ABSTRACT

DEOHYDULHW\RIHYLGHQFH VXSSRUWV WKH ILUVWFODLP 0DQ\HGXFDWRUVFRQFHUQHG ZLWKWKHHGXFDWLRQDOSURJUHVVRI85(*FKLOGUHQKDYHREVHUYHGWKDWWKHUHDUH

VLJQLILFDQWHGXFDWLRQDOEHQHILWVWREHKDGIURPWKHSUHVHQFHLQDFODVVURRPRI D WHDFKHU RI WKH VDPH HWKQLFLW\ DV WKH VWXGHQWV ,QPDQ\86 FLWLHV SROLFH GHSDUWPHQWVKDYHEHHQVWULYLQJWRKLUHPRUH85(*RIILFHUVLQRUGHUWRGHDO PRUHHIIHFWLYHO\ZLWKSUHGRPLQDQWO\85(*FRPPXQLWLHV $QGVXFKSHUVRQDO VHUYLFHVDVKDLUFXWV PDQLFXUHV HWF DUHSURYLGHGDOPRVWH[FOXVLYHO\E\DQGWR PHPEHUVRIWKHVDPHHWKQLFFRPPXQLW\ $VXEVWDQWLDOERG\RIUHVHDUFKKDVGRFXPHQWHGDOLQNEHWZHHQWKHWUDLQLQJ

RI 85(* GRFWRUV DQG ERWK WKH TXDQWLW\ DQG WKH TXDOLW\ RI KHDOWK FDUH VHUYLFHV GHOLYHUHG WR WKH FRUUHVSRQGLQJ85(* FRPPXQLWLHV 3HQQ IRXQG WKDW GRFWRUV ZKR KDG HQWHUHG WKH 8QLYHUVLW\ RI &DOLIRUQLD DW 6DQ 'LHJR0HGLFDO6FKRRODV´VSHFLDODGPLWVµ VHHPRUHSDWLHQWVSHUGD\DQGDUH PRUH OLNHO\ WR KDYH D SRRU FOLHQWHOH WKDQ DUH WKHLU FODVVPDWHV .HLWK HW DO IRXQG WKDW85(*DQGPRVWO\SUHIHUHQWLDO DGPLWVZHUHPRUH OLNHO\ WRSURYLGHPHGLFDOVHUYLFHVWR85(*FRPPXQLWLHV .RPDURP\ HWDO IRXQGWKDWDOOSK\VLFLDQVWHQGWRFDUHSULPDULO\IRUSDWLHQWVRIWKHLURZQUDFH DQGHWKQLFLW\ EXWWKDWWKLVLVHVSHFLDOO\WUXHIRU%ODFNDQG+LVSDQLF$PHULFDQ SK\VLFLDQV $FFRUGLQJ WR WKH $VVRFLDWLRQ RI $PHULFDQ 0HGLFDO &ROOHJHV XQGHUUHSUHVHQWHG PLQRULW\ SK\VLFLDQV DUH PRUH OLNHO\ WKDQ :KLWH SK\VLFLDQV WR SUDFWLFH LQ GHSULYHG DUHDV DQG WR VHUYH SDWLHQWV ZKR DUH 0HGLFDLGUHFLSLHQWVZKRDUHGLVSURSRUWLRQDWHO\RI85(*´ UDFHµ RUHWKQLFLW\ WKHPVHOYHV +RO]HUDQG1HXPDUNFRQFOXGHGLQDVXUYH\DUWLFOHWKDW

5HVHDUFK RQ PHGLFDO HGXFDWLRQ ILQGV HYLGHQFH WKDW PLQRULW\ VWXGHQWV«SHUIRUPOHVVZHOOLQVFKRRO DQGDUHOHVVOLNHO\WRDFKLHYHKLJK OHYHOVRIH[SHUWLVH $WWKHVDPHWLPH WKLVUHVHDUFKDOVRVXJJHVWVWKDWWKHVH VWXGHQWVDUHXOWLPDWHO\PRUHOLNHO\WRVHUYHPLQRULW\SDWLHQWV ZKLFKPD\ SURYLGHDSRVLWLYHH[WHUQDOLW\WKDWKHOSVRIIVHWWKHORZHUTXDOLILFDWLRQVRU VNLOOOHYHOVWKDWWKHVHVWXGHQWVDWWDLQ

+RO]HUDQG1HXPDUN

&RQVLGHUDEO\ OHVVHPSLULFDO UHVHDUFKKDVEHHQGRQHRQ WKH VRFLDOEHQHILWV RI HGXFDWLQJ85(* ODZ\HUV DV FRPSDUHG WR WKH UHVHDUFK GRQH RQ85(* GRFWRUV +RZHYHU /HPSHUW HW DO D ² GLG GRFXPHQW DPRQJ 8QLYHUVLW\ RI 0LFKLJDQ 80 /DZ 6FKRRO JUDGXDWHV D FOHDU WHQGHQF\ IRU XQGHUUHSUHVHQWHGPLQRULW\ ODZ\HUV WR VHUYHPRUH ORZLQFRPH FOLHQWV WKDQ :KLWHODZ\HUV DQGDQHYHQPRUHSURQRXQFHGWHQGHQF\IRUPLQRULW\ODZ\HUV WRVHUYHFOLHQWVRIWKHVDPHHWKQLFLW\ $VWKH\REVHUYH

)URPRQHSRLQWRIYLHZ WKH VWURQJUHODWLRQVKLSEHWZHHQ WKHHWKQLFLW\RI PLQRULW\ODZ\HUVDQGWKHHWKQLFLW\RIWKHLUFOLHQWVLVDQDVSHFWRIWKHVXFFHVV RI0LFKLJDQ·VFRPPLWPHQWWRWUDLQPRUHPLQRULW\ODZ\HUV«)URPDQRWKHU SRLQWRIYLHZ WKHLPSOLFDWLRQVRIWKHUDFHOLQNHGSDWWHUQRIFOLHQWUHODWLRQ VKLSV DUH D GLVFRXUDJLQJ UHPLQGHU RI WKH FRQWLQXLQJ GHHS VLJQLILFDQFH RI UDFHLQSHUVRQDODQGSURIHVVLRQDOUHODWLRQVKLSVLQ$PHULFDQVRFLHW\

