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According to 〜によれば add to 増やす add up 合計する after a while しばらくして against the idea その考えに反対して all of a sudden 突然に all the time いつも all through the night 一晩中 along with 〜と一緒に apply for 〜に申し込む apply to 〜に適用する as a rule 原則として aside from 〜のほかに / 〜を除いて at any cost どんな犠牲を払っても at heart 心の底では at last ついに at least 少なくとも at length 詳細に at most 多くても at once すぐに / 一度に at the sight of 〜を見て at times 時々 attach to 〜に付ける / 〜に結びつける back up 支援する、バックアップする based on 〜に基づいて be absent from 〜を欠席している be against 反対する be based on 〜に基づいている be confident of 〜に自信がある be curious about 〜に好奇心を持つ be derived from 〜に由来する be filled with 〜で満たされている be full of 〜でいっぱいである be made up of 〜で構成されている be pleased with 〜に満足している be short of 不足している be similar to 〜に似ている because of 〜のせいで / 〜のおかげで before long まもなく break out 突発する break out in （急に）〜になる break up 解散する / 別れる bring out 引き出す / 公表する bring up 育てる / 持ち出す burst into 急に〜し始める by heart 暗記して by mistake 間違えて by now 今頃までには by the way ところで by way of 〜を通じて call for 要求する / 呼びかける call out 大声で呼ぶ carry on 続ける carry out 実行する、行う catch up with 〜に追いつく close to 〜に近い come across 偶然出会う / 見つける come into 〜に入る / 〜になる come out 出てくる / 公表される come up with 〜を思いつく compared with 〜と比べて depend on 〜に依存する do him good 彼に利益をもたらす drive at 意図する、狙う drop by 立ち寄る drop down 落ちる feel at home くつろぐ feel like doing 〜したい気分 feel sorry 気の毒に思う figure out 理解する find fault with 〜に文句をつける find out 知る、解明する for fear of 〜を恐れて for free 無料で for good 永遠に、完全に for once 一度だけ / 今回だけは for sale 売り物の for the best 最善のために get over 乗り越える get ready 準備する get rid of 〜を取り除く give away 与える、寄付する give in to 〜に屈する give off 放つ give out 配る / 発表する go ahead 続けて行う go down 下がる / 沈む hand in 提出する hand over 手渡す hang on 待つ / 頑張る hang up 受話器を置く hear from 〜から連絡をもらう help yourself 自由に取る / 自由にどうぞ hold back 控える hold on 待つ / 持ちこたえる hold up 停止させる、遅らせる in a jacket ジャケットを着て in a word 一言で言えば in advance 前もって in case 〜の場合に in common 共通して in detail 詳細に in hand 手元に in part 部分的に in place of 〜の代わりに in return 見返りに in terms of 〜の観点から in the distance 遠くに in the habit of 〜する習慣がある in the way 妨げになって instead of 〜の代わりに keep a secret 秘密を守る keep an eye on 見守る keep away from 近づかないようにする keep on Ving 〜し続ける keep pace with 〜に遅れずについていく keep the change お釣りはいりません keep track of 記録をつける / 追跡する keep up with 〜に遅れずについていく lay it down それを置く / 規定する less than 〜未満 / 〜より少ない look after 世話をする look back on 〜を振り返る look down on 〜を見下す look like 〜のように見える look up 調べる / 見上げる made up of 〜で構成されている major in 〜を専攻する make efforts 努力する make it out 理解する / 成し遂げる make out 見分ける、うまくいく make progress 進歩する make sense 理解できる、意味を成す make up your mind 決心する mind your own business 自分のことに集中しろ move on 次に進む no longer もはや〜ない not always 必ずしも〜でない nothing but ただ〜だけ on air 放送中 on behalf of 〜を代表して on business 仕事で on fire 火がついている on purpose わざと on the point 〜の点で on time 時間通りに one another お互いに out of the question 問題外で pass by 通り過ぎる pay attention 注意を払う play a part in 〜で役割を果たす pour out 注ぎ出す、溢れ出る prefer A to B BよりAを好む put away 片付ける put off 延期する put on 着る / 演じる　(weightで太る） put out 消す / 発表する reach for 手を伸ばす rely on 〜に頼る result in 【自動詞】結果として〜になる run it over それをひく / 読み返す run out of 〜を使い果たす run over ひいてしまう、走り回る see about 手配する / 調べる see off 見送る see through 見抜く / 見通す set out 出発する、始める set up 設置する / 設定する show off 自慢する、見せびらかす show up 現れる / 到着する sit up 座る、起き上がる speak up はっきり話す stand out 目立つ stand out 目立つ stand up for 〜を支持する suffer from 〜に苦しむ take away 持ち去る / 奪う take in 理解する、取り入れる take notice of 注意を払う take on 引き受ける / 挑む take out 取り出す / 持ち帰る take over 引き継ぐ、乗っ取る take part 参加する take place 起こる / 開催される take risks 危険を冒す take turns 交代で行う talk over 相談する tear off 引き裂く the second largest 二番目に大きい think better of 考え直す throw away 捨てる try on 試着する turn in 提出する turn off 消す / 切る turn on （スイッチを）入れる turn out 結果的に〜になる turn over ひっくり返す under control 制御下にある up to date 最新の with ease 容易に with regard to 〜に関して

Earth's History. All the processes that have been discussed require long periods of time to create a noticeable change on Earth's surface. You can just imagine how long it would take to create an oceanS as vast as the Pacific Ocean if the ocean floor moves only at about 10 cm/year. It is then important to know the history of Earth to learn the complexities of its past and be able to use it to understand the present. Just like learning the history of a country that requires one to read a lot of books, learning the history of Earth involves studying a lot of rocks. Rocks, especially sedimentary rocks, contain a lot of information about Earth's past. It holds the key to most of the geologic processes that happened on Earth and the key to uncovering how life on Earth evolved. But these discoveries are worthless if there is no time perspective. Thus, one of the most important contributions of geologists to mankind is the geologic time scale, which holds a history that is exceedingly long.The geologic time scale divides the history of Earth into different blocks of time by using relative dating. Since geologists use rocks to understand Earth's history, dating does not give accurate numerical dates, it only tells that an event preceded the relative dating places these rocks in their proper sequence of formation. But relative other. This method is still widely used today, alongside a more accurate method called absolute dating, which uses radioactive elements. With relative and absolute dating. geologists can trace the history of Earth. Relative Dating. Relative dating requires one to know the basic principles such as law of super-position, principle of original horizontality, principle of cross-cutting relationships, and unconformities.Law of Superposition The law of