You are on page 1of 265



  
 
 

 


 
 

 



  
 
 

 


 

 
 
 

 
 
 



 
 


 
  
 


 !
 
 
" 
#
 
  
 #
 
 
 



 #
 $




%
 
&


 


#

 #
#
%'  



 

 
 
 



% 
 
 (
 

 
&

 
 


#




)*+





(
 


 




 

 
 


 
 #
 
 

 


 


  


 

 

% 
 #



%
 



 
 

 
 
 "


(
 


  
+
,'- 
 

.

/
 

 
 

 
0

1222

3445#
 
+
 

/#

 

 




,  #
 
0

 

 


 

% 


 


 


  
 
 

 

6 
 
,'-


 
 



    


 



   

  

   

 


 
      
             
  
 
   
 !  
  
"        #     
$  !%  !      &  $  
'      '    ($    
'   # %  % )   % *   %
'   $  '     
+      " %        & 
'  !#     
 $,
 ( $


   
  -     . 
                  
  
           
  !  
"-           ( 
  %                
    
        .    
     %  
  %   %   %    $ 
      $ $ -    
      -            
    
         - -

// $$$   

0  


 
     

1& )*2/ +)


  
 345%66777&  %  ) -
8 
9  

*   &


    
 

/- :& 8!  


/- :4;7<1& )*2/ +)
"=   "    &  4;7<
$FNQRZOHGJHPHQW

0<(1'/(66$1'(9(5/$67,1*7+$1.672*2'

$OWKRXJK QR ZRUGV FDQ H[SUHVV P\ JUHDW JUDWLWXGH DQG UHVSHFW WR
3URI 'U $KPHG $ODD $ERXHOVDRRG 3URIHVVRU RI HQJLQHHULQJ SK\VLFV ,
ZRXOGOLNHWRWKDQN KLP IRU VXJJHVWLQJ WKH UHVHDUFK LQYHVWLJDWHG FORVH
VXSHUYLVLRQ JUHDW KHOS WUHPHQGRXV FRQWLQXRXV HIIRUW GXULQJ WKH
SUHSDUDWLRQ DQG UHYLVLRQ RI WKLVERRN YDOXDEOH GLVFXVVLRQV WKURXJKRXW
WKLV ZRUN ZKLFK PDGH WKLV ERRNDYDLODEOHLQLWVSUHVHQWIRUP

:RUGV ZLOO QRW EH HQRXJK WR H[SUHVV P\ VLQFHUH JUDWLWXGH
DQG DSSUHFLDWLRQ WR P\ IDPLO\ P\ IDWKHU 3URI 'U $KPHG (O1DJJDU
P\  PRWKHU  'U (PWLWKDO 1RIDO DQG P\ EURWKHU 'U 7DUHN (O1DJJDU
IRU WKHLU SDWLHQFHGXULQJILYH\HDUVRXWVWDQGLQJHQFRXUDJHPHQWDQGJUHDW
VXSSRUW  6SHFLDO WKDQNV WR P\ KXVEDQG 'U 6HUDJ (VPDW DQG P\ OLWWOH
GDXJKWHU1RXU)RU DOO RI WKHP , ZDQWWR DGPLW WKDW ZLWKRXWWKHLU KHOS
ORYHDQGSUHVHQFHWKLVZRUNZRXOGQHYHUKDYHEHHQDFFRPSOLVKHG
&RQWHQWV

 , QWU RGXFWLRQ 
  ' LH OH F W U LF J U D W LQ J V                              
   )X Q G D P H Q W D OV R I % U D J J J U D W LQ                  
   $ S S OLF D W LR Q V R I G LH OH F W U LF V X U ID F H U H OLH I J U D W LQ          
  6 H P LF R Q G X F W LR Q OD V H U                             
   % D LF 3 U LQ F LS OH V                            
   7K H / D H 6 X F X H 2S W LF D O *D LQ D G / R H           
   7K H / D V H U 7K U H V K R OG &R Q G LW LR                   
   $ G YD Q F H G 6 W U X F W X U H V                         
  7K H ' LV W U LE X W H G )H H G E D F N ' )% OD H                   
   3 LQ F LS OH V R I ' LV W U LE X W H G )H H G E D F N ' )% / D H          
   )D E U LF D W LR Q R I J U D W LQ J V LQ V LG H OD H                 
   6 X P P D \ R I 3 U H YLR X V 7K H R U H W LF D O 6 W X G LH V R I ' LV W U LE X W H G )H H G 
E D FN/ D VH UV                              
  5 LJ R U R X V &R X S OH G : D YH $ Q D O\V LV 5 &: $                 
   5 H YLH Z R I W K H 5 &: $                         
   6 X P P D \ R I 3 U H YLR X V 3 X E OLF D W LR                 

L
  7K H V LV 2E MH F W LYH                               

 5LJRU RXV &RXSOHG:DYH $QDO\VLV RI ')% /DVHU V 


  $ Q D O\V LV R I 7( 0R G H V                            
   )LH OG V H [S U H V V LR Q V LQ W K H J U D W LQ J U H J LR Q               
   )LH OG V H [S U H V V LR Q V LQ W K H D F W LYH U H J LR Q                
   )LH OG V H [S U H V V LR Q V LQ W R S  V X E V W U D W H U H J LR Q V             
   ' H W H U P LQ D W LR Q R I W K H p H OG V F R H r F LH Q W V               
  $ Q D O\V LV R I 70 0R G H V                            
   )LH OG V H [S U H V V LR Q V LQ W K H J U D W LQ J U H J LR Q               
   )LH OG V H [S U H V V LR Q V LQ W K H D F W LYH U H J LR Q                
   )LH OG V H [S U H V V LR Q V LQ W R S  V X E V W U D W H U H J LR Q V             
   ' H W H U P LQ D W LR Q R I W K H p H OG V F R H r F LH Q W V               
  7K H / D V LQ J &R Q G LW LR Q IR U 8 Q LIR U P ' )% / D VH U               
   7K H 7( F D VH                              
   7K H 70 F D V H                             
  &D OF X OD W LR Q R I 5 H q H F W LYLW \                           
   7K H 7( )LH OG V                              
   7K H 70 )LH OG V                            
  7K H / D V LQ J &R Q G LW LR Q IR U D y  3 K D V H 6 K LIW H G ' )% / D VH U         
   7K H 7( F D VH                              
   7K H 70 F D V H                             
  ' )% / D V H U ZLW K 6 H F R Q G 2U G H U *U D W LQ J V                  
   0R G Lp F D W LR Q V W R W K H / D V LQ J &R Q G LW LR Q IR U 8 Q LIR U P ' )% / D VH UV   
   0R G Lp F D W LR Q V R I W K H OD V LQ J F R Q G LW LR Q IR U D y  S K D V H V K LIW H G
' )% OD V H U                                

LL
   0R G Lp F D W LR Q V IR U 5 H q H F W LYLW \ &D OF X OD W LR Q V             

 1 XPHU LFDO 5HVXOWV IRU ')% /DVHU V 


  )LU V W 2U G H U ' )% / D VH U                           
   =H U R )D F H W 5 H q H F W LYLW \                         
   )D F H W 5 H q H F W LYLW \                            
   0R G H 6 W U X F W X U H D Q G 6 \P P H W U \                    
   ( oH F W R I 6 X E V W U D W H / R V V                       
   ( oH F W R I *U D W LQ J *H R P H W U \                      
  6 H F R Q G 2U G H U ' )% OD V H U                           
   =H U R )D F H W 5 H q H F W LYLW \                         
   )D F H W U H q H F W LYLW \                            
   ( oH F W R I % OD ] LQ J D Q J OH                        
   5 H F W D Q J X OD U *U D W LQ J                         
  &R P S D U LV R Q ZLW K S U H YLR X V ZR U N                        
   )D F H W 5 H q H F W LYLW \                            
   )LU V W 2U G H U ' )% OD V H U                        
   6 H F R Q G 2U G H U ' )% OD V H U                        

 6RODU &HOOV 


  % D V LF 3 U LQ F LS OH V                                 
   3 U H YLR X V V W X G LH V R Q J H R P H W U LF D O W H [W X U LQ J               
  5 &: $ R I D W H [W X U H G V R OD U F H OO                         
   $ Q D O\V LV R I 7( )LH OG V                          
   $ Q D O\V LV R I 70 )LH OG V                        
  7K H $ Q W L5 H q H F W LYH D Q G / LJ K W W U D S S LQ J S U R S H U W LH V              

LLL
   $ Q W LU H q H F W LR Q $ F W LR Q R I *U R R YH G 6 X U ID F H V             
   / LJ K W ' LoX V LR Q $ F W LR Q R I *U R R YH G 6 X U ID F H V              
   $ E V R U E D Q F H ( Q K D Q F H P H Q W LQ D V LOLF R Q OD \H U ZLW K D J U R R YH G
V X U ID F H                                  

 &RQFOXVLRQV 

LY
&KDSWHU 

, QWU RGXFWLRQ

7K LV F K D S W H U LV G LYLG H G LQ W R p YH V H F W LR Q V  ,Q W K H p U V W V H F W LR Q D Q LQ W U R G X F W LR Q W R
G LH OH F W U LF V X U ID F H U H OLH I J U D W LQ J V D Q G W K H LU D S S OLF D W LR Q V LV P H Q W LR Q H G E U LH q \ ,Q W K H
V H F R Q G V H F W LR Q W K H S U LQ F LS OH V R I V H P LF R Q G X F W R U OD V H U D U H V X P P D U L] H G  7K H LG H D V
R I V R P H D G YD Q F H G OD V H U V W U X F W X U H V V X F K D V  G R X E OH K H W H U R V W U X F W X U H V  TX D Q W X P ZH OO
V W U X F W X U H V  G LV W U LE X W H G IH H G E D F N V W U X F W X U H V D Q G G LV W U LE X W H G % U D J J U H q H F W R U V D U H S U H 
V H Q W H G  ,Q W K H W K LU G V H F W LR Q  W K H G LV W U LE X W H G IH H G E D F N ' )% OD V H U LV G LV F X V V H G LQ
G H W D LO $ V X P P D U \ R I S U H YLR X V S X E OLV K H G ZR U N LQ W K D W p H OG LV J LYH Q  0H W K R G V R I
ID E U LF D W LR Q D U H D OV R E U LH q \ G H V F U LE H G  ,Q W K H IR U W K V H F W LR Q  D U H YLH Z IR U W K H U LJ R U R X V
F R X S OH G ZD YH D Q D O\V LV LV S U H V H Q W H G  )LQ D OO\ W K H R E MH F W LYH V R I W K LV W K H V LV D U H OLV W H G LQ
W K H p IW K V H F W LR Q 


 &+ $ 3 7( 5   ,1 75 2' 8 &7,21

)LJ X U H    %UDJJ JUDWLQJ LQ UHqHFWLRQ

 'LHOHFWU LF JU DWLQJV

 )XQGDPHQWDOV RI % U DJJ JU DWLQJV

,W LV OLNH O\ W K D W P R V W U H D G H U V K D YH R E V H U YH G W K H V H OH F W LR Q R I F R OR U ZD YH OH Q J W K R Q
OR R NLQ J D W D &' 5 20 X Q G H U D ZK LW H OLJ K W D W F H U W D LQ D Q J OH V  7K LV LV R Q H H [D P S OH R I D
S H U LR G LF V \V W H P V H OH F W LQ J W K H ZD YH OH Q J W K R I OLJ K W W K U R X J K W K H S K H Q R P H Q D U H F R J Q L] H G
D Q G D Q D O\] H G E \ % U D J J D U R X Q G W K H     V  )LJ X U H   LOOX V W U D W H V W K H F R Q YH Q W LR Q D O
U H q H F W LYH G LoU D F W LR Q R I D S OD Q H ZD YH IU R P D S H U LR G LF J U D W LQ J V W U X F W X U H ZLW K S H U LR G
e  $ S OD Q H LQ F R P LQ J ZD YH LV LQ F LG H Q W D W D Q D Q J OH vL  D Q G W K H
0W K R U G H U
G LoU D F W H G
S OD Q H ZD YH H P H U J H V D W W K H D Q J OH vG  7K H F R Q G LW LR Q R I F R Q V W U X F W LYH LQ W H U IH U H Q F H
E H W ZH H Q G LoU D F W H G ZD YH V IU R P D G MD F H Q W H OH P H Q W V LV

e V LQ vL b V LQ vG 0y  

ZK H U H 0 LV D Q LQ W H J H U  LH  0   h  h  G H p Q H V W K H R U G H U R I G LoU D F W LR Q D Q G y LV
W K H ZD YH OH Q J W K  2S W LF D O J U D W LQ J V P D \ E H S OD Q D U V OD E J U D W LQ J V R U R I W K H V X U ID F H 
U H OLH I F R U U X J D W H G W \S H  $ S OD Q D U J U D W LQ J LV LOOX V W U D W H G LQ p J X U H    7K H p J X U H
   ' ,( / ( &75 ,& *5 $ 7,1 *6 

)LJ X U H    *HRPHWU\ RI D SODQDU JUDWLQJ GLoUDFWLRQ VKRZLQJ EDFNZDUG GLoUDFWHG DQG IRUZDUG
GLoUDFWHG SURSDJDWLQJ ZDYHV

V K R ZV W K H LQ F LG H Q W H OH F W U LF p H OG IU R P U H J LR Q , W K H LQ S X W U H J LR Q R Q U H J LR Q ,, W K H
J U D W LQ J U H J LR Q  W K H ZD YH V G LoU D F W H G E D F N LQ 5 H J LR Q , D Q G W K H IR U ZD U G G LoU D F W H G
ZD YH V LQ U H J LR Q ,,, 5 H J LR Q , D Q G U H J LR Q ,,, D U H K R P R J H Q H R X V G LH OH F W U LF ZLW K U H OD W LYH
S H U P LW W LYLW LH V s D Q G s U H V S H F W LYH O\ ZK LOH 5 H J LR Q ,, W K H J U D W LQ J U H J LR Q P D \ K D YH D
S H U LR G LF LW \ LQ W K H U H OD W LYH S H U P LW W LYLW \ LQ W K H F R Q G X F W LYLW \ R U D F R P E LQ D W LR Q R I W K H V H 
7K H S H U LR G LF LW \ LQ W K H U H OD W LYH S H U P LW W LYLW \ F D Q E H H [S U H V V H G E \ s [ s [  e
ZK H U H e LV W K H J U D W LQ J S H U LR G  7K H V H F R Q G W \S H R I J U D W LQ J V  W K H V X U ID F H U H OLH I J U D W LQ J 
LV V K R ZQ LQ p J X U H    7K H p J X U H V K R ZV W K H S H U LR G LF YD U LD W LR Q V LQ W K H V X U ID F H R I W K H
G LH OH F W U LF P D W H U LD O 7K H D Q D O\V LV R I D V X U ID F H U H OLH I J U D W LQ J LV G R Q H E \ G LYLG LQ J U H J LR Q
 &+ $ 3 7( 5   ,1 75 2' 8 &7,21

)LJ X U H    6FKHPDWLF IRU D VXUIDFHUHOLHI JUDWLQJ 5HJLRQ  LV GLYLGHG LQWR D ODUJH QXPEHU RI
WKLQ SODQDU JUDWLQJ OD\HUV

 W K H J U D W LQ J U H J LR Q LQ W R D OD U J H Q X P E H U R I W K LQ D G MD F H Q W S OD Q D U J U D W LQ J OD \H U V D V
LOOX V W U D W H G LQ W K H p J X U H 

 $SSOLFDWLRQV RI GLHOHFWU LF VXU IDFHU HOLHI JU DWLQJ

' LoU D F W LR Q R I R S W LF D O H OH F W U R P D J Q H W LF U D G LD W LR Q E \ S H U LR G LF V W U X F W X U H V LV R I LQ F U H D V LQ J
LP S R U W D Q F H LQ D Q H [S D Q G LQ J YD U LH W \ R I H Q J LQ H H U LQ J D S S OLF D W LR Q V  7K X V  D S S OLF D W LR Q V
D U H E U R D G  YD U LH G D Q G H [W H Q G E H \R Q G E D V LF p H OG V R I R S W LF D O G D W D S U R F H V V LQ J D Q G
V S H F W U D O D Q D O\V LV  ,Q W K LV V H F W LR Q  V R P H U H S U H V H Q W D W LYH D S S OLF D W LR Q V D U H S U H V H Q W H G LQ
E U LH I

$QWLU HqHFWLRQ 3 U RSHU WLHV

' LH OH F W U LF V X U ID F H U H OLH I J U D W LQ J V F D Q H [K LE LW YH U \ OR Z G LoU D F W LR Q H r F LH Q F \ LQ WK H


E D F NZD U G G LoU D F W H G R U G H U V ' LoU D F W LR Q H r F LH Q F LH V D U H G H p Q H G OD W H U LQ G H W D LO LQ V H F 
W LR Q     7K H U H IR U H W K H V H J U D W LQ J V F D Q E H X V H G W R J LYH H [F H OOH Q W D Q W LU H q H F W LR Q
   ' ,( / ( &75 ,& *5 $ 7,1 *6 

)LJ X U H    ,QSXW JUDWLQJ FRXSOHU /LJKW LQ WKH FRYHU UHJLRQ DLU LV FRXSOHG LQWR WKH JXLGHG PRGH
RI WKH pOP ZDYHJXLGH

S U R S H U W LH V  ( Q J H U D Q G &D V H > @ K D YH H [S H U LP H Q W D OO\ G H P R Q V W U D W H G U H q H F W LYLW LH V R I


D E R X W      D F U R V V W K H YLV LE OH V S H F W U X P IR U Q R U P D O LQ F LG H Q F H R Q D Q H W F K H G TX D U W ]
V X U ID F H U H OLH I J U D W LQ J 

% HDP &RXSOLQJ ( [SDQVLRQ 6KDSLQJ DQG 6SOLWWLQJ

*U D W LQ J F R X S OH U V D U H D P R Q J W K H P R V W S U R P LV LQ J G H YLF H V W R F R X S OH OLJ K W LQ W R ZD YH J 
X LG H V  R X W R I ZD YH J X LG H V D Q G E H W ZH H Q ZD YH J X LG H V  ' LoU D F W LR Q J U D W LQ J V F D Q E H X V H G
LQ D Q LQ S X W J U D W LQ J F R X S OH U D V V K R ZQ LQ p J X U H    7K H D Q J OH R I LQ F LG H Q F H vD LQ W K H
LQ S X W U H J LR Q LV F K R V H Q V R W K D W W K H L  IR U ZD U G G LoU D F W H G ZD YH IU R P W K H J U D W LQ J
V W U LNH V W K H ZD YH J X LG H E R X Q G D U \ D W D Q D Q J OH vJ IR U W K H J X LG H G P R G H R I W K H ZD YH J X LG H
W R E H H [F LW H G  7K LV U H TX LU H V

QI V LQ vJ V LQ vD b Ly e  
 &+ $ 3 7( 5   ,1 75 2' 8 &7,21

ZK H U H QI LV W K H U H IU D F W LR Q LQ G H [ R I W K H ZD YH J X LG H P D W H U LD O 7K H D Q W LU H q H F W LR Q D Q G
OLJ K W F R X S OLQ J S U R S H U W LH V R I W K H V H J U D W LQ J V P D NH LW LG H D O W R E H D S S OLH G W R V R OD U F H OOV
ZK LF K ZLOO E H H [S OD LQ H G LQ G H W D LO LQ D IR OOR ZLQ J F K D S W H U 

7K H V H P LF R Q G X F W R U OD V H U G H YLF H V K R ZQ LQ p J X U H   X V H V J U D W LQ J V IR U E H D P H [S D Q V LR Q 
R X W S X W F R X S OLQ J D Q G IH H G E D F N

 *U D W LQ J V F D Q E H X V H G D V H [S D Q G H U V IR U OD V H U E H D P V  ,Q V H U W LQ J D J U D W LQ J U H q H F W R U
LQ W K H F D YLW \ R I D V H P LF R Q G X F W R U OD V H U D OOR ZV W K H ZLG W K R I W K H E H D P WR E H
H [S D Q G H G  7K H S U R p OH R I W K H G LoU D F W H G E H D P G H S H Q G V R Q WK H J H R P H WU\D Q G
G LoU D F W LR Q H r F LH Q F \ R I W K H J U D W LQ J 

 $ J U D W LQ J F R X S OH U LV X V H G W R F R X S OH OLJ K W R X W R I W K H V OD E ZD YH J X LG H LQ W R W K H D LU 
6 X F K R X W S X W F R X S OH U R S H U D W LR Q LV H V V H Q W LD OO\ W K H V D P H D V W K D W R I D Q D Q W H Q Q D 

7K H S U R p OH R I W K H E H D P F D Q E H P R G Lp H G E \ D J U D W LQ J D V P H Q W LR Q H G D E R YH  ,Q D
V LP LOD U P D Q Q H U  D V H U LH V R I J U D W LQ J V F D Q E H X V H G W R V K D S H W K H S U R p OH R I D OD V H U E H D P
LQ D Q D U E LW U D U \ ZD \ W K D W V X LW V W K H D S S OLF D W LR Q 