/HPSHUWHWDO D ²

9ROXQWDU\VHUYLFHFRQWULEXWLRQVWRGHVHUYLQJ FRPPXQLWLHV ,WLVRIWHQFODLPHGWKDW$$JHQHUDWHVEHQHILWVLQWKHIRUPRIJUHDWHUVHUYLFH LQ TXDQWLWDWLYHDQGRUTXDOLWDWLYH WHUPV WRFRPPXQLWLHVPRVW LQQHHG )RU WKH VDPH UHDVRQ WKDW SURIHVVLRQDOV DUH GLVSURSRUWLRQDWHO\ OLNHO\ WR SURYLGH WKHLU SURIHVVLRQDOVHUYLFHVWRFOLHQWVRIWKHLURZQHWKQLFLW\ LWLVDOVROLNHO\WKDWWKH\ ZLOOGLVSURSRUWLRQDWHO\PDNHYROXQWDU\VHUYLFHFRQWULEXWLRQVWRFRPPXQLWLHV RI WKHLU RZQ HWKQLFLW\ 6LQFH WKH PRVW QHHG\ FRPPXQLWLHV DUH PRVW RIWHQ FRPPXQLWLHV SRSXODWHG SUHGRPLQDQWO\ E\ 85(* PHPEHUV LW VWDQGV WR UHDVRQWKDWSURIHVVLRQDOVRIWKHHWKQLFLWLHVWDUJHWHGE\$$SROLFLHVZLOOEHWKH PRVWOLNHO\WRPDNHYROXQWDU\VHUYLFHFRQWULEXWLRQVWRVXFKFRPPXQLWLHV 7KLV H[SHFWDWLRQ LV DOVR FRQILUPHG E\ WKH VRPHZKDW OLPLWHG HYLGHQFH

DYDLODEOH 7KH$VVRFLDWLRQRI$PHULFDQ0HGLFDO&ROOHJHVUHSRUWHGWKDW XQGHUUHSUHVHQWHGPLQRULW\VWXGHQWVZHUHPRUHOLNHO\WRSDUWLFLSDWHLQSXEOLF KHDOWK VFUHHQLQJ FOLQLFV WRGHOLYHUPHGLFDO VHUYLFHV WRXQGHUVHUYHGSRSXOD WLRQVRXWVLGHRIFOLQLFDOURWDWLRQV DQGWRYROXQWHHUWRHGXFDWHKLJKVFKRRODQG FROOHJH VWXGHQWV DERXW VFLHQFH DQGPHGLFLQH /HPSHUW HW DO D ² IRXQGWKDWPLQRULW\JUDGXDWHVRIWKH80/DZ6FKRROZHUHVRPHZKDWPRUH OLNHO\ WKDQ:KLWH JUDGXDWHV WR HQJDJH LQ VXFK FRPPXQLW\RULHQWHG VHUYLFH DFWLYLWLHVDVSURERQROHJDOZRUNRQEHKDOIRIWKHSRRU VHUYLFHZLWKRXWSD\ RQ WKH ERDUG RI QRQSURILW RUJDQL]DWLRQV DQG WKH PHQWRULQJ RI \RXQJHU DWWRUQH\V %RZHQDQG%RN &K LQFOXGHG LQ WKHLU VXUYH\ LQVWUXPHQWTXHV

WLRQVDERXWYDULRXVNLQGVRIFRQWULEXWLRQVWRFRPPXQLW\DQGSXEOLFOLIHWKDW JR EH\RQG IXOILOOLQJ RQH·V LPPHGLDWH MRE UHVSRQVLELOLWLHV ² VXFK DV SDUWLFL SDWLQJLQYROXQWHHUFLYLFDQGVRFLDOVHUYLFHDFWLYLWLHV DVVXPLQJOHDGHUVKLSUROHV LQSXEOLF DQGFRPPXQLW\RUJDQL]DWLRQV DQG VHUYLQJDVPHQWRUV DQGRU UROH PRGHOV IRU OHVVDGYDQWDJHGFRPPXQLW\PHPEHUV ,QJHQHUDO WKH\IRXQGWKDW WKH$IULFDQ$PHULFDQV LQ WKHLU VDPSOHZHUH VLJQLILFDQWO\PRUH OLNHO\ WR JHW LQYROYHG LQ WKHVH NLQGV RI DFWLYLWLHV DQG HIIRUWV WKDQ WKH:KLWHV ² SRVVLEO\ EHFDXVH DVPHPEHUVRID85(* WKH\DUHPRUHFRQVFLRXVRIWKHLURZQUHOD WLYHO\ SULYLOHJHG SRVLWLRQ DQG KDYH D FRUUHVSRQGLQJO\ JUHDWHU VHQVH RI UHVSRQVLELOLW\WRZDUGWKRVHZKRUHPDLQOHVVIRUWXQDWH 7KHNLQGRIFRPSDUDWLYHHYLGHQFHRQ85(*DQG:KLWHMRESHUIRUPDQFH

DQGVHUYLFHFRQWULEXWLRQVUHYLHZHGLQWKLVDQGWKHSUHFHGLQJVHFWLRQGRHVQRW GLUHFWO\ DGGUHVV WKH PRVW UHOHYDQW TXHVWLRQ ZKLFK LV KRZ PXFK PRUH LQ TXDQWLW\DQGTXDOLW\GLG85(*JUDGXDWHVFRQWULEXWHLQWKHZD\RIUHOHYDQW VHUYLFHV WKDQ WKH\ZRXOG KDYH LI WKH\ KDG QRW EHQHILWHG IURP$$" ,Q WKH DEVHQFHRI$$ XQGHUJUDGXDWH85(*VWXGHQWVZRXOGKDYHEHHQUHGLVWULEXWHG GRZQZDUGLQWKHVHOHFWLYLW\KLHUDUFK\RIXQLYHUVLWLHV 2QHFDQJHWDVHQVHRI ZKDW WKLVZRXOG LPSO\ IRU VHUYLFHFRQWULEXWLRQVE\ ORRNLQJDWGDWDRQ VXFK FRQWULEXWLRQVWKDW%RZHQDQG%RN ²SUHVHQWVHSDUDWHO\IRUWKHLU VDPSOHRIFROOHJHVDQGIRUDQDWLRQZLGHFRQWUROJURXS 7KLVHYLGHQFHVKRZV WKDW%ODFNJUDGXDWHVIURPVHOHFWLYHFROOHJHVGRQRWKDYHPXFKKLJKHUUDWHVRI

