Portuguese average cost of capital

The oldest Portuguese share index still being calculated is the BVL/PSI-General, one which started the daily series on 5/Jan/1988 with a base value of 1000 points. Everyday a single value is computed based on the closing prices of all the shares included in the sample. Also, all corporate events affecting the price of any share beyond market sentiment are taken into account through proper adjustments, either in the numerator or the denominator of the formula. However, for dates before January 1988, there is nothing comparable to this index since the two different series known either never disclosed the methodology adopted to calculate the index or followed solutions not compatible with the above index. The present paper explains the solutions adopted to replicate as closely as possible the methodology of the BVL-General index to the main market of the Lisbon Exchange for the period 1978 – 1987. This is the first estimate of the historical Equity Risk Premium in Portugal above short-term risk-free rate from the re-opening of the market following the Carnation Revolution (and the accompanying nationalizations), to the present. In showing a value of the same order of magnitude found in other countries, the paper invites further studies on the effects of political decisions such as privatizations and joining the European Union.

The use of canonical correlation analysis to assess the relationship between executive functioning and verbal memory in older adults

Executive functioning (EF), which is considered to govern complex cognition, and verbal memory (VM) are constructs assumed to be related. However, it is not known the magnitude of the association between EF and VM, and how sociodemographic and psychological factors may affect this relationship, including in normal aging. In this study, we assessed different EF and VM parameters, via a battery of neurocognitive/psychological tests, and performed a Canonical Correlation Analysis (CCA) to explore the connection between these constructs, in a sample of middle- aged and older healthy individuals without cognitive impairment (N = 563, 50+ years of age). The analysis revealed a positive and moderate association between EF and VM independently of gender, age, education, global cognitive performance level, and mood. These results confirm that EF presents a significant association with VM performance.

A proposal for a new specification for a conditionally heteroskedastic variance model: the Quadratic Moving-Average Conditional Heteroskedasticity and an application to the D. Mark-U.S. dollar Exchange Rate

Ever since the appearance of the ARCH model [Engle(1982a)], an impressive array of variance specifications belonging to the same class of models has emerged [i.e. Bollerslev's (1986) GARCH; Nelson's (1990) EGARCH]. This recent domain has achieved very successful developments. Nevertheless, several empirical studies seem to show that the performance of such models is not always appropriate [Boulier(1992)]. In this paper we propose a new specification: the Quadratic Moving Average Conditional heteroskedasticity model. Its statistical properties, such as the kurtosis and the symmetry, as well as two estimators (Method of Moments and Maximum Likelihood) are studied. Two statistical tests are presented, the first one tests for homoskedasticity and the second one, discriminates between ARCH and QMACH specification. A Monte Carlo study is presented in order to illustrate some of the theoretical results. An empirical study is undertaken for the DM-US exchange rate.

Subjective income expectations, canonical models and income risk

Expectations are central to behaviour. Despite the existence of subjective expectations data, the standard approach is to ignore these, to hypothecate a model of behaviour and to infer expectations from realisations. In the context of income models, we reveal the informational gain obtained from using both a canonical model and subjective expectations data. We propose a test for this informational gain, and illustrate our approach with an application to the problem of measuring income risk.

CLOCK-controlled polyphonic regulation of circadian rhythms through canonical and noncanonical E-boxes.

In mammalian circadian clockwork, the CLOCK-BMAL1 complex binds to DNA enhancers of target genes and drives circadian oscillation of transcription. Here we identified 7,978 CLOCK-binding sites in mouse liver by chromatin immunoprecipitation-sequencing (ChIP-Seq), and a newly developed bioinformatics method, motif centrality analysis of ChIP-Seq (MOCCS), revealed a genome-wide distribution of previously unappreciated noncanonical E-boxes targeted by CLOCK. In vitro promoter assays showed that CACGNG, CACGTT, and CATG(T/C)G are functional CLOCK-binding motifs. Furthermore, we extensively revealed rhythmically expressed genes by poly(A)-tailed RNA-Seq and identified 1,629 CLOCK target genes within 11,926 genes expressed in the liver. Our analysis also revealed rhythmically expressed genes that have no apparent CLOCK-binding site, indicating the importance of indirect transcriptional and posttranscriptional regulations. Indirect transcriptional regulation is represented by rhythmic expression of CLOCK-regulated transcription factors, such as Krüppel-like factors (KLFs). Indirect posttranscriptional regulation involves rhythmic microRNAs that were identified by small-RNA-Seq. Collectively, CLOCK-dependent direct transactivation through multiple E-boxes and indirect regulations polyphonically orchestrate dynamic circadian outputs.