superposition is the most basic principle in relative dating. It states that in an undeformed sequence of sedimentary rock, the layers found at the top are the youngest rocks and the layers at the bottom are the oldest. It may seem too obvious, but this principle has only been clearly stated in 1669 by the Danish anatomist, geologist, and priest, Nicolaus Steno. Principle of Original Horizontality Along with the law of superposition, Steno stated that an undeformed sequence is the one where the layers are still in a horizontal position. This follows the principle of original horizontality, which states that sediments are deposited horizontally. Principle of Cross-Cutting Relationships The principle of cross-cutting relationships determines which events occurred first depending on which rocks are affected. The geologic layer that cuts another is younger than the layer it cuts across.Unconformities Rock layers that have not been interrupted are considered conformable. These sites represent spans of geologic time. But there is no place on Earth that has a complete conformable stratum since external and internal processes have always interrupted the deposition of the sediments. These breaks in the record of the rock strata are called unconformities. Using unconformities, geologic events are determined. There are three basic types of unconformities angular unconformity, disconformity, and nonconformity. Angular unconformity is characterized by having tilted or folded sedimentary rocks below younger, horizontal layers of rock. Disconformity is determined where there are missing parallel rock layers. Erosion takes place and removes the younger top layers and then deposition would once again happen. Nonconformity is characterized by an igneous or metamorphic rock found below a sedimentary rock. Figure 3-13. Three basic types of unconformities Using these principles for relative dating, one can determine the order of events However, relative dating does not give a time element as to when they happened. Absolute Dating For a much more accurate method of determining the history of Earth, geologists make use of absolute dating. This method uses unstable elements to determine the exact age of rocks. Isotopes are elements that have the same number of protons but different number of neutrons. Most isotopes are stable but some may be unstable. This is because the forces that bind the protons and neutrons in the nucleus of the isotope are not strong enough to hold them together, resulting in a radioactive decay, The unstable isotopes are called radioactive isotopes or parent isotopes. When these parent isotopes undergo radioactive decay, new isotopes, known as daughter products, are formed. The time it takes for one-half of the nuclei in the sample to decay is called half-life. This amount of time is fixed for each kind of radioactive isotope no matter what physical conditions it is subjected to. The ratio of parent daughter isotope determines how many half-lives have passed. If it is 1:1, then one half-life has passed; if it is 1:3, then two half-lives have passed; and if 1:7, then three half-lives have passed, and so on. Therefore, using the concept of half-life and parent-daughter ratio, geologists can determine the exact age of the sample. This method is called radiometric dating. It uses five radioactive isotopes to determine the age of rocks. For dating rocks that are about a million years old, rubidium-87, thorium-232, and the two isotopes of uranium (U-238 and U-235) are used. The fifth radioactive isotope is potassium-40, which has a half-life of 1.3 billion years. With these radioactive elements, determining the accurate age of rocks becomes easier. For dating events that are more recent, radiocarbon dating is used. This method uses carbon-14. Carbon-14 has a half-life of 5730 years and can be used to date back events up to 75000 years. All organisms contain a small amount of carbon-14, which is proportional with the amount of carbon-12. When an organism dies, the carbon-14 decays and is no longer replaced. The amount of carbon-14 left in the sample is then compared to the amounts of carbon-12 present, and radiocarbon dates can then be determined. This method has been particularly useful for anthropologists, archeologists, historians, and geologists for events that are much more recent.Fossils Aside from rocks, geologists also use the remains of living organisms in understanding Earth's history. Some fossils are formed from parts of an organism (body fossil), while some provide signs or clues as to which life-forms were present at that time (Frace fossils). Fossils contain a lot of information about the past the kind of organisms that have lived, the environment where organisms lived, and the evolution organisms underwent as their environment changed. However, not all organisms turned into fossils, therefore, scientists cannot learn everything about the past using fossils alone. There are also fossils that are used to determine the age of a rock. These are index fossils and these are only found in rocks of a particular age. The organisms that turned into index fossils have a relatively short life-spanning from a few million years to a few hundred million years. Index fossils are also found in most of the common rocks around the world, which makes them easier to identify.The methods used for dating the age of rocks are also used for fossils. Absolute dating is more commonly used since it can give exact numerical dates for the age, but relative dating can also be used to determine which fossils are older.