VHUYLFH FRQWULEXWLRQV WKDQ %ODFN JUDGXDWHV IURP RWKHU FROOHJHV 2QHPLJKW VWLOOPDNH D FDVH KRZHYHU WKDW WKH HIIHFWLYHQHVV RI VHUYLFH FRQWULEXWLRQV E\ 85(*JUDGXDWHVLVJUHDWHUWKHPRUHVHOHFWLYHLVWKHFROOHJHWKH\DWWHQGHG RQ WKH JURXQGV WKDW LQPRUH VHOHFWLYH FROOHJHV WKH\ZLOO UHFHLYH EHWWHU WUDLQLQJ DQGEHWWHUFUHGHQWLDOVZLWKZKLFKWRPDNHWKHLUFRQWULEXWLRQV &HUWDLQO\WKLV FDVHFDQEHPDGHIRUWKHTXDOLW\RIMRESHUIRUPDQFHE\$$EHQHILFLDULHV $W WKH JUDGXDWH OHYHO $$ VLJQLILFDQWO\ LQFUHDVHV WKH QXPEHUV RI85(*

VWXGHQWV LQ DGGLWLRQ WR UHGLVWULEXWLQJ WKHP XSZDUG &RPSDULVRQV RI MRE SHUIRUPDQFH DQG YROXQWDU\ VHUYLFH FRQWULEXWLRQV DV EHWZHHQ 85(* DQG :KLWHJUDGXDWHV DUH WKHUHIRUHPXFKPRUH LQGLFDWLYHRIGLIIHUHQFHVEHWZHHQ ZKDWZRXOGKDSSHQZLWK$$DQGZLWKRXW$$WKDQLVWKHFDVHDWWKHXQGHU JUDGXDWHOHYHO 6RPH FULWLFV KDYH DUJXHG WKDW YROXQWDU\ VHUYLFH FRQWULEXWLRQV KRZHYHU

ODXGDEOH WKH\PD\ EH DUH DW EHVW LUUHOHYDQW WR SURIHVVLRQDO DFFRPSOLVKPHQW DQG DWZRUVW D IRUPRI FRPSHQVDWLRQ IRU LQDGHTXDF\ LQ RQH·VPDLQ OLQH RI ZRUN 7KLVSHUVSHFWLYHVHHPVDELWWRRF\QLFDO (YHQWRWKHH[WHQWWKDWLWLV WUXH LWGRHVQRWSUHFOXGHDSRVLWLYHHYDOXDWLRQRIFRQWULEXWLRQVPDGHE\$$ EHQHILFLDULHV EH\RQG WKHLU PDLQ MRE 7KH IDFW WKDW 85(* PHPEHUV GR FRQWULEXWHVLJQLILFDQWXQUHPXQHUDWHGVHUYLFHVWRWKHLUFRPPXQLWLHV LQGLFDWHV WKDW²FRQWUDU\WRWKHMDXQGLFHGYLHZRIVRPHFULWLFV²WKH\DUHUHGLVWULEXWLQJ VRPHRIWKHEHQHILWVRIWKHLUDFFHVVWRKLJKHUHGXFDWLRQUDWKHUWKDQDOORZLQJ WKHOXUHRISHUVRQDOJDLQWRUHPRYHDQ\VHQVHRIREOLJDWLRQWRRWKHUV

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

VLW\ 'HSSH LQYHVWLJDWHG WKH UHODWLRQVKLS EHWZHHQ WKH SHUFHQWDJH RI QRQZKLWH VWXGHQWV LQ WKH VWXGHQW ERG\ RQ GLIIHUHQW FDPSXVHV DQG WKH DYHUDJHGHJUHHRI´ VRFLDOFRQFHUQµ RIDOOVWXGHQWV 6RFLDOFRQFHUQZDVGHILQHG DVWKHLPSRUWDQFHSODFHGE\VWXGHQWVRQDVHULHVRISRVVLEOHJRDOVRUYDOXHV² QDPHO\LQIOXHQFLQJSROLWLFDOVWUXFWXUH LQIOXHQFLQJVRFLDOYDOXHV KHOSLQJRWKHUV ZKRDUHLQGLIILFXOW\ GHYHORSLQJDPHDQLQJIXOSKLORVRSK\RIOLIH SDUWLFLSDWLQJ LQ FRPPXQLW\ DFWLRQ DQG KHOSLQJ WR SURPRWH LQWHUUDFLDO XQGHUVWDQGLQJ 'HSSH GLG QRW ILQG HYLGHQFH RI D VLJQLILFDQW UHODWLRQVKLS EHWZHHQ HWKQLF GLYHUVLW\DQGWKHLPSRUWDQFHVWXGHQWVSODFHGRQWKHVHJRDOV $VWLQDOVR IRXQGQRVLJQLILFDQWFURVVFDPSXVUHODWLRQVKLSEHWZHHQWKHHWKQLFGLYHUVLW\RI

WKHVWXGHQWERG\DQGDYDULHW\RIHGXFDWLRQDODQGYDOXHRXWFRPHV +RZHYHU $VWLQGLGILQGWKDWVRFLDOL]LQJZLWKVWXGHQWVIURPGLIIHUHQWHWKQLFJURXSVKDVD VWURQJSRVLWLYHHIIHFWRQ´FXOWXUDODZDUHQHVVµ DQGFRPPLWPHQWWRSURPRWLQJ LQWHUHWKQLFXQGHUVWDQGLQJ ,QD ORQJLWXGLQDOVWXG\XVLQJQDWLRQZLGHVWXGHQW VXUYH\GDWD &KDQJIRXQGWKDWJUHDWHULQWHUUDFLDOVWXGHQWLQWHUDFWLRQLV SRVLWLYHO\UHODWHGWRVHYHUDOHOHPHQWVRIDJRRGHGXFDWLRQDOH[SHULHQFH VXFKDV VRFLDODQGLQWHOOHFWXDOVHOIFRQILGHQFH 1RQHRIWKHDERYHVWXGLHVDGGUHVVHGGLUHFWO\WKHH[WHQWWRZKLFKVWXGHQW