$ V W U D LJ K W IR U ZD U G D S S OLF D W LR Q R I D J U D W LQ J LV D V D E H D P V S OLW W LQ J  7K H V H G H YLF H V D U H


X V H G E R W K LQ E X ON R S W LF V D Q G LQ LQ W H J U D W H G R S W LF V D S S OLF D W LR Q V > @ )LJ X U H   V K R ZV
D J U D W LQ J E H D P V S OLW W H U X V H G LQ D G LH OH F W U LF F K D Q Q H O ZD YH J X LG H  7K H LQ F LG H Q W ZD YH
LV G LYLG H G LQ W R W K H L  W U D Q V P LW W H G ZD YH D Q G W K H L  G LoU D F W H G ZD YH 

'LVWU LEXWHG )HHGEDFN

7K H G LU H F W LR Q V R I S U R S D J D W LR Q R I E R W K W K H IR U ZD U G D Q G E D F NZD U G G LoU D F W H G ZD YH V R I
D J U D W LQ J G H S H Q G R Q W K H ZD YH OH Q J W K R I W K H LQ F LG H Q W OLJ K W  7K LV G LV S H U V LYH S U R S H U W \
   ' ,( / ( &75 ,& *5 $ 7,1 *6 

)LJ X U H    $ VHPLFRQGXFWRU ODVHU WKDW XVHV JUDWLQJV IRU IHHGEDFN EHDP H[SDQVLRQ DQG RXWSXW
FRXSOLQJ >@

)LJ X U H    &KDQQHO ZDYHJXLGH EHDP VSOLWWLQJ JUDWLQJ >@

D OOR ZV W K H G LoU D F W LR Q J U D W LQ J V W R E H X V H G LQ OD V H U U H V R Q D W R U V W R F R Q W U R O W K H R V F LOOD 


W LR Q IU H TX H Q F \ D Q G W R S U R G X F H V S H F W U D O Q D U U R ZLQ J R I W K H R X W S X W  $ OV R J U D W LQ J V F D Q
 &+ $ 3 7( 5   ,1 75 2' 8 &7,21

)LJ X U H    'LoUDFWLRQ IURP JUDWLQJ HPEHGGHG LQ ODVHU ZDYHJXLGH

S U R YLG H W K H IH H G E D F N U H TX LU H G IR U OD V H U D F W LR Q  ,I D V LQ J OH J U D W LQ J LV X V H G W K D W LV
F R Q W LQ X R X V W K U R X J K R X W W K H D F W LYH U H J LR Q  W K H G H YLF H LV F D OOH G D G LV W U LE X W H G IH H G E D F N
' )% OD V H U  ,I W ZR J U D W LQ J U H q H F W R U V D U H X V H G LQ W K H V OD E ZD YH J X LG H R Q W K H W ZR
V LG H V R I W K H D F W LYH U H J LR Q  W K H G H YLF H LV F D OOH G D G LV W U LE X W H G % U D J J U H q H F W R U ' % 5
OD V H U 

7R J LYH P R U H X Q G H U V W D Q G LQ J IR U K R Z J U D W LQ J F D Q S U R YLG H IH H G E D F N IR U OD V H U G H YLF H V 


F R Q V LG H U D G LoU D F W LR Q J U D W LQ J W K D W LV H P E H G G H G LQ W R D V H P LF R Q G X F W R U ZD YH J X LG H D V
V K R ZQ LQ p J X U H    7K H F R Q G LW LR Q IR U F R Q V W U X F W LYH LQ W H U IH U H Q F H IU R P LG H Q W LF D O S R LQ W V
E X W D W G LoH U H Q W S H U LR G V R I J U D W LQ J W K H S R LQ W V OD E H OH G D E F G LQ W K H G LD J U D P R Ip J X U H
  LV
   ' ,( / ( &75 ,& *5 $ 7,1 *6 

e V LQ vL e V LQ vG
 0  
yP yP

7K H LQ W H J H U 0 LV W K H G LoU D F W LR Q R U G H U ZK LOH yP D Q G yP D U H W K H ZD YH OH Q J W K V LQ


G LoH U H Q W P D W H U LD OV  2Q D S S O\LQ J W K H D E R YH F R Q G LW LR Q W R D S U R S D J D W LQ J R S W LF D O P R G H
LQ D ' )% OD V H U ZD YH J X LG H  R Q H Q R W H V W K D W W K H D Q J OH R I LQ F LG H Q F H vL F D Q Q R W E H V P D OOH U
W K D Q W K H F U LW LF D O D Q J OH IR U W R W D O LQ W H U Q D O U H q H F W LR Q  V R W K D W

Q yP
V LQ vL y  
Q yP

ZK H U H Q D Q G Q D U H W K H U H IU D F W LYH LQ G LF H V LQ W K H F H Q W U D O D Q G R X W H U U H J LR Q V R I W K H
ZD YH J X LG H U H V S H F W LYH O\ ,Q V H U W LQ J H TX D W LR Q   LQ W R H TX D W LR Q   J LYH V

yP 0  0
V LQ vG y b } b  
e S

ZK H U H D Q LQ W H J H U S e  yP G H p Q H V W K H JUDWLQJ RUGHU 7K H H oH F W LYH ZD YH OH Q J W K LQ


W K H J X LG H yP | yP | yP E H F D X V H R I V P D OO G LoH U H Q F H V LQ W K H U H IU D F W LYH LQ G H [ 7K H
U H TX LU H P H Q W IR U D OD V H U ZLW K IH H G E D F N D OR Q J W K H ZD YH J X LG H LV vL | vG | }   7K D W
LV W R V D \ W K H R U G H U S R I W K H J U D W LQ J H TX D OV W K H R U G H U 0 R I W K H G LoU D F W LR Q  ,Q R W K H U
ZR U G V  D p U V W R U G H U J U D W LQ J ZLW K D S H U LR G R I R Q H K D OI D J X LG H ZD YH OH Q J W K J LYH V R S W LF D O
IH H G E D F N LQ W K H p U V W G LoU D F W LR Q R U G H U  &R Q V LG H U LQ J W K H F D V H R I V H F R Q G R U G H U J U D W LQ J 
S   W K H p U V W G LoU D F W H G ZD YH U D G LD W H V D OP R V W Q R U P D OO\ D ZD \ IU R P W K H J U D W LQ J ZK LOH
W K H V H F R Q G G LoU D F W H G ZD YH J LYH V IH H G E D F N 7K H p U V W G LoU D F W H G ZD YH LV X V X D OO\ NQ R ZQ
D V W K H U D G LD W LR Q P R G H  $ W K LU G R U G H U J U D W LQ J J LYH V U D G LD W LR Q OR V V R Q O\ LQ W K H p U V W
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

D Q G V H F R Q G G LoU D F W LR Q R U G H U V D W D Q J OH V V \P P H W U LF D OO\ OR F D W H G D U R X Q G W K H Q R U P D O
E X W J LYH V IH H G E D F N LQ W K H W K LU G G LoU D F W LR Q R U G H U  ,Q J H Q H U D O IH H G E D F N LV R E W D LQ H G
IU R P D J U D W LQ J R I R U G H U 1 LQ G LoU D F W LR Q R U G H U 1  E X W G LoU D F W LR Q R U G H U V V P D OOH U W K D Q
1 U H V X OW LQ U D G LD W LR Q OR V V 

2WKHU JU DWLQJ DSSOLFDWLRQV LQFOXGH

  6LJQDO SU RFHVVLQJ DSSOLFDWLRQV V X F K D V D Q D OR J W R G LJ LW D O F R Q YH U V LR Q  F R Q 


YR OX W LR Q  F R U U H OD W LR Q  P X OW LS OH [LQ J  G H P X OW LS OH [LQ J D Q G S D W W H U Q U H F R J Q LW LR Q 

  'DWD SU RFHVVLQJ DQG GLJLWDO DSSOLFDWLRQV V X F K D V G D W D V W R U D J H  R S W LF D O


OR J LF  G LV S OD \V  P X OW LS R U W V W R U D J H  V ZLW F K LQ J D Q G LP D J H D P S OLp F D W LR Q 

  % HDP SU RFHVVLQJ V X F K D V E H D P G H q H F W LR Q  E H D P H [S D Q V LR Q  E H D P V D P S OLQ J 


E H D P V K D S LQ J  E H D P V S OLW W LQ J  D Q W H Q Q D V D Q G P X OW LS OH E H D P J H Q H U D W LR Q 

 6HPLFRQGXFWLRQ ODVHU

 % DVLF 3 U LQFLSOHV

6 H P LF R Q G X F W R U OD V H U V D U H W K H P R V W LP S R U W D Q W R S W LF D O R V F LOOD W R U V X V H G IR U F R P P X 
Q LF D W LR Q V D Q G F R Q W U R O D S S OLF D W LR Q V E H F D X V H R I W K H LU F R Q YH Q LH Q F H  H r F LH Q F \ D E LOLW \
W R E H G LU H F W O\ P R G X OD W H G E \ LQ IR U P D W LR Q  D Q G Q D W X U D O F R P S D W LE LOLW \ ZLW K W K H U H V W
R I P R G H U Q H OH F W U R Q LF V  $ W \S LF D O V H P LF R Q G X F W R U OD V H U LV V K R ZQ LQ p J X U H    7K H
V K R ZQ OD V H U F R Q V LV W V R I D S Q MX Q F W LR Q D Q G F D YLW \ P LU U R U V  7K H V H P LF R Q G X F W R U OD V H U
R S H U D W H V D V D IR U ZD U G E LD V H G S Q MX Q F W LR Q MX V W D V D / ( ' ZK LOH LV LW TX LW H G LoH U H Q W
IU R P W K H S R LQ W R I YLH Z R I W K H S K R W R Q V 
   6 ( 0,&21 ' 8 &7,21 / $ 6 ( 5  

)LJ X U H    $ W\SLFDO ODVHU VWUXFWXUH VKRZLQJ WKH FDYLW\ DQG WKH PLUURUV XVHG WR FRQpQH SKRWRQV
>@

,Q W K H F D V H R I W K H / ( '  H OH F W U R Q V D Q G K R OH V D U H LQ MH F W H G LQ W R D Q D F W LYH U H J LR Q E \
IR U ZD U G E LD V LQ J W K H S Q MX Q F W LR Q G LR G H  $ W OR Z LQ MH F W LR Q  W K H V H H OH F W U R Q V D Q G K R OH V
U H F R P E LQ H U D G LD W LYH O\ YLD V S R Q W D Q H R X V H P LV V LR Q S U R F H V V W R H P LW S K R W R Q V  + R ZH YH U 
W K H OD V H U V W U X F W X U H LV G H V LJ Q H G V X F K W K D W D W K LJ K H U LQ MH F W LR Q V W K H H P LV V LR Q S U R F H V V
R F F X U V E \ V W LP X OD W H G H P LV V LR Q  7K H V W LP X OD W H G H P LV V LR Q S U R YLG H V V S H F W U D O S X U LW \ W R
W K H S K R W R Q R X W S X W  S U R YLG H V F R K H U H Q W S K R W R Q V  D Q G R oH U V K LJ K V S H H G S H U IR U P D Q F H 
)LJ X U H   K H OS V X Q G H U V W D Q G LQ J W K H G LoH U H Q F H E H W ZH H Q V S R Q W D Q H R X V D Q G V W LP X OD W H G
H P LV V LR Q  ,Q p J X U H   D W K H U H D U H Q R S K R W R Q V LQ W K H V H P LF R Q G X F W R U W K X V W K H H OH F W U R Q
D Q G K R OH U H F R P E LQ H W R H P LW D S K R W R Q D V V K R ZQ W K U R X J K V S R Q W D Q H R X V H P LV V LR Q  ,Q
p J X U H   E W K H U H D U H S K R W R Q V R I H Q H U J \ zKZ W K X V W K H V W LP X OD W H G H P LV V LR Q S U R F H V V
LV S U R S R U W LR Q D O W R W K H S K R W R Q G H Q V LW \ 7KH HPLWWHG SKRWRQV DUH LQ D FRKHUHQW VWDWH
,Q D / ( ' S K R W R Q V H P LW W H G E \ V S R Q W D Q H R X V H P LV V LR Q D U H OR V W H LW K H U E \ U H D E V R U S W LR Q
R U V LP S O\ W K U R X J K OH D YH W K H V W U X F W X U H  7K X V W K H S K R W R Q V G H Q V LW \ U H P D LQ V H [W U H P H O\
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

)LJ X U H    D 6SRQWDQHRXV HPLVVLRQ E 6WLPXODWHG HPLVVLRQ

V P D OO D Q G V W LP X OD W H G H P LV V LR Q F D Q Q R W J H W V W D U W H G  ,Q W K H OD V H U V W U X F W X U H D Q R S W LF D O
F D YLW \ LV G H V LJ Q H G W R F R Q p Q H W K H J H Q H U D W H G S K R W R Q V  7K H R S W LF D O F D YLW \ LV H V V H Q W LD OO\
   6 ( 0,&21 ' 8 &7,21 / $ 6 ( 5  

D U H V R Q D Q W F D YLW \ LQ ZK LF K W K H S K R W R Q V K D YH P X OW LS OH U H q H F W LR Q V  7K X V ZK H Q S K R W R Q V
D U H H P LW W H G  R Q O\ D V P D OO IU D F W LR Q LV D OOR ZH G W R OH D YH W K H F D YLW \ $ V D U H V X OW  W K H
S K R W R Q G H Q V LW \ V W D U W V W R E X LOG X S LQ W K H F D YLW \

 7 KH /DVHU 6WU XFWXU H 2SWLFDO *DLQ DQG /RVVHV

7K H H D U OLH V W OD V H U G LR G H V ZH U H D OO )D E U \3 H U R W )3 OD V H U V ZK LF K D U H V W LOO D YH U \ LP 


S R U W D Q W F OD V V R I J H Q H U D O S X U S R V H OD V H U  7K H )H E U \S H U R W F D YLW \ K D V P LU U R U H G V X U ID F H V
R Q W K H W ZR V LG H V D V V K R ZQ LQ p J X U H    7K H P LU U R U V D V V X U H W K D W U H V R Q D Q W P R G H V
D U H S U R G X F H G LQ W K H F D YLW \ D V V K R ZQ LQ p J X U H     7K X V R Q O\ W K H U H V R Q D Q W P R G H V
D U H D OOR ZH G W R E X LOG X S D Q G S D U W LF LS D W H LQ W K H V W LP X OD W H G H P LV V LR Q S U R F H V V  7K H
ZD YH OH Q J W K V R I W K H U H V R Q D Q W P R G H V S K R W R Q V D W LV I\ W K H U H OD W LR Q / Ty  ZK H U H T
LV D Q LQ W H J H U  / LV W K H F D YLW \ OH Q J W K  y LV W K H OLJ K W ZD YH OH Q J W K LQ W K H P D W H U LD O 7K H
V S D F LQ J E H W ZH H Q V W D W LR Q D U \ P R G H V LV J LYH Q E \

}
N  
/

$ Q LP S R U W D Q W S D U D P H W H U R I W K H OD V H U V W U X F W X U H LV W K H R S W LF D O F R Q p Q H P H Q W ID F W R U 
b  ZK LF K J LYH V W K H IU D F W LR Q R I W K H R S W LF D O ZD YH LQ W K H D F W LYH U H J LR Q  7K H D F W LYH U H J LR Q
LV W K H U H J LR Q D W ZK LF K H OH F W U R Q K R OH S D LU V U H F R P E LQ H  ,W P D \ R F F X S \ D V P D OO IU D F W LR Q
R I W K H R S W LF D O F D YLW \ 7K X V  LW LV LP S R U W D Q W W K D W W R G H V LJ Q W K H OD V H U V W U X F W X U H V R
W K D W W K H R S W LF D O ZD YH K D V D K LJ K S U R E D E LOLW \ R I E H LQ J LQ W K H D F W LYH U H J LR Q  2Q O\ W K LV
IU D F W LR Q ZLOO E H U H V S R Q V LE OH IR U V W LP X OD W H G H P LV V LR Q  9 D U LD W LR Q LQ W K H G LH OH F W U LF F R Q 
V W D Q W LQ W K H OD W H U D O G LU H F W LR Q  ] G LU H F W LR Q  LV U H V S R Q V LE OH IR U W K H R S W LF D O F R Q p Q H P H Q W
D V V K R ZQ LQ p J X U H     7K H F R Q p Q H P H Q W ID F W R U LV H YD OX D W H G D V IR OOR ZV D V V X P LQ J
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

)LJ X U H     7KH VWDWLRQDU\ VWDWHV RI WKH FDYLW\

)LJ X U H     7KH YDULDWLRQ LQ GLHOHFWULF FRQVWDQW

W K D W ) LV W K H H OH F W U LF p H OG U H S U H V H Q W LQ J W K H R S W LF D O ZD YH 
5
DFWLY H U HJLRQ M) ] MG]
b 5  
M) ] MG]
2S W LF D O J D LQ D U LV H V LI W K H U H F R P E LQ D W LR Q S U R F H V V S K R W R Q H P LV V LR Q K D V K LJ K H U U D W H
W K D Q W K H U H YH U V H S U R F H V V R I H OH F W U R Q K R OH J H Q H U D W LR Q S K R W R Q D E V R U S W LR Q  7K H J D LQ
F R H r F LH Q W LV G H p Q H G E \ J D LQ H P LV V LR Q F R H r F LH Q W  D E V R U S W LR Q F R H r F LH Q W 
   6 ( 0,&21 ' 8 &7,21 / $ 6 ( 5  

)LJ X U H     $ VFKHPDWLF RI WKH (N GLDJUDP IRU WKH FRQGXFWLRQ DQG YDOHQFH EDQGV

7K H D E V R U S W LR Q F R H r F LH Q W LV S U R S R U W LR Q D O W R W K H Q X P E H U R I p OOH G V W D W H V LQ W K H
YD OH Q F H E D Q G D Q G W K H H P S W \ V W D W H V LQ W K H F R Q G X F W LR Q E D Q G W R U H F H LYH W K H H OH F W U R Q V 
7K H H P LV V LR Q S U R F H V V LV W K H U H YH U V H S U R F H V V R I D E V R U S W LR Q W K D W LW LV S U R S R U W LR Q D O W R
W K H p OOH G V W D W H V LQ W K H F R Q G X F W LR Q E D Q G D Q G H P S W \ V W D W H V G R ZQ LQ W K H YD OD Q F H E D Q G 
)LJ X U H    V K R ZV D Q H Q H U J \ OH YH O LQ W K H F R Q G X F W LR Q E D Q G H OH F W U R Q ZLW K H Q H U J \ ( H
D Q G D Q H Q H U J \ OH YH O LQ W K H YD OD Q F H E D Q G K R OH ZLW K H Q H U J \ ( K  7K D W LV ( H D Q G ( K
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

D U H U H OD W H G W R W K H S K R W R Q H Q H U J \ E \

z N
K PeU
(H (F  (F  zK b (J 
 PeH PeH
Kz  N Pe
(K (Y b (Y b eU Kz  b (J  
 PeK PK

ZK H U H PeH  PeK D Q G PeU D U H W K H H oH F W LYH P D V V IR U H OH F W U R Q V  W K H H oH F W LYH P D V V IR U K R OH V


D Q G W K H U H G X F H G P D V V IR U W K H H K V \V W H P  / H W I H ( H D Q G I K ( K E H W K H H OH F W U R Q
D Q G K R OH R F F X S D W LR Q S U R E D E LOLW LH V ZK LF K D U H G H W H U P LQ H G E \ W K H TX D V L)H U P L OH YH OV IR U
H OH F W U R Q V D Q G K R OH V U H V S H F W LYH O\ W K H Q W K H H P LV V LR Q F R H r F LH Q W G H S H Q G V R Q W K H S U R G X F W
R I I H ( H D Q G I K ( K  $ OV R W K H D E V R U S W LR Q F R H r F LH Q W G H S H Q G V R Q W K H S U R G X F W R I
 b I H ( H D Q G  b I K ( K  7K H J D LQ LV S U R S R U W LR Q D O W R W K H G LoH U H Q F H E H W ZH H Q
W K H W ZR F R H r F LH Q W V ZK LF K \LH OG V

J zKZ I H ( H  I K ( K b   

7K H F R Q G LW LR Q IR U S R V LW LYH J D LQ U H TX LU H V LQYHUVLRQ R I W K H V H P LF R Q G X F W R U W K D W LV W R
V D \ WKH TXDVL) HUPL OHYHOV PXVW SHQHWUDWH WKHLU UHVSHFWLYH EDQGV IR U W K H IR OOR ZLQ J
F R Q G LW LR Q W R E H V D W LV p H G 

I H ( H  I K ( K !    

