Analysis Of Kurt Vonnegut s Harrison Bergeron And ...

In life, there is something called an establishment. It is what makes people do activities a specific way or perform a certain command from those who are deemed superior to them. There were two authors who provided great examples of that lifestyle. Kurt Vonnegut, Jr. displayed this precisely with the limitations given to the characters in â€Å"Harrison Bergeron†. The Master Timekeeper from Repent, Harlequin! Cried the Tick-Tock Man by Harlan Ellison created the basis of having an order and leading people by the control he has over their time. Through both of these stories, they had a common struggle that wanted to change the examples they led people to mimic. They would have men who wanted to live their own lives, follow their rules, and†¦show more content†¦The Master Timekeeper wanted to use his establishment to keep the people under control with the time they use while the Harlequin wanted people to take their time doing tasks and not worry about being late, but instead, enjoy what is around them. In Harrison Bergeron, the rule of the story is that the law requires everyone to be equal. To ensure this, they gave handicaps, both physical and mental, to the citizens of the United States because they believe it will guarantee that no one would be stronger or smarter than anyone else. All of this was regulated by the United States Handicapper General, Diana Moon Glampers, but there was one man who seeked to rebel against these handicaps in his misson to gain control and power over everyone else. That man was none other than Harrison Bergeron, and he made it clear when he invaded the ballerina studio and exclaimed, I am the Emperor! cried Harrison. Do you hear? I am the Emperor! Everybody must do what I say at once! He stamped his foot and the studio shook. Even as I stand here he bellowed, crippled, hobbled, sickened - I am a greater ruler than any man who ever lived! Now watch me become what I can become! Harrison tore the straps of his handicap harness like wet tissue paper, tore straps guaranteed to support five thousand pounds. (Vonnegut) As stated, Harrison believed that he could become so much more powerful without the handicaps holding him back. It got to the point where he thought it

Learn All About Primate Cities

The term primate city may sound like something in a zoo but it actually has nothing to do with monkeys. It refers  to a city which is greater than two times the next largest city in a ​nation  (or contains over one-third of a nations population). The primate city is usually very expressive of the national culture and often the capital city. The law of the primate city was first created by geographer Mark Jefferson in 1939. Examples: Addis Ababa is the primate city of Ethiopia - its population outshines that of all other cities in the country.   Do Primate Citys Matter?   If youre from a country that doesnt have a primate city it can be hard to understand the significance of them. It is hard to imagine one city being responsible for the cultural, transportation, economic and governmental needs of the rest of the country. In the United States, for example, these roles are usually played by cities like Hollywood, New York, Washinton D.C. and Los Angeles. While independent movies are made in every state the majority of the films that all Americans watch are created in Hollywood and Los Angeles. Those two cities are responsible for part of the cultural entertainment that the rest of the nation watches.   Is New York City a Primate City? Surprisingly, even with its huge population of over 21 million residents, New York is not a primate city. Los Angeles is the second largest city in the United States with a population of 16 million. This means that the United States lacks a primate city. This isnt surprising  given the geographic size of the country. Even cities within the country are larger in size than that of an average  European city. This makes it far less likely for a primate city to occur.   Just because it isnt a primate city doesnt mean New York isnt important. New York is what is known as a Global City, this means it is financially significant to the rest of the world. In other words, events which affect the city also affect the global financial economy. This is why a natural disaster in one city can cause the stock market of another country to dip. The phrase also refers to cities that do a huge amount of global business. The term global city was coined by the sociologist Saskia Sassen.    Signs of Inequality Sometimes primate cities form because of a concentration of higher-paying white collar jobs in one city. As jobs in manufacturing and agriculture decline, more people are driven towards cities. Unemployment in rural areas can contribute to wealth concentrations in urban areas. This is made worse by the fact that most of the higher paying jobs are located within cities. The further people get from city centers the harder time they have finding well-paying jobs. This creates a vicious cycle of economically depressed small towns and overpopulated large cities. It is easier for primate cities to form in smaller nations because there are fewer cities for the population to choose from.