Legislative Structure: Congress -- two houses: Senate (2 senators from each state, 6 year terms, must be at least 30 years old and have been a citizen for at least nine years) -- Constitution originally allowed state legislatures to choose the two senators but now elected by popular vote House of Representatives (number based on population of state, determined every ten years in a census -- number now set at 435; 2 year terms, must be at least 25 years old and have been a citizen for 7 years) Legislative Powers: Makes the laws -- any senator or representative can propose a bill -- if majority in one house favors it, bill goes to other house for debate -- if approved by both -- goes to the president to be signed into law -- President can veto any proposed law but can then be overruled if there is a two thirds majority in both houses favoring the law Elastic Clause -- can make all laws “necessary and proper” to carry out its other powers Only the House of Representatives can propose new taxes Only Congress can decide on how to spend the money raised through taxes Power to raise (pay for) an army and navy To declare war Approves treaties and executive appointments -- Senate How was the debate over how the president should be chosen resolved? The Electoral College System -- made up of electors who cast votes to elect the president and vice-president every four years Each state has as many electors in the Electoral College as the number of senators and reps it sends to Congress. The votes cast by electors are called electoral votes. Delegates left the method of choosing electors up to each state. Before 1820, state legislatures chose electors in most states. Today, people choose their state’s electors when they vote in presidential elections. The electors then cast their ballots for president and vice-president on a date chosen by Congress. Today must win at least 270 of the 538 total electoral votes

La Isla de Pascua This 64-square mile island off Chile’s west coast goes by many names. Its English name is Easter Island, marking the day in 1722 when it was discovered by a European. In Spanish, it is called Isla de Pascua. The Rapa Nui, its first inhabitants, called it “The Navel of the World.” Experts do not agree on the history of Easter Island. It is unclear where the first people came from or when they arrived. Many people believe they came from neighboring Polynesia around AD 300. This culture built 900 enormous stone statues for which the island is famous. The statues are known as moai. Most of the moai are made of volcanic tuff. Tuff is a soft rock made from the ash that is forced out during a volcanic eruption. It is easier to carve than hard stones like marble, but it is not ideal for carving small details. The moai are considered megaliths (large stones that form prehistoric monuments). They stand up to 33 feet high when on their ceremonial platform (the average height is about 13 feet), and they weigh up to 82 tons. They usually have a trunk (body), inset arms, and an exaggerated head with angular edges. The head of each moai takes up about one-third of the total figure. It all shows that the people who created them could engineer monumental structures. Many moai stand with their backs to the sea. They watch the island like protective markers. Some low-relief carvings of religious deities were added to the backs of the moai at a later date. Experts are still trying to understand how they were carved and moved, and what they might mean. Chile took control of the island in 1888. At that time, its population was less than 200. The government used it for grazing livestock. Today, the mystery of Easter Island makes it a popular tourist spot. Valparaíso Valparaíso is a colorful blend of old and new traditions in Chile. This port city is an interesting example of daily life in Chile. Before the Panama Canal was opened in 1914, all ships traveling east to west had to pass all the way around South America. Valparaíso was ideally positioned as a stopping point in the Southern Pacific. Valparaíso has a long history of playing host to a large array of cultures and ideas. The city was known around the world as a place that embraced learning and new ideas. Pablo Neruda had a home in Valparaíso in the 1920s. After the Panama Canal was completed, shipping traffic declined significantly. Valparaíso was forgotten and fell upon hard times. In the 1990s, the government of Chile made an effort to revitalize the colorful port. Today it is a UNESCO (United Nations Educational, Scientific and Cultural Organization) World Heritage site. True to its history of embracing learning, it is also home to four universities. Tourists can visit the first stock exchange in Latin America. Valparaíso also has Chile’s first public library. Visitors stroll through cobblestone streets in the historic district. Here they can also view the city’s iconic colorful buildings. At night, music and street performers liven the experience. Try It Yourself Two Spanish words comprise the name of this city. Val means valley. Paraiso means paradise. The name Valparaíso means Paradise Valley. Can you recognize descriptive Spanish words in other Spanish place names? Start with names of places around you. Las Comidas Tradicionales To Chileans, nothing says home like pastel de choclo, a type of casserole made of beef and corn. The body of the casserole is flavorful. It contains beef, onions, raisins, and roasted chicken. It is