: H LJ K W LQ J W K H J D LQ E \ W K H R S W LF D O F R Q p Q H P H Q W ID F W R U G H p Q H G E \ H TX D W LR Q   ZH J H W
ZK D W LV G H p Q H G D V W K H F D YLW \ J D LQ  7K H S K R W R Q OR V V F R Q V LV W V R I W ZR S D U W V 

s OR V V E H F D X V H R I D E V R U S W LR Q R I W K H S K R W R Q V LQ W K H F OD G G LQ J U H J LR Q V D Q G F R Q W D F W V 

s OR V V G X H W R W K H S K R W R Q V H P H U J LQ J IU R P W K H F D YLW \
   6 ( 0,&21 ' 8 &7,21 / $ 6 ( 5  

)LJ X U H     7KH OLJKW RXWSXW DV D IXQFWLRQ RI LQMHFWHG FXUUHQW LQ D VHPLFRQGXFWRU ODVHU >@

7K H OR V V LV G H S H Q G H Q W R Q G R S LQ J D Q G G H IH F W V LQ W K H P D W H U LD O V R W K H P D W H U LD O TX D O
LW \ V K R X OG E H YH U \ J R R G  H V S H F LD OO\ LQ W K H D F W LYH U H J LR Q ZK H U H W K H R S W LF D O ZD YH LV
F R Q p Q H G 

 7 KH /DVHU 7 KU HVKROG &RQGLWLRQ

7K H WKUHVKROG F R Q G LW LR Q LV G H p Q H G D V W K H F R Q G LW LR Q IR U W K H F D YLW \ J D LQ W R R YH U F R P H
W K H F D YLW \ OR V V IR U V R P H S K R W R Q H Q H U J \ 7K H OLJ K W R X W S X W IU R P D OD V H U G LR G H K D V
W U D Q V LW LR Q F K D Q J H E H OR Z  W K U H V K R OG  F R Q G LW LR Q D Q G D E R YH W K LV F R Q G LW LR Q D V V K R ZQ LQ
p J X U H     7K LV D E U X S W F K D Q J H F D Q E H H [S OD LQ H G D V IR OOR ZV  : K H Q W K H OD V H U S Q
MX Q F W LR Q LV IR U ZD U G E LD V H G  H OH F W U R Q V D Q G K R OH V D U H LQ MH F W H G LQ W R W K H D F W LYH U H J LR Q
R I W K H OD V H U  7K H V H H OH F W U R Q V D Q G K R OH V U H F R P E LQ H W R H P LW S K R W R Q V  7K H U H D U H
W ZR G LV W LQ F W U H J LR Q V R I R S H U D W LR Q R I W K H OD V H U  5 H IH U U LQ J W R p J X U H     ZK H Q W K H
IR U ZD U G E LD V F X U U H Q W LV V P D OO W K H Q X P E H U V R I H OH F W U R Q V D Q G LQ MH F W H G K R OH V D U H V P D OO
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

)LJ X U H     D 7KH ODVHU EHORZ WKUHVKROG 7KH JDLQ LV OHVV WKDQ WKH FDYLW\ ORVV E 7KH ODVHU DW
WKUHVKROG $ IHZ PRGHV VWDUW WR GRPLQDWH WKH HPLVVLRQ VSHFWUXP F 7KH ODVHU DERYH WKUHVKROG
$ GRPLQDQW PRGH WDNHV RYHU WKH OLJKW HPLVVLRQ >@
   6 ( 0,&21 ' 8 &7,21 / $ 6 ( 5  

$ V D U H V X OW  W K H J D LQ LQ W K H G H YLF H LV W R R V P D OO W R R YH U F R P H W K H F D YLW \ OR V V  7K H
S K R W R Q V W K D W D U H H P LW W H G D U H H LW K H U D E V R U E H G R U OR V W W R W K H R X W V LG H  + R ZH YH U  D V
W K H IR U ZD U G E LD V LQ F U H D V H V  P R U H F D U U LH U V D U H LQ MH F W H G X Q W LO W K H W K U H V K R OG F R Q G LW LR Q
LV V D W LV p H G U H V X OW LQ J LQ W K H E X LOG X S R I S K R W R Q V LQ W K H F D YLW \ $ W R U D U R X Q G W K H
W K U H V K R OG F X U U H Q W  D OD U J H Q X P E H U R I P R G H V R I W K H OD V H U F D YLW \ S D U W LF LS D W H LQ W K H
S K R W R Q H P LV V LR Q  + R ZH YH U D V W K H G H YLF H LV IX U W K H U E LD V H G D E R YH W K U H V K R OG  V W LP X OD W H G
H P LV V LR Q V W D U W V W R R F F X U D Q G G R P LQ D W H V W K H V S R Q W D Q H R X V H P LV V LR Q  7K H P D LQ S H D N
G R P LQ D W H V D Q G W K H R W K H U P R G H V E H F R P H U H OD W LYH O\ ZH D N 7K H )D E U \3 H U R W F D YLW \
S U R YLG H V Q R S U H IH U H Q F H IR U R Q H R U D Q R W K H U R I W K H D OOR ZH G OR Q J LW X G LQ D O P R G H V  $ OO
R I W K H P R G H V F D Q  LQ S U LQ F LS OH  OD V H  7K H P R G H V H OH F W LYLW \ LV S U R YLG H G E \ W K H J D LQ
VS H F WUX P ZK LF K LV G H S H Q G H Q W R Q W K H H OH F W U R Q LF S U R S H U W LH V R I W K H D F W LYH U H J LR Q 

 $GYDQFHG 6WU XFWXU HV

2Q H R I W K H P D LQ D S S OLF D W LR Q V R I W K H V H P LF R Q G X F W R U OD V H U V LV LQ W K H D U H D R I R S W L
F D O F R P P X Q LF D W LR Q ZK H U H OR Z W K U H V K R OG F X U U H Q W D Q G K LJ K P R G X OD W LR Q E D Q G ZLG W K
D U H R I LQ W H U H V W  7K D W ZD V R Q H R I W K H P R W LYD W LR Q V W R LQ W U R G X F H LP S U R YH P H Q W V LQ
V LP S OH )D E U \3 H U R W OD V H U G H V LJ Q G LV F X V V H G LQ W K H S U H YLR X V V H F W LR Q  2W K H U P R W LYD 
W LR Q V LQ F OX G H W K H Q H H G IR U OD V H U V ZLW K V S H F Lp F H P LV V LR Q IU H TX H Q F LH V W K D W V X LW F H U W D LQ
D S S OLF D W LR Q  LH  OR Q J ZD YH OH Q J W K OD V H U V F R P P R Q O\ Q H H G H G IR U F R P P X Q LF D W LR Q D Q G
V K R U W ZD YH OH Q J W K OD V H U V Q H H G H G IR U R S W LF D O P H P R U \ D S S OLF D W LR Q V  ,Q W K LV V H F W LR Q  W K H
LV V X H V R I OR Z W K U H V K R OG F X U U H Q W D Q G V S H F W U D O S X U LW \ LQ OD V H U V D U H D G G U H V V H G  7K H S H U 
IR U P D Q F H R I W K H V H P LF R Q G X F W R U OD V H U G H S H Q G V X S R Q E R W K W K H S U R S H U W LH V R I W K H D F W LYH
U H J LR Q  HOHFWURQLF SURSHUWLHV D Q G W K H R S W LF D O F D YLW \ RSWLFDO SURSHUWLHV F D X V LQ J S K R 
W R Q V H OH F W LR Q  ' R X E OH K H W H U R V W U X F W X U H  TX D Q W X P ZH OOV D Q G V W U D LQ H G TX D Q W X P ZH OOV
OD V H U V D U H X V H G W R H Q K D Q F H W K H H OH F W U R Q LF S U R S H U W LH V  : K LOH  G LV W U LE X W H G IH H G E D F N
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

D Q G G LV W U LE X W H G % U D J J U H q H F W R U V J U D W LQ J V D U H LQ W U R G X F H G W R H Q K D Q F H W K H S K R W R Q LF
S U R S H U W LH V 

, PSU RYHPHQWV WR HQKDQFH WKH HOHFWU RQLF SU RSHU WLHV

7K H H D U OLH V W V H P LF R Q G X F W R U OD V H U V ZH U H V W U D LJ K W IR U ZD U G S Q K R P R MX Q F W LR Q V  *D $ V 
ZLW K W \S LF D O G LP H Q V LR Q V R I W K H R U G H U R I D IH Z K X Q G U H G P LF U R Q V  7ZR R S S R V LQ J S D U D O
OH O ID F H W V S U R YLG H U H q H F W LYH R S W LF D O IH H G E D F N )3 G H V LJ Q  ,Q MH F W H G F X U U H Q W G H Q V LW LH V

R IWK H R UG H U R I      $ F P D U H U H TX LU H G W R K D YH V W LP X OD W H G H P LV V LR Q V X r F LH Q W W R
F U H D W H R S W LF D O J D LQ D W IU H TX H Q F LH V ZK R V H S K R W R Q H Q H U J LH V F R U U H V S R Q G W R W K H E D Q G J D S
H Q H U J \ R I W K H P D W H U LD O 7K H R S W LF D O IH H G E D F N LQ F U H D V H V W K H OLJ K W OH YH OV LQ W K H F D YLW \
D Q G OD V LQ J W K U H V K R OG F D Q E H U H D F K H G  R Q O\ ZK H Q W K LV V LP S OH S Q MX Q F W LR Q LV F R R OH G E H 
OR Z U R R P W H P S H U D W X U H D Q G  R U R S H U D W H G ZLW K V K R U W S X OV H V W R NH H S W K H U P D O G LV V LS D W LR Q
OR Z 2W K H U S U R E OH P V D V V R F LD W H G ZLW K W K LV V LP S OH S Q MX Q F W LR Q OD V H U V LQ F OX G H V 

s 7K H LQ MH F W H G P LQ R U LW \ F D U U LH U V D U H IUHH W R G LoX V H D Q \ZK H U H  D ID F W W K D W G LOX W H V


W K H V S D W LD O G LV W U LE X W LR Q R I U H F R P E LQ D W LR Q D Q G W K X V W K H J D LQ 

s 7K H U H LV YH U \ OLW W OH J X LG LQ J D Q G F R Q p Q H P H Q W R I W K H H OH F W U R P D J Q H W LF ZD YH E H LQ J
D P S OLp H G  7K H U H LV D V P D OO E LW R I ZD YH J X LG LQ J F D X V H G E \ W K H V OLJ K W G H F U H D V H
R I U H IU D F W LYH LQ G H [ R Q W K H Q V LG H G X H W R W K H IU H H H OH F W U R Q V D Q G R Q W K H S V LG H
G X H W R W K H V P D OO F K D Q J H LQ (J ZLW K D F F H S W R U G R S LQ J 

7K H V H S U R E OH P V F D Q E H R YH U F R P H G E \ W K H X V H R I KHWHURVWUXFWXUHV W R IR U P WK H
D F W LYH S R U W LR Q R I W K H OD V H U  + H W H U R V W U X F W X U H V D U H MX Q F W LR Q V E H W ZH H Q W ZR G LV V LP LOD U
P D W H U LD OV V X F K D V *D $ V ZLW K $ O[ *D b[ $ V ZLW K [ E H LQ J W K H IU D F W LR Q R I J D OOLX P E H LQ J
U H S OD F H G E \ D OX P LQ X P  7K H ID F W W K D W *D $ V D Q G $ O$ V V H P LF R Q G X F W R U V K D YH D OP R V W
LG H Q W LF D O OD W W LF H F R Q V W D Q W V K H OS V J U R ZLQ J R Q H R Q W R S R I W K H R W K H U ZLW K OLW W OH V W U D LQ
   6 ( 0,&21 ' 8 &7,21 / $ 6 ( 5  

LQ YR OYH G D Q G D YH U \ V P D OO G H Q V LW \ R I W U D S V D W W K H LQ W H U ID F H  $ VLQJOHKHWHURMXQFWLRQ
*D $ V OD V H U ZLW K $ O[ *D b[ $ V [ |   R Q R Q H V LG H R I W K H MX Q F W LR Q U H G X F H G W K H

W K U H V K R OG  F X U U H Q W G H Q V LW LH V W R D U R X Q G      $ F P  7K H GRXEOHKHWHUMXQFWLRQ R U
$ O[ *D b[ $ V b *D $ V b $ O\ *D b\ $ V V D Q G ZLF K OD V H U IX U W K H U U H G X F H G W K H W K U H V K R OG
F X U U H Q W V D Q G D OOR ZH G F R Q W LQ X R X V R S H U D W LR Q D W U R R P W H P S H U D W X U H ZLW K F X U U H Q W G H Q 

V LW LH V D U R X Q G     $ F P  )LJ X U H    D LOOX V W U D W H V W K H H Q H U J \ E D Q G G LD J U D P R ID
OD V H U X V LQ J D G R X E OH K H W H U R V W U X F W X U H J H R P H W U \ D Q G E LD V H G LQ W K H IR U ZD U G G LU H F W LR Q 
,Q V X F K V W U X F W X U H W K H H OH F W U R Q V LQ MH F W H G IU R P W K H Q W \S H $ O[ *D b[ $ V P D W H U LD O D U H
F R Q p Q H G W R D Q G U H F R P E LQ H LQ W K H OR ZH U E D Q G J D S S W \S H *D $ V  $ F R Q YH Q LH Q W IH D 
W X U H R I V H P LF R Q G X F W R U S K \V LF V LV W K D W LQ F U H D V LQ J W K H E D Q G J D S R I D V H P LF R Q G X F W R U
E \ F K D Q J LQ J LW V F R P S R V LW LR Q D OV R Q R U P D OO\ G H F U H D V H V LW V U H IU D F W LYH LQ G H [ ,Q p J X U H
   E W K H R X W H U F OD G G LQ J R U F R Q p Q LQ J OD \H U V K D YH V OLJ K W O\ OR ZH U U H IU D F W LYH LQ G H [ W K D Q
W K H D F W LYH R U J D LQ OD \H U  7K X V W K H U H LV D ZH OO G H p Q H G G LH OH F W U LF V OD E ZD YH J X LG H W K D W
K H OS V P D [LP L] H W K H H OH F W U R P D J Q H W LF LQ W H Q V LW \ LQ W K H D F W LYH OD \H U D V V K R ZQ LQ p J X U H
   F  7K LV P D [LP L] H G p H OG LQ W H Q V LW \ OH D G V W R LQ F U H D V H LQ W K H V W LP X OD W H G H P LV V LR Q
U D W H D Q G K H Q F H D U H G X F W LR Q LQ W K H W K U H V K R OG F X U U H Q W 

R
7K H D E LOLW \ W R J U R Z YH U \ W K LQ OD \H U V   |    $ R I G LoH U H Q W V H P LF R Q G X F W R U V
P D W H U LD OV R Q W R S R I H D F K R W K H U LP S OLH V W K H D E LOLW \ W R F U H D W H D U W Lp F LD O P D W H U LD OV ZLW K
W D LOR U H G F K D U D F W H U LV W LF V  7K H G LP H Q V LR Q H V F D Q E H V R V P D OO F R P S D U D E OH W R G H % U R J OLH
ZD YH OH Q J W K  W K D W TX D Q W X P V L] H H oH F W V 46 ( F D Q E H R E V H U YH G  7K H E D Q G G LD J U D P R I
D W \S LF D O TX D Q W X P ZH OO OD V H U V W U X F W X U H LV V K R ZQ LQ p J X U H    ZLW K H OH F W U R Q V E H LQ J
LQ MH F W H G IU R P W K H OH IW D Q G K R OH V IU R P W K H U LJ K W  7K H TX D Q W X P ZH OO LV V R Q D U U R Z W K D W
LW LV S R V V LE OH IR U W K H LQ MH F W H G F D U U LH U V W R S D V V W K U R X J K W K H U H J LR Q V R I *D $ V E H F D X V H
R I W K H OD F N R I F R OOLV LR Q V Q H F H V V D U \ W R W U D S W K H F D U U LH U V LQ W K H ZH OO 7K H D OX P LQ X P
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

)LJ X U H     7KH EDQG GLDJUDP IRU D IRUZDUG ELDVHG KHWHURVWUXFWXUH >@

F R Q F H Q W U D W LR Q LV J U D G H G R YH U D OD U J H U G LV W D Q F H W R D LG W K H W U D S S LQ J R I W K H LQ MH F W H G
F D U U LH U V LQ W K H F H Q W U D O U H J LR Q ZK H U H W K H U H F R P E LQ D W LR Q W D NH V S OD F H E \ W U D Q V LW LR Q V
   6 ( 0,&21 ' 8 &7,21 / $ 6 ( 5  

)LJ X U H     7KH EDQG GLDJUDP RI D W\SLFDO TXDQWXP ZHOO ODVHU VWUXFWXUH

E H W ZH H Q D OOR ZH G V W D W H V LQ W K H TX D Q W X P ZH OOV  4X D Q W X P ZH OO OD V H U V K D YH J D LQ H G
D F F H S W D Q F H D V K LJ K V S H H G OR Z W K U H V K R OG OD V H U V D OW K R X J K W K H \ K D YH V P D OOH U R S W LF D O
F R Q p Q H P H Q W ID F W R U F R P S D U H G W R W K D W R I D ZLG H G R X E OH K H W H U R V W U X F W X U H OD V H U 

,Q W U R G X F LQ J D V W U D LQ LQ D TX D Q W X P ZH OO F D Q E H S U R G X F H G E \ J U R ZLQ J D Q H S LW D [LD O
OD \H U ZLW K D OD W W LF H F R Q V W D Q W W K D W LV G LoH U H Q W IU R P W K D W R I W K H V X E V W U D W H  7K H U H D U H
V H YH U D O P R W LYD W LR Q V IR U X V LQ J V W U D LQ LQ TX D Q W X P ZH OO OD V H U V V X F K D V 

  W K H D E LOLW \ W R P R G LI\ W K H E D Q G V W U X F W X U H  OD V H U V X V LQ J P LV P D W F K H G K H W H U R V W U X F 
W X U H V F D Q R S H U D W H LQ V S H F W U D O U H J LR Q V G LoH U H Q W IU R P W K R V H R I OD V H U V E D V H G R Q
OD W W LF H P D W F K H G V W U X F W X U H V 

  W K U H V K R OG F X U U H Q W V G H F U H D V H IR U E R W K F R P S U H V V LYH D Q G W H Q V LOH V W U D LQ H G OD V H U V 
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

)LJ X U H     7ZR SRVVLEOH RXWSXWV RI ODVHU VWUXFWXUHV D D VXUIDFH HPLWWLQJ ODVHU E DQ HGJH
HPLWWLQJ ODVHU

  W K H G H YLF H V ZLW K V W U D LQ H G V H P LF R Q G X F W R U OD \H U V K D YH E H W W H U U H OLD E LOLW \ W K D Q


W K R V H ZLW K OD W W LF H P D W F K H G OD \H U V 

/ D V H U V P D \ E H G H V LJ Q H G LQ H LW K H U D V X U ID F H H P LW W LQ J F R Q p J X U D W LR Q R U LQ D Q H G J H
H P LW W LQ J F R Q p J X U D W LR Q  7K H V H F R Q p J X U D W LR Q V D U H LOOX V W U D W H G LQ p J X U H    D D Q G
   E U H V S H F W LYH O\ 6 X U ID F H H P LW W LQ J OD V H U V U D G LD W H IU R P W K H ID F H S D U D OOH O W R W K H S Q
MX Q F W LR Q S OD Q H  7K H OLJ K W H P LW W H G LQ W K H R S S R V LW H G LU H F W LR Q LV H LW K H U D E V R U E H G E \ D
V X E V W U D W H R U U H q H F W H G E \ P H W D OOLF F R Q W D F W V  7K H H G J H H P LW W LQ J OD V H U V U D G LD W H IU R P WK H
H G J H R I W K H MX Q F W LR Q U H J LR Q  ( [D P S OH V R I H G J H H P LW W LQ J OD V H U V D U H W K H )H E U \3 H U R W
F D YLW \ D Q G F D YLW LH V IR U G LV W U LE X W H G IH H G E D F N OD V H U V F R Q W D LQ LQ J S H U LR G LF J U D W LQ J V 

, PSU RYHPHQWV WR HQKDQFH WKH RSWLFDO FDYLW\

7K H G H V LJ Q R I W K H F D YLW \ K D V D YH U \ LP S R U W D Q W U R OH LQ OD V H U G H YLF H V V LQ F H W K H F D YLW \ D I