Women s Rights Of Gender Equality And Women - 1005 Words

Historically women have not been provided equal opportunities in competitive and collegiate sports. In the late 1800’s, social perception was that females were weak and although they were admired by men, they were treated like objects (Lumpkin, 2013). Competitive and collegiate sports were dominated by males, with little opportunity for women to participate. Females eagerly wanted to participate, however sports were perceived inappropriate which would put their femininity in question and put their health at risk (Lumpkin, 2013). Women faced many challenges along the way, but gradually they begin to fight for their rights of gender equality and women’s rights in sports and started participating in collegiate sports. Females were not allowed to play colligate sports until the late nineteenth century, because society was much less accepting of the notion of women athletes. Small steps were taken to get physical exercise and sports introduced to females in American schools. Physical fitness programs were non-competitive and allowed in a more relaxed setting with an emphasis on health and social interaction (Hartman, n.d.). An example was at the University of Wisconsin, initially only leisure physical activities such as tennis, croquets, and riding bicycles were allowed for females (Hartman, n.d.). Although female offerings and participation in the beginning were minimal, it was a major step forward for women’s rights in the 1880’s. In the last quarter of the 19thShow MoreRelatedWomen s Rights And Gender Equality Essay1506 Words   |  7 Pages All men and women were created equal. However, this obvious truth is not universally shared. Fortunately, there is a very real fight fo r gender equality that we are currently engaged in, and a participant in that fight that holds a fundamental role are non-governmental organizations (NGOs). 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Women’s rights promote an equality between men and women. Equality between males and females would be both genders being treated equal and fair in all aspects of life. Many people have been fighting for centuries to transform women’s rights. Women’s rights regarding job opportunities, military advancements and pay gaps have transformed over centuries and need to continueRead MoreGender Equality And Women s Rights1274 Words   |  6 Pages Women in the world still face discrimination and gender equality takes action to achieve women’s rights. AAUW provides and gives women the chance to have an education, while Catalyst reaches out to women to carry out equal pay, equal participation in the workplace, and remove discrimination. UN Women attains to human rights for women. Throughout history women h ave fought for gender equality in the workplace and in education, and every year organizations like AAUW, Catalyst, and UN Women haveRead MoreGender Equality And Its Effects On Women s Rights1962 Words   |  8 Pageshas also caused it to regress. Prior to the occupation of these treacherous groups, Afghanistan had a relatively liberal outlook, with a hopeful progression of women’s rights. More specifically; â€Å"Afghan women made up 50% of government workers, 70% of school teachers, and 40% of doctors in Kabul.† In recent years the public life of women has been completely effaced due to the effects of war and the Taliban regime. They are isolated, confined to their homes and masked with an all-encompassing burqa; prisonersRead MoreGender Equality And The Movement For Women s Rights On A Global Scale1174 Words   |  5 Pagesawareness about gender equality and the movement for women’s rights on a global scale. 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Change and Culture Case Study 1 free essay sample