topped off with a layer of creamed corn and then baked. Baking it brings out the sweetness in the corn, adding a contrast to the savory meat. The preferred type of corn is called choclo. This variety is grown in rugged conditions in the Andes. The kernels are large and hearty compared to other varieties. Another favorite dish in Chile is a type of meat stew called cazuela. Originally a native dish, it is now known as comfort food in Chile. Pork, beef, lamb, or chicken still on the bone is boiled in a traditional clay pot. To that, corn, potatoes, and other local vegetables are added. It is seasoned with onion and garlic. Pablo Rogat/Shutterstock When Chileans think about dessert, manjar is the first ingredient on their minds. It is a caramel sauce made from cooking milk, sugar, and vanilla. It is found in many desserts. It is used as filling in cakes, pies, and cookies. It is refrigerated to make puddings and custards. People even use it to sweeten their coffee.

Introduction to Hedging Instruments: Forwards, Futures, Options, and Swaps Hedging instruments are financial tools used by businesses and investors to mitigate risk. These instruments help protect against adverse price movements in assets such as commodities, currencies, interest rates, or securities. The four main hedging instruments are forwards, futures, options, and swaps. 1. Forwards A forward contract is a customised agreement between two parties to buy or sell an asset at a predetermined price on a specified future date. Key Characteristics: Over-the-counter (OTC): Traded directly between parties, not on an exchange. Customisation: Can be tailored to suit the needs of the parties involved. Settlement: Occurs at the end of the contract, which may involve physical delivery or cash settlement. Risk: Forwards carry counter-party risk, as there is a possibility one party may default. Example: A company that needs to import raw materials in six months may enter into a forward contract to lock in the current price, avoiding the risk of price increases. 2. Futures A futures contract is similar to a forward, but it is standardised and traded on an exchange. This standardisation eliminates counter-party risk. Key Characteristics: Standardised: Contract size, expiration, and other terms are fixed by the exchange. Mark-to-market: Gains and losses are settled daily. Liquidity: Futures are highly liquid because they are traded on exchanges. Regulation: As they are traded on formal exchanges, they are more regulated than forwards. Example: A wheat farmer may sell futures contracts to hedge against a possible decline in wheat prices before harvest. 3. Options Options provide the right, but not the obligation, to buy or sell an asset at a specified price on or before a certain date. There are two types of options: call options and put options. Call Option: Gives the holder the right to buy an asset at a predetermined price. Put Option: Gives the holder the right to sell an asset at a predetermined price. Key Characteristics: Premium: The buyer pays a premium upfront to obtain the option. Limited Risk: The maximum loss is limited to the premium paid. Flexibility: Options can be used for speculative or hedging purposes. Example: An investor holding stocks may buy a put option to protect against potential declines in the stock's price. 4. Swaps A swap is a contract in which two parties agree to exchange cash flows or liabilities over a specific period. The most common types are interest rate swaps and currency swaps. Key Characteristics: Customizable: Like forwards, swaps are often tailored to meet the needs of the parties involved. Counterparty Risk: Swaps are typically OTC instruments, exposing parties to default risk. Common Uses: Used to manage interest rate risk or currency risk. Example: A company with a variablerate loan may enter into an interest rate swap to exchange its variable payments for fixedrate payments, thus locking in stable costs. Hedging instruments are essential for managing financial risk in volatile markets. Each instrument serves different purposes, with varying levels of complexity, risk, and customization. Whether through forwards, futures, options, or swaps, businesses can better plan for the future by reducing exposure to uncertain price fluctuations. Hedging Strategies for Market Risk, Credit Risk, and Currency Risk 1. Hedging Strategies for Market Risk Market risk (also known as systematic risk) arises from fluctuations in asset prices, such as stocks, bonds, commodities, and interest rates, due to economic factors or market volatility. Key Hedging Instruments for Market Risk: Derivatives (Options, Futures, and Forwards): These instruments allow investors to hedge against unfavorable price movements in stocks, commodities, or interest rates. Example: An investor holding a large stock portfolio might buy a put option to protect against a potential market downturn. If the market declines, the put option increases in value, offsetting losses in the portfolio. Short Selling: Investors can sell borrowed assets with the expectation of buying them back at a lower price, profiting from the decline. Example: A fund manager expecting a market decline may short sell stocks to hedge a portfolio against losses. Common Hedging Strategies: Portfolio Diversification: Reducing market risk by spreading investments across various asset classes (stocks, bonds, commodities) and sectors. Using Index Futures: Large portfolios can be hedged using index futures that track the performance of the overall market. If the market declines, profits from the short position in the futures contract will offset losses in the portfolio. Risk Parity: Allocating assets based on the level of risk rather than the dollar amount invested, balancing risk exposure across asset classes. 