IH F W V W K H P D J Q LW X G H R I W K H p H OG V  ZK LF K LQ W X U Q  D oH F W V W K H V W LP X OD W H G H P LV V LR Q U D W H 
7K H )D E U \3 H U R W F D YLW \ LV R Q H R I W K H V LP S OH V W R S W LF D O F D YLW LH V X V H G IR U V H P LF R Q G X F W R U
OD V H U V  ,W LV V LP S O\ D ZD YH J X LG LQ J V W U X F W X U H R I OH Q J W K / D Q G ZLG W K G D V V K R ZQ LQ
   6 ( 0,&21 ' 8 &7,21 / $ 6 ( 5  

p J X U H    D  7K H OH Q J W K / G H W H U P LQ H V W K H V S D F LQ J E H W ZH H Q W K H )D E U \3 H U R W P R G H V
D F F R U G LQ J W R H TX D W LR Q    7K H F D YLW \ OD W H U D O G LP H Q V LR Q  G  G H W H U P LQ H V W K H W U D Q V 
YH U V H P R G H V R I W K H OLJ K W H P LW W H G  $ V F K H P D W LF R I YD U LR X V OD W H U D O P R G H V LV V K R ZQ
LQ p J X U H    E  ,I W K H W U D Q V YH U V H F R Q p Q H P H Q W V R I W K H R S W LF D O ZD YH LV ZH D N G LV
OD U J H  W K H U H P D \ E H V H YH U D O W U D Q V YH U V H P R G H V ZK R V H IU H TX H Q F LH V D U H F OR V H O\ V S D F H G 
7K H OD V H U R X W S X W P D \ LQ YR OYH G LoH U H Q W W U D Q V YH U V H P R G H V D V W K H LQ MH F W LR Q F X U U H Q W LV
LQ F U H D V H G E H F D X V H F D U U LH U LQ MH F W LR Q V K LIW V W K H S H D N LQ W K H J D LQ V S H F W U D D Q G W K H S H D N
P R G H V K LIW V D V ZH OO 7K LV U H V X OW V LQ D NLQN LQ W K H R X W S X W S R ZH U D V V K R ZQ LQ p J X U H
   F  6 X F K NLQN S U R G X F H V Q R LV H LQ W K H R S W LF D O W U D Q V P LW W H U  7K X V LW LV LP S R U W D Q W
W R H Q V X U H V W U R Q J W U D Q V YH U V H F R Q p Q H P H Q W LQ W K H V W U X F W X U H W R D YR LG W K H NLQ N 7K LV
F R Q p Q H P H Q W F D Q E H D F K LH YH G E \ W ZR ZD \V Q D P H O\ JDLQ JXLGHG FDYLWLHV D Q G  R U
LQGH[ JXLGHG FDYLWLHV

$ F R P P R Q V H P LF R Q G X F W R U OD V H U V W U X F W X U H W K D W LV X V H G W R F R Q p Q H W K H R S W LF D O ZD YH
D Q G W R J X LG H LW D OR Q J W K H F D YLW \ OH Q J W K LV W K H VWU LSH ODVHU  7K H YH U W LF D O J H R P H W U \
R I D W \S LF D O V W U LS H OD V H U LV V K R ZQ LQ p J X U H    D  7K H V H P LF R Q G X F W R U V W U X F W X U H LV
F R YH U H G ZLW K D W K LQ OD \H U R I R [LG H 6 L2 LQ W R ZK LF K D V W U LS H LV H W F K H G  7K LV D OOR ZV W K H
LQ MH F W H G F X U U H Q W W R E H F R Q p Q H G LQ W R D Q D U U R Z U H J LR Q D V V K R ZQ  ' X H W R W K H G LoX V LYH
Q D W X U H R I W K H F X U U H Q W q R Z LW V S U H D G V R X W X Q G H U W K H V W U LS H  7K LV V S U H D G LQ J F D Q E H
F R Q W U R OOH G E \ W K H G H YLF H G H V LJ Q  $ V D U H V X OW R I Q R Q X Q LIR U P F D U U LH U F R Q F H Q W U D W LR Q
X Q G H U W K H V W U LS H  W K H U H IU D F W LYH LQ G H [ E H F R P H V Q R Q X Q LIR U P  7K H F K D Q J H LQ W K H U H D O
S D U W R I W K H U H IU D F W LYH LQ G H [ LV YH U \ V P D OO D Q G LV Q R W W K H P D LQ ID F W R U LQ G H W H U P LQ LQ J
W K H W U D Q V YH U V H F R Q p Q H P H Q W  + R ZH YH U  G X H W R W K H V W U R Q J O\ Q R Q X Q LIR U P J D LQ S U R p OH
V K R ZQ LQ p J X U H    E  W K H J D LQ S U R G X F H V D J X LG LQ J H oH F W 
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

)LJ X U H     D 7KH YDULRXV JHRPHWULF SDUDPHWHUV RI D )DEU\3HURW ODVHU FDYLW\ E $ VKHPDWLF


RI WKH YDULRXV ODWHUDO PRGHV F 7KH VKLIW LQ WUDQVYHUVH PRGHV SDUWLFLSDWLQJ LQ WKH RSWLFDO RXWSXW
RI D ODVHU SURGXFH NLQNV LQ WKH OLJKW RXWSXWFXUUHQW FXUYHV >@
   6 ( 0,&21 ' 8 &7,21 / $ 6 ( 5  

)LJ X U H     D &URVV VHFWLRQ RI D VWULSH ODVHU E 7KH DVVXPHG YDULDWLRQ RI WKH JDLQ LQ D
KHWHURVWUXFWXUH ODVHU >@
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

7K H S H D N YD OX H R I W K H J D LQ D Q G W K H ZLG W K R I W K H S R V LW LYH J D LQ U H J LR Q D U H IX Q F W LR Q V
R I W K H LQ MH F W H G F X U U H Q W  7K H J D LQ E H F R P H V Q H J D W LYH E H F D X V H R I W K H V P D OO F X U U H Q W
G H Q V LW \ D ZD \ IU R P W K H V W U LS H  7R H Q V X U H V LQ J OH W U D Q V YH U V H P R G H R S H U D W LR Q LQ D J D LQ
J X LG H G OD V H U  D YH U \ Q D U U R Z V W U LS H |  zP LV U H TX LU H G  &R Q V H TX H Q W O\ W K H W K U H V K R OG
F X U U H Q W R I W K H G H YLF H LQ F U H D V H V V LQ F H D OD U J H IU D F W LR Q R I W K H F X U U H Q W V S U H D G V R X W D Q G
LV ZD V W H G  ,Q G H [ J X LG H G R S W LF D O F D YLW LH V D U H G H V LJ Q H G W R H Q V X U H V LQ J OH W U D Q V YH U V H
P R G H  7K H G H YLF H ID E U LF D W LR Q LV P X F K P R U H F R P S OH [ ,Q G H [ J X LG LQ J F D YLW LH V U H O\ R Q
D V W H S LQ W K H LQ G H [ S U R p OH LQ W K H OD W H U D O G LU H F W LR Q  W K X V G H YLF H V ZLW K V X F K F D YLW LH V
D U H F D OOH G E X U LH G K H W H U R V W U X F W X U H OD V H U V  7K H E X U LH G K H W H U R V W U X F W X U H OD V H U G R H V Q R W
V X oH U IU R P NLQ NV LQ W K H OLJ K W F X U U H Q W F X U YH V K R ZQ LQ p J X U H    F  7K H R X W S X W LV D
V LQ J OH W U D Q V YH U V H P R G H D Q G W K H W K U H V K R OG F X U U H Q W LV YH U \ V P D OO

7K H P D LQ G U D ZE D F N R I D )D E U \3 H U R W OD V H U ZK LF K P D NH V X V H R I V LP S OH P LU U R U V W R
S U R YLG H IH H G E D F N LV W K D W W K H U H LV Q R V S H F LD O S U H IH U H Q F H J LYH Q W R D S D U W LF X OD U P R G H 
W K D W LV W K H V H OH F W LR Q R I W K H R S W LF D O P R G H ZK LF K G R P LQ D W H V LV OH IW H Q W LU H O\ X S WR
W K H J D LQ V S H F W U D G H W H U P LQ H G E \ W K H H OH F W U R Q LF S U R S H U W LH V R I W K H D F W LYH U H J LR Q  7K H
LQ V H U W LR Q R I D % UDJJ JUDWLQJ LQ W R D OD V H U K D V S U R YH G W R E H D YH U \ J R R G V R OX W LR Q W R S U R 
YLG LQ J U H OLD E OH V LQ J OH IU H TX H Q F \ R S W LF D O V R X U F H  $ Q LP S R U W D Q W S D U D P H W H U G H V F U LE LQ J
W K H IH H G E D F N E \ D J U D W LQ J LV W K H J U D W LQ J F R X S OLQ J ID F W R U  x G H p Q H G D V W K H U H q H F W LR Q
S H U X Q LW OH Q J W K  )R U D J U D W LQ J OH Q J W K /  x/ LV D NH \ G LP H Q V LR Q OH V V S D U D P H W H U G H 
W H U P LQ LQ J W K H IU H TX H Q F \ V H OH F W LYLW \ D Q G S H U IR U P D Q F H R I W K H J U D W LQ J  )LJ X U H    D
V K R ZV V F K H P D W LF D OO\ D W \S LF D O G LV W U LE X W H G % U D J J U H q H F W R U ' % 5 OD V H U V W U X F W X U H  ,W
LV D OD V H U ZLW K D F H Q W H U D O ZD YH J X LG H V H F W LR Q ZLW K J D LQ ZK LF K LV H V V H Q W LD OO\ LG H Q W LF D O
W R W K H )D E U \3 H U R W OD V H U V  7K H NH \ F K D Q J H LV W K D W  LQ V W H D G R I X V LQ J P LU U R U V D W W K H
H Q G ID F H W V R I W K H OD V H U  W K H S D V V LYH ZD YH J X LG H LV H [W H Q G H G E H \R Q G W K H J D LQ U H J LR Q
LQ W R W K H H Q G V H F W LR Q V ZK H U H W K H % U D J J J U D W LQ J V D U H H W F K H G D Q G D F W D V U H q H F W R U V  7K H
   6 ( 0,&21 ' 8 &7,21 / $ 6 ( 5  

)LJ X U H     D 7KH '%5 ODVHU ZKHUH D %UDJJ UHqHFWRU LV SODFHG RXWVLGH WKH DFWLYH UHJLRQ E
7KH GLVWULEXWHG IHHGEDFN VWUXFWXUH LQFRUSRUDWHV D SHULRGLF JUDWLQJ LQ WKH ODVHU VWUXFWXUH

D G YD Q W D J H R I W K LV V W U X F W X U H R YH U W K H V LP S OH )D E U \3 H U R W OD V H U LV W K D W P X OW LS OH U H 
q H F W LR Q V J LYH V LJ Q Lp F D Q W IH H G E D F N R Q O\ D U R X Q G W K H % U D J J IU H TX H Q F \ G H W H U P LQ H G E \
W K H J U D W LQ J S H U LR G  7K X V  W K H ' % 5 OD V H U LV H oH F W LYH O\ D )D E U \3 H U R W OD V H U ZLW K P LU 
U R U V U H S OD F H G E \ G LV W U LE X W H G E U D J J U H q H F W R U V V R W K D W W K H P LU U R U U H q H F W LYLW LH V E H F R P H
ZD YH OH Q J W K G H S H Q G H Q W  )LJ X U H    E V K R ZV D W \S LF D O G LV W U LE X W H G IH H G E D F N ' )%
OD V H U V W U X F W X U H ZLW K D X Q LIR U P S H U LR G LF J U D W LQ J D OR Q J W K H D F W LYH U H J LR Q V X F K W K D W D Q
R S W LF D O ZD YH W U D YH OLQ J LQ R Q H G LU H F W LR Q H [S H U LH Q F H V F R Q W LQ X R X V IH H G E D F N F R P E LQ H G
ZLW K J D LQ  6 X F K D ' )% OD V H U K D V YH U \ G H V LU D E OH F K D U D F W H U LV W LF V  W K X V LW LV G LV F X V V H G
LQ G H W D LO LQ W K H Q H [W V H F W LR Q 
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

 7 KH 'LVWU LEXWHG )HHGEDFN ')% ODVHU


' LV W U LE X W H G )H H G % D F N ' )% OD V H U LQ F R U S R U D W H V D S H U LR G LF J U D W LQ J ZK LF K J LYH V D
V W U R Q J V H OH F W LYLW \ IR U W K H ZD YH OH Q J W K  7K H G LV W U LE X W H G Q D W X U H R I W K H U H q H F W LR Q V K D U S 
H Q V W K H F D YLW \ U H V R Q D Q F H  K H Q F H G LV W U LE X W H G IH H G E D F N OD V H U V D U H W \S LF D OO\ R I P X F K
Q D U U R ZH U E D Q G ZLG W K W K D Q )D E U \3 H U R W OD V H U ZLW K P LU U R U V  ' )% OD V H U V OD V H LQ W K H
V D P H V LQ J OH OR Q J LW X G LQ D O P R G H IU R P W K U H V K R OG X S W R W K H P D [LP X P R S H U D W LQ J S R ZH U
ZK LOH )D E U \3 H U R W OD V H U V K R S IU R P R Q H OR Q J LW X G LQ D O P R G H W R D Q R W K H U D V W K H F X U U H Q W
D Q G  R U W H P S H U D W X U H F K D Q J H  7K H G LV W U LE X W H G IH H G E D F N ' )% OD V H U K D V D Q X P E H U R I
IH D W X U H V Q H H G H G E \ W K H K LJ K S H U IR U P D Q F H R S W LF D O p E H U V \V W H P V 

s 6 W D E OH V LQ J OH IU H TX H Q F \ R X W S X W 

s *LJ D E LW P R G X OD W LR Q F D S D E LOLW \

s 6 W D E OH R S H U D W LR Q W K U R X J K R X W OLIH W LP H V D W U R R P WH P S H UD WX UH 

s 0D Q X ID F W X U D E LOLW \

 3 U LQFLSOHV RI 'LVWU LEXWHG )HHGEDFN ')% /DVHU

,Q p J X U H    D D V LP S OLp H G G H P R Q V W U D W LR Q R I W K H R S H U D W LR Q R I D G LV W U LE X W H G IH H G E D F N
V W U X F W X U H LV S U H V H Q W H G  7ZR ZD YH V D U H U H S U H V H Q W H G E \ D U U R ZV  R Q H W U D YH OV W R W K H OH IW
ID F H W D Q G R W K H U W R W K H U LJ K W ID F H W  $ Q R S W LF D O ZD YH W U D YH OLQ J LQ R Q H G LU H F W LR Q LV
F R Q W LQ X R X V O\ V F D W W H U H G LQ W R W K H R S W LF D O ZD YH LQ W K H U H YH U V H G LU H F W LR Q  7K H U H IR U H  D V
H D F K ZD YH W U D YH OV LQ W K H S H U LR G LF V W U X F W X U H  LW U H F H LYH V OLJ K W D W H D F K S R LQ W D OR Q J LW V
S D W K E \ % U D J J V F D W W H U LQ J IU R P W K H R S S R V LW H O\ W U D YH OLQ J ZD YH  7K LV F U H D W H V D IH H G E D F N
P H F K D Q LV P ZK LF K LV G LV W U LE X W H G W K U R X J K R X W W K H OH Q J W K R I W K H S H U LR G LF V W U X F W X U H 
   7+ ( ' ,6 75 ,% 8 7( ' )( ( ' % $ &. ' )% / $ 6 ( 5  

)LJ X U H     D 'HPRQVWUDWLRQ RI ODVHU RVFLOODWLRQ LQ D SHULRGLF VWUXFWXUH E $PSOLWXGHV RI OHIW


WUDYHOLQJ ZDYH U ]  DQG ULJKW WUDYHOLQJ ZDYH I ]  YHUVXV GLVWDQFH

&R Q V LG H U D ZD YH S U R S D J D W LQ J LQ W K H ] G LU H F W LR Q D Q G H [S H U LH Q F LQ J U H q H F W LR Q D W
S OD Q H V D E F  H W F  7K H V P D OO U H q H F W H G ZD YH J H Q H U D W H G D W W K H S OD Q H
E
OD J V W K H
F R U U H V S R Q G LQ J p H OG J H Q H U D W H G D W S OD Q H
D
E \ Ne U D G LD Q V  N LV W K H ZD YH YH F W R U D Q G
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

e LV W K H J U D W LQ J S H U LR G LF LW \  : K H Q W K H
E
ZD YH S U R S D J D W H V E D F N W R S R V LW LR Q
D

LW H [S H U LH Q F H V D Q R W K H U Ne S K D V H G H OD \ \LH OG LQ J D W R W D O S K D V H G H OD \ R I N  e D W
E

ZLW K U H V S H F W W R
D
 ,I N  e LV D Q LQ W H J H U Q X P E H U R I  } U D G LD Q V  W K H LQ G LYLG X D O V P D OO
U H q H F W H G ZD YH V D G G D Q G W K H U H YH U V H ZD YH F R X OG E H F R P S D U D E OH LQ P D J Q LW X G H W R W K H
LQ F LG H Q W R Q H 

N  e P }
Py
e   


ZK H U H y yR Q D Q G Q LV W K H LQ G H [ R I U H IU D F W LR Q  7K H LQ W H J H U P F R UUH VS R Q G V WR WK H
R U G H U  ,Q W K LV V H F W LR Q  W K H V LP S OH V W F D V H R I p U V W R U G H U P  LV F R Q V LG H U H G  )LJ X U H
   E V K R ZV W K D W E R W K ZD YH V J U R Z D V W K H \ W U D YH O E H F D X V H R I W K H IH H G E D F N D Q G W K H
J D LQ  ,W LV IR X Q G W K D W W K H ' )% OD V H U R V F LOOD W H V D W W ZR S R V V LE OH IU H TX H Q F LH V D E R YH D Q G
E H OR Z W K H % U D J J IU H TX H Q F \ 7K H D Q D O\V LV R I W K H ' )% OD V H U Q H F H V V D U LO\ U H TX LU H V W K H
LQ YH V W LJ D W LR Q R I ZD YH S U R S D J D W LR Q LQ S H U LR G LF V W U X F W X U H V  7K H D S S U R D F K S U H V H Q W H G
K H U H H V V H Q W LD OO\ IR OOR ZV W K H F R X S OH G ZD YH W K H R U \ R I +  . R J H OQ LN D Q G & 9  6 K D Q N
    > @ ,W LV D V LP S OH W K H R U \ R I W ZR F R X Q W H U U X Q Q LQ J ZD YH V F R X S OH G E \ E D F NZD U G
% U D J J V F D W W H U LQ J  7K H ZD YH H TX D W LR Q IR U W K H R S W LF D O ZD YH p H OG  (  LV J LYH Q LQ J H Q H U D O
E \

#(
 N (    
#] 
ZK H U H N LV G H W H U P LQ H G E \ W K H F R P S OH [ U H IU D F W LYH LQ G H [ QF D Q G W K H IU H H V S D F H ZD YH YH F 
W R U NR D V

N QF NR    
   7+ ( ' ,6 75 ,% 8 7( ' )( ( ' % $ &. ' )% / $ 6 ( 5  

7K H U H D O S D U W R I W K H U H IU D F W LYH LQ G H [ QU  K D V D X Q LIR U P S D U W D Q G D S H U LR G LF S D U W  V R
LW F D Q E H H [S U H V V H G X V LQ J )R X U LH U H [S D Q V LR Q D V IR OOR ZV 

; L}1 ]
QU ] QUR  &1 H e   
1
ZK H U H e LV W K H J U D W LQ J S H U LR G LF LW \ 7K H p U V W K D U P R Q LF )R X U LH U F R H r F LH Q W  & ZLOO
E H W K H G R P LQ D Q W R Q H  7K X V  Q H J OH F W LQ J K LJ K H U K D U P R Q LF F R H r F LH Q W  W K H U H IU D F W LYH
LQ G H [ LV H [S U H V V H G D V 
QU ] QUR  Q FRV  pE ]   

ZK H U H pE } e D Q G Q LV W K H p U V W V S D W LD O )R X U LH U F R P S R Q H Q W R I W K H U H IU D F W LYH LQ G H [
7K H LP D J LQ D U \ S D U W R I W K H U H IU D F W LYH LQ G H [ LV U H OD W H G W R W K H J D LQ LQ W K H V W U X F W X U H E \
bJ
QL   
 NR
6 X E V W LW X W LQ J W K H U H D O D Q G LP D J LQ D U \ S D U W V R I W K H U H IU D F W LYH LQ G H [ IR U QF  D Q G P D NLQ J
J 
W K H YH U \ U H D V R Q D E OH D V V X P S W LR Q V W K D W Q € QUR D Q G NR
P X F K V P D OOH U W K D Q R Q H 
W K H ZD YH H TX D W LR Q E H F R P H V

# (
 p   LpJ ( b pxFRV  pE ] (   
#] 
ZK H U H p NR QUR D Q G x NR Q LV W K H F R X S OLQ J F R H r F LH Q W  : K H Q W K H F R X S OLQ J
F R H r F LH Q W x H TX D OV ] H U R  W K H U H LV Q R S H U LR G LF YD U LD W LR Q R I W K H U H IU D F W LYH LQ G H [ 
H TX D W LR Q    E H F R P H V W K H X V X D O ZD YH H TX D W LR Q D Q G W K H V R OX W LR Q R I W K H H TX D W LR Q LV D
ZD YH ZLW K D ZD YH Q X P E H U p ZK R V H D P S OLW X G H J U R ZV LQ V S D F H G X H W R W K H J D LQ W H U P 
: LW K x    W K H LQ W H U H V W LQ J V R OX W LR Q LV Q H D U W K H % U D J J ZD YH OH Q J W K ZD YH Q X P E H U
pE D Q G W K H p H OG F R Q V LV W V R I W ZR ZD YH V ZK LF K F D Q E H H [S U H V V H G D V 