Change and Culture Case Study I Paul Sullivan HCS/514 August 15, 2011 Kendra Slatton Change and Culture Case Study I The job of a middle manager is not easy, especially during times of extreme change. It requires balancing and maintaining varying personnel within the organization including upper management and a subordinate workforce. An option for many who successfully have not influenced the direction of an organization is to leave the company. However, according to Covey (2004), â€Å"A more common but insidious alternative is to remain and become a mindless conveyor of decisions from the top† (p. 47). The middle manager who manages to compete with the pressures from upper management with some degree of success faces alternate challenges from within the organization. According to Armour (2007), â€Å"Middle management jobs have become more demanding. Technology means middle managers have to do more multi-tasking and are expected to be accessible to their staffs, a Herculean challenge in the age of globalization. Employees may be spread across the globe, and a manager may have to get up at 3 A. M. to take a call from an employee in another country† (para. 4). The demanding and steady rate of change throughout the structure of an organization fosters the complications that already exist for the middle manager. The middle manager in a health care organization that has merged with a previous competitor faces many challenges. Up until now, the employees of that organization saw the competition as an enemy that provided poor quality of care. On top of that, the new corporation has in place several inpatient and outpatient services that the organization does not. Knowing that the existing employees of the organization view this new company as an enemy plays an important role in how the middle manager will regulate the change. Recognizing that the employees of both organizations will be resistant to this change, and understanding that a large amount of fear and anxiety will determine how the workforce responds, procedures must be adapted to unite the workforce. The workforce needs to be informed about the specific changes in a manner that will make sense to each of them. In an environment that is already resistant and hostile with change of this magnitude, details of this change must surface no matter how unappealing. Employee reaction needs to reach upper management in an accurate and timely manner. Daily meetings between middle managers and employees and bi-weekly meetings between middle managers and upper management is a means to ensure proper and timely communication. The implementation of procedures to ensure timely and accurate response from the workforce is important. Feedback from the workers needs to be properly and accurately presented to upper management. According to Davenport and Barrow (2009), â€Å"Intense change, especially when it occurs in quick succession, as being experienced by many organizations, can be particularly excruciating for rank-and-file employees. The employees’ frustration is exacerbated when they are not given an opportunity to participate in decisions that affect them. As stakeholders and people that execute the mission of the organization, they feel disenfranchised and devalued† (p. 115). The observation of Davenport and Barrow gives credible reason it is important to ensure an organizations’ workforce is properly informed and given consideration regarding a change of this magnitude. When the proverbial dust settles after the merger, they will still be an integral part of the organization. To further the importance of proper and effective communication between management and the workforce, Davenport and Barrow (2009) stated, â€Å"Communication is the key to organizational success and nowhere is the truism more apparent than in the influence of internal communication during a transformational process as dramatic as a merger or acquisition. During complex and, often, painful process of bringing the two sets of employees together, a continuous flow of negotiation is essential for keeping in touch with how people feel; communicating information clearly across both bidder and target; and beginning the process of creating a new culture for the merged company† (p. 117). Two previous competing organizations are in the process of merging. The process ensuring employees are well informed about the merger is not complete. The merging workforce needs to be brought together and communicate as one organization. This serves as the next task for middle management, to unite these employees so they may form together as one workforce in one organization and dedicate themselves to the mission of the organization. To ensure that the combined staff will work together to provide quality care without remaining competitive among each other, it would best serve the interests of the organization to form a working coalition of employees to guide them in this process. Gathering members of each prior company into a coalition for the purpose of unification is in the best interest of the organization as it is a means to alleviate their competitive nature. It is also in the best interest of the employees as it is a means for them to come together and share their experiences. These members should be employees from each company who have exposed themselves as top performers and respected members of their team. An opportunity to clarify similar goals and recognize potential flaws is provided to the coalition representing both prior organizations. This process will bring the employees of both organizations closer together and support an effective working relationship. The opportunity to educate and respond to the total workforce is availed after the coalition has met and discussed their issues regarding the merger. One of the more productive and effective means of communicating and educating the workforce is through the development of a newsletter. Each time the coalition meets to discuss issues regarding the merger and issues of change that this merger entails, releasing the information in the form of a newsletter ensures this information is accessible to the total workforce. Kandler (2011), furthers the point by stating, â€Å"Although you can’t totally eliminate the uncomfortable feelings of employees have during these times of corporate chaos, there is a tool you can use to help employees cope with the rapid changes: your employee newsletter. By featuring articles that address issues of, â€Å"Is my job safe? If I’m retained, how will my pay and benefits change? † Your employee newsletter can play a crucial role in helping to answer questions and eliminate employee uncertainty† (p. 24). When two organizations merge into one larger company, the shape and systems of the previous company will change. The individuals who work together need to change considerably to achieve new goals and objectives. One company may not share the norms and traditions of the other (Kandler, 2011). Developing a new organizational mission describing the new systems and shape of the organization is conducive to the changed environment. Collectively stating the goals, objectives, and prescribed strategies based on the merger will provide a smooth transition. One of the major changes to this organization is the several inpatient and outpatient services that the organization did not provide previously. Developing effective strategies for how and where these new services are going to operate is a task that needs to be done in a collective manner. Shared information among middle managers regarding prior strengths and weaknesses regarding these services and suggestions for improvement by both management teams will ensure a high standard of patient care and satisfaction. By design, this is a horizontal merger in which two competing companies have merged. According to Mergers and Acquisitions (2009), â€Å"Horizontal mergers are those mergers where the companies manufacturing similar kinds of commodities or running similar types of businesses merge with each other. The principle objective behind this type of merger is to achieve economies of scale in the production procedure through carrying off duplication of installing services and functions, widening the line of products, decrease in working capital, getting rid of competition, minimizing the advertising expenses, enhancing the market capability and to get more dominance on the market† (para. 3). The new organizational structure will reflect an effective independence from the previous structure. It will combine a conventional top-down hierarchial structure that will blend the two existing cultures, maintaining the best features of both. The new system will provide a process for employees to initiate changes regarding the future vision addressing current problems. It is essential to provide a process for each individual program and department, whether it is the inpatient or outpatient medical services, the adolescent gang prevention program, the substance abuse counseling services, or the food and clothing distribution center, to monitor progress in the direction of achieving success in terms of quality, finances, and quality patient care and satisfaction. Educating employees for new roles within the organization is a primary focus, it gives the workers insight into the notion that before individuals can develop new roles within a new organizational structure, one needs to develop the tools and knowledge to do so. Motivating and encouraging employees to discover and seek out new direction, employees will function both individually and as a team. Specific orientation programs will develop the education process. To ensure the educational programs blend effectively within the organization, programs to impart information and knowledge to assume new roles will be implemented. It will require time and patience for the transition to reach completion. Time and a genuine effort by management and the workers to recognize and implement new strategies in place of old practices successful in the past is key for achieved success. Working among new colleagues in an unfamiliar location requires a period of adjustment. References Armour, S. (2007). Who wants to be a middle manager? USA Today, (), 2. Covey, S. R. (2004). The 8th Addiction: From Effectiveness to Greatness. New York, New York: Free Press Davenport, J. , Barrow, S. (2009). Employee Communication During Mergers and Acquisitions. New York, New York: Gower. Kandler, D. (2011). Helping employees cope with corporate downsizing, merger or Acquisition. Project Management Journal, (), 24-25 Mergers and Acquisitions. (2009). QFinance, (), 1. Retrieved from http://www. qfinance. com