GLYHUVLW\DIIHFWVWKHOHDUQLQJRIDFDGHPLFVXEMHFWV DVGLVWLQFWIURPWKHGHYHO RSPHQW RI EURDGHU FXOWXUDO DZDUHQHVV JUHDWHU VRFLDO FRQFHUQ RU PRUH VHOIFRQILGHQFHDVDVWXGHQW 7KLVLVQRWVXUSULVLQJ IRULW LV LQKHUHQWO\DYHU\ GLIILFXOW WDVN 6LPSO\PHDVXULQJ DFDGHPLF OHDUQLQJ RXWFRPHV LV D FKDOOHQJH TXDQWLWDWLYHLQGLFDWRUVVXFKDVJUDGHVDQGVWDQGDUGL]HGWHVWVKDYHZHOONQRZQ ZHDNQHVVHVDVPHDVXUHVRIZKDW RUKRZZHOO DVWXGHQWKDVOHDUQHG ,WLVHYHQ PRUHFKDOOHQJLQJWRLVRODWHLQDV\VWHPDWLFZD\WKHLPSDFWRIDQ\RQHIDFWRU² VXFK DV HWKQLF GLYHUVLW\ ² RQ WKH OHDUQLQJ SURFHVV 7ZRRI WKH VWXGLHV FLWHG IUHTXHQWO\LQWKHSUHFHGLQJFKDSWHUVIRUWKHLUUHOHYDQWHYLGHQFHRQWKHFRQVH TXHQFHVRI$$GLGQRWDWWHPSWWRDVVHVVFRPSUHKHQVLYHO\WKHFRQWULEXWLRQRI HWKQLF GLYHUVLW\ WR OHDUQLQJ WKH\ GLG KRZHYHU DQDO\]H VXUYH\ UHVSRQVHV WR VHYHUDOTXHVWLRQVUHODWLQJWRLQWHUHWKQLFLQWHUDFWLRQV

%RZHQDQG%RN &K UHSRUWHGWKDWSHUFHQWRIWKH%ODFNVDQG SHU FHQW RI WKH :KLWHV LQ WKHLU FRKRUW RI VHOHFWLYH FROOHJH VWXGHQWV HQWHULQJLQIHOWWKDWWKHLUFROOHJHH[SHULHQFHFRQWULEXWHGVLJQLILFDQWO\WR WKHLU´DELOLW\ WR ZRUN HIIHFWLYHO\ DQG JHW DORQJ ZLWK SHRSOH IURP GLIIHUHQW UDFHVµ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²ERWK%ODFNDQG:KLWH ² DSSODXGHG WKHLU FROOHJH·V HPSKDVLV RQ GLYHUVLW\ VRPH WKRXJKW WKDW HYHQ PRUHVXFKHPSKDVLVZDVQHHGHG /HPSHUWHWDO D ² DOVRUHOLHGRQVHOIUHSRUWHGUHIOHFWLRQV

IURPWKHJUDGXDWHV LQ WKHLU80/DZ6FKRRO VXUYH\VDPSOH IRUHYLGHQFHRQ WKHEHQHILWVRIHWKQLFGLYHUVLW\ 7KH\UHSRUWHGWKDWDERXWSHUFHQWRI WKH XQGHUUHSUHVHQWHG PLQRULW\ VWXGHQWV DQG DERXW SHU FHQW RI WKH :KLWH VWXGHQWV EHOLHYHG WKDW WKHLU OHDUQLQJ H[SHULHQFH LQ ODZVFKRRO FODVVURRPV EHQHILWHG VLJQLILFDQWO\ IURPWKHHWKQLFGLYHUVLW\RI WKHLUSHHUV $OWKRXJKWKH SHUFHQWDJHRIWKHIRUPHUVKDULQJWKLVYLHZUHPDLQHGDERXWWKHVDPHRYHUDOO WKUHH GHFDGHV WKH SHUFHQWDJH RI :KLWHV KROGLQJ WKLV YLHZ LQFUHDVHG IURP

GHFDGHWRGHFDGH²VWDUWLQJDWSHUFHQWLQWKHVDQGULVLQJWRSHU FHQW LQ WKH V 'XULQJ WKLV WLPH WKH SURSRUWLRQ RI XQGHUUHSUHVHQWHG PLQRULW\ VWXGHQWV LQ ODZVFKRRO FRKRUWV DOVR LQFUHDVHG VLJQLILFDQWO\ IURP URXJKO\SHUFHQWLQWKHVWRURXJKO\SHUFHQWLQWKHV 7KHHYLGHQFHUHSRUWHGE\%RZHQDQG%RNDQG/HPSHUW HWDO KDVREYLRXV

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·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

KLJKHUHGXFDWLRQKDV UHFHQWO\EHHQPXFKHQKDQFHGE\ WKHZRUNRI3DWULFLD *XULQ WRJHWKHUZLWK VRPHRIKHUFROOHDJXHVDW WKH8QLYHUVLW\RI0LFKLJDQ SXEOLVKHGLQYDULRXVIRUPVEHWZHHQDQG *XULQ·VUHVHDUFKRQWKH ZD\ LQZKLFK HWKQLF GLYHUVLW\ KDV DIIHFWHG HGXFDWLRQDO RXWFRPHV SULPDULO\ DPRQJ80XQGHUJUDGXDWHV FRQVWLWXWHVE\IDUWKHPRVWV\VWHPDWLF DQGWKRU RXJKJRLQJVFKRODUO\ZRUNRQWKLVVXEMHFW 7KH8QLYHUVLW\ RI0LFKLJDQ KDV SXUVXHG IRU VHYHUDO GHFDGHV D SROLF\ RI

JUDQWLQJ VXEVWDQWLDO DGPLVVLRQ SUHIHUHQFHV WR PHPEHUV RI 85(*V IRU WKDW UHDVRQLWKDVDFKLHYHGRQHRIWKHPRVWHWKQLFDOO\GLYHUVHVWXGHQWSRSXODWLRQV DPRQJ PDMRU SXEOLF XQLYHUVLWLHV LQ WKH FRXQWU\ 7KLV LV QR GRXEW DOVR WKH UHDVRQ WKDW LWV DGPLVVLRQ SROLFLHVZHUH WDUJHWHG E\ WZR SURPLQHQW ODZVXLWV ILOHG LQ DQG UXOHG RQ E\ WKH 86 6XSUHPH &RXUW LQ *XULQ·V UHVHDUFKZDVILUVWSUHVHQWHGDVDQH[SHUWZLWQHVVUHSRUWLQIDYRURI$$LQWKH FRQWH[WRIWKHODZVXLWV $VVXFK LWGUHZVKDUSFULWLFLVPLQWZROHQJWK\UHSRUWV VSRQVRUHGE\RUJDQL]DWLRQVRSSRVHGWR$$ ZKLFKZHUH LQ WXUQUHEXWWHGE\ *XULQDQGRWKHUV 7KHFULWLFDOUHSRUWVDVZHOOWKHUHEXWWDOVDOORIZKLFKZLOO EH DGGUHVVHG EHORZ KDYH IRUPHG WKH EDVLV RI IXUWKHU FRQWULEXWLRQV WR WKH FRXUW FDVHV 7KH PRVW DFFHVVLEOH DQG XSWRGDWH SUHVHQWDWLRQ RI *XULQ·V UHVHDUFKPHWKRGVDQGILQGLQJVLVLQWKHDUWLFOHE\*XULQHWDO