( ] I ] HbLpE ]  U ] HLpE ]   
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

7K H IX Q F W LR Q V I ] W K H IR U ZD U G ZD YH S U R S D J D W LQ J LQ W K H ] G LU H F W LR Q D Q G U ] W K H
U H YH U V H ZD YH S U R S D J D W LQ J LQ W K H ] G LU H F W LR Q U H P D LQ W R E H G H W H U P LQ H G  ( TX D W LR Q
   D Q G W K H ZD YH H TX D W LR Q D U H X V H G D Q G W K H IR OOR ZLQ J D S S U R [LP D W LR Q V D U H P D G H 

  7K H V H F R Q G G H U LYD W LYH W H U P V D U H Q H J OH F W H G 

  7H U P V YD U \LQ J D V H [S hL pE ] D U H LJ Q R U H G 

  ' LV W LQ J X LV K LQ J E H W ZH H Q p D Q G pE LV Q R W Q H H G H G X Q OH V V W K H G LoH U H Q F H R F F X U V 
+ H Q F H  OH W r U H S U H V H Q W V W K H V K LIW LQ W K H IU H TX H Q F \ IU R P W K H % U D J J U H q H F W LR Q
IU H TX H Q F \ 7K D W LV 

p pE  r   

D Q G
p  b pE p  pE p b pE
 pE r   

7K H IR OOR ZLQ J W ZR F R X S OH G H TX D W LR Q V D U H R E W D LQ H G

#I J
 b Lr I LxU
#] 
#U J
b  b Lr U LxI   
#] 

7K H V H F R X S OH G H TX D W LR Q V G H V F U LE H W K H S U R S D J D W LR Q R I ZD YH V LQ W K H ' )% OD V H U V W U X F 
W X U H  7K H ZD YH V I ] D Q G U ] E X LOG X S IU R P H D F K H G J H R I W K H OD V H U V LG H V D V V K R ZQ
LQ p J X U H    E  $ V V X P LQ J W K D W W K H ID F H W U H q H F W LYLW LH V D U H ] H U R V  W K H E R X Q G D U \ F R Q 
G LW LR Q V IR U W K H ZD YH V D U H

/ b/
U I    
 
   7+ ( ' ,6 75 ,% 8 7( ' )( ( ' % $ &. ' )% / $ 6 ( 5  

7K H F R X S OH G H TX D W LR Q V F D Q E H F R P E LQ H G W R R E W D LQ
   

 I    I 
  b q       
U U
ZK H U H

J
q x  b Lr 
  

7D NLQ J LQ W R D F F R X Q W W K H V \P P H W U \ R I W K H S U R E OH P  W K H V R OX W LR Q IR U W K H F R X S OH G
H TX D W LR Q V F D Q E H ZU LW W H Q LQ W K H IR U P 

/
I ] V LQ K q ]  

/
U ] h V LQ K q ] b   


6 X E V W LW X W LQ J W K H V S D W LD O G H S H Q G H Q F H LQ W K H F R X S OH G H TX D W LR Q V 

q/ J q/ q/
bq V LQ K  b Lr F R V K hLx F R V K 
   
q/ J q/ q/
bq F R V K  b Lr V LQ K iLx V LQ K   
   
( TX LYD OH Q W O\ W D NLQ J W K H G LoH U H Q F H D Q G V X P R I W K H D E R YH W ZR H TX D W LR Q V 

J
q b Lr hLxHq/ 

J
q b b Lr iLxHbq/   

0X OW LS O\LQ J W K H V H H TX D W LR Q V U H V X OW V LQ H TX D W LR Q     LQ J H Q H U D O D F R P S X W H U LV Q H H G H G
W R V R OYH W K LV H TX D W LR Q  $ V V X P LQ J W K D W W K H J D LQ LV OD U J H  LH  J !! x H TX D W LR Q   
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

OH D G V W R q
h J b Lr D Q G IU R P H TX D W LR Q    

J J
 b Lr
hLxH  bLr /   


0X OW LS O\LQ J W K LV H TX D W LR Q E \ LW V F R P S OH [ F R Q MX J D W H  W K H IR OOR ZLQ J F R Q G LW LR Q LV


R E W D LQ H G
x
J
HbJ/   
 
 r
7K LV LV W K H F R Q G LW LR Q IR U OD V H U R V F LOOD W LR Q LQ W K H ' )% V W U X F W X U H  7K H D OOR ZH G P R G H V
R I W K H V \V W H P F D Q E H R E W D LQ H G E \ H TX D W LQ J W K H S K D V H R I W K H W H U P V LQ H TX D W LR Q    
1 H D U W R W K H % U D J J F R Q G LW LR Q  LH  IR U V P D OO YD OX H V R I r W K LV J LYH V

 
r P }   
/ 

ZK H U H P  h  7K H U H D U H Q R D OOR ZH G ZD YH V D W W K H % U D J J IU H TX H Q F \ {%  $ U R X Q G


W K H % U D J J F R Q G LW LR Q  W K H P R G H V D U H D U U D Q J H G V \P P H W U LF D OO\ X Q G H U P H Q W LR Q H G V LP S OH
D V V X P S W LR Q V  7K H J D LQ Q H H G H G IR U OD V H U R V F LOOD W LR Q V LV OR ZH V W IR U W K H P  P R G H V
D Q G LQ F U H D V H V IR U R W K H U P R G H V D V V K R ZQ LQ p J X U H    
7K H OR Q J LW X G LQ D O LQ W H Q V LW \ G LV W U LE X W LR Q V R I W K H W ZR P R G H V ZLW K H TX D O W K U H V K R OG
J D LQ V S D F H G H TX D OO\ IU R P {% D U H H TX D O D V ZH OO )R U W K H W ZR P R G H V Q H D U H V W W R {% 
ZK LF K ZLOO E H W K H G R P LQ D Q W OD V H U P R G H V G X H W R W K H LU P LQ LP X P W K U H V K R OG J D LQ  W K H
OR Q J LW X G LQ D O LQ W H Q V LW \ G LV W U LE X W LR Q V D U H V NH W F K H G V F K H P D W LF D OO\ LQ p J X U H    IR U W K H
W ZR OLP LW LQ J F D V H V R I V P D OO D Q G OD U J H x/ S U R G X F W 

 ,Q W K H F D V H R I V P D OO F R X S OLQ J  x/ x  p J X U H    D  W K H OR Q J LW X G LQ D O LQ W H Q V LW \
G LV W U LE X W LR Q H [K LE LW V P D [LP X P S R ZH U D W W K H H Q G ID F H W V V R W K D W W K H H oH F W LYH
U H q H F W LYLW \ LV V P D OO D Q G F R Q V H TX H Q W O\ W K H W R W D O OR V V LV OD U J H 
   7+ ( ' ,6 75 ,% 8 7( ' )( ( ' % $ &. ' )% / $ 6 ( 5  

)LJ X U H     7KH PRGH VSHFWUXP DQG WKUHVKROG JDLQ UHTXLUHG IRU HDFK PRGH

 ,Q W K H F D V H R I K LJ K F R X S OLQ J  x/ y  p J X U H    E  W K H OR Q J LW X G LQ D O LQ W H Q V LW \
G LV W U LE X W LR Q S H D NV D W W K H F D YLW \ F H Q W H U \LH OG LQ J K LJ K H oH F W LYH U H q H F W LR Q D Q G
OR Z W R W D O OR V V 

,Q W K H R S H U D W LR Q U H J LR Q ID U D E R YH W K U H V K R OG  D W K LJ K R S W LF D O S R ZH U  W K H OR Q J LW X G LQ D O
LQ W H Q V LW \ G LV W U LE X W LR Q LV LP S R U W D Q W E H F D X V H LQ K R P R J H Q H R X V LQ W H Q V LW \ S U R p OH P H D Q V
D V S D W LD OO\ LQ K R P R J H Q H R X V V W LP X OD W H G H P LV V LR Q U D W H  7K LV LQ W X U Q OH D G V W R D S R ZH U
G H S H Q G H Q W OR Q J LW X G LQ D O U H G LV W U LE X W LR Q R I W K H F D U U LH U G H Q V LW \ D Q G R S W LF D O J D LQ  W K H V R 
F D OOH G VSDWLDO KROHEXUQLQJ ZK LF K P D NH V W K H OD V H U F K D U D F W H U LV W LF V S R ZH U G H S H Q G H Q W 
6SDWLDOKROH EXU QLQJ LV D S K U D V H X V X D OO\ X V H G IR U W K H G H S OH W LR Q R I W K H LQ MH F W H G 
F K D U J H F D U U LH U V ZK H U H W K H G H S OH W LR Q LV F D X V H G E \ V W U R Q J V W LP X OD W H G U H F R P E LQ D W LR Q
LQ U H J LR Q V R I K LJ K S K R WR Q G H Q V LW \ % H F D X V H R I W K H OLQ N E H W ZH H Q U H IU D F W LYH LQ G H [
D Q G F K D U J H F D U U LH U G H Q V LW \ W K H G H S OH W LR Q R I W K H F K D U J H F D U U LH U V LQ U H J LR Q V R I V W U R Q J
S K R W R Q G H Q V LW \ LQ F U H D V H V W K H U H D O U H IU D F W LYH LQ G H [ D Q G U H G X F H V W K H J D LQ R U LP D J LQ D U \
U H IU D F W LYH LQ G H [ F R P S D U H G ZLW K W K H U H J LR Q V R I OR ZH U S K R W R Q G H Q V LW \
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

)LJ X U H     /RQJLWXGLQDO LQWHQVLW\ GLVWULEXWLRQ LQ ')% ODVHU IRU VPDOO D DQG ODUJH E x/
SURGXFW

4XDU WHU ZDYHOHQJWKVKLIW 4:6 ')% ODVHU

,W K D V E H H Q V K R ZQ W K D W ' )% OD V H U V LQ F R U S R U D W LQ J X Q LIR U P J U D W LQ J V G H J H Q H U D W H O\
OD V H LQ W ZR P R G H V  W K H W ZR P R G H V MX V W D E R YH D Q G E H OR Z W K H H G J H R I W K H J U D W LQ J
   7+ ( ' ,6 75 ,% 8 7( ' )( ( ' % $ &. ' )% / $ 6 ( 5  

V W R S E D Q G  ,Q R U G H U W R K D YH OD V LQ J D W V LQ J OH IU H TX H Q F \ LW K D V E H H Q V X J J H V W H G >  @ W K D W
W K H LQ F R U S R U D W LR Q R I TX D U W H U ZD YH S K D V H V K LIW  y   LQ W R W K H J U D W LQ J Q H D U W K H F H Q W H U
R I W K H G H YLF H ZR X OG U H P R YH W K LV G H J H Q H U D F \ D Q G H Q V X U H OD V LQ J D W D V LQ J OH IU H TX H Q F \
LQ W K H F H Q W H U R I W K H V W R S E D Q G  6 X F K D OD V H U LV NQ R ZQ D V D TX D U W H U ZD YH OH Q J W K V K LIW
4: 6 ' )% OD V H U  )LJ X U H    D LOOX V W U D W H V W K H LG H D R I W K H LQ F R U S R U D W LR Q R I y  V K LIW
LQ W R W K H J U D W LQ J  7K H V R OX W LR Q R I W K H F R X S OH G P R G H H TX D W LR Q V IR U W K LV F D YLW \ V W U X F W X U H
\LH OG V W K H P R G D O W K U H V K R OG J D LQ V S H F W U X P V K R ZQ V F K H P D W LF D OO\ LQ p J X U H    E  $ V
F D Q E H V H H Q  D OR Z W K U H V K R OG P R G H D S S H D U V H [D F W O\ D W W K H % U D J J IU H TX H Q F \ ZK LOH W K H
R W K H U P R G H V D J D LQ D S S H D U LQ D V G H J H Q H U D W S D LU V  $ OD U J H W K U H V K R OG J D LQ G LoH U H Q F H
E H W ZH H Q W K H P R G H D W {% D Q G W K H Q H LJ K E R U LQ J P R G H V F D Q E H D F K LH YH G V LP X OW D Q H R X V O\
ZLW K D OR Z W K U H V K R OG J D LQ LQ W K LV ZD \ 7K H OR Z W K U H V K R OG J D LQ P D Q LIH V W V LW V H OI LQ W K H
OR Q J LW X G LQ D O LQ W H Q V LW \ S U R p OH  p J X U H    F  U H YH D OLQ J D V W U R Q J F R Q F H Q W U D W LR Q R I W K H
P R G H S R ZH U LQ W K H F D YLW \ F H Q W H U 

7K H 4: 6 ' )% OD V H U K D V F OH D U F X W D G YD Q W D J H V R YH U W K H V LP S OH V W U X F W X U H  E X W
LW G H P D Q G V H [W U D S U H F LV LR Q D V F R P S D U H G W R W K H V LP S OH E X ON V W U X F W X U H  7K H P D LQ
G LV D G YD Q W D J H R I W K H 4: 6 ' )% OD V H U LV W K D W  LQ R U G H U W R R E W D LQ V W D E OH V LQ J OH P R G H
R S H U D W LR Q  W K H OD V H U LV OLP LW H G W R R S H U D W H D W D OR Z S R ZH U R U ZLW K D V P D OO S U R G X F W R I
W K H F R X S OLQ J F R H r F LH Q W D Q G W K H F D YLW \ OH Q J W K x/  R W K H U ZLV H W K H OD V H U E H F R P H V P X O
W LP R G H E H F D X V H R I V S D W LD O K R OH E X U Q LQ J 6 + % H oH F W V  7K H 6 + % H oH F W V D U LV H E H F D X V H
R I V W U R Q J Q R Q X Q LIR U P OR Q J LW X G LQ D O LQ W H Q V LW \ G LV W U LE X W LR Q  6 H YH U D O G H V LJ Q V K D YH E H H Q
D W W H P S W H G W R U H G X F H W K H 6 + % S U R E OH P V V X F K D V P X OW LS OH S K D V H V K LIW V W U X F W X U H V  D Q G
LQ S D U W LF X OD U W K H  y  ' )% V W U X F W X U H  K D YH E H H Q V X F F H V V IX O LQ P LQ LP L] LQ J V S D W LD O
K R OH E X U Q LQ J D Q G P D LQ W D LQ LQ J D Q H D U X Q LIR U P p H OG S U R p OH  7K LV  y  ' )% V W U X F W X U H
K D V W ZR S K D V H V K LIW V  H D F K V K LIW LV y   S R V LW LR Q H G V \P P H W U LF D OO\ D U R X Q G W K H F H Q W H U
R I W K H F D YLW \ D V LQ G LF D W H G V F K H P D W LF D OO\ LQ p J X U H    G 
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

)LJ X U H     ')% ODVHU ZLWK y  SKDVH VKLIWHG %UDJJ JUDWLQJ DQG QRQ UHqHFWLQJ HQG IDFHWV
D HoHFWLYH UHIUDFWLYH LQGH[ SURpOH E PRGDO WKUHVKROG JDLQ VSHFWUXP F ORQJLWXGLQDO LQWHQVLW\
GLVWULEXWLRQ DQG G ,QVHUWLRQ RI WZR y  DORQJ WKH JUDWLQJ VWUXFWXUH
   7+ ( ' ,6 75 ,% 8 7( ' )( ( ' % $ &. ' )% / $ 6 ( 5  

6HFRQG2U GHU JU DWLQJ ')% ODVHU

/ D V H U V ZLW K V H F R Q G R U G H U F R U U X J D W LR Q V K D YH V R P H LQ W H U H V W LQ J IH D W X U H V V X F K D V 

  7K H V H F R Q G R U G H U J U D W LQ J F D Q E H D S S U R S U LD W H O\ G H V LJ Q H G W R F R X S OH OLJ K W IU R P
D OD V H U R X W LQ W R W K H G LU H F W LR Q S H U S H Q G LF X OD U W R W K H MX Q F W LR Q W R IR U P D V X U ID F H
H P LW W LQ J OD V H U 

  ,W LV S U H IH U U H G E \ P D Q X ID F W X U H U V E H F D X V H V H F R Q G R U G H U J U D W LQ J V K D YH OD U J H U
G LP H Q V LR Q V W K D Q p U V W R U G H U R Q H V W K D W ID F LOLW D W H F R Q W U R OOLQ J R I W K H V K D S H D Q G LW 

 )DEU LFDWLRQ RI JU DWLQJV LQVLGH ODVHU V

7K H W K H R U H W LF D O F R Q F H S W V R I OD V H U V ZLW K G LV W U LE X W H G IH H G E D F N ZH U H G H YH OR S H G ZH OO E H 
IR U H W K H W H F K Q R OR J \ F R X OG G H OLYH U D U H OLD E OH D Q G X V H IX O P H W K R G R I ID E U LF D W LR Q  7K H
H D U O\ V H P LF R Q G X F W R U V OD V H U V ZLW K G LV W U LE X W H G IH H G E D F N R S H U D W H G D W OR Z W H P S H U D W X U H
D Q G K D G V K R U W R S H U D W LQ J W LP H V  E X W LQ W K H P LG    
V *D $ V OD V H U V ZLW K G LV W U LE X W H G
IH H G E D F N F R X OG P D G H W R R S H U D W H D W U R R P W H P S H U D W X U H  ,Q W K H H D U O\     V  G H YH OR S 
P H Q W V ZLW K Q H Z P D W H U LD OV OH G W R U R R P W H P S H U D W X U H R S H U D W LR Q R I OD V H U V D U R X Q G   zP
D Q G    zP  7K H X Q G H U V W D Q G LQ J R I V H P LF R Q G X F W R U OD V H U V ID E U LF D W LR Q U H TX LU H V V R P H
E D V LF NQ R ZOH G J H D E R X W W K H W H F K Q LTX H V R I V X E V W U D W H IR U P D W LR Q  V X E V H TX H Q W H S LW D [LD O
OD \H U J U R ZW K D Q G H W F K LQ J W H F K Q LTX H V  7K H V H W H F K Q LTX H V D U H E U LH q \ G LV F X V V H G 

% XON &U \VWDO *U RZWK

% X ON F U \V W D O J U R ZW K W H F K Q LTX H V D U H X V H G W R S U R G X F H V X E V W U D W H V R Q ZK LF K G H YLF H V D U H
ID E U LF D W H G  7K H P D LQ J R D O R I W K H V H W H F K Q LTX H V LV W R S U R G X F H V LQ J OH F U \V W D O E R X OH V
ZLW K D V OD U J H D G LD P H W H U D V S R V V LE OH D Q G ZLW K D V IH Z G H IH F W V D V S R V V LE OH  / D U J H V L] H
V X E V W U D W H V H Q V X U H OR Z F R V W G H YLF H S U R G X F W LR Q  2Q H R I W K H P R V W LP S R U W D Q W E X ON F U \V W D O
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

)LJ X U H     $ 6FKHPDWLF RI &]RFKDUOVNLVW\OH FU\VWDO JURZHU >@

J U R ZW K W H F K Q LTX H V LV W K H &] R F K U D OV NL &= W H F K Q LTX H ZK LF K LV ZLG H O\ H P S OR \H G IR U


6 L *D $ V D Q G ,Q 3  ,W S U R G X F H V OR Q J LQ J R W V E R X OH V ZLW K YH U \ J R R G F LU F X OD U F U R V V 
V H F W LR Q  ,Q W K LV W H F K Q LTX H V K R ZQ LQ p J X U H     W K H P H OW R I W K H F K D U J H LH  W K H K LJ K
TX D OLW \ S R O\F U \V W D OOLQ H P D W H U LD O LV K H OG LQ D YH U W LF D O F U X F LE OH  7K H W R S V X U ID F H R I W K H
P H OW LV MX V W E D U H O\ D E R YH W K H P H OW LQ J W H P S H U D W X U H  $ V H H G F U \V W D O LV W K H Q OR ZH U H G
LQ W R W K H P H OW D Q G V OR ZO\ ZLW K G U D ZQ  $ V W K H K H D W IU R P W K H P H OW q R ZV X S W K H V H H G  LW V
V X U ID F H F R R OV G R ZQ D Q G W K H F U \V W D O E H J LQ V W R J U R Z 7K H V H H G LV U R W D W H G D E R X W LW V D [LV
W R S U R G X F H D F U \V W D O R I D U R X J K O\ F LU F X OD U F U R V V V H F W LR Q  ,Q W K H F D V H R I *D $ V D Q G ,Q 3
W K H &= W H F K Q LTX H ID F H V W ZR S U R E OH P V D U LV LQ J IU R P W K H YH U \ K LJ K YD S R X U S U H V V X U H V R I
   7+ ( ' ,6 75 ,% 8 7( ' )( ( ' % $ &. ' )% / $ 6 ( 5  