10 Words Often Misspelled in Business Correspondence

10 Words Often Misspelled in Business Correspondence 10 Words Often Misspelled in Business Correspondence 10 Words Often Misspelled in Business Correspondence By Maeve Maddox Most word processing programs have a built-in spell checker, but business correspondence still goes out with misspelled words that a checker would have caught. I’m not talking about words like bare and bear, which are both English words acceptable to an automatic spelling program, but words like definite and separate, which have no homophones, and typos like standarad for standard (one of my own recent embarrassments). Writers need to keep two things in mind about spell checkers: 1. They cannot catch any misspellings if a writer doesn’t let the application run. 2. They cannot be entirely trusted to catch every spelling error. For whatever reasonoverconfidence or sloththe same misspellings continue to appear in business emails, advertising copy, resumes, and on blog sites. The writer’s best defense is to take a good look at the most frequent misspellings and zero in on every letter in the word. Mastering a few at a time is a better way to approach the task than scanning long lists. Here are ten of the most frequent misspellings, their correct forms, and tips that may help you remember the differences. 1. Misspelled: seperate Correct: separate Tip: There’s a rat in sep-a-rate. 2. Misspelled: definate Correct: definite Tip: Take a close look at the final syllable: nite. 3. Misspelled: calender Correct: calendar Tip: You probably pronounce the last syllable as [er], so you have to think [ar] as you write it: cal-en-dar. 4. Misspelled: mispell Correct: misspell Tip: You know how to spell spell; add the prefix mis- to it: mis-spell. 5. Misspelled: privlege Correct: privilege Tip: You may pronounce this three-syllable word with only two syllables. Notice the second i: priv-i-lege. Another common misspelling is privilige. Note the e in the final syllable: priv-i-lege. 6. Misspelled: arguement Correct: argument Tip: The verb argue ends in e, but you must drop the e for ar-gu-ment. 7. Misspelled: concensus Correct: consensus Tip: The sensus in consensus has nothing to do with the word census. Our word census comes from Latin censare, â€Å"to rate, assess.† Consensus comes from Latin consensus, â€Å"agreement, accord, sympathy, common feeling.† Think SSS: Con-Sen-SuS. 8. Misspelled: pronounciation Correct: pronunciation Tip: There’s no â€Å"ounce† in pronunciation, but there is a â€Å"nun.† The verb is pronounce; the noun is pro-nun-ci-a-tion. 9. Misspelled: accomodate Correct: accommodate Tip: Two sets of double letters, cc and mm: accommodate 10. Misspelled: dependant Correct: dependent Tip: People who misspell this one may be thinking of defendant, which does end in –ant (although the –ant in defendant is also pronounced [ent].) Note the final syllable in dependent: de-pen-dENT. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Business Writing category, check our popular posts, or choose a related post below:Has vs. HadFor Sale vs. On Sale10 Functions of the Comma