Minu, Startu and all that:- Pitfalls in estimating the sensitivity of a worker’s wage to aggregate unemployment

In this paper we show that the inclusion of unemployment-tenure interaction variates in Mincer wage equations is subject to serious pitfalls. These variates were designed to test whether or not the sensitivity to the business cycle of a worker’s wage varies according to her tenure. We show that three canonical variates used in the literature - the minimum unemployment rate during a worker’s time at the firm(min u), the unemployment rate at the start of her tenure(Su) and the current unemployment rate interacted with a new hire dummy(δu) - can all be significant and "correctly" signed even when each worker in the firm receives the same wage, regardless of tenure (equal treatment). In matched data the problem can be resolved by the inclusion in the panel of firm-year interaction dummies. In unmatched data where this is not possible, we propose a solution for min u and Su based on Solon, Barsky and Parker’s(1994) two step method. This method is sub-optimal because it ignores a large amount of cross tenure variation in average wages and is only valid when the scaled covariances of firm wages and firm employment are acyclical. Unfortunately δu cannot be identified in unmatched data because a differential wage response to unemployment of new hires and incumbents will appear under both equal treatment and unequal treatment.

Conjugacy of piecewise linear Lorenz map that expand on average

For piecewise linear Lorenz map that expand on average, we show that it admits a dichotomy: it is either periodic renormalizable or prime. As a result, such a map is conjugate to a ß-transformation.

The Acts of Paul and the Canonical Acts : A Phenomenon of Rereading

(Abstract only in french) Une approche littéraire de l'intertextualité, à l'aide des catégories posées par G. Genette, permet de renouveler l'approche du rapport entre Actes de Paul et Actes canoniques. A la différence de la critique littéraire classique, qui ne repère pas de dépendance littéraire hors de similitudes verbales ou narratives, l'« hypertextualité » désigne un phénomène de relecture dans lequel un texte-source est recomposé et réinterprété au sein d'un écrit second. Grâce à cette catégorie, cette contribution rend compte du jeu dialectique de parenté et de divergence que l'on observe entre les Actes de Paul et les Actes de Luc. La recomposition de la biographie de Paul dans les Actes de Paul a usé de créativité, elle a puisé dans l'imaginaire chrétien, mais elle s'est aussi servie de traditions préservées dans la suivance de l'apôtre.

Widespread occurrence of non-canonical transcription termination by human RNA polymerase III.

Human RNA polymerase (Pol) III-transcribed genes are thought to share a simple termination signal constituted by four or more consecutive thymidine residues in the coding DNA strand, just downstream of the RNA 3'-end sequence. We found that a large set of human tRNA genes (tDNAs) do not display any T(≥4) stretch within 50 bp of 3'-flanking region. In vitro analysis of tDNAs with a distanced T(≥4) revealed the existence of non-canonical terminators resembling degenerate T(≥5) elements, which ensure significant termination but at the same time allow for the production of Pol III read-through pre-tRNAs with unusually long 3' trailers. A panel of such non-canonical signals was found to direct transcription termination of unusual Pol III-synthesized viral pre-miRNA transcripts in gammaherpesvirus 68-infected cells. Genome-wide location analysis revealed that human Pol III tends to trespass into the 3'-flanking regions of tDNAs, as expected from extensive terminator read-through. The widespread occurrence of partial termination suggests that the Pol III primary transcriptome in mammals is unexpectedly enriched in 3'-trailer sequences with the potential to contribute novel functional ncRNAs.

Differences in the transduction of canonical wnt signals demarcate effector and memory CD8 T cells with distinct recall proliferation capacity.

