments1.Internal bond market is also called the national bond market and is divided intodomestic and foreign bond marketExternal bond market is also referred to as the Eurobond market that isunderwritten
University of San Francisco - ECON - 313
1.2.3.4.5.Chapter 4 Understanding Yield SpreadsIn implementing monetary policy, the fed can use one of the following interest ratepolicy tools:1.Open market operations (buying or selling treasuries, fx etc.)2.Discount rate banks borrow on a col
University of San Francisco - ECON - 313
Chapter 5 Introduction to the Valuation of Debt Securities1.Fundamental principles of bond valuation:1.2.3.2.estimate the expected cash flowsdetermine the appropriate interest rate (or rates) to use to discount the cash flowscalculate the PV of t
University of San Francisco - ECON - 313
Chapter 6 Yield Measures, Spot Rates and Forward Rates1.Sources of return from investing in a bond1.2.3.2.Coupon interest paymentsCapital gain or loss: when a security is sold, matures or calledIncome from reinvestment of cash flowsComputation o
University of San Francisco - ECON - 313
Chapter 7 Introduction to Measurement of Interest Rate RiskFull Valuation (scenario analysis) approach for measuring interest rate risk:1.1.2.3.4.5.6.7.8.2.Begin with the current market yield and priceEstimate hypothetical changes in required
University of San Francisco - ECON - 313
Chapter 8 The Term Structure and Volatility of Interest RatesThe Yield curve has taken on 3 fundamental shapes:1.1.2.Normal, Flat and InvertedParallel, Non-Parallel, Twist and Curvature of the Yield Curve1.2.3.Parallel Yield Curve ShiftNonparal
University of San Francisco - ECON - 313
Chapter 9 Valuing Bonds with Embedded Options1.2.3.4.5.6.7.8.9.10.11.Binomial Valuation Model: A binomial model is a relatively single factor interest rate modelthat, given an assumed level of volatility, suggests that interest rates have an
University of San Francisco - ECON - 313
Chapter 10 Mortgage-Backed SecuritiesA mortgage is a loan that is collateralized with a specific piece of real property,residential or commercial.Cash flow characteristic of a fixed rate, level payment, fully amortized loanConcept of prepayments and h
University of San Francisco - ECON - 313
Chapter 12 Valuing MBS and ABSCash flow yield: Formula and limitations of such a measure1.1.2.2.3.What are the limitations of the nominal spread and zero volatility spread for MBS?A Monte Carlo simulation model for valuing MBS1.2.3.4.5.6.4.
University of San Francisco - ECON - 313
Chapter 1 Introduction to Bond Portfolio ManagementFixed income Investment Process:1.1.2.3.4.2.Determine Objectives.Portfolio StrategyMonitor performance andMake any necessary adjustmentsPortfolio Constraints:1.2.3.4.5.3.Maximum allocat
University of San Francisco - ECON - 313
Chapter 2 Measuring a Portfolios Risk Profile1.2.3.4.5.Variance of a 2 bond portfolio Variance of a portfolio of risky assets is afunction of the variances of the individual risky assets in the portfolio andtheir covariances. Formula.The correlat
University of San Francisco - ECON - 313
Chapter 3 Managing Funds Against a Bond Market IndexFive approaches to domestic bond management:1.1.Pure Bond Indexing1.2.2.Enhanced indexing by matching primary risk factors1.2.3.Pros Potential for higher returns than indexing strategiesCons
University of San Francisco - ECON - 313
Chapter 4 Portfolio Immunization and Cash Flow Matching1.Concept of Immunization1.2.2.Adjustments to the immunized portfolio1.2.3.Durations drift with interest ratesTime passesBond characteristics that must be considered while immunizing are:
University of San Francisco - ECON - 313
1.2.3.4.5.6.7.8.9.10.11.Chapter 20 Relative-Value Methodologies for Global Credit Bond PortfolioManagementTop-Down Approach: Uses economy-wide projections to allocate funds to globalcorporate asset classesBottom-Up Approach: Relies on selec
University of San Francisco - ECON - 313
Chapter 6 Yield Measures, Sport Rates, and Forward RatesUse the following data for questions 1 through 4An analyst observes a Widget & Co 7.125% 4-ear semiannual-pay bond trading at102.347% of par (where par = $1,000). The bond is callable at 101 in 2
University of San Francisco - ECON - 313
Chapter 81) Which of the following statements concerning yield curve shifts is FALSE?a. A twist results in a flatter or steeper yield curveb. A parallel shift results in all yields changing by the same amount in thesame directionc. A butterfly shifts
University of San Francisco - ECON - 313
Chapter 9- Valuing bonds with Embedded Options1) Which of the following statements concerning the calculation of value at a nodein a binomial interest rate tree is TRUE? The value at each node is the:a. Present value of the two possible values from the
University of San Francisco - ECON - 313
Chapter 10 Mortgage Backed Sector of the Bond Market1) Which of the following statements concerning interest only (IO) and principalonly (PO) pass-through securities is false?a. Pass-through securities have cash flows that can be divided into interest
University of San Francisco - ECON - 313
Chapter 16 Introduction to Bond Portfolio Management1) Which of the following is NOT an example of a client-imposed constraint?a. Limits on the use of leverage in the portfoliob. Limits on the maximum funds that can be allocated to a single industryc.