$ V D Q G 3 D W W K H P H OW LQ J W H P S H U D W X U H R I W K H F R P S R X Q G V  7K H p U V W S U R E OH P LV W K D W
W K H F K D P S H U K D V W R ZLW K V W D Q G V X F K S U H V V X U H V  7K H V H F R Q G S U R E OH P LV W K D W W K H $ V
D Q G 3 OH D YH W K H P H OW D Q G F R Q G H Q V H R Q W K H V LG H ZD OOV  7R D YR LG W K H V H F R Q G S U R E OH P
R Q H V H D OV W K H P H OW E \ F R YH U LQ J LW ZLW K D P R OW H Q OD \H U R I D Q R W K H U P D W H U LD O V X F K D V
E R U R Q R [LG H ZK LF K q R D W V R Q W K H V X U ID F H  7K H W H F K Q LTX H LV W K H Q U H IH U U H G W R D V OLTX LG
H Q F D S V X OD W H G &] R F K U D OV NL R U W K H / ( & W H F K Q LTX H 

( SLWD[LDO &U \VWDO *U RZWK

7K H V X E V W U D W H V W K D W U H V X OW V R Q F H W K H E X ON J U R ZQ V H P LF R Q G X F W R U E R X OH LV V OLF H G D U H
D OP R V W Q H YH U G LU H F W O\ X V H G IR U G H YLF H V  ,Q YD U LD E O\ D Q H S LW D [LD O OD \H U R U H S LOD \H U LV
J U R ZQ ZK LF K P D \ E H D IH Z P LF U R Q V LQ W K LF NQ H V V  7K H ZR U G H S LW D [\ F R P H V IU R P WK H
*U H H N ZR U G  H S L X S R Q D Q G  W D [LV  R U G H U H G P H D Q LQ J W K H R U G H U H G F R Q W LQ X D W LR Q
R I W K H V X E V W U D W H F U \V W D O 7K H H S LW D [LD O J U R ZW K W H F K Q LTX H V K D YH D YH U \ V OR Z U D W H
ZK LF K D OOR Z W K H F R Q W U R O R I W K H G LP H Q V LR Q V LQ W K H J U R ZW K G LU H F W LR Q  ,Q W H F K Q LTX H V
OLNH P R OH F X OD U E H D P H S LW D [\ 0% ( D Q G P H W D O R U J D Q LF F K H P LF D O YD S R U G H S R V LW LR Q
02&9 '  R Q H F D Q D F K LH YH P R Q R OD \H U |  $R F R Q W U R O LQ W K H J U R ZW K G LU H F W LR Q 
7K LV OH YH O R I F R Q W U R O LV H V V H Q W LD O IR U K H W H U R V W U X F W X U H OD V H U G H YLF H V  7K X V D E U LH I YLH Z
R I W K H V H W ZR W H F K Q LTX H V LV S U H V H Q W H G 

b
L 0 ROHFXODU % HDP ( SLWD[\ 0 % ( LV D K LJ K YD F X X P W H F K Q LTX H |  
W R U U YD F X X P ZK H Q IX OO\ S X P S H G G R ZQ LQ ZK LF K F U X F LE OH V F R Q W D LQ LQ J D YD U LH W \ R I
H OH P H Q W D O F K D U J H V D U H S OD F H G LQ W K H J U R ZW K F K D P E H U D V V K R ZQ LQ p J X U H     7K H
H OH P H Q W V F R Q W D LQ H G LQ W K H F U X F LE OH V P D NH X S W K H F R P S R Q H Q W V R I W K H F U \V W D O W R E H
J U R ZQ D V ZH OO D V W K H G R S D Q W V W K D W P D \ E H X V H G  : K H Q D F U X F LE OH LV K H D W H G  D W R P V R U
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

)LJ X U H     $ 6FKHPDWLF RI WKH 0%( JURZWK V\VWHP >@

P R OH F X OH V R I W K H F K D U J H D U H H YD S R U D W H G D Q G W K H V H W U D YH O LQ V W U D LJ K W OLQ H V W R LP S LQ J H
R Q D K H D W H G V X E V W U D W H  7K H J U R ZW K U D W H LQ 0% ( LV D S S U R [LP D W H O\  P R Q R OD \H U S H U
V H F R Q G D Q G W K LV V OR Z U D W H ZLW K V K X W W H U V S OD F H G LQ IU R Q W R I W K H F U X F LE OH V W R F R Q W U R O
W K H q R Z R I P R OH F X OD U E H D P D OOR Z R Q H W R V ZLW F K W K H F R P S R V LW LR Q R I W K H J U R ZLQ J
F U \V W D O ZLW K P R Q R OD \H U F R Q W U R O 6 LQ F H Q R F K H P LF D O U H D F W LR Q V R F F X U LQ 0% (  W K H
J U R ZW K LV W K H V LP S OH V W R I D OO H S LW D [LD O W H F K Q LTX H V D Q G LV TX LW H F R Q W U R OOD E OH  + R ZH YH U 
V LQ F H W K H J U R ZW K LQ YR OYH V K LJ K YD F X X P  OH D NV F D Q E H D P D MR U S U R E OH P  7K H J U R ZW K
F K D P E H U ZD OOV D U H X V X D OO\ F R R OH G E \ OLTX LG 1  W R H Q V X U H K LJ K YD F X X P D Q G W R S U H YH Q W
   7+ ( ' ,6 75 ,% 8 7( ' )( ( ' % $ &. ' )% / $ 6 ( 5  

D W R P V  P R OH F X OH V W R F R P H R o IU R P W K H F K D P E H U ZD OOV  0% ( W H F K Q LTX H F D Q Q R W E H X V H G
F R Q YH Q LH Q W O\ IR U D OO V H P LF R Q G X F W R U V  )R U H [D P S OH  S K R V S K LG H V D U H R IW H Q Q R W J U R ZQ
E \ 0% ( G X H W R W K H G D Q J H U LQ K D Q G H OLQ J H OH P H Q W D O S K R V S K R U X V  $ OV R H OH P H Q W V ZLW K
YH U \ OR Z YD S R U S U H V V X U H V D U H G Lr F X OW W R X V H V LQ F H LW LV Q R W H D V \ W R K H D W W K H F U X F LE OH V
E H \R Q G |     . 

LL 0 HWDO 2U JDQLF &KHPLFDO 9DSRXU 'HSRVLWLRQ 0 2&9' LV D Q R W K H U


LP S R U W D Q W J U R ZW K W H F K Q LTX H ZLG H O\ X V H G IR U K H W H U R H S LW D [\ / LNH 0% (  LW LV F D S D 
E OH R I S U R G X F LQ J P R Q R OD \H U D E U X S W LQ W H U ID F H V E H W ZH H Q V H P LF R Q G X F W R U V  $ W \S LF D O
02&9 ' V \V W H P LV V K R ZQ LQ p J X U H     7K H J D V H V W K D W D U H X V H G LQ 02&9 ' D UH
F R P S OH [ P R OH F X OH V ZK LF K F R Q W D LQ H OH P H Q W V V X F K D V *D R U $ V W R IR U P W K H F U \V W D O 7K H
J U R ZW K U D W H G H S H Q G V X S R Q W K H F K H P LF D O U H D F W LR Q V R F F X U U LQ J D W W K H K H D W H G V X E V W U D W H
V X U ID F H  )R U H [D P S OH  7U LH W K \O *D OOLX P D Q G $ U V LQ H D U H X V H G LQ W K H J U R ZW K R I *D $ V 
D Q G W K H F U \V W D O J U R ZW K G H S H Q G V X S R Q W K H IR OOR ZLQ J U H D F W LR Q 

*D &+   $ V + 
*D $ V   &+    

7K H U H D U H V H YH U D O YD U LH W LH V R I 02&9 ' U H D F W R U V  ,Q W K H D W P R V S K H U LF 02&9 ' WK H


J U R ZW K F K D P E H U LV D W D W P R V S K H U LF S U H V V X U H D Q G D OD U J H D P R X Q W R I J D V H V D U H Q H H G H G
D OW K R X J K W K H S U R E OH P V D V V R F LD W H G ZLW K YD F X X P J H Q H U D W LR Q D U H D E V H Q W  ,Q W K H OR Z
S U H V V X U H 02&9 ' W K H J U R ZW K F K D P E H U S U H V V X U H LV NH S W OR Z D Q G W K H J U R ZW K U D W H
LV W K H Q V OR ZH U D V LQ W K H 0% ( F D V H  7K H X V H R I 02&9 ' H TX LS P H Q W U H TX LU H V YH U \
V H U LR X V V D IH W \ S U H F D X W LR Q V E H F D X V H W K H X V H G J D V H V D U H K LJ K O\ W R [LF 
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

)LJ X U H     6FKHPDWLF GLDJUDP RI DQ 02&9' V\VWHP HPSOR\LQJ DON\GV WULPHWK\O JDOOLXP


70*D DQG WULPHWK\O DOXPLQXP 70$O DQG PHWDO K\GULGH DUVLQH PDWHULDO VRXUFHV ZLWK
K\GURJHQ DV D FDUULHU JDV >@

/LWKRJU DSK\

6 LQ F H F U \V W D O J U R ZW K S U R F H V V H V G R Q R W S U R G X F H D Q \ F R Q W U R OOH G OD W H U D O YD U LD W LR Q V LQ
P D W H U LD O S U R S H U W LH V  OLW K R J U D S K LF W H F K Q LTX H V D U H Q H H G H G W R D OW H U W K H OD W H U D O S U R S 
H U W LH V R I W K H ZD IH U  7K H OLW K R J U D S K \ S U R F H V V LQ YR OYH V W D NLQ J D F H U W D LQ G H V LJ Q D Q G
W U D Q V IH U U LQ J LW R Q W R W K H V H P LF R Q G X F W R U ZD IH U  7K H V H P LF R Q G X F W R U ZD IH U V H Q V LW LYLW \
   7+ ( ' ,6 75 ,% 8 7( ' )( ( ' % $ &. ' )% / $ 6 ( 5  

W R R S W LF D O R U H OH F W U R Q E H D P V LV Q H H G H G W R W U D Q V IH U D S D W W H U Q R I D G H YLF H W R D ZD IH U 
$ S K R W R U H V LV W LV V S U H D G R Q W K H ZD IH U W R P D NH LW V H Q V LW LYH W R D Q LP D J H  7K H U H V LV W
P X V W V D W LV I\ W K U H H F U LW H U LD W R E H U H OLD E OH 

s ,W P X V W K D YH J R R G E R Q G LQ J W R W K H V X E V W U D W H 

s LW V W K LF NQ H V V P X V W E H X Q LIR U P  D Q G

s W K H W K LF NQ H V V V K R X OG E H U H OLD E O\ F R Q W U R OOH G R YH U G LoH U H Q W ZD IH U U X Q V 

2Q F H W K H U H V LV W LV U H D G \ LW LV H [S R V H G W R D Q R S W LF D O LP D J H W K U R X J K D P D V N IR U D
F H U W D LQ H [S R V X U H W LP H D V V K R ZQ LQ p J X U H     &R P S X W H U D LG H G G H V LJ Q &$ ' V R IW 
ZD U H S U R J U D P V D OOR Z W K H F U H D W LR Q R I D G H V LJ Q  W K H Q W K LV S D W W H U Q F D Q E H J H Q H U D W H G
R S W LF D OO\ R U E \ H OH F W U R Q E H D P ZU LW LQ J R Q W K H P D V N S OD W H  7K H P D V N S OD W H P X V W E H
W U D Q V S D U H Q W D W S U R S H U S R V LW LR Q V W R W K H U D G LD W LR Q D Q G P X V W K D YH J R R G P H F K D Q LF D O
D Q G W K H U P D O S U R S H U W LH V  4X D U W ] R U E R U R V LOLF D W H J OD V V H V D U H R IW H Q X V H G IR U X OW U D YLR OH W
OLJ K W OLW K R J U D S K \ 7K H U H J LR Q V R I W K H P D V N W K D W D U H W R E H R S D TX H D U H F R YH U H G ZLW K
P H W D OOLF F K U R P H R U LU R Q R [LG H  $ IW H U H [S R V X U H W R LOOX P LQ D W LR Q  W K H U H V LV W LV W K H Q
G H YH OR S H G E \ ZD V K LQ J LW LQ D V R OYH Q W ZK LF K G LV V R OYH V D ZD \ W K H U H J LR Q V R I K LJ K V R OX 
E LOLW \ $ U H V LV W ZK LF K E H F R P H V P R U H V R OX E OH ZK H Q H [S R V H G W R LOOX P LQ D W LR Q LV F D OOH G
S R V LW LYH ,W V LP D J H LV LG H Q W LF D O W R W K H R S D TX H LP D J H R Q W K H P D V N S OD W H  $ U H V LV W W K D W
OR V H V V R OX E LOLW \ ZK H Q LOOX P LQ D W H G LV F D OOH G Q H J D W LYH  7K H S R V LW LYH U H V LV W F D Q S U R G X F H
IH D W X U H V V P D OOH U W K D Q   zP  ,W U H OLH V X S R Q P R OH F X OH V ZK H U H 1  LV E R Q G H G W R D
K \G U R F D U E R Q ZLW K E H Q ] H Q H OLNH V W U X F W X U H  ( [S R V X U H W R OLJ K W F D X V H V W K H G LV V R F LD W LR Q
R I WK H 1  J U R X S S U R G X F LQ J D F D U E R [\OLF D F LG ZK LF K F D Q E H G LV V R OYH G D Q G ZD V K H G
D ZD \ LQ D Q D OND OLQ H V R OX W LR Q V X F K D V G LOX W H V R G LX P K \G U R [LG H 
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

)LJ X U H     7KH H[SRVXUH DQG HWFKLQJ SURFHVV ZKLFK DOORZV RQH WR WUDQVIHU D SDWWHUQ WR WKH
ZDIHU >@

2Q F H W K H P D V N S OD W H LV P D G H D Q G W K H U H V LV W LV G H S R V LW H G  W K H Q H [W V W H S LV W R
W U D Q V IH U W K H S D W W H U Q R Q W K H P D V N W R W K H ZD IH U  )R U IH D W X U H V L] H V J U H D W H U W K D Q   
zP  R S W LF D O H TX LS P H Q W V D U H X V H G  0R V W R I P D W H U LD OV E H F R P H R S D TX H W R OLJ K W R Q F H W K H
ZD YH OH Q J W K J R H V E H OR Z |     $R  7R G H F U H D V H W K H IH D W X U H V L] H  ; U D \ OLW K R J U D S K \
ZLW K y |   b   $R R U H E H D P OLW K R J U D S K \ D U H X V H G 
   7+ ( ' ,6 75 ,% 8 7( ' )( ( ' % $ &. ' )% / $ 6 ( 5  

( WFKLQJ

$ IW H U D Q LP D J H LV W U D Q V IH U U H G W R W K H ZD IH U  W K H U H V LV W LV G H YH OR S H G D Q G H W F K LQ J LV
F D U U LH G R X W  7K H H W F K D Q W V D OOR Z R Q H W R U H P R YH P D W H U LD O LQ D V H OH F W LYH P D Q Q H U  $ Q
LG H D O H W F K LQ J S U R F H V V P X V W E H D E OH W R U H P R YH D OD \H U R I V H P LF R Q G X F W R U IU R P WK H
U H J LR Q ZK H U H W K H U H LV Q R U H V LV W  7K H H W F K D Q W V K R X OG Q R W D W W D F N W K H U H V LV W  Q R U V K R X OG
LW S H Q H W U D W H X Q G H U W K H U H V LV W F D X V LQ J X Q G H U F X W V  7ZR H W F K LQ J W H F K Q LTX H V Q D P H O\
ZH W F K H P LF D O H W F K LQ J D Q G S OD V P D H W F K LQ J  D U H V X P P D U L] H G 

L :HW &KHPLFDO ( WFKLQJ LV W K H V LP S OH V W D Q G P R V W F R P P R Q H P S OR \H G H W F K LQ J


W H F K Q LTX H  7K H ZD IH U LV V R D NH G LQ D F K H P LF D O OLTX LG ZK LF K G LV V R OYH V D ZD \ W K H V H P L
F R Q G X F W R U  7K H H W F K LQ J S U R F H V V LQ YR OYH V D F K H P LF D O U H D F W LR Q E H W ZH H Q W K H H OH P H Q W V
R I W K H p OP W R E H H W F K H G D Q G W K H H W F K LQ J V R OX W LR Q  7K H U H D F W LR Q S U R G X F W V F D Q W K H Q E H
U LQ V H G D ZD \ 7K H G H S W K R I W K H H W F K LQ J G H S H Q G V R Q W K H H W F K W LP H  W K H F R Q F H Q W U D W LR Q R I
W K H F K H P LF D OV X V H G LQ W K H H W F K D Q W D Q G W K H W H P S H U D W X U H R I W K H V R OX W LR Q  7K H H W F K D Q W V
D U H X V X D OO\ H LW K H U D F LG V R U D OND OLQ H V R OX W LR Q V R I $ P P R Q LX P + \G U R [LG H  6 LOLF R Q D Q G
S R O\F U \V W D OOLQ H V LOLF R Q F D Q E H H W F K H G E \ + \G U R q R X U LF D F LG 1 LW U LF D F LG + )+ 1 2
P L[W X U H V ZK LOH *D $ V LV H W F K H G E \ X V LQ J E R U P LQ H LQ P H W K D Q R O R U K \G U R J H Q S H U R [LG H
P L[H G ZLW K V X OIX U LF D F LG LQ ZD W H U  : K LOH F K H P LF D O H W F K LQ J LV V LP S OH D Q G LQ H [S H Q V LYH 
LW LV Q R W F R P S D W LE OH ZLW K V X E P LF U R Q W H F K Q R OR J \ R U D W H F K Q R OR J \ ZK LF K U H TX LU H V G H H S
D Q LV R W U R S LF H W F K LQ J 

LL 3 ODVPD ( WFKLQJ U H V R OYH G R Q H R I W K H P D LQ S U R E OH P V ZLW K ZH W F K H P LF D O H W F K 


LQ J YLD IH D W X U H V L] H F R Q W U R O ,W D OV R S U R YLG H V H r F LH Q W H W F K LQ J IR U D ZLG H YD U LH W \ R I p OP V
LQ F OX G LQ J W K R V H W K D W D U H G Lr F X OW W R H W F K E \ ZH W F K H P LF D OV  7K H S OD V P D LV S U R G X F H G
E \ S D V V LQ J D Q U I H OH F W U LF D O G LV F K D U J H W K U R X J K D J D V D W D OR Z S U H V V X U H  7K H U I G LV F K D U J H
F U H D W H V LR Q V D Q G H OH F W U R Q V  7K H LR Q V F D Q E H X V H G W R LQ W H U D F W ZLW K W K H H OH P H Q W V LQ W K H
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

V X E V W U D W H D Q G F D X V H H W F K LQ J  7K H LR Q V  E H LQ J F K D U J H G S D U W LF OH V  F D Q E H D F F H OH U D W H G
LQ W K H H OH F W U LF p H OG D Q G E H P D G H W R E R P E D U G W K H V X E V W U D W H ZLW K F R Q W U R OOH G H Q H U J \
7K LV S U R YLG H V H [W U H P H O\ D Q LV R W U R S LF H W F K LQ J ZLW K D OP R V W Q R X Q G H U F X W W LQ J H oH F W V 

)DEU LFDWLRQ RI ')% ODVHU

7K H S U LQ F LS D O S U R F H V V LQ J V W H S V Q H H G H G W R IR U P D V H P LF R Q G X F W R U OD V H U ZLW K X Q LIR U P
H P E H G G H G J U D W LQ J ZK LF K F U H D W H V W K H IH H G E D F N D U H LOOX V W U D W H G LQ p J X U H    