2. Hedging Strategies for Credit Risk Credit risk refers to the possibility that a borrower will default on a debt obligation. This is especially important for banks, lenders, and institutions dealing with bonds and loans. Key Hedging Instruments for Credit Risk: Credit Default Swaps (CDS): A financial derivative where the buyer of a CDS pays a premium to the seller in exchange for protection against a default on a loan or bond. Example: A bank holding corporate bonds can buy a CDS to ensure they are compensated if the issuing company defaults. Collateralised Debt Obligations (CDOs): These instruments pool together various debt instruments and allow risk to be distributed among multiple investors. Credit Insurance: Companies may use insurance to protect against the risk of a customer defaulting on payments. Common Hedging Strategies: Diversification of Loan Portfolio: Spreading out credit exposures across various industries, geographies, and borrower profiles reduces the overall risk of default. Tightening Lending Standards: Limiting exposure to highrisk borrowers by implementing stringent credit assessments. AssetBacked Securities: Banks can sell loans or bonds packaged as assetbacked securities to reduce their exposure to credit risk. 3. Hedging Strategies for Currency Risk Currency risk (or exchange rate risk) arises from fluctuations in foreign exchange rates, which can affect companies involved in international trade or with investments in foreign countries. Key Hedging Instruments for Currency Risk: Forward Contracts: A firm agrees to exchange a specified amount of currency at a predetermined exchange rate on a future date. Example: A U.S. exporter expecting payment in euros might enter into a forward contract to sell euros and lock in a favorable exchange rate. Currency Options: These give the right, but not the obligation, to buy or sell currency at a specific price. Example: A U.S.based company buying goods from Japan might buy a call option on the yen to hedge against the risk of yen appreciation. Currency Swaps: Two parties exchange interest payments and principal in different currencies to hedge against exchange rate fluctuations. Common Hedging Strategies: Natural Hedging: Companies can offset currency risk by balancing foreign revenue with costs in the same currency. For example, if a company generates revenue in euros, it can also incur expenses in euros, reducing exposure to exchange rate fluctuations. Multi-Currency Invoicing: Firms can invoice in their home currency, shifting the currency risk to the buyer. Currency Diversification: Holding a diversified basket of currencies can reduce exposure to large fluctuations in any one currency. Effective hedging strategies are crucial for managing various types of risks in financial markets. Market risk can be managed using instruments like futures and options, while credit risk can be mitigated through diversification and credit derivatives. Currency risk, often faced by multinational firms, can be hedged using forward contracts, options, or swaps. Each strategy helps firms and investors protect their portfolios, ensure financial stability, and reduce the impact of adverse movements in the financial markets. Portfolio Risk Management Techniques: Diversification, Asset Allocation, and Risk Budgeting Managing risk is a fundamental aspect of portfolio management. Investors use various techniques to control and reduce the risks inherent in investing. Three key techniques used in portfolio risk management are diversification, asset allocation, and risk budgeting. Each of these techniques helps in mitigating potential losses while aiming to achieve the desired return. 1. Diversification Diversification is a risk management strategy that involves spreading investments across different assets, sectors, or geographic regions to reduce exposure to any single risk. The idea is that different assets perform differently under various market conditions, so losses in one investment can be offset by gains in others. Key Benefits of Diversification: Reduction of Unsystematic Risk: Unsystematic risk, which is unique to a specific company or industry, can be reduced by holding a variety of investments that respond differently to market conditions. Improved Stability: A diversified portfolio is less volatile, as the negative performance of one asset can be balanced by the positive performance of others. Methods of Diversification: Across Asset Classes: Investing in a mix of asset classes such as stocks, bonds, commodities, and real estate. Example: A portfolio with 60% equities, 30% bonds, and 10% commodities is more diversified than one solely consisting of stocks. Within Asset Classes: Diversifying within a single asset class (e.g., holding stocks from different sectors like technology, healthcare, and energy). Geographic Diversification: Investing in assets across various countries or regions to mitigate country-specific risks. Example: Holding U.S. stocks along with emerging market equities can reduce risks related to a downturn in one country's economy. 