*XULQ PDGH XVH RI WKUHH GLIIHUHQW VRXUFHV RI GDWD WKH 8&/$EDVHG &RRSHUDWLYH ,QVWLWXWLRQDO 5HVHDUFK 3URJUDP &,53 QDWLRQDO GDWDEDVH RQ FROOHJH VWXGHQWV DQG HGXFDWLRQDO RXWFRPHV IRU WKH \HDUV ² DVZHOO DV WZR80GDWDEDVHV²RQHIURPDVWXG\RI80XQGHUJUDGXDWHVWXGHQWVDQGWKH RWKHU IURP D VWXG\ RI WKH 80 ,QWHUJURXS 5HODWLRQV &RPPXQLW\ DQG &RQIOLFW3URJUDP 6KHGHYHORSHGDWZRVWDJHPRGHORIWKHLPSDFW RIHWKQLF GLYHUVLW\ RQ HGXFDWLRQDO RXWFRPHV ,Q WKH ILUVW VWDJH ´VWUXFWXUDO GLYHUVLW\µ ² GHILQHG DV WKH GHJUHH WR ZKLFK VWXGHQWV RI FRORU DUH UHSUHVHQWHG LQ WKH VWXGHQWERG\²LVVHHQDVLQIOXHQFLQJWKHH[WHQWRIVWXGHQW´FDPSXVGLYHUVLW\ H[SHULHQFHVµ LQWKHVHFRQGVWDJHWKHVHGLYHUVLW\H[SHULHQFHVDUHVHHQDVLQIOX HQFLQJ HGXFDWLRQDO RXWFRPHV 6KH LGHQWLILHV IRXU W\SHV RI GLYHUVLW\ H[SHULHQFH WDNLQJDQHWKQLF VWXGLHVFRXUVH ZKHUHFODVVHV DUHPRVW OLNHO\ WR EHKLJKO\GLYHUVH ´LQIRUPDO LQWHUDFWLRQDO GLYHUVLW\µ RXWVLGH WKH FODVVURRP WKHDPRXQWRILQWHUHWKQLFVRFLDOL]LQJ DQGWKHTXDOLW\RIFDPSXVLQWHUHWKQLF LQWHUDFWLRQV $QGVKHLVFRQFHUQHGZLWKWKUHHNLQGVRIHGXFDWLRQDORXWFRPHV ´OHDUQLQJRXWFRPHVµ ´GHPRFUDF\RXWFRPHVµ DQG´OLYLQJ DQGZRUNLQJ LQ D GLYHUVHVRFLHW\µ 7KHODWWHUWZRRXWFRPHVLQYROYHWKHEURDGHUNLQGRIOHDUQLQJ DVVRFLDWHGZLWK EHWWHU LQWHUFXOWXUDO XQGHUVWDQGLQJ DQG VRFLDO FRQFHUQ 7KH ILUVW RXWFRPH LQYROYHV YDULRXV DELOLWLHV DQG VNLOOV UHODWHG WR JURZWK LQ DFWLYH WKLQNLQJ SURFHVVHV HQJDJHPHQW LQ DQGPRWLYDWLRQ IRU OHDUQLQJ DQG JHQHUDO LQWHOOHFWXDODQGDFDGHPLFDFFRPSOLVKPHQW ,Q KHU HPSLULFDO DQDO\VLV *XULQ IRXQG ILUVW XWLOL]LQJ FURVVFROOHJH&,53

GDWD WKDWWKHVWUXFWXUDOGLYHUVLW\RIFDPSXVHVH[FOXGLQJKLVWRULFDOO\%ODFNDQG MXQLRUFROOHJHVGRHVKDYHDVWDWLVWLFDOO\VLJQLILFDQWHIIHFWRQHDFKRIWKHIRXU NLQGVRI´FDPSXVGLYHUVLW\H[SHULHQFHµ VKH LGHQWLILHG 6KHWKHQPDGHXVHRI GDWD IURPWKH80GDWDEDVHVDVZHOODV&,53WRDQDO\]H WKH LPSDFWRIHDFK NLQGRIGLYHUVLW\H[SHULHQFHRQHDFKNLQGRIHGXFDWLRQDORXWFRPH 7KHWKUHH NLQGVRI RXWFRPHVZHUHPHDVXUHGE\ VWXGHQW JDLQVZLWK UHVSHFW WR D VHW RI LQGLFDWRUVRIOHDUQLQJ FRPPLWPHQWWRGHPRFUDF\ DQGDELOLW\WROLYHDQGZRUN LQ D GLYHUVH VRFLHW\ UHVSHFWLYHO\ 7KHVH JDLQV ZHUH VHOIDVVHVVHG DQG VHOI UHSRUWHG E\ VWXGHQWV GLVWLQJXLVKHG E\ HWKQLF JURXS UHVSRQGLQJ WR VXUYH\ TXHVWLRQV ,QWKHFDVHRITXHVWLRQVDGGUHVVHGWROHDUQLQJRXWFRPHV WKHLQGLFD WRUV LQYROYHGYDULRXV DELOLWLHV DQG VNLOOV UHODWHG WR JURZWK LQ DFWLYH WKLQNLQJ SURFHVVHV HQJDJHPHQWLQDQGPRWLYDWLRQIRUOHDUQLQJ DQGJHQHUDOLQWHOOHFWXDO DQGDFDGHPLFDFFRPSOLVKPHQW &DUU\LQJRXWUHJUHVVLRQVWRWHVWWKHYDOLGLW\RI WKH YDULRXV VHFRQGVWDJH UHODWLRQVKLSV EHWZHHQ GLYHUVLW\ H[SHULHQFHV DQG HGXFDWLRQDO RXWFRPHV *XULQ IRXQG WKDW PDQ\ ZHUH LQGHHG SRVLWLYH DQG VLJQLILFDQW ² PRUH VR IRU :KLWH VWXGHQWV WKDQ IRU %ODFNV RU +LVSDQLF $PHULFDQV *XULQ·V UHVHDUFK ZDV VXEMHFW WR VKDUS FULWLTXHV E\ :RRG DQG 6KHUPDQ