7K H p U V W V W H S LV W R J U R Z E \ W K H P H W K R G V R I H S LW D [LD O J U R ZW K  J R R G OD V H U V W U X F 
W X U H V ZLW K W K H V X E V W U D W H IR OOR ZH G E \ W K H F R Q p Q LQ J OD \H U V D Q G D F W LYH OD \H U  7K H D F W LYH
OD \H U F D Q E H D V LQ J OH OD \H U R I P D W H U LD O EX ONJ D LQ U H J LR Q R U LW F D Q E H IR U P H G IU R P
R Q H R U P R U H TX D Q W X P ZH OO OD \H U V  7K H J U D W LQ J F D Q E H H W F K H G LQ W R H S LW D [LD O OD \H U V
E H OR Z W K H J D LQ U H J LR Q V X E V W U D W H J U D W LQ J V R U D E R YH W K H J D LQ OD \H U V X U ID F H J U D W LQ J V 
,Q W K H V K R ZQ p J X U H  W K H J U D W LQ J LV H W F K H G LQ W R D F R Q p Q LQ J OD \H U D E R YH W K H D F W LYH
OD \H U  + H Q F H D IW H U W K H F R Q p Q LQ J D Q G D F W LYH OD \H U V K D YH E H H Q J U R ZQ  W K H J U D W LQ J LV
OLW K R J U D S K LF D OO\ G H p Q H G LQ D U H V LV W ZK LF K W K H Q D F W V D V D P D V N IR U W K H J U D W LQ J H W F K 
)R U P D V V S U R G X F W LR Q  W H F K Q LTX H V ZK LF K H [S R V H D S H U LR G LF S D W W H U Q LQ D U H V LV W X V LQ J
X OW U D YLR OH W OD V H U U D G LD W LR Q D U H ID YR U H G  + R ZH YH U  H OH F W U R Q E H D P ( E H D P OLW K R J U D 
S K \ LV D Q D OW H U Q D W LYH W H F K Q LTX H ZK LF K X V H V V S H F LD O H OH F W U R Q V H Q V LW LYH U H V LV W V D Q G K D V
W K H D G YD Q W D J H R I J U H D W H U U H V R OX W LR Q H Q D E OLQ J p U V W R U G H U J U D W LQ J V W R E H ZU LW W H Q H D V 
LO\ ( E H D P OLW K R J U D S K \ ID F LOLW D W H V ID E U LF D W LR Q R I P R U H F R P S OH [ V W U X F W X U H V V X F K D V
J U D W LQ J V ZLW K F K D Q J LQ J S H U LR G LF LW \ R U LQ F R U S R U D W LQ J S K D V H V K LIW V  $ IW H U G H p Q LW LR Q 
W K H J U D W LQ J LV F K H P LF D OO\ ZH W H W F K H G  R U G U \H W F K H G X V LQ J D S OD V P D  V R D V W R W U D Q V IH U
W K H S D W W H U Q LQ W K H U H V LV W LQ W R W K H V H P LF R Q G X F W R U  7K H F U \V W D O S OD Q H V D Q G H W F K LQ J
S U R F H V V H V G H W H U P LQ H W K H D Q J OH V D Q G W K H V K D S H V R I W K H J U D W LQ J W H H W K 
   7+ ( ' ,6 75 ,% 8 7( ' )( ( ' % $ &. ' )% / $ 6 ( 5  

)LJ X U H     )DEULFDWLRQ VWHSV IRU ULGJH')% ODVHU VWUXFWXUH D *URZ WKH VWUXFWXUH E\ 02&9'
WKHQ GHpQH DQG HWFK ')% JUDWLQJ E 2YHUJURZWK RI JUDWLQJ F $SSO\ VWULSH FRQWDFW G &RPSOHWH
GHYLFH >@

$ IW H U U H P R YD O R I W K H U H V LV W  W K H J U D W LQ J LV W K H Q R YH U J U R ZQ  p J X U H    E  ZLW K
P D W H U LD O ZK LF K F R P S OH W H V W K H J X LG LQ J V W U X F W X U H D Q G K D V D K LJ K O\ G R S H G W R S OD \H U
W R P D NH J R R G R K P LF F R Q W D F W  7K H V X E V W U D W H X V X D OO\ IR U P V W K H OR ZH U F R Q W D F W  7K H
YH U W LF D O ZD YH J X LG H LV W K H Q ID E U LF D W H G X V X D OO\ D V D U LG J H V W U X F W X U H D V V K R ZQ LQ p J X U H
   F  7K H p Q D O V W H S V LQ YR OYH G H S R V LW LQ J D Q LQ V X OD W R U R Q W K H S V LG H U LG J H V W U X F W X U H
ZK LF K LV R IW H Q 6 L2 R U 6 L1  3 K R W R OLW K R J U D S K \ LV W K H Q X V H G W R R S H Q D ZLQ G R Z LQ
W K H LQ V X OD W LQ J OD \H U R Q W K H W R S R I W K H U LG J H D Q G D P H W D OOLV D W LR Q H YD S R U D W LR Q S U R F H V V
F R P S OH W H V W K H G H YLF H E \ D S S O\LQ J F R Q W D F W P H W D O D V V K R ZQ LQ p J X U H    G 
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

 6XPPDU \ RI 3 U HYLRXV 7 KHRU HWLFDO 6WXGLHV RI 'LVWU LEXWHG


)HHGEDFN /DVHU V

8QLIRU P )LU VW2U GHU 6HFRQG 2U GHU *U DWLQJ ')% /DVHU V

7K H p U V W W K H R U H W LF D O V W X G \ R I G LV W U LE X W H G IH H G E D F N ' )% OD V H U V K D V E H H Q G R Q H E \
. R J H OQ LN D Q G 6 K D Q N > @ 7K H LU V W X G \ D Q G W K H D Q D O\V LV S U H V H Q W H G E \ 6  : D Q J > @ LV
D R Q H G LP H Q V LR Q D O W K H R U \ R I W K H OD V H U LQ ZK LF K W K H G H W D LOV R I W K H OD V H U V W U X F W X U H LQ
W K H W U D Q V YH U V H G LU H F W LR Q V K D YH E H H Q W D NH Q LQ W R D F F R X Q W R Q O\ W K U R X J K W K H ZD YH J X LG H
H oH F W LYH LQ G H [ QHo D Q G W K H J U D W LQ J F R X S OLQ J F R H r F LH Q W x . R J H OQ LN D Q G 6 K D Q N > @
K D YH J LYH Q Q X P H U LF D O U H V X OW V LQ W ZR F D V H V   LQ G H [F R X S OLQ J  ZK H U H W K H U H D O S D U W R I
W K H U H IU D F W LYH LQ G H [ YD U LH V S H U LR G LF D OO\ D Q G x LV U H D O 7K LV F D V H K D V E H H Q V X P P D U L] H G
LQ V H F W LR Q       J D LQ F R X S OLQ J  ZK H U H W K H U H H [LV W V D S H U LR G LF YD U LD W LR Q R I W K H
J D LQ  D Q G x LV LP D J LQ D U \ 7K H \ K D YH V K R ZQ W K D W J D LQ F R X S OH G ' )% OD V H U V K D YH D
V LQ J OH P R G H D W W K H % U D J J IU H TX H Q F \ LQ F R Q W U D V W W R W K H LQ G H [F R X S OH G ' )% OD V H U V
ZK LF K K D YH W ZR G H J H Q H U D W H P R G H V 

&K LQ Q >  @ K D V H [W H Q G H G WK H P R G H O S UH VH Q WH G E \ . R J H OQ LN D Q G 6 K D Q N > @ W R


LQ F OX G H W K H H oH F W R I H [W H U Q D O U H q H F W R U V D W W K H OD V H U ID F H W V R Q W K H OR Q J LW X G LQ D O P R G H V 
+ H K D V F R Q V LG H U H G LG H Q W LF D O U H q H F W R U V OR F D W H G H [D F W O\ V \P P H W U LF D OO\ ZLW K U H V S H F W W R
W K H J U D W LQ J  + LV Q X P H U LF D O F D OF X OD W LR Q V D U H G R Q H D V V X P LQ J U H D O F R X S OLQ J F R H r F LH Q W V 
,W K D V E H H Q V K R ZQ W K D W H Q G ID F H W U H q H F W LYLW \ F D Q D OW H U F R Q V LG H U D E O\ W K H R S H U D W LR Q
R I D G LV W U LE X W H G IH H G E D F N OD V H U  7K H U H V X OW V V K R Z W K D W IR U V P D OO x W K H )D E U \3 H U R W
R V F LOOD W LR Q V P D \ G R P LQ D W H  7K X V W K H H Q G ID F H W U H q H F W LYLW \ V K R X OG E H P LQ LP L] H G  D Q G
YD OX H V R I W K H S H U LR G LF G LV W U LE X W H G F R X S OLQ J V K R X OG E H F K R V H Q V R W K D W R V F LOOD W LR Q LQ
W K H ' )% P R G H P D \ R F F X U D W D W K U H V K R OG E H OR Z W K H W K U H V K R OG IR U R V F LOOD W LR Q LQ W K H
)D E U \3 H U R W P R G H 
   7+ ( ' ,6 75 ,% 8 7( ' )( ( ' % $ &. ' )% / $ 6 ( 5  

/ D WH U:  6 W U H LIH U HW DO >  @ K D YH W D NH Q LQ W R D F F R X Q W Q R Q LG H Q W LF D O U H q H F W LYLW \


D Q G D V \P P H W U LF D OO\ OR F D W H G U H q H F W R U V  7K H \ V K R Z W K D W K LJ K W K U H V K R OG OR Q J LW X G LQ D O
P R G H V H [LV W Q H D U W K H % U D J J IU H TX H Q F \ LQ F D V H R I *D $ V OD V H U V ZLW K W ZR F OH D YH G ID F H V 
*H Q H U D OO\ LW LV V K R ZQ W K D W OR Q J LW X G LQ D O P R G H W K U H V K R OG V  ZD YH OH Q J W K V D Q G V H S D U D 
W LR Q V D U H YH U \ V H Q V LW LYH W R E R X Q G D U \ F R Q G LW LR Q V D V ZH OO D V W R W K H U H OD W LYH S K D V H V 
( [S H U LP H Q W D O ZR U N E \ 8 W D ND HW DO >  @ V K R Z W K D W W K U H V K R OG J D LQ D Q G W K H U H V R Q D Q W
ZD YH OH Q J W K D U H V H Q V LW LYH W R W K H S K D V H R I W K H F R U U X J D W LR Q D W W K H P LU U R U H Q G R I W K H
' )% OD V H U D V D Q D O\] H G E \ 6 W U H LIH U HW DO >  @

6 W U H LIH U D Q G K LV F R ZR U NH U V >  @>  @ W U LH G W R W D NH LQ W R D F F R X Q W W K H H oH F W R I W K H


OD V H U V W U X F W X U H D Q G J U D W LQ J J H R P H W U \ P R U H W K R U R X J K O\ W K U R X J K D F R X S OH G ZD YH W K H 
R U \ W K D W V W D U W H G D V W ZR G LP H Q V LR Q D O E X W LQ W U R G X F H G V H YH U D O D S S U R [LP D W LR Q V  7K H \
D V V X P H G W K D W R Q O\ W K H W ZR J X LG H G P R G H V D U H LP S R U W D Q W LQ J H Q H U D W LQ J W K H R W K H U
P R G H V  D Q G D OV R Q H J OH F W H G V R P H W H U P V U H OD W LYH W R R W K H U V  7K H V H D S S U R [LP D W LR Q V
P D NH V S R V V LE OH W K H U H G X F W LR Q R I W K H OD V H U S U R E OH P W R D R Q H G LP H Q V LR Q D O S U R E OH P
LQ ZK LF K W K U H H IX U W K H U F R H r F LH Q W V  W K H V R F D OOH G tS D U D P H W H U V  W D NH LQ W R D F F R X Q W
W K H H oH F W R I W K H K LJ K H U R U G H U ZD YH V  LQ F OX G LQ J W K H UDGLDWLRQ PRGH V LQ W K H F D V H R I
K LJ K H U R U G H U J U D W LQ J V  7K R V H S D U D P H W H U V F D Q E H F D OF X OD W H G LQ D YH U \ H OD E R U D W H ZD \
W K U R X J K D S H U W X U E D W LR Q D Q D O\V LV R I W K H F R X S OH G ZD YH H TX D W LR Q V  7K H LU F R X S OH G ZD YH
H TX D W LR Q V  D IW H U F K D Q J LQ J V \P E R OV W R P D W F K W K R V H X V H G LQ H TX D W LR Q     K D YH W K H
IR OOR ZLQ J IR U P

#I J
 b Lr b Lt I L x e t U
#] 
#U J
b  b Lr b Lt U L x  t I   
#] 
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

ZK H U H W K H F R H r F LH Q W t U H S U H V H Q W V W K H U H D F W LR Q V R I D OO S D U W LD O ZD YH V E R W K U D G LD W LQ J
D Q G G H F D \LQ J H [F LW H G E \ W K H ] ZD YH E D F N R Q LW V H OI 6 LP LOD U O\ t U H S U H V H Q W V W K H
U H D F W LR Q V R I W K H S D U W LD O ZD YH V R Q W K H ] ZD YH  7K H W ZR R W K H U t
V U H S U H V H Q W F R X S OLQ J
F R U U H F W LR Q V W R W K H F R X S OLQ J F R H r F LH Q W x

6 W U H LIH U HW DO >  @ K D YH V W X G LH G W K H U D G LD W LR Q OR V V H oH F W V LQ W K H 7( F D V H  7K H \


K D YH Q R W H G W K D W U D G LD W LYH OR V V H V LQ W U R G X F H D V \P P H W U LH V LQ OR Q J LW X G LQ D O P R G H W K U H V K 
R OG V IR U ' )% OD V H U V X W LOL] LQ J K LJ K H U R U G H U % U D J J J U D W LQ J V  < D P D P R W R HW DO >     @
K D YH S U H V H Q W H G D W K H R U H W LF D O D Q D O\V LV E D V H G R Q W K H S H U W X U E D W LR Q V R OX W LR Q R I W K H F R X 
S OH G P R G H H TX D W LR Q V IR U W K H J X LG H G P R G H V D Q G W K H U D G LD W LR Q OR V V  7K H LU D Q D O\V LV LV
D S S OLF D E OH IR U E R W K 7( >  @ D Q G 70 >  @ S R OD U L] D W LR Q V  ,W F D Q W U H D W D Q \ D U E LW U D U \
V K D S H R I F R U U X J D W LR Q  W K X V LW LV X V H IX O IR U D Q D O\] LQ J D Q G G H V LJ Q LQ J F R U U X J D W H G ZD YH J 
X LG H V G H YLF H V  7K H \ K D YH V K R ZQ W K D W W K H U D G LD W LR Q OR V V F R H r F LH Q W R I W K H 70 P R G H
LV V P D OOH U W K D Q W K D W R I W K H 7( P R G H  7K LV S R LQ W K D V P LV OH D G W K H P W R H [S H F W W K D W
W K H 70 P R G H P D \ K D YH D OR ZH U W K U H V K R OG W K D Q W K H 7( P R G H ZK LF K LV Q R W W K H F D V H
LQ ID F W 

+ H Q U \ . D ] D U LQ R Y HW DO >  @ K D YH V K R ZQ W K D W LQ W H U IH U H Q F H R I W K H U D G LD W LR Q


IU R P W K H W ZR R S S R V LW H O\ S U R S D J D W LQ J ZD YH V P X V W E H W D NH Q LQ W R D F F R X Q W  7K H \ K D YH
U H S R U W H G W K H p U V W R E V H U YD W LR Q R I W K H F D Q F H OD W LR Q R I W K H V F D W W H U H G U D G LD W LR Q IU R P WK H
' )% OD V LQ J P R G H G X H W R G H V W U X F W LYH LQ W H U IH U H Q F H D W R Q H R I W K H H G J H V R I W K H H Q H U J \
J D S  $ W WK H R WK H U J D S H G J H  W K H W ZR F R Q W U LE X W LR Q V F R P LQ J IU R P W K H R S S R V LW H O\
S U R S D J D W LQ J ZD YH V K D YH W K H V D P H S K D V H D Q G LQ W H U IH U H F R Q V W U X F W LYH O\ . D ] D U LQ R Y D Q G
+ H Q U \ >  @ K D YH V K R ZQ W K D W W K H F D Q F H OD W LR Q R I U D G LD W LR Q R F F X U U LQ J D W R Q H R I W K H
H G J H V R I WK H H Q H UJ \ J D S LV D V W U R Q J P R G H V H OH F W LR Q P H F K D Q LV P D V W K U H V K R OG J D LQ
b
G LV F U LP LQ D W LR Q R I W K H R U G H U R I   F P F D Q E H D F K H LYH G 
   7+ ( ' ,6 75 ,% 8 7( ' )( ( ' % $ &. ' )% / $ 6 ( 5  

7K H D S S U R D F K S U H V H Q W H G E \ 6 W U H LIH U >  @ ZD V OD W H U F U LW LF L] H G E \ 6 D W R D Q G + R U L
>     @ D V Q R W D W U X O\ W ZR G LP H Q V LR Q D O W U H D W P H Q W R I W K H S U R E OH P  7K H \ D U J X H W K D W
6 W U H LIH U
V D S S U R D F K LQ ZK LF K W K H W ZR F R X S OH G ZD YH V D U H D V V X P H G W R K D YH W K H V D P H
W U D Q YH U V H S U R p OH R I W K H p H OG V OH D G V X V W R E H OLH YH W K D W W K H W ZR OR Q J LW X G LQ D O OD V H U P R G H V
Q H D U H V W W K H % U D J J ZD YH OH Q J W K K D YH W K H V D P H W K U H V K R OG J D LQ IR U D ' )% OD V H U ZLW K D
p U V W R U G H U J U D W LQ J D Q G ] H U R H [W H U Q D O U H q H F W LR Q  ZK H U H LQ ID F W W K H OR Q J LW X G LQ D O P R G H
MX V W E H OR Z W K H % U D J J IU H TX H Q F \ K D V D W K U H V K R OG J D LQ OR ZH U W K D Q W K D W R I W K H R Q H
MX V W D E R YH LW D V D U H V X OW R I W K H LU G LoH U H Q W R S W LF D O F R Q p Q H P H Q W ID F W R U V  $ OW K R X J K W K H
D X W K R U V R I >     @ W U \ W R J R E H \R Q G W K H ZR U N R I 6 W U H LIH U D Q G F R ZR U NH U V  W K H \ U H V W U LF W
W K H LU D Q D O\V LV W R W K H V LP S OH V W W K U H H OD \H U J X LG LQ J V W U X F W X U H LQ W K H 7( F D V H D Q G P D NH
X V H R I D U D W K H U F U X G H D S S U R [LP D W LR Q V  NH H S LQ J R Q O\ W K H OR ZH V W W ZR F R X S OH G ZD YH V D Q G
R Q O\ W K H ] H U R D Q G p U V W K D U P R Q LF V R I W K H G LH OH F W U LF F R Q V W D Q W  7K H LU P H W K R G F D Q Q R W E H
V \V W H P D W LF D OO\ H [W H Q G H G W R P R U H F R P S OLF D W H G J X LG LQ J V W U X F W X U H V D Q G P R U H U H D OLV W LF
J U D W LQ J S U R p OH V  $ W W K H H Q G  W K H \ E H F R P H IR U F H G W R LQ W U R G X F H D R Q H G LP H Q V LR Q D O
H OH P H Q W LQ W K H LU D Q D O\V LV ZK H Q W K H \ G H D O ZLW K W K H E R X Q G D U \ F R Q G LW LR Q V D W W K H ID F H W V
ZK LF K W K H \ H [S U H V V LQ W H U P V R I W K H LQ W H J U D O R I W K H H OH F W U LF p H OG R YH U W K H ID F H W V X U ID F H 

0R U H U H F H Q W O\ 6 D W R D Q G + R U L K D YH H [W H Q G H G W K H LU P H W K R G W R W U H D W 70 P R G H V >  @
7K H \ K D YH IR OOR ZH G W K H V D P H OLQ H D Q G K D YH P D G H D OP R V W W K H V D P H D S S U R [LP D W LR Q V
ZK LOH G H D OLQ J ZLW K W K H 7( F D V H W R W U H D W W K H 70 F D V H  7K H LU U H V X OW V D J U H H TX D OLW D W LYH O\
ZLW K W K R V H R I 6 W U H LIH U
V >  @ LQ W K D W W K H F R X S OLQ J F R H r F LH Q W V IR U 7( P R G H V H [F H H G
W K R V H IR U 70 P R G H V  &R Q V H TX H Q W O\ W K H YD OX H V R I W K H W K U H V K R OG J D LQ IR U W K H 7( P R G H
D U H V P D OOH U W K D Q W K R V H IR U W K H 70 P R G H  7K H \ K D YH V K R ZQ W K D W W K H % U D J J IU H TX H Q F \
IR U W K H 70 P R G H LV OD U J H U W K D Q W K D W R I W K H 7( P R G H E H F D X V H R I W K H V P D OOH U H oH F W LYH
U H IU D F W LYH LQ G H [ 7K H \ K D YH V W X G LH G W K H H oH F W R I ID F H W U H q H F W LR Q R Q W K H S R V V LE LOLW \
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