Protection against reinfection is mediated by Ag-specific memory CD8 T cells, which display stem cell-like function. Because canonical Wnt (Wingless/Int1) signals critically regulate renewal versus differentiation of adult stem cells, we evaluated Wnt signal transduction in CD8 T cells during an immune response to acute infection with lymphocytic choriomeningitis virus. Whereas naive CD8 T cells efficiently transduced Wnt signals, at the peak of the primary response to infection only a fraction of effector T cells retained signal transduction and the majority displayed strongly reduced Wnt activity. Reduced Wnt signaling was in part due to the downregulation of Tcf-1, one of the nuclear effectors of the pathway, and coincided with progress toward terminal differentiation. However, the correlation between low and high Wnt levels with short-lived and memory precursor effector cells, respectively, was incomplete. Adoptive transfer studies showed that low and high Wnt signaling did not influence cell survival but that Wnt high effectors yielded memory cells with enhanced proliferative potential and stronger protective capacity. Likewise, following adoptive transfer and rechallenge, memory cells with high Wnt levels displayed increased recall expansion, compared with memory cells with low Wnt signaling, which were preferentially effector-like memory cells, including tissue-resident memory cells. Thus, canonical Wnt signaling identifies CD8 T cells with enhanced proliferative potential in part independent of commonly used cell surface markers to discriminate effector and memory T cell subpopulations. Interventions that maintain Wnt signaling may thus improve the formation of functional CD8 T cell memory during vaccination.

Roles of canonical Wnt/TCF-1 signaling for hematopoiesis, lymphocyte development and function

Summary : The canonical Wnt signaling pathway plays key roles in the maintenance of self-renewing tissues, like the gut or the skin. In contrast, the role of this pathway in hematopoiesis remains poorly defined. Wnt ligands transmit signals through ß-catenin which activates gene transcription upon its association with Lymphoid Cell Enhancer/T Cell Factor (LEF/TCF). Currently, v-catenin is the only alternative factor known to transduce canonical Wnt signals. The ß-/γ-catenin bindiná domain in TCF-1 is required to partly rescue thymopoiesis and NK cell development in TCF-1-deficient mice. However, T cell development and hematopoiesis w-as normal in mice deficient of ß-catenin, or of γ-catenin. Surprisingly we found that hematopoiesis and thymopoiesis was also normal in the combined absence of ß- and γ-catenin. Reporter assays showed that double-deficient lymphocytes were still able to transduce canonical wnt signals. These data provided evidence that hematopoietic cells can transduce canonical Wnt signals in the combined absence of ß- and γ-catenin. There exist numerous TCF-1 isoforrns including those that harbor the N-terminal ß-/y-catenin binding domain or that contains a C-terminal CRARF domain whose role in vivo has not been previously tested. We found that the CRARF domain influences lymphocyte development in conjunction with the N-treminal ß-/γ-catenin binding. The presence of the two domains directs thymocytes to the CD8+ T cell lineage whereas NK cell development is abolished. Roles of the canonical Wnt/TCF-1 pathway for lymphocyte function have not been defined. We demonstrate that TCF-1 deficient CDBT T cells mount a normal primary response to viral infection but these T cells fail to expand upon restimulation. The failure of CD8+ T cells to respond to IL-2 during primary infection seems to account for this phenotype. Thus, TCF-1 is essential for programming functional CD8+ T cell memory. Collectively, these data provide significant new insights into the role of Wnt/TCF-1 pathway for lymphocyte development and function and suggest a novel mechanism of Wnt signal transuction in hematopoietic cells. Résumé : La voie de signalisation canonique Wnt joue un rôle prépondérant dans le renouvellement de tissus, comme l'intestin ou la peau. Son rôle dans l'hématopoïèse est quant à lui mal défini. Le ligand Wnt transmet le signal via la ß-catenin qui active la transcription de gènes cibles quand il est associé avec Lymphoid Cell Enhancer,~T Cell Factor (LEF/TCF). Actuellement, la γ-catenin est le seul autre facteur connu pouvant se substituer à la fonction de la ß-catenin. Un variant de TCF-1 contenant le domaine liant ß-/,~-catenin est capable de restaurer le développement des lymphocytes T et NK en l'absence de TCF-1. Cependant la thymopoïèse et l'hématopoïèse sont normales dans les souris déficientes pour la ß-catenin ou la γ-catenin. De façon surprenante, nous avons trouvé que l'hématopoïèse et le développement des lymphocytes sont normaux lors de l'absence combinée de ß-/γ-catenin. De plus, la transduction des signaux de la voie de signalisation Wnt est maintenue dans des lymphocytes déficients pour ß-/γ-catenin. Ces résultats démontrent que les cellules hématopoïétiques peuvent transmettre les signaux de la voie canonique Wnt lors de l'absence combinée de la ß et la γ -catenin. Il existe de nombreuses isofonnes de TCF-1, y compris certaines qui comprennent un domaine qui lie ß-/γ-catenin du côté N-terminus ou qui contiennent un domaine CRARF du côté C-terminus. Nous montrons ici que le domaine CRARF influence le développement des lymphocytes en conjonction avec le domaine liant ß-/γ-catenin. La présence des deux domaines dirige les thymocytes vers la lignée de cellules T CD8, alors que le développement des cellules NK est aboli. Au-delà de sa fonction sur le développement des lymphocytes, le rôle de la soie de signalisation canonique Wnt/TCF-1 lors d'une infection n'a pas été défini. Nous avons montré que les cellules T CD8, déficientes pour TCF-1, développent une réponse primaire normale à une infection virale, mais qu'elles ne s'accumulent pas après restimulation. L'incapacité des cellules TCD8 à répondre à l'IL-2 durant la réponse primaire peut expliquer ce phénotype. Ainsi; TCF-1 est essentiel pour la programmation de cellules T CD8 mémoires fonctionnelles. L'ensemble de ces résultats fournit de nouveaux aperçus du rôle de la voie de signalisation Wnt/TCF-1 pour le développement et la fonction des lymphocytes et suggèrent un nouveau mécanisme de transduction du signal Wnt dans les cellules hématopoïétiques.