DQG E\ /HUQHU DQG1DJDL RQ JURXQGV RI ERWKPHWKRGRORJ\ DQGGDWD 7KHPRVWLPSRUWDQWPHWKRGRORJLFDOSRLQWRIFULWLFLVPZDVDLPHGDW *XULQ·V VHSDUDWH WHVWLQJ RI HDFK VWDJH RI KHU WZRVWDJH PRGHO 7KH FULWLFV DUJXHG WKDW VKH VKRXOG KDYH GLUHFWO\ WHVWHG WKH UHODWLRQVKLS EHWZHHQ HWKQLF GLYHUVLW\ DQG HGXFDWLRQDO RXWFRPHV DFURVV GLIIHUHQW FROOHJHV 7KH\ H[SUHVVHG

FRQILGHQFHWKDWLIVKHKDGGRQHVR VKHZRXOGKDYHIRXQGQRVLJQLILFDQWFURVV FROOHJHDVVRFLDWLRQEHWZHHQFDPSXVGLYHUVLW\DQGHGXFDWLRQDORXWFRPHV²DV GLG$VWLQ ZKRDOVRPDGHXVHRIWKH&,53GDWDEDVH $PRQJDYDULHW\ RI REMHFWLRQV WR *XULQ·V GDWD WKH FULWLFV FRPSODLQHG WKDW KHU LQGLFDWRUV RI HGXFDWLRQDO RXWFRPHV ZHUH LQDGHTXDWH 7KH\ ZHUH VNHSWLFDO RI WKH LPSRU WDQFHRIWZRRI*XULQ·VWKUHHFDWHJRULHVRIGHVLUDEOHRXWFRPHV²FRPPLWPHQW WRGHPRFUDF\ DQGDELOLW\WROLYHDQGZRUNLQDGLYHUVHVRFLHW\²DQGWKH\DOVR IHOWWKDWVRPHRIWKHLQGLFDWRUVRIWKHVHRXWFRPHVUHIOHFWHGDSROLWLFDOO\OLEHUDO SHUVSHFWLYH UDWKHU WKDQ DQ REMHFWLYH FDSDELOLW\ :LWK UHVSHFW WR WKH WKLUG HGXFDWLRQDORXWFRPH²OHDUQLQJ²WKH\REMHFWHGWRWKHIDFWWKDW*XULQ·VLQGL FDWRUVLQFOXGHGRQO\RQH´KDUGµ YDULDEOH QDPHO\JUDGHSRLQWDYHUDJH*3$ DQGWKDWWKDWYDULDEOHZDVDYDLODEOHRQO\IRUWHVWVXVLQJWKH&,53GDWDEDVH *XULQ·V D E UHVSRQVH WR WKH PHWKRGRORJLFDO FULWLFLVP ZDV

FRPSHOOLQJ DQGLWZDVVXSSRUWHGDOVRE\RWKHUVFKRODUVRIKLJKHUHGXFDWLRQ² HJ 7KRPDVDQG6KDYHOVRQ $V*XULQSRLQWHGRXW VWUXFWXUDOGLYHUVLW\ SHUVHLVQHFHVVDU\ EXWQRWVXIILFLHQW WRJHQHUDWHHGXFDWLRQDORXWFRPHEHQH ILWV 7RDFKLHYHVXFKEHQHILWV HGXFDWLRQDOLQVWLWXWLRQVPXVWPDNHJRRGXVHRI WKH VWUXFWXUDO GLYHUVLW\ E\ IRVWHULQJ LQWHUJURXS LQWHUDFWLRQV LQ DSSURSULDWH VHWWLQJV ² ERWK LQVLGH DQG RXWVLGH WKH FODVVURRP 7KH UHOHYDQW LQWHUJURXS LQWHUDFWLRQV DUH SUHFLVHO\ ZKDW *XULQ VRXJKW WR PHDVXUH E\ KHU ´FDPSXV GLYHUVLW\H[SHULHQFHµ YDULDEOHV ZKLFKDUHWKHHVVHQWLDO LQWHUPHGLDWHYDULDEOHV LQ KHU PRGHO EHWZHHQ VWUXFWXUDO GLYHUVLW\ DQG WKH YDULRXV HGXFDWLRQDO RXWFRPHV 2QHZRXOGQRW H[SHFW WR ILQG D VLPSOH FURVVFROOHJH FRUUHODWLRQ EHWZHHQWKHGHJUHHRIHWKQLFGLYHUVLW\DQGWKHH[WHQWRIGHVLUDEOHHGXFDWLRQDO RXWFRPHV IRU WKRVH RXWFRPHV ZRXOG QRW EH DFKLHYDEOH HYHQ RQ D KLJKO\ GLYHUVHFDPSXVLIWKHDSSURSULDWHLQWHUJURXSLQWHUDFWLRQVZHUHQRWIRVWHUHG *XULQ UHMHFWHG WKH FKDUJH WKDW WZR RI KHU WKUHH FDWHJRULHV RI HGXFDWLRQDO