R I V LQ J OH P R G H R S H U D W LR Q  7K H \ K D YH X V H G D Q D S S U R [LP D W H H V W LP D W H R I W K H U H q H F W LR Q
ID F W R U G H p Q LQ J LW D V QHo   QHo   ZK H U H QHo LV W K H H oH F W LYH U H IU D F W LYH LQ G H [ D W
R Q H H Q G ID F H W D V V X P LQ J ] H U R U H q H F W LYLW \ D W W K H R W K H U H Q G ID F H W IR U YD U LR X V F R U U X J D W LR Q
S K D V H V  7K H \ K D YH IR X Q G W K D W W K H OR Q J LW X G LQ D O P R G H ZLW K W K H OR ZH V W W K U H V K R OG J D LQ
LV G H S H Q G H Q W R Q W K H F R U U X J D W LR Q S K D V H IR U W K H V \P P H W U LF LQ G H [ ZD YH J X LG H V W U X F W X U H 
7K H LU F D OF X OD W LR Q V J LYH D S U R E D E LOLW \ R I V LQ J OH P R G H R V F LOOD W LR Q E \ 7( P R G H E H OR Z
% U D J J IU H TX H Q F \ R I D E R X W     7K LV S U R E D E LOLW \ LQ F U H D V H V W R    ZK H Q W K H \ K D YH
F R Q V LG H U H G D V \P P H W U LF LQ G H [ V W U X F W X U H ZD YH J X LG H V 

0D NLQ R >  @ K D V E H H Q D OLW W OH G LV W X U E H G E \ W K H ID F W W K D W D G LoH U H Q F H LQ W K H F R Q p Q H 


P H Q W ID F W R U V P D OOH U W K D Q    F D Q OH D G LQ >     @ W R D OD U J H W K U H V K R OG J D LQ G LoH U H Q F H
b
D V OD U J H D V   F P  7R J H W D E H W W H U X Q G H U V W D Q G LQ J R I ZK D W LV J R LQ J R Q  K H K D V G H YH O
R S H G D W K H R U \ IR U W K U H V K R OG D Q D O\V LV R I ' )% OD V H U ZK H U H H D F K F R U U X J D W LR Q U H J LR Q R I
W K H IR X U OD \H U V W U X F W X U H K H K D V F R Q V LG H U H G LV D V V LJ Q H G D Q H oH F W LYH F R P S OH [ U H IU D F W LYH
LQ G H [ F D OF X OD W H G IU R P W K H F R Q V LG H U D W LR Q R I J X LG H G ZD YH S U R S D J D W LR Q LQ LW  7K LV OH D G V
W R D  d  W U D Q V IH U P D W U L[ IR U H D F K U H J LR Q  D Q G W K H W K U H V K R OG F D OF X OD W LR Q LV U H G X F H G
W R P D W U L[ P X OW LS OLF D W LR Q  + H K D V D V V X P H G W K D W U H q H F W LR Q R I W K H J X LG H G P R G H D W
W K H LQ W H U ID F H V R I W K H F R U U X J D W LR Q U H J LR Q V LV J R YH U Q H G E \ W K H LU F R P S OH [ LQ G LF H V  + LV
Q X P H U LF D O U H V X OW V D J U H H TX D OLW D W LYH O\ ZLW K W K R V H R I >     @ D Q G K H H [S OD LQ V W K H G LI
IH U H Q F H LQ W K U H V K R OG J D LQ R I W K H OR ZH V W W ZR OR Q J LW X G LQ D O P R G H V D V D U H V X OW R I W K H J D LQ
S H U LR G LF LW \ ZK LF K LV LQ G X F H G E \ W K H P R G X OD W LR Q R I W K H H oH F W LYH R S W LF D O F R Q p Q H P H Q W
ID F W R U LQ W K H D F W LYH OD \H U R I W K H OD V H U 

,Q V S LW H R I W K R V H R E MH F W LR Q V  W K H P H W K R G R I 6 W U H LIH U D Q G F R ZR U NH U V F R Q W LQ X H G
W R E H F R Q V LG H U H G W K H E H V W W U H D W P H Q W R I W K H H oH F W R I J U D W LQ J J H R P H W U \ D Q G W K H OR V V
   7+ ( ' ,6 75 ,% 8 7( ' )( ( ' % $ &. ' )% / $ 6 ( 5  

P R G H  S D U W LF X OD U O\ LQ W K H F D V H R I V H F R Q G D Q G K LJ K H U R U G H U J U D W LQ J V  ,W ZD V LQ ID F W
OD W H U H [W H Q G H G E \ < X D Q G / LX W R W K H F D V H R I 70 P R G H V >  @ 7K H \ K D YH V W X G LH G
V LQ J OH P R G H F K D U D F W H U LV W LF V R I ' )% OD V H U V ZLW K V H F R Q G R U G H U J U D W LQ J V  7K R X J K W K H
G R P LQ D Q W P R G H LV X V X D OO\ D 7( P R G H  R Q H R I W K H 70 P R G H V R IW H Q E H F R P H V W K H
V H F R Q G D U \ P R G H ZLW K WK H VH F R Q G OR ZH V W W K U H V K R OG J D LQ  7K X V  W K H V LQ J OH P R G H
F K D U D F W H U LV W LF V R I ' )% OD V H U V D U H V H U LR X V O\ D oH F W H G  7K H \ K D YH V K R ZQ W K D W S U R S H U
F R Q W U R O R I W K H ID F H W U H q H F W LYLW \ LV D J R R G D S S U R D F K W R D F K LH YH D OD U J H J D LQ P D U J LQ
IR U V LQ J OH P R G H R S H U D W LR Q  7K H \ D OV R K D YH F R Q F OX G H G W K D W G LV F U LP LQ D W LR Q E H W ZH H Q
W K H W ZR S R OD U L] D W LR Q V E \ S K D V H V K LIW LQ W K H J U D W LQ J V W U X F W X U H LV Q R W D V H oH F W LYH D V E \
ID F H W F R D W LQ J  7K H LU U H V X OW V D J U H H ZLW K < D P D P R W R >     @ LQ W K D W W K H 7( U D G LD W LR Q
OR V V LV K LJ K H U W K D Q W K H 70 U D G LD W LR Q OR V V 

6LQJOH0 XOWLSOH 3 KDVH6KLIWHG ')% /DVHU V

+ D X V D Q G 6 K D Q N >  @ K D YH U H D OL] H G W K D W P R G H V R I D OP R V W H TX D O W K U H V K R OG J D LQ R F F X U 
LQ J V \P P H W U LF D OO\ R Q W K H W ZR V LG H V R I W K H H Q H U J \ J D S LV D G LV D G YD Q W D J H LQ S U D F W LF D O
D S S OLF D W LR Q V LQ ZK LF K V LQ J OH OR Q J LW X G LQ D O P R G H 6 / 0 R S H U D W LR Q D W D S U H G LF W D E OH
IU H TX H Q F \ LV G H V LU H G  7R R YH U F R P H W K LV S U R E OH P  W K H \ K D YH S U R S R V H G D TX D U W H U 
ZD YH OH Q J W K V K LIW H G V W U X F W X U H 4: 6 ' )% OD V H U  7K H LU U H V X OW V V K R Z R Q H OR Q J LW X G LQ D O
P R G H ZLW K W K H OR ZH V W W K U H V K R OG J D LQ D W W K H % U D J J ZD YH OH Q J W K D Q G D OD U J H W K U H V K R OG
J D LQ G LoH U H Q F H E H W ZH H Q P R G H V  + H Q F H  V W D E OH 6 / 0 R S H U D W LR Q ZD V S U H G LF W H G  0F 
&D OO D Q G 3 OD W ] P D Q >  @ K D YH H P S K D V L] H G W K D W D ' )% OD V H U ZLW K D S U R S H U S OD F H G } 
S K D V H V K LIW S H U IR U P V E H W W H U W K D Q R Q H ZLW K R X W W K H V K LIW  6 R G D HW DO >  @ K D YH YH U L
p H G H [S H U LP H Q W D OO\ W K H V W D E OH OR Q J LW X G LQ D O P R G H 6 / 0 R S H U D W LR Q R I *D ,Q $ V 3  ,Q 3
S K D V H V K LIW H G ' )% OD V H U V  + R ZH YH U  LQ W K H V W U R Q J O\ F R X S OH G F D V H V  W K H \ K D YH IR X Q G
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

W K D W W ZR P R G H R S H U D W LR Q R F F X U V IU H TX H Q W O\ 6 R G D HW DO K D YH S R LQ W H G R X W W K D W


W K H OR Q J LW X G LQ D O V S D W LD O K R OH E X U Q LQ J 6 + % LQ ' )% OD V H U V P D \ LQ q X H Q F H W K H P R G H
V W D E LOLW \ D W K LJ K F X U U H Q W LQ MH F W LR Q OH YH OV  7K H \ K D YH IR X Q G W K D W W K H U H LV D Q R S W LP X P
F R X S OLQ J F R H r F LH Q W x/    W K D W P LQ LP L] H V W K H OR Q J LW X G LQ D O V S D W LD O K R OH E X U Q LQ J
H oH F W LQ W K H V \P P H W U LF y  V K LIW H G ' )% OD V H U  2ND L HW DO >  @ K D YH D J U H H G ZLW K
W K H U H V X OW V R I 6 R G D HW DO D Q G K D YH S U H V H Q W H G D G LU H F W S U R R I R I V S D W LD O K R OH E X U Q LQ J
D OR Q J W K H 4: 6 ' )% D [LV  % \ H [S H U LP H Q W D O ZR U N D Q G W K H R U H W LF D O F R Q p U P D W LR Q W K H \
V K R Z W K D W W K H S K D V H V K LIW LQ F U H D V H V IU R P y  W R  y  D V D U H V X OW R I V S D W LD O K R OH
E X U Q LQ J ZK H Q x/ H TX D OV   

0X F K R I W K H ZR U N G R Q H X S W R W K H S U H V H Q W W LP H LV E D V H G R Q W K H R Q H G LP H Q V LR Q D O
W K H R U \ : K LW H D ZD \ HW DO >     @ K D YH G H YH OR S H G D G H W D LOH G Q X P H U LF D O P R G H O R I
W K H S H U IR U P D Q F H R I ' )% OD V H U V W U X F W X U H V E R W K E H OR Z D Q G D E R YH W K U H V K R OG  7K H P D LQ
IH D W X U H V R I W K H LU P R G H O D U H W K H LQ F OX V LR Q R I OR Q J LW X G LQ D O P R G H V S D W LD O K R OH E X U Q LQ J 
W K H S U H G LF W LR Q R I W K H OR Q J LW X G LQ D O P R G H LQ W H Q V LW \ F D U U LH U G H Q V LW \ D Q G H oH F W LYH J X LG H
U H IU D F W LYH LQ G H [ S U R p OH V  7K H \ K D YH V W X G LH G W K H H oH F W R I V S D W LD O K R OH E X U Q LQ J R Q
OR Zx/ D Q G K LJ K x/ S K D V H V K LIW H G ' )% OD V H U V  7K H LU V R OX W LR Q V IR U W K H LQ W H Q V LW \ G LV 
W U LE X W LR Q D OR Q J W K H OD V H U F D YLW \ K D YH H P S K D V L] H G W K D W W K H G LV W U LE X W LR Q LV H [S R Q H Q W LD O
LI W K H P R G H LV OR F D W H G ZLW K LQ W K H V W R S E D Q G D Q G R V F LOOD W R U \ LI R X W V LG H  7K X V  W K H OR Q J
ZD YH OH Q J W K V LG H P R G H ZLOO K D YH D G H F U H D V LQ J J D LQ U H TX LU H P H Q W LQ D K LJ K x/ G H YLF H
D V K R OH E X U Q LQ J W D NH V S OD F H  D Q G YLF H YH U V D LQ D OR Zx/ OD V H U 

$ J U D ZD O HW DO >  @ K D YH S U H V H Q W H G D Q X P H U LF D O V R OX W LR Q IR U W K H F R X S OH G ZD YH


H TX D W LR Q V ZLW K D [LD OO\YD U \LQ J S D U D P H W H U V  7K H \ K D YH V W X G LH G W ZR ' )% OD V H U V W U X F 
WX UH V
   7+ ( ' ,6 75 ,% 8 7( ' )( ( ' % $ &. ' )% / $ 6 ( 5  

s 2Q H V W U X F W X U H LQ F R U S R U D W H V P X OW LS OH S K D V H V K LIW U H J LR Q V G LV W U LE X W H G R YH U W K H
F D YLW \ OH Q J W K  7K H LU U H V X OW V V K R Z W K D W V X F K G H YLF H V F D Q K D YH D P R U H X Q LIR U P
D [LD O LQ W H Q V LW \ W K D Q W K D W R I W K H F R Q YH Q W LR Q D O y  ' )% V LQ J OH V K LIW OD V H U ZK LOH
P D LQ W D LQ LQ J V X r F LH Q W J D LQ P D U J LQ E H W ZH H Q W K H P D LQ D Q G V LG H P R G H V  7K H \
K D YH H [S H F W H G W K H V H G H YLF H V W R E H P R U H V W D E OH LQ W K H D E R YH W K U H V K R OG U H J LP H
V LQ F H V S D W LD O K R OH E X U Q LQ J S OD \H V D OH V V LP S R U W D Q W U R OH 

s ,Q W K H R W K H U V W U X F W X U H  W K H G X D OS LW F K ' )% OD V H U  W K H J U D W LQ J S H U LR G LV P D G H
V OLJ K W O\ G LoH U H Q W R YH U D V H F W LR Q R I W K H OD V H U F D YLW \ 7K H \ K D YH V K R ZQ W K D W D
J D LQ P D U J LQ W K D W LV F R P S D U D E OH W R W K D W R I y  ' )% OD V H U F D Q E H D F K LH YH G LQ
W K LV F D V H 

. LQ R V K LW D >  @ K D V D Q D O\] H G W K H 7(  70 P R G H V H OH F W LYLW \ R I D ' )% OD V H U ZLW K D


S K D V H V K LIW  + H K D V F D OF X OD W H G W K H W K U H V K R OG J D LQ G LoH U H Q F H E H W ZH H Q W K H 7( D Q G 70
P R G H V X V LQ J W K H H oH F W LYH LQ G H [ P H W K R G D Q G W K H F R X S OH G ZD YH W K H R U \ + H K D V V K R ZQ
W K D W W K H 70 P R G H V X S S U H V V LE LOLW \ F D Q E H LP S U R YH G E \ R S W LP L] LQ J W K H G LP H Q V LR Q V R I
W K H S K D V H V K LIW U H J LR Q  ,Q D OD W H U S X E OLF D W LR Q >  @ K H W K H R U LW LF D OO\ K D V D Q D O\] H G W K H
D [LD O S U R p OH V R I W K H J U D W LQ J F R X S OH G U D G LD W LR Q p H OG H P LW W H G Q R U P D OO\ W R W K H V X U ID F H
R I D S K D V H V K LIW H G V H F R Q G R U G H U J U D W LQ J V ' )% OD V H U V  + H K D V F R Q V LG H U H G W K U H H F D V H V
R I ] H U R U H q H F W LYLW \ H Q G H G ' )% OD V H U V ZLW K W K H IR OOR ZLQ J S K D V H V K LIW   D y  V K LIW 
 W ZR y  V K LIW V D Q G  W ZR  y  V K LIW V  + H G H P R Q V W U D W H V W K D W W K H U D G LD W LR Q p H OG
F D Q E H F R Q W U R OOH G E \ F K D Q J LQ J W K H S K D V H V K LIW V  + H V K R ZH V W K D W W K H V X U ID F H U D G LD W LR Q
p H OG K D V W K H V D P H S U R p OH D V W K H J X LG H G P R G H LQ W K H p U V W F D V H D Q G W K D W W K H U D G LD W LR Q
S R ZH U F D Q E H F R Q F H Q W U D W H G R Q W K H V P D OO D U H D E H W ZH H Q W K H V K LIW V LQ W K H V H F R Q G D Q G
W K H W K LU G F D V H 
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

7K H F K D U D F W H U LV W LF V R I W K H D V \P P H W U LF y  V K LIW H G ,Q *D $ V 3  ,Q 3 ' )% OD V H U V  LQ
ZK LF K W K H y  V K LIW S R V LW LR Q ZD V P R YH G IU R P W K H F H Q W H U R I W K H ' )% U H J LR Q W R ZD U G
W K H IU R Q W V LG H  LV V W X G LH G E \ 8 V D P L HW DO >  @ 7K H \ K D YH V K R ZQ W K D W W K H OLJ K W
LQ W H Q V LW \ Q R U P D OL] H G E \ W K H W R W D O S R ZH U LQ F U H D V H V D W W K H IU R Q W H Q G D Q G G H F U H D V H V D W
W K H U H D U H Q G IR U x/   D Q G   7K H \ K D YH IR X Q G W K D W W K H V X LW D E OH y  V K LIW S R V LW LR Q V
IR U 6 / 0 R S H U D W LR Q OLH LQ OU  /
     ZK H U H OU LV W K H OH Q J W K E H W ZH H Q W K H ' )%
U H D U H Q G D Q G W K H y  V K LIW D Q G / LV W K H W R W D O ' )% OH Q J W K  $ S R ZH U W K U H V K R OG J D LQ
b
G LoH U H Q F H R YH U   F P F D Q E H R E U D LQ H G LQ W K LV U D Q J H  7K X V W K H \ K D YH H [S H F W H G
W K D W D Q D V \P P H W U LF y  V K LIW H G ' )% OD V H U F D Q E H S U R P LV LQ J IR U V W D E OH 6 / 0 D Q G
K LJ K S R ZH U R S H U D W LR Q  / D W H U  8 V D P L D Q G $ NLE D >  @ K D YH LQ YH V W LJ D W H G W K H P R G H
S U R S H U W \ D Q G W K H R X W S X W S U R S H U W \ R I W K H D V \P P H W U LF y  V K LIW H G ' )% OD V H U ZLW K
G LV W U LE X W H G F X U U H Q W LQ MH F W LR Q D OR Q J W K H F D YLW \ W K H R U H W LF D OO\ D Q G H [S H U LP H Q W D OO\ LQ
R U G H U W R V X S S U H V V W K H OR Q J LW X G LQ D O V S D W LD O K R OH E X U Q LQ J H oH F W  &D OF X OD W LR Q V V K R Z
W K D W D Q D S S U R S U LD W H F X U U H Q W G H Q V LW \ S U R p OH V LP LOD U W R W K H OLJ K W LQ W H Q V LW \ G LV W U LE X W LR Q
F D Q F R P S H Q V D W H IR U W K H OR Q J LW X G LQ D O V S D W LD O K R OH E X U Q LQ J H oH F W 

< R NR \D P D HWDO >  @ K D YH G H YH OR S H G D W ZR G LP H Q V LR Q D O S U R J U D P W R D Q D O\] H


P X OW LH OH F W U R G H  H OH F W U R G H V V \P P H W U LF ' )% OD V H U V ZLW K y   S K D V H V K LIW X Q G H U Q R Q
X Q LIR U P F D U U LH U LQ MH F W LR Q F R Q G LW LR Q  7K H R S W LF D O ZD YH H TX D W LR Q LV V R OYH G W D NLQ J LQ W R
D F F R X Q W R Q O\ W K H W ZR J X LG H G P R G H V  ,Q D OD W H U S X E OLF D W LR Q >  @ W K H \ K D YH V W X G LH G
W K H V W D W LF ZD YH OH Q J W K V K LIW IR U V X F K V W U X F W X U H  7K H \ K D YH V LP X OD W H G W K H V S D W LD O K R OH
E X U Q LQ J H oH F W V D Q G K D YH F R Q F OX G H G W K D W W K H V H H oH F W V F D Q E H V X S S U H V V H G E \ LQ MH F W LQ J
D Q H [F H V V F X U U H Q W IU R P W K H F H Q W U D O H OH F W U R G H  ZK LF K D J U H H V ZLW K >  @ $ OV R W K H \
K D YH F R Q F OX G H G W K D W W K H ZD YH OH Q J W K V K LIW F R X OG E H F R Q W U R OOH G E \ Q R Q X Q LIR U P F D U U LH U
LQ MH F W LR Q 
   7+ ( ' ,6 75 ,% 8 7( ' )( ( ' % $ &. ' )% / $ 6 ( 5  

0D NLQ R D Q G *OLQ V NL >  @ K D YH G H YH OR S H G D Q D O\W LF D O D S S U R [LP D W LR Q V IR U W K H F D O


F X OD W LR Q R I W K H W K U H V K R OG J D LQ IR U V H F R Q G R U G H U ' )% V H P LF R Q G X F W R U OD V H U V ZLW K V \P 
P H W U LF D O J U D W LQ J V D Q G ] H U R ID F H W U H q H F W LYLW \ 1 X P H U LF D O U H V X OW V IR U W ZR F D V H V R I ' )%
OD V H U V ZLW K D Q G ZLW K R X W D S K D V H V K LIW LQ J U H J LR Q D U H J LYH Q IR U F R P S D U LV R Q  7K H \ K D YH
F R Q F OX G H G W K D W W K H P R G H V H OH F W LYLW \ G H F U H D V H V ZLW K LQ F U H D V LQ J U D G LD W LR Q OR V V LQ F D V H
R I ' )% OD V H U V ZLW K D S K D V H V K LIW  LQ F R Q W U D V W W R W K H F D V H ZLW K Q R S K D V H V K LIW 

. LQ R V K LW D D Q G 0D W V X P R W R >  @ V W X G LH G W K H 6 / 0 R S H U D W LR Q IR U W K U H H G LoH U H Q W
W \S H