University of San Francisco - ECON - 313
Chapter 17 Measuring a Portfolios Risk ProfileUse the following data to answer Questions 1 through 4Brian Reid is the portfolio manager of AA Corporate Bond Investors, Inc. His current $10 millionbond position is as follows:Bond123Market value wei
University of San Francisco - ECON - 313
Chapter 10 Mortgage Backed Sector of the Bond Market1) Which of the following statements concerning interest only (IO) and principalonly (PO) pass-through securities is false?a. Pass-through securities have cash flows that can be divided into interest
University of San Francisco - ECON - 313
12LWhich of the following is NOT a shortcominga mortgage or asset-backed security?A_ The mongage or asset-backed securities- Ii_-II,_-of the cash flow yield as a process for the cash flow analysis ofare assum'ed to be held to the final payoU( bas
University of San Francisco - ECON - 313
Chapter 18 Managing Funds against a Bond Market Index1) John Stevenson is the portfolio manager of the Omega Corporate Bond Fund and owns$20 million par value of bond B1. The market value of the bond is $15 million. Theeffective dollar duration of the
University of San Francisco - ECON - 313
Chapter 19 Portfolio Immunization and Cash Flow Matching1) Two components of interest rate risk are:a. Duration and convexityb. Reinvestment risk and price riskc. Duration sensitivity and price riskd. Reinvestment risk and immunization risk2) To imm
University of San Francisco - ECON - 313
Chapter 20 Relative Value Methodologies for Global Credit Bond Portfolio Management1) Although all are presented as rationales for secondary trading, which is probably themost common rationale?a. New Issue swapsb. Credit-upside tradesc. Credit-defens
University of San Francisco - ECON - 313
Chapter 21 International Bond Portfolio Management1) Which benchmark currency position would be an investor select if his goal was to seekextra returns from active management of currency exposurea. Un-hedgedb. Fully Hedgedc. Partially Hedgedd. Canno
University of San Francisco - ECON - 311
Practice for Chapter 8 and 9Chapter 8T012345678910111213141516171819202122232425a) The daily yields for 26 days are given below. Compute the daily percentagechange in yield for each day assuming continuous compounding.Yt7.1
UC Davis - BIS 104 - BIS 104
Midterm I practice examInstructions:Note that this is last years midterm 1. Not all material was covered in exactly the sameway.Fill out your student ID properly. If you make a mistake in filling out the student ID, youwill be docked 5 points.There
UC Davis - BIS 104 - BIS 104
BIS104Winter 2012Problem Set IDue Fri Jan 20This problem set will not be collected. However, I will know whether or not you did it byyour performance on the exam.1-3. In studying normal cells, you isolate gene R that normally sequesters and turns of
UC Davis - ECN 001B - 1b
Chapter 1IntroductionIt may seem a shocking thing to say, butmost of the economics that is usable foradvising on public policy is at the level ofthe introductory undergraduate course.Herbert Stein2MicroeconomicsMacroeconomicsStudies one decision
UC Davis - ECN 001B - 1b
Chapter 5Gross Domestic Product(GDP)Definition of GDPTotal market value of all the goods and services producedby the factors of production located in a countryduring a certain period of timeexcept those produced by households for householdconsumpt
UC Davis - ECN 001B - 1b
Chapter 6Growth and CyclesThree Major Macroeconomic Variables & IssuesAggregate Level of Output (Real GDP)Economic GrowthGeneral Price Level (GDP Deflator or CPI)InflationEmploymentUnemployment2Three Major Macroeconomic IssuesDefinitionsCosts
UC Davis - ECN 001B - 1b
Chapter 7Goods and Services Market1National Income IdentityNominal GDP Nominal ExpenditureNominal GDP Nominal ExpenditureGDP DeflatorGDP DeflatorReal GDP Real Expenditure2ExplanationProductionDemand + (Inventory)10,000,0008,000,000+2,000,00
UC Davis - ECN 001B - 1b