RXWFRPHYDULDEOHVZHUHTXHVWLRQDEOHDVJRDOVRIDKLJKHUHGXFDWLRQDOLQVWLWXWLRQ 6KHQRWHG DVKDYHFRXQWOHVVKLJKHUHGXFDWLRQDODGPLQLVWUDWRUV WKDWWKHGHPRF UDF\DQGPXOWLFXOWXUDODELOLW\RXWFRPHVDUHOHJLWLPDWHDQGGHVLUDEOHREMHFWLYHVRI DXQLYHUVLW\²HVSHFLDOO\DSXEOLFRQHOLNHWKH8QLYHUVLW\RI0LFKLJDQ²ZKLFK VKRXOGDQGGRHVKDYHWKHFLYLFPLVVLRQRIJUDGXDWLQJVWXGHQWVZKRZLOOEHFRPH ZHOOHGXFDWHG OHDGHUV DQGDFWLYHSDUWLFLSDQWV LQ DQ LQFUHDVLQJO\GLYHUVHGHPR FUDWLF QDWLRQ ,Q UHVSRQVH WR WKH FKDUJH RI XVLQJ´VRIWµ PHDVXUHV RI OHDUQLQJ RXWFRPHV VKHDVVHUWHGWKDWRQHPXVWGLVWLQJXLVKUHDOOHDUQLQJIURP´ NQRZOHGJH VWXIILQJµ 6KHDUJXHGWKDWVRIWYDULDEOHV²VXFKDVVHOIUHSRUWHG´ DFWLYHWKLQNLQJµ ´LQWHOOHFWXDOHQJDJHPHQWµ DQG´ SHUVSHFWLYHWDNLQJµ ²DUHWKHEHVWNLQGRILQGL FDWRUVRIWKHH[WHQWRIDVWXGHQW·VWUXHOHDUQLQJ *UDGHV RQWKHRWKHUKDQG DUH KLJKO\ SUREOHPDWLF DVPHDVXUHV RI OHDUQLQJ EHFDXVH WKH\ GR QRW PHDVXUH WKH DPRXQW WKDW D VWXGHQW KDV DFWXDOO\ OHDUQHG IURP D FRXUVH DV RSSRVHG WR WKH VWXGHQW·VDEVROXWHOHYHORINQRZOHGJHDWWKHHQGRIWKHFRXUVH DQGWKH\DUHQRW VWDQGDUGL]HGDFURVVFRXUVHVPDMRUV RULQVWLWXWLRQV *XULQ·VLQVLVWHQFHRQWKHUHOHYDQFHRIWKHHGXFDWLRQDOJRDOVRIGHYHORSLQJLQ

VWXGHQWV D FRPPLWPHQW WR GHPRFUDF\ DQG DQ DELOLW\ WRZRUN HIIHFWLYHO\ LQ D GLYHUVH VRFLHW\ LV SUREDEO\ZLGHO\ VKDUHG WKRXJK VRPH EHOLHYH WKDW D KLJKHU

HGXFDWLRQDO LQVWLWXWLRQ VKRXOG IRFXV H[FOXVLYHO\ RQ DFDGHPLF JRDOV 0HDVXUHPHQW RI SURJUHVV WRZDUG DFKLHYHPHQW RI WKHVH EURDGHU HGXFDWLRQDO JRDOV KRZHYHU LVYHU\GLIILFXOWEHFDXVHRIWKHLUKLJKO\TXDOLWDWLYHQDWXUH VRWKH UHVXOWVRIDQ\UHVHDUFKLQWKLVDUHDDUHERXQGWREHFRQWHVWHG *XULQ·VFRQFHQWUD WLRQ RQ´VRIWµ PHDVXUHV RI OHDUQLQJ RXWFRPHV ZLOO SUREDEO\ QRW PHHW ZLWK ZLGHVSUHDGDSSURYDO LIRQO\EHFDXVHVRPXFKUHVHDUFKRQHGXFDWLRQDORXWFRPHV KDVIRFXVHGRQTXDQWLWDWLYHPHDVXUHVOLNHWKH*3$ (YHQWKRVHZKREHOLHYHWKDW VKHLVULJKWLQKHULGHQWLILFDWLRQRIZKDWLVLPSRUWDQWLQWUXHOHDUQLQJPD\ILQG UHDVRQWRTXHVWLRQKHUPHDVXUHVRISURJUHVVLQWKLVGLUHFWLRQ IRURQHLVGHDOLQJ KHUHDJDLQZLWKTXDOLWDWLYHFRQFHSWVWKDWDUHYHU\GLIILFXOWWRSLQGRZQ ,QVXP *XULQ·VUHVHDUFKUHSUHVHQWVDPDMRUVWHSIRUZDUGLQWKHDWWHPSWWR

DQDO\]H WKH ZD\ LQ ZKLFK HWKQLF GLYHUVLW\ DIIHFWV YDULRXV HGXFDWLRQDO RXWFRPHV DQGLWFDQVXFFHVVIXOO\ZLWKVWDQGWKHNLQGRIPHWKRGRORJLFDOFULWL FLVP OHYLHG DW LW E\ LWV FULWLFV %HFDXVH RI WKH JUHDW GLIILFXOW\ RIPHDVXULQJ XQGRXEWHGO\LPSRUWDQWTXDOLWDWLYHSKHQRPHQD KRZHYHU KHUILQGLQJVFDQDW PRVWEHFRQVLGHUHGKLJKO\VXJJHVWLYH PRUHZRUNZLOOQHHGWREHGRQHLQWKLV DUHDEHIRUHUHVXOWVRIWKLVNLQGFDQEHH[SHFWHGWRJDLQEURDGDFFHSWDQFH -XVWEHIRUHWKH866XSUHPH&RXUWKHDUGRUDODUJXPHQWVLQWKH80DGPLV

VLRQV ODZVXLWV LQ $SULO D QHZ VWXG\ RI WKH HIIHFWV RI UDFLDOHWKQLF GLYHUVLW\RQHGXFDWLRQDORXWFRPHVZDVSXEOLVKHGDQG²EHFDXVHRIWKHWLPLQJ²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·V VWXGHQW ERG\ ²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

$PRQJRWKHUWKLQJV LWLVYXOQHUDEOHWRWKHPHWKRGRORJLFDOSRLQWVWUHVVHGE\ *XULQLQUHVSRQVHWRWKHHDUOLHUFULWLFLVPRIKHUZRUNWKDW´ VWUXFWXUDOGLYHU VLW\µ ²DVPHDVXUHGVLPSO\E\WKHHWKQLFFRPSRVLWLRQRIWKHVWXGHQWERG\²LV E\ LWVHOI LQVXIILFLHQW WR JHQHUDWH SRVLWLYH RXWFRPHV IURP HWKQLF GLYHUVLW\ 0RUHRYHU 5RWKPDQHWDO GLGQRWDGGUHVVHGXFDWLRQDOEHQHILWVLQWKHIRUPRI SRVLWLYH´GHPRFUDF\RXWFRPHVµ DQGJUHDWHUFDSDFLW\IRU´OLYLQJDQGZRUNLQJ LQ D GLYHUVH VRFLHW\µ ZKLFK IRU*XULQ DQG RWKHUV DUH MXVW DV LPSRUWDQW DV SRVLWLYH´ OHDUQLQJRXWFRPHVµ