2. Asset Allocation Asset allocation refers to the process of dividing investments among different asset classes (such as stocks, bonds, and cash) to align with an investor's risk tolerance, time horizon, and financial goals. Asset allocation plays a crucial role in portfolio risk management by determining the overall risk-return profile of the portfolio. Key Elements of Asset Allocation: Strategic Asset Allocation: A longterm approach that involves setting target allocations for different asset classes based on financial goals and risk tolerance. Example: A young investor with a longterm horizon might allocate 70% to stocks, 20% to bonds, and 10% to cash. Tactical Asset Allocation: A more active approach that involves adjusting the asset mix in response to short-term market conditions. Example: If the investor expects an economic downturn, they might temporarily reduce exposure to equities and increase exposure to bonds. Types of Asset Allocation Models: Conservative: Focuses on preserving capital with a larger allocation to bonds and cash (e.g., 20% stocks, 80% bonds). Balanced: A moderate risk approach with an equal focus on growth and income (e.g., 50% stocks, 50% bonds). Aggressive: Targets higher returns by investing predominantly in equities, accepting higher risk (e.g., 80% stocks, 20% bonds). Example of Asset Allocation: A 40 year old investor with moderate risk tolerance may allocate their portfolio as follows: 50% equities, 40% bonds, and 10% in alternative investments such as real estate or commodities. The equities provide growth potential, while the bonds and alternative assets offer stability and income. 3. Risk Budgeting Risk budgeting is a method of allocating risk across different components of a portfolio, rather than focusing solely on returns. The goal is to optimise the portfolio’s risk-return profile by distributing risk in a way that aligns with the investor’s objectives and risk tolerance. Key Concepts of Risk Budgeting: Risk Contribution: Each asset class or investment in the portfolio contributes a certain amount of risk (measured by metrics such as volatility or Value at Risk). Risk budgeting ensures that no single asset class dominates the overall risk of the portfolio. Example: A portfolio may contain 60% stocks and 40% bonds, but if the stocks are highly volatile, they may contribute 90% of the portfolio's risk. Target Risk: Investors set a maximum acceptable level of risk (e.g., a portfolio volatility of 10%) and allocate investments so that the total risk remains within this target. Techniques in Risk Budgeting: Risk Parity: Allocates risk evenly across asset classes, rather than allocating capital based solely on return expectations. Example: In a risk-parity portfolio, both bonds and stocks might be balanced in such a way that they contribute equally to the overall portfolio risk, even though the dollar investment in bonds may be larger due to their lower volatility. Value at Risk (VaR): This technique measures the potential loss in a portfolio over a specific time period, under normal market conditions, at a given confidence level. The risk budget ensures that the potential loss stays within acceptable limits. Example of Risk Budgeting: An investor targets an overall portfolio risk of 8% volatility. After analyzing the risk contribution of each asset class, they determine that equities, which currently make up 60% of the portfolio, contribute 70% of the risk. To adhere to the risk budget, the investor may reduce their equity exposure and increase their allocation to bonds or other less volatile assets. Diversification, asset allocation, and risk budgeting are complementary techniques used in portfolio risk management. Diversification reduces unsystematic risk by spreading investments across various assets. Asset allocation ensures that investments align with an investor's goals and risk tolerance. Risk budgeting focuses on managing the contribution of risk from each asset class to create a balanced and efficient portfolio. Together, these strategies help investors achieve a balance between risk and return, ensuring longterm portfolio stability. Risk Mitigation Through Insurance, Securitisation, and Other Financial Engineering Techniques Risk mitigation is a core objective in financial management, and various strategies can be employed to reduce or manage risks. Three major approaches are insurance, securitisation, and financial engineering techniques. Each of these methods helps firms and individuals transfer, reduce, or eliminate certain financial risks. 1. Insurance as a Risk Mitigation Tool Insurance is a traditional risk transfer method that protects against financial losses by shifting the risk to an insurance company in exchange for premium payments. It is widely used to mitigate various forms of risk, such as operational, liability, and property risks. Key Aspects of Insurance for Risk Mitigation: Risk Transfer: The insurer takes on the risk in exchange for a premium, thus protecting the insured party from unexpected financial losses. Indemnity: In the event of a loss, the insurance policy compensates the insured based on the terms of the contract. Customisable Coverage: Insurance policies can be tailored to address specific risks, such as property damage, business interruption, liability, or cyber risks. Types of Insurance for Businesses: Property and Casualty Insurance: Covers physical assets like buildings, machinery, and inventory from risks like fire, theft, or natural disasters. Liability Insurance: Protects businesses against legal liabilities arising from accidents, negligence, or professional errors. Business Interruption Insurance: Compensates for lost income if a business has to halt operations due to unforeseen events. Credit Insurance: Shields companies from losses due to the nonpayment of trade receivables. 