cf intro Essay Example

cf intro Essay Example cf intro Essay cf intro Essay LBSlM-2013-1 *Term-II Introduction to Corporate Finance Some Recent Business News Reliance Industries declares 150% dividend India Nippon shareholders approve 7:10 bonus issue Introduction to Corporate Finance 2 What is Corporate Finance about? ? Financial Decisions made by Corporations. ? Financial decisions relate to: Where to invest the firms resources (Investment Decisions) How to raise resources for the firm (Financing Decisions) How to reward the owners of the business (Dividend Decisions) ? Corporate Finance provides answers to these issues. Investment Decisions ? Firms have scarce resources which must be allocated mong competing uses. ? Resources may be used for : Revenue Generating Cost Saving Projects Strategic Decisions Introduction of a New Product Replacing old equipment with new equipment Which markets to enter Acquisition of other companies ? While taking Investment Decisions, we measure the Benefits (Returns) from the proposed Investment projects and compare with Mini mum Acceptable Hurdle rate to decide acceptance or rejection. 4 Investment Decisions (Contd. ? Minimum Acceptable Hurdle rate should be set so as to reflect: Risk profile of the project (Higher hurdle rate for riskier projects), and Financing mix of the project Projects with different Risk Profiles Less Risky More Risky 5 ? Investment Decisions are concerned with: Establish Minimum Acceptable Hurdle Rate appropriate to the investment proposal Measuring Benefits (Returns) from the investment proposals, Comparing benefits with minimum acceptable hurdle rate in order to accept (or reject) the project. Invest in assets that earn a return greater than the minimum acceptable hurdle rate 6 Financing Decisions ? How should firms raise Financial resources required? ? Businesses can broadly raise funds either through: Owners Fund (Equity) Borrowed Funds (Debt) ? Financing Decision involves : Finding an optimal mix between Debt Equity (Capital Structure), and Type of Instrument Long Term Vs. Short Term, Fixed Rate Vs. Floating Rate, Straight Vs. Convertible, Domestic Markets Vs. International Markets. Choose a financing mix that matches the characteristics of assets being financed. Dividend Decisions ? Dividend is any reward by the firm to its shareholders. ? Firms have to decide about what to do with the surplus generated by the firm i. e. : Reinvest into the business (Plough back) , or Distribute as Dividend (reward the shareholders) Amount of Dividend (Dividend Payout) Stability of Dividend (Trend) Forms: Cash Share Repurchase 8 Dividend Decisions (Contd. ) ? Trade-off between re tention distribution is to be made. When the firm is small and has attractive investment opportunities, profits are retained and reinvested. Ata later stage in a firms life cycle when the funds generated are greater than the investment requirements, the firm has to decide about ways of returning the excess cash to the owners. If there are not enough investments that earn the hurdle rate, return the cash to the owners. 9 Linking Financial Decisions with Firms Objective Investment Decision Financing Decision Dividend Decision Invest in assets that earn a return greater than the minimum acceptable hurdle rate Choose the financing mix that maximizes the value of the projects taken , and matches the assets being financed. If there are not enough investments that earn the hurdle rate, return the cash to the owners. Maximize the value of the Firm 10 Objective of the Firm ? How do we Judge the correctness of these decisions? ? The basic objective of Financial Management is: to maximise the value of the firm ? Any decision (Investment, Financing, or Dividend) that ncreases the value is considered good and which reduces the value is considered as poor. Value of the firm is, therefore, dependent on Firms Investment, Financing Dividend Decisions. 11 What is Firm Value? Maximization of Value of the Firm Maximization of Shareholders Value Maximization of Stock Price of the Firm Debt holders can protect themselves contractually. Stock price is an observable real measure of stockholder wealth. 12 Owners (Shareholders) Agents (Top Management) Main Features ? Separation of Ownership Management ? Legal Person ? Limited Liability of shareholders ? Shareholders are distinct from the company Level-I Management Level-II Management Level-V Management 13 Agency Problem ? Shareholders appoint agents (Management) to conduct the business of the company. ? As agents, the management should take decisions to maximize shareholders ? Shareholders delegate decision-making authority to Management hoping that agents will act in shareholders best interests. ? However, in actual practice, the objectives of the management may differ from those of the shareholders. ? Managers may take decisions in their own interest rather than in the interest of the hareholders. ? This pro blem of management (agents) not acting in the interests of their principals (shareholders) is called the Agency Problem. 