Question of the week 24: Yield

Hi and welcome to this week’s Question of the Week! For this week, the word ‘yield’ will be covered in the following question:

How are bond yields calculated, and why are they important?

The term yield can have different definitions, all based on the word’s context. For instance, when a person yields from a fight, it means that the person is giving up or surrendering. When on the road, some signs contain the word yield. This means that you have to give way to other cars. Yield can also stand for producing a return, as is used in bond yields. This week’s question looks at the second definition.

A bond’s yield can be calculated by dividing the interest by the current value of the bond. This is presented in the following formula:

Yield = Annual interest / Bond Price

Calculating bond yields is important as aggregating them gives you an indication of the success of a bond over time. For instance, knowing that a bond with a value of €100 yields 10% (or €10 interest) for the past 5 consecutive years is more attractive to invest in than a bond that yielded 25% in the first year, but then dropped to 5% in the 5^th year.

In short: The term yield can mean to stop, give way, give-up, surrender, or be a calculation of returns in business. In a business sense, yields can be calculated by dividing the annual interest by the bond price. This would then give an indication of the returns over time of a bond, and thus its attractiveness.

If you have any questions, other examples, or doubts, then please do not hesitate to leave a comment!

Question of the week 23: Sporadic

Hi and welcome to this week’s question of the week! For this week’s entry, the word ‘sporadic’ will be covered in the following question:

Can stress trigger sporadic behavior?

The term sporadic stands for a behavior or instance that occurs occasionally, irregularly, or randomly. For example, stock prices show a sporadic trend since it is dependent on positive or negative news. Another example is when software does not follow your inputs, thus showing sporadic behavior due to an error or bug.

Sporadic behavior can also be found in people. It is characterized by certain actions that a person would normally not do, i.e. scream in the library. When a person behaves sporadically, it may be due to the environment. A painting may have triggered a memory that makes a person scared in the library, or a library scene in a scary movie. Sporadic behavior, however, can also be triggered by stress.

When a person endures a heavy workload, that person’s mind gets overloaded with specific tasks. This means that it will be more difficult to multi-task than when relaxed. For example, when somebody asks for a favor whilst you are under stress, your response tends to be more abrupt, aggressive, and random. This is makes it more likely to vent off frustration on somebody else who may not know your circumstances. As such, in that person’s perspective, your behavior becomes sporadic. Another example is when you are driving whilst in traffic, and your passenger tries to help you by telling you where to go. You get annoyed and shrug off the suggestion. Your response may seem to him or her as an aggressive and sporadic one, although to you it is justified since you were preoccupied, stressed, and wanted some peace to focus on the traffic ahead. Thus, based on these examples, stress can trigger sporadic behavior.

In short: Sporadic stands for a behavior or instance that is irregular, out of the norm, random, or occasional. Examples include sporadic trends of stock prices, sporadic behavior of software, and sporadic behavior of people due to stress from work or traffic, or from a memory that is triggered by the environment a person is in.

If you have any questions, wish to share an example, or have any doubts, then please do not hesitate to leave a comment!

Question of the week 22: Apocryphal

Hi and welcome to this week’s question of the week! This week the word ‘apocryphal’ will be covered in the following question:

What are some examples of apocryphal quotes?

The term apocryphal stands for a statement that is doubtful of its authenticity, meaning that there is some controversy in the original meaning. This can occur in an apocryphal biography that relies on rumors rather than facts, or an apocryphal quote where the author is not known and thus may be quoted in the wrong context. Here are some apocryphal quotes:

1. ‘You don’t get harmony when everybody sings the same note’

2. ‘A faithful friend is the medicine of life’

3. ‘The curiosity to know things has been given to man as a scourge’

4. ‘I disapprove of what you say, but I will defend to the death your right to say it’

5. ‘Whatsoever thou takest in hand, remember the end, and thou shalt never do amiss’

In short: Apocryphal stands for doubting the authenticity of a statement. The quote ‘a faithful friend is the medicine of life’ is one such an example as the author is not known and thus neither the context.

If you have any differing opinions or examples, then please do not hesitate to leave a comment!

Question of the week 21: Buzzword

Hi and welcome to this week’s ‘question of the week’! This week the phrase ‘buzzword’ will be covered in the following question:

Which five buzzwords are popular now?

A buzzword is a word that creates a lot of hype amongst people. It usually covers technical terms (e.g. Cloud computing), but it can also cover other hyped words that are found and shared in specific subject areas (e.g. the word process in Change management). But which buzzwords are currently hyped?

Ipad – The Ipad defined the tablet market. It sits in the middle of being a laptop and a Smartphone. As it is still a new form of technology that is being accepted, and with much success, this is one buzzword that will stay for the coming while.

Cloud computing – Cloud computing is set to be the future of how computers will be used. As was written in a previous article on Cloud computing, it is about connecting to a network of computers that do specific tasks, removing the need to purchase expensive computers. Since it is still in its infancy, and its full potential still to be explored, cloud computing will stay as a buzzword.

Hybrid cars – Unstable fuel prices have led car companies to look for alternative engines. Hybrid cars, which combine both electric and petrol engines, are the result of this instability. As fuel prices are becoming ever more volatile and expensive, and with the added pressure of government regulations that reduce Carbon Dioxide emissions, hybrid cars will become an even bigger buzzword over time.

3D TV – TVs have evolved from showing black and white images, to full color images, to crisp high definition images, and now to 3D images. 3D first started appearing in cinemas, but now with the 3D TV, it is becoming the buzzword for bringing 3D images to your household.