2. Securitisation as a Risk Mitigation Technique Securitisation is a financial engineering process that involves pooling various financial assets (such as loans, mortgages, or receivables) and converting them into marketable securities. This process allows firms to transfer risk to investors, thereby reducing their exposure. Key Elements of Securitisation: Risk Transfer: By securitising assets, companies can transfer the risk of default or nonpayment to investors who purchase the securities. Liquidity Creation: Securitisation converts illiquid assets (like mortgages or loans) into liquid, tradeable securities, improving cash flow for the originating firm. Diversification of Risk: Pooling assets with different risk profiles reduces the impact of individual defaults, spreading the risk across multiple investors. Common Forms of Securitisation: MortgageBacked Securities (MBS): Pools of mortgages are bundled and sold as securities to investors, transferring the risk of mortgage defaults. Example: A bank that issues home loans can bundle those loans into MBS and sell them to investors, transferring the credit risk of potential defaults. Asset-Backed Securities (ABS): Similar to MBS, but backed by other types of assets like credit card receivables, auto loans, or student loans. Collateralised Debt Obligations (CDOs): Structured financial products that pool different types of debt, such as loans and bonds, and sell them as securities with varying risk levels. Example: A bank may issue a portfolio of auto loans and then pool these loans into an assetbacked security (ABS). The ABS is sold to investors, who take on the risk of loan defaults. By securitising the loans, the bank reduces its exposure to credit risk and generates immediate cash flow. 3. Financial Engineering Techniques for Risk Mitigation Financial engineering involves the use of complex financial instruments, derivatives, and structured products to manage or mitigate financial risks. These techniques allow firms to hedge against specific risks, optimize capital structure, and improve financial stability. Common Financial Engineering Techniques: Derivatives: Financial instruments like futures, forwards, options, and swaps are used to hedge against price fluctuations, interest rate changes, or currency movements. Example: A company with significant foreign exchange exposure may use currency forwards or options to hedge against exchange rate fluctuations, ensuring predictable cash flows. Options and Futures: Options: Provides the right (but not the obligation) to buy or sell an asset at a predetermined price, allowing firms to hedge against unfavorable price movements. Example: An airline company can buy options on jet fuel to hedge against rising fuel prices. Futures: Standardized contracts to buy or sell an asset at a set price on a future date, commonly used to hedge commodities or financial assets. Example: A wheat producer may use futures contracts to lock in a favorable price for its crop, hedging against a potential price drop. Swaps: These involve the exchange of cash flows between two parties, often used to manage interest rate risk or currency risk. Interest Rate Swaps: Firms can exchange floatingrate interest payments for fixedrate payments to hedge against rising interest rates. Currency Swaps: Used to hedge exchange rate risk in crossborder transactions by exchanging principal and interest payments in different currencies. Example: A company with a variablerate loan may enter into an interest rate swap to exchange its variable payments for fixedrate payments, locking in stable costs. Structured Products: These are customised financial instruments designed to achieve specific riskreturn objectives. They often combine derivatives with other securities to create tailored risk exposures. Example: A structured note that combines a bond with an embedded option, offering downside protection while allowing for potential upside linked to the performance of an equity index. Credit Derivatives: Tools like credit default swaps (CDS) allow investors to transfer credit risk to other parties. Example: A bondholder worried about a company’s potential default may purchase a CDS, which pays out in case of a default event. Example: A company may issue a bond with an embedded call option, allowing it to repurchase the bond if interest rates decline. This financial engineering tool enables the company to mitigate the risk of rising interest rates, reducing future borrowing costs. Risk mitigation through insurance, securitisation, and financial engineering offers businesses a variety of tools to manage and transfer risks. Insurance allows for the direct transfer of risk to an insurer, while securitisation helps companies offload risk by packaging and selling assets as securities. Financial engineering techniques, including derivatives, swaps, and structured products, provide sophisticated ways to hedge market, interest rate, and currency risks. Each approach helps organizations improve financial stability, enhance liquidity, and manage potential losses in a volatile market environment.