4 ? Divergence of ownership and control: Those who own the company (shareholders) do not manage it, but appoint agents (management) to run the company on their behalf. ? Difference in Objectives of Management Shareholders: Managers are likely to maximize their own wealth rather than the wealth of shareholders. ? Asymmetry of information: Management, as a consequence of running the company on a day-to-day basis, has access to nside information while shareholders receive annual reports which may themselves be manipulated by the management. 5 Resolving Agency Problem ? Jensen Meckling (1976) suggested methods to deal with agency problem which encourage goal congruence between shareholders managers. ? Monitor the actions of the Management: Audit of Financial statements by independent Auditors; Shadowing of Senior Managers; Employment of External Analysts. ? Incenti ves to Managers: Stock options; Bonus ; Perquisites Punishments ? Both methods involve costs- an inevitable result of the separation of ownership and ontrol of a company. ? Lower the control, lower chances of managers behaviour being consistent with the shareholders, higher the Agency costs. ? Agency costs-(a) when managers do not attempt to maximizes firm value , and (b) shareholders incur cost to monitor managers. Introduction to Corporate Finance 16 Financial System -An Overview Financial System : An Overview ? In any economy there are two types of economic units: Surplus Units, and Deficit Units. Investments are less than their Incomes. (C+l Y) ? Such units have negative savings and need to borrow funds. ? A system through which the savings of Surplus Units are transferred to Deficit Units is called the Financial System. Introduction to Corporate Finance 18 Provide Funds Receive Funds Suppliers of Funds Users ? Financial Markets ? Financial Institutions ? Financial Instruments Services Buy Securities Issue Securities 19 Financial System (Contd. ? Financial System consists of the following three components, which facilitate the ransfer of funds : Financial Markets surplus units to deficit units Centres that provide the facility of buying selling of financial claims Financial Institutions Organisations which channelise funds from Surplus Units to Deficit Units thereby act as mobilisers depositories of savings, and creators of credit. E. g. Commercial Banks, Insurance Cos. Mutual Funds, Developmental Financial Institutions, NBFCs Financial Instruments Claims of the lenders of funds over the funds lent to the borrowers. 20 Financial System Defined ? Financial system refers to a set of complex, interlinked markets, institutions, nstruments and services in the economy which facilitate the transfer and allocation of funds efficiently and effectively. 1 Classification of Financial Markets Maturity of Claim Seasoning of Claim Nature of Claim ? Money Market ? Capital Market ? Primary Market ? Secondary Market ? Debt Market ? Equity Market ? Spot Market Timing of Delivery Structure ? Forward/Futures Market ? Exchange Traded Market ? Over-the-counter Market Financial Markets Capital Money Markets Money Markets: Deal (trade) in debt securities of maturities of one year and less. Economic entities with excess funds for short durations lend (buy short-term instruments) to economic entities which face shortage of funds for short duration (sell short-term instruments). Money Market Instruments: Treasury Bills (T-Bills) Call/Notice Money Repurchase Agreements (Repos) Commercial Bills of Exchange Commercial Papers (CPs) Certificates of Deposit (CDs) No physical location, but an Over-the-counter (OTC) Market; trades are conducted via telephones, wire transfers, and Introductioncomputer trading. to Corporate Finance Capital Markets Deal in long-term securities (equity and debt) having maturities of more than one year.

Quantitative Portfolio Management - Homework 1 Case Study

Quantitative Portfolio Management - Homework 1 - Case Study Example From the graph, Roy (1952) argued that investors should pick portfolios in order to maximize the likelihood of getting above some threshold minimum return.. Drawing a straight line from this minimum return tangent to the efficient frontier. Lower thresholds result in optimal portfolios with less return / risk, once you have identified the efficient frontier Using the idea that risks come from different sources, a â€Å"single index model† assumes that actual returns can be separated into systematic (i.e. market-related) and firm-specific parts †¦ here, the â€Å"market† (e.g. S&P500 index) is the source of market-related movements in security i: Since there is no perfect match for this assets, that various portfolio combinations of most two-asset portfolios will lie on a curve to the left as you reduce correlation between pairs of assets, you will have to risk for a given level of portfolio return. Result: One portfolio (P) dominates all of the other efficient portfolio on the efficient set Investors who choose combinations of P and the risk-free asset get the highest return for a given level of risk, compared to all other risky