Motion capture devices – Video game consoles have always been played with a controller. This however is changing as consoles are now including body movements in games. Examples include the wii controller, the Xbox 360 kinect, and the Playstation move. Given its recent introduction, these motion capture devices will continue to be a buzzword as their potential are further explored.

In short: A buzzword is a new technical word that contains a lot of hype, and is talked about by the mainstream public. Five current popular buzzwords include the Ipad, Cloud computing, Hybrid cars, 3D TV, and Motion capture devices.

If you have any questions or differing opinions, then please don’t hesitate to leave a comment!

Question of the week 20: Precocious

Hi and welcome to this week’s ‘question of the week’! For this week, the word ‘precocious’ will be covered in the following question:

What are the benefits for precocious children?

The terms precocious stands for something that experiences maturity faster and earlier than normal. For instance, the idea behind schooling and universities is to teach experiences from others in a faster way so that when students start to work, they are precocious compared to people who have learnt only from experience. Another example of precocious is when an excelling child jumps grades in school. But does being precocious deliver benefits to a child?

A child that is precocious would experience an accelerated education. This means that the teaching material will be of a higher level for a specific age, as will be the environment, where students would be older. Here are some advantages and disadvantages for precocious children:

Advantages

- A child learns at a faster rate, which means that fewer years can be spent on primary, secondary, and tertiary education. This means graduating at a younger age and savings on education costs.

- A child learns to interact with individuals older than oneself and experience being the youngest of the group.

- A child can learn his or her interests earlier, which could potentially allow for a higher level of specialization in a subject. In other words, a precocious child could become an expert and spend more time in a particular field than the norm.

Disadvantages

- A child would be exposed at an earlier age to more mature content (such as slang, video games, movies) that will be shared with students from the same grade. This is negative if the child handles the content wrongfully or is uneducated about it.

- A child will always experience childhood and education differently than the norm. This however does mean an accelerated pace to adulthood.

- A child may experience social-emotional immaturity compared to older students in the same grade.

In short: Precocious stands for something that matures faster than the norm. A child who skips grades in school is thus known to be precocious. Benefits for such a child includes lower costs and an earlier graduation, constant interactions with older people, and can learn his or her interests earlier, allowing for a higher level of specialization in a subject. It is to say though that there are also some drawbacks to an accelerated education.

If you have any differing opinions or examples that you would like to mention, then please do not hesitate to leave a comment!

This article used the following source as a reference on precocious children: http://www.davidsongifted.org/db/Articles_id_10174.aspx

Question of the week 19: Frugal

Hi and welcome to this week’s question of the week! First of all, we wish you a happy Easter! Now for this week, the word ‘frugal’ will be covered in the following question:

How can companies apply frugality as a strategy for cost reduction?

The word frugal stands for not being wasteful, lavish, or extravagant, and being economical and sparing. For instance, when a person decides to change from a post-paid mobile phone plan to pre-paid, with the reason to control the number of minutes used and texts sent, he or she is said to be frugal. Another example of being frugal is when a person decides to buy an electric car rather than a conventional car, with the idea of minimizing fuel costs and tax.

Companies can also apply frugality by implementing the ideology in company culture. When all employees are given the responsibility and moral obligation to minimize costs, it is then possible for a company to reduce unnecessary expenses. Examples of these include taking economy class flights rather than taking business, first, or even chartered flights. Also taking public transportation rather than fleet cars.

For companies to implement frugality, it is possible to do periodic checks of employee expenses, benchmarking costs for specific positions, have employees conduct due diligence for specific high cost purchases, or have incentives for the employees that saved the most. These are just some ideas.

In short: Frugal stands for being economical, not spending lavishly, buying things that are only necessary, and minimizing costs. Companies can be frugal if the ideology gets passed on to all employees, meaning that the employees themselves actively think of minimizing expenditure. Putting a moral obligation on employees to not overspend can help implement frugality, and having periodic checks, incentives, or have employees perform due diligence, can help maintain it.

If you have any questions or doubts, then please don’t hesitate to leave a comment!

Question of the week 18: Synergy

Hi and welcome to this week’s ‘question of the week’! For this week, the word ‘synergy’ will be covered in the following question:

How can synergies be created in group projects?

The term synergy stands for the effort that is given by two individuals working together, producing results greater than that of two individuals working alone. Apart from individuals, synergies could also involve companies, medicines, diseases, and pests, just to name a few. For instance, when company A provides technologies whilst company B provides distribution expertise, both companies can then produce products that take advantage of each other’s know-how, thereby creating profits for both which would not have been possible if they worked individually. But how do these synergies appear in group projects?

Group projects combine the knowledge of a number of people. The problem however lies in the amount of information that can be shared, and the relations that are built. When a team encounters individuals who push their ideas through, and are not open to everybody’s contribution, it becomes more difficult for synergies to appear. This is because ideas will get rejected or ignored, and those controlling the group will end up controlling the type of knowledge shared. Another issue lies in the amount of information, where everybody voices their ideas but none are combined. This then leads to ideas being piled up but not properly being used to create synergies.

For synergies to appear in group projects, it would require individuals to be open to each other, share as much relevant knowledge as possible, and ensure that all group members feel that they are a part of the project. This helps motivate everybody to work harder as their contributions are recognized, and encourage knowledge sharing.

In short: Synergy stands for the combined effort of two things, be it individuals, companies, or medicines, that produce an effect greater than adding both individual efforts. For synergies to appear in group projects, it becomes important to maximize knowledge sharing through actively listening to every member, and to motivate them by ensuring that everybody’s contribution will be seen in the project’s results.

If you have any questions or differing opinions, then please do not hesitate to leave a comment!