• Agriculture is growing of crops and keeping of animals. • People who practice agriculture are called farmers. • Agriculture is very important to the family. Benefits to the family • It provides food. • It provides money. • Agriculture gives us medicine. • It provides jobs. • Agriculture gives us transport and power. • It helps most families become self sufficient. • Farm tools are instruments used on farms to make work easier. • They are usually handheld and are used frequently when practicing agricultural activities. • Farm tools are light in weight, easy to handle and are suited to the strength of the farmer Name of tool Picture Use Watering can For fine watering of seed beds bucket Carrying manure, fertilizer,seed and ripe crops Name of tool Picture Use Sickle Cutting grass and harvesting of cereals like rice and wheat Slasher Cutting down tall grass and weeds USES OF FARM TOOLS Name of tool Picture Use Garden trowel Transplanting seedlings and making planting holes Hand fork Shallow cultivation of soil Aerating the soil USES OF FARM TOOLS Name of tool Picture Use Shovel Loading and offloading soil or manure into a wheelbarrow, scotch cart or truck Spade Digging and turning over of moist soil USES OF FARM TOOLS Name of tool Picture Use Garden fork Loosening and turn soil Garden line Marking straight ridges and garden beds USES OF FARM TOOLS Name of tool Picture Use wheelbarrow Moving items around the farm Items such as soil, mulch, animal feed. Etc Knapsack sprayer Spraying pesticides and herbicides Spraying fertilizers on crops. • An inventory is a record of the things that you have. • This is a list of tools issued out and tools received back and from whom Inventory of farm tools Inventory record sheets Created by Date Name of tool Sheet Tool numbenumber Description r Location Quantity Spade 1/15 Black,wooden handle Store room 2 SAFETY IN AGRICULTURE • Agricultural activities can be dangerous. • Hazards involved results in injury, disability and death of people and animals. • The hazards are usually caused by physical injury and chemical poisoning. Common hazards in Agriculture 1. physical injury These include: • Injury caused by accidents during use of farm tools, equipment and machinery. • Misuse and improper storage of farm tools and equipment. • Being kicked by animals. • Drowning in farm pond, pool or dam. Common hazards in Agriculture 2 . Chemical poisoning These include: • Spraying without protective clothing. • Eating or smoking when spraying chemicals. • Dumping toxic chemical left overs on land and in water. • Eating agriculture produces without prior permission from adults. • Pesticides, herbicides and fertilizers pollute water sources and kill animals. Chemical poisoning Ways of preventing common agricultural hazards 1. Wear protective clothing such as gloves, gumboots, respirator, hat and overalls. 2. Do not eat, drink or smoke when spraying. 3. Dispose off all chemical remains safely. 4. Bury or burn empty chemical containers and chemical left overs. 5. Wash thoroughly with running water and soap after using chemicals. 6. Do not spray during windy days. 7. Handle tools the right way. 8. Fence farm ponds and dams. Ways of preventing common agricultural hazards Climate and Landuse Seasons of Zimbabwe Seasons of Zimbabwe Definition of terms • A season is a time of the year with almost the same weather patterns. • Weather is the state of the atmosphere at a particular time at a particular place. • it is the daily condition of air around us. • Seasons are determined by rainfall and temperature. Seasons of Zimbabwe • There are four seasons in Zimbabwe , which are: 1.The rain season 2.Post rain season 3.Cool dry season 4.Hot dry season Seasons of Zimbabwe 1.The rain season ( summer) • It is also called the hot- wet season. • The season begins in mid November to mid March. • The period is rainy and hot. • Dams and rivers fill up. Seasons of Zimbabwe 2 . The post rain season ( autumn ) • It starts mid March – May • The days are bright and sunny. • The leaves change from green to red, orange, yellow or brown before falling. • In addition, there is less sunlight because the days are shorter. • It is the harvesting period of most crops. Seasons of Zimbabwe 3. The cold dry season ( winter ) • It begins mid May – mid August • The mornings, evenings and nights are very cold. • Has short days and long nights. Seasons of Zimbabwe 4 . The hot season (spring ) • It begins mid August – mid November. • The days are very hot with cool nights. • A season for trees to develop new shoots. Summer Activities Agricultural activities done during the rain season includes: • Ploughing and planting of summer crops for example maize, cotton. • Weeding • Pest and disease control • Applying fertilizers. • Weekly dipping of animals because ticks, lice and mites would be many. • Harvesting of summer crops • Preparing fireguards. A fireguard is a fire break. • Beginning of the planting of wheat, barley and oats. Winter Activities • Planting of winter crops such as wheat, barley and oats. • Harvesting and selling of summer crops continues. • Constructing frost barriers for frost sensitive crops such as tomatoes. • Vaccinating animals against blackleg. • Supplementary feeding of grazing animals. • Dosing of animals to kill internal parasites. Spring Activities • Shelling and threshing of grain crops. • Dry planting of summer crops. • Carrying manure to fields. • Ploughing and harrowing. • Making planting holes Soil Components •Soil is made up of 4 components: 1)Mineral matter 2)Organic matter 3)Soil water 4)Soil air

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