5HVSRQGLQJWRDFKDUJHE\/HUQHUDQG1DJDLWKDW$$SROLFLHVWHQG WRDJJUDYDWHLQWHUHWKQLFKRVWLOLW\RQFDPSXV *XULQFGUHZRQDJRRG GHDORIFRXQWHUHYLGHQFH IURPKHUUHVHDUFKXWLOL]LQJ WKH WZR80GDWDEDVHV 6XUYH\ UHVXOWV IURP WKH 80 VWXGHQW VWXG\ VKRZHG WKDW RQO\ D YHU\ VPDOO SURSRUWLRQRI VWXGHQWV IURPDOOHWKQLFJURXSV UHSRUWHGKDYLQJKDGD VLJQLIL FDQWQXPEHURI´WHQVH VRPHZKDWKRVWLOH LQWHUDFWLRQVµ RU´JXDUGHG FDXWLRXV LQWHUDFWLRQVµ ZLWK VWXGHQWVRIGLIIHULQJ UDFHRUHWKQLFLW\ 0RUHRYHU WKH80 VWXGHQW VWXG\ UHYHDOHG WKDW WKH VWXGHQWVZKR KDG KDG WKHPRVW H[SHULHQFH ZLWK GLYHUVH SHHUV ² WKURXJK FODVVHV LQIRUPDO UHODWLRQVKLSV PXOWLFXOWXUDO HYHQWV DQGLQWHUJURXSGLDORJXHV²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´GLYHUVLW\ H[SHULHQFHVµ DV LW GRHV RQ WKH FRPSRVLWLRQRIWKHVWXGHQWERG\´VWUXFWXUDOGLYHUVLW\µ

'HYDOXDWLRQRIWKHDFKLHYHPHQWVRI85(*VWXGHQWV 7KHUH LVSOHQW\RI DQHFGRWDOHYLGHQFH²QRWDEO\ LQ WKHZULWLQJVRI$IULFDQ $PHULFDQLQWHOOHFWXDOVRSSRVHGWRRUDPELYDOHQWDERXW$$ ²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² DQG VRPH IDFXOW\ DVZHOO ² DW UHODWLYHO\ VHOHFWLYH

86XQLYHUVLWLHVKDYHEHHQKHDUGIURPWLPHWRWLPHWRFRPSODLQWKDW85(* VWXGHQWV SUHVXPHG WR EH $$ EHQHILFLDULHV ´GR QRW EHORQJ RQ FDPSXVµ /LNHZLVH RQHKHDUVFRPSODLQWV WKDW IDFXOW\ LQ VXFK LQVWLWXWLRQV WHQG WRKROG ORZH[SHFWDWLRQVIRUVXFKVWXGHQWVDQGGRQRWFKDOOHQJHWKHPWRGRWKHLUEHVW ZRUN $QHFGRWDOHYLGHQFHDQGKHDUVD\DORQJVLPLODUOLQHVLVQRWXQFRPPRQ ZLWKUHVSHFWWR85(*VWXGHQWVDW,QGLDQKLJKHUHGXFDWLRQDOLQVWLWXWLRQV 7KHUHLVRQO\DOLPLWHGDPRXQWRIV\VWHPDWLFHYLGHQFH²DOOIURPWKH86²

LQ VXSSRUW RI WKH DERYH FODLPV 6WXGLHV E\ +HLOPDQ HW DO LQ WKH FRQWH[W RI HPSOR\PHQW DQG *DUFLD HW DO LQ D XQLYHUVLW\ VHWWLQJ FRQILUP WKDW $$ SURJUDPV FDQ VWLJPDWL]H WKHLU SHUFHLYHG EHQHILFLDULHV E\

GHYDOXLQJ WKHLU DFFRPSOLVKPHQWV 1LFNHQV DQG &RKHQ ² GLVFXVVLQJWKHZD\LQZKLFK$$FDQWKXVEHDGRXEOHHGJHGVZRUG QRWHWKDW ´>$@FFRXQWVRIHDUO\PLQRULW\SLRQHHUV«PDNHLWFOHDUWKDWWKH\VXIIHUHGIURP WKHKRVWLOLW\RIVRPHRIWKHLUFODVVPDWHVDQGWHDFKHUV DQGDOOWRRRIWHQVXIIHUHG DORQHµ %XWWKH\JRRQWRRSLQHWKDW

PRVW RI WKRVH SLRQHHUV DQG WKHLU FRQWHPSRUDU\ FRXQWHUSDUWV ZRXOG UHJDUGTXHVWLRQVDERXWWKHLUOHJLWLPDF\WREHWKHUHDVDVPDOOSULFHWRSD\ IRU LQFUHDVLQJ RSSRUWXQLWLHV DYDLODEOH WR 85(* VWXGHQWV DQG IRU LQFUHDVLQJ WKH QXPEHU RI \RXQJ $PHULFDQV ZKR DUH HGXFDWHG RQ FDPSXVHVWKDWDUHUDFLDOO\DQGHWKQLFDOO\GLYHUVH

%RZHQDQG%RN ²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·VZRUN´QRQHRIWKHLWHPVLQWKH& %VXUYH\ZDV GHVLJQHGWRWDSSHUVRQDOIHHOLQJVRIVWLJPDWL]DWLRQ«6WXGHQWVFDQVD\ ¶<HV ZH DUHSOHDVHGZHKDG WKHRSSRUWXQLW\ WRDWWHQG.HQ\RQ&ROOHJH· ZKLOHDW WKH VDPHWLPHKDUERULQJGRXEWVDERXWWKHLURZQDFDGHPLFDELOLWLHVµ +DUGHYLGHQFHRQKRZVLJQLILFDQWLVWKHGHYDOXDWLRQRIWKHDFKLHYHPHQWVRI

85(* VWXGHQWV LQ DQ HQYLURQPHQW RI $$ SUHIHUHQFHV UHPDLQV WR EH FROOHFWHG :KDWRQHFDQVD\ZLWKVRPHDVVXUDQFHLVWKDWWKHSKHQRPHQRQLVD UHDORQH DQG WKDW LW GRHV LPSRVH D FRVWRQ LWV YLFWLPV $W WKH VDPH WLPH LW VHHPVXQOLNHO\WKDWPDQ\$$EHQHILFLDULHVZRXOGEHSUHSDUHGWRJLYHXSWKH DGYDQWDJHVWKH\JDLQIURP$$LQRUGHUWRDYRLGWKLVNLQGRIFRVW