The average crossing number of equilateral random polygons.

In this paper, we study the average crossing number of equilateral random walks and polygons. We show that the mean average crossing number ACN of all equilateral random walks of length n is of the form . A similar result holds for equilateral random polygons. These results are confirmed by our numerical studies. Furthermore, our numerical studies indicate that when random polygons of length n are divided into individual knot types, the for each knot type can be described by a function of the form where a, b and c are constants depending on and n0 is the minimal number of segments required to form . The profiles diverge from each other, with more complex knots showing higher than less complex knots. Moreover, the profiles intersect with the ACN profile of all closed walks. These points of intersection define the equilibrium length of , i.e., the chain length at which a statistical ensemble of configurations with given knot type -upon cutting, equilibration and reclosure to a new knot type -does not show a tendency to increase or decrease . This concept of equilibrium length seems to be universal, and applies also to other length-dependent observables for random knots, such as the mean radius of gyration Rg.

The average inter-crossing number of equilateral random walks and polygons

In this paper, we study the average inter-crossing number between two random walks and two random polygons in the three-dimensional space. The random walks and polygons in this paper are the so-called equilateral random walks and polygons in which each segment of the walk or polygon is of unit length. We show that the mean average inter-crossing number ICN between two equilateral random walks of the same length n is approximately linear in terms of n and we were able to determine the prefactor of the linear term, which is a = (3 In 2)/(8) approximate to 0.2599. In the case of two random polygons of length n, the mean average inter-crossing number ICN is also linear, but the prefactor of the linear term is different from that of the random walks. These approximations apply when the starting points of the random walks and polygons are of a distance p apart and p is small compared to n. We propose a fitting model that would capture the theoretical asymptotic behaviour of the mean average ICN for large values of p. Our simulation result shows that the model in fact works very well for the entire range of p. We also study the mean ICN between two equilateral random walks and polygons of different lengths. An interesting result is that even if one random walk (polygon) has a fixed length, the mean average ICN between the two random walks (polygons) would still approach infinity if the length of the other random walk (polygon) approached infinity. The data provided by our simulations match our theoretical predictions very well.