Chapter 8Supply of Money1Names BOND, Discount BondWhat is a Bond?A piece of paper promisingto pay a known fixedamount (called future orface value) at a knownfuture date. Also called anIOU or promissory note.Bonds are issued by those who want to
UC Davis - ECN 001B - 1b
Chapter 9Demand for Money1Supply of Money:The amount of money people actually hold at a point in timeDemand for Money:The amount of money people are willing and able to holdWhat do we mean by able?2Money+Bonds + Stocks +Other=TotalWealthYo
UC Davis - ECN 001B - 1b
Chapter 10Loanable Funds Market1Interest rate is determined by the supplyand demand for loananble funds.This is a flow theory2Who Demands Loanable Funds?(Borrowers) Households To buy homes, cars, appliances, pay foreducation, etc. Firms To un
UC Davis - ECN 001B - 1b
A Quick Summary of Main PointsY < YPu > unuc > 0Y > YPu < unuc < 0Y = YPu = unuc = 0Long RunSo what causes variations in Y?Answer: Aggregate DemandGood Market EquilibriumY= ADADAD > YYAD = YADAD > YYAD = YBut what causes AD to chang
UC Davis - ECN 001B - 1b
Study GuideTo Accompany Macroeconomics: Theory and PolicyBy B. ModjtaheditPrepared byT.J. McCarthy and B. ModjtahediUniversity of California, DavisChapter 1Chapter 1What Do Economists Do? We Model for FoodKEY POINTSThree types of resources are u
UC Davis - ECN 001B - 1b
Study GuideTo Accompany Macroeconomics: Theory and PolicyBy B. ModjtaheditPrepared byT. J. McCarthy and B. ModjtahediUniversity of California, DavisChapter 5Definition of GDPGDP is defined as the market value of all goods and services produced in
UC Davis - ECN 001B - 1b
Study GuideTo Accompany Macroeconomics: Theory and PolicyBy B. ModjtaheditPrepared byT. J. McCarthy and B. ModjtahediUniversity of California, DavisChapter 6Key PointsEconomic growth means increases in real GDPover a long period of time.Two sour
UC Davis - ECN 001B - 1b
Study GuideTo Accompany Macroeconomics: Theory and PolicyBy B. ModjtaheditPrepared byT. J. McCarthy and B. ModjtahediUniversity of California, DavisChapter 7Key PointsNational Income IdentityReal GDP (Y)Real GDP (Y)Real ExpenditureAggregateDe
UC Davis - ECN 001B - 1b
Study GuideTo Accompany Macroeconomics: Theory and PolicyBy B. ModjtaheditPrepared byT. J. McCarthy and B. ModjtahediUniversity of California, DavisChapter 8Key PointsMoney is defined by the functions it performsMedium of exchange (usedto buy go
UC Davis - ECN 001B - 1b
Study GuideTo Accompany Macroeconomics: Theory and PolicyBy B. ModjtaheditPrepared byT. J. McCarthy and B. ModjtahediUniversity of California, DavisChapter 9Key PointsLiquidity preference theory: explains interest rates in terms of the supply of m
UC Davis - ECN 001B - 1b
Study GuideTo Accompany Macroeconomics: Theory and PolicyBy B. ModjtaheditPrepared byT. J. McCarthy and B. ModjtahediUniversity of California, DavisChapter 10Key PointsLoanable funds theory: interest rates aredetermined by the supply of and deman
UC Davis - ECN 001B - 1b
Study GuideTo Accompany Macroeconomics: Theory and PolicyBy B. ModjtaheditPrepared byT. J. McCarthy and B. ModjtahediUniversity of California, DavisChapter 11Key PointsIn the labor market households supply laborservices, firms demand labor servic
UC Davis - ECN 001B - 1b
Study GuideTo Accompany Macroeconomics: Theory and PolicyBy B. ModjtaheditPrepared byT. J. McCarthy and B. ModjtahediUniversity of California, DavisChapter 12Key PointsAggregate demand function gives the combinationsprice and GDP levels at which
UC Davis - ECN 001B - 1b
Study GuideTo Accompany Macroeconomics: Theory and PolicyBy B. ModjtaheditPrepared byT. J. McCarthy and B. ModjtahediUniversity of California, DavisChapter 13Key PointsTwo propositions at the heart of Keynesian economics:Demand shocks are the mai
UC Davis - ECN 001B - 1b
Study GuideTo Accompany Macroeconomics: Theory and PolicyBy B. ModjtaheditPrepared byT. J. McCarthy and B. ModjtahediUniversity of California, DavisChapter 14Key PointsRational expectations hypothesis (Lucas):Wages and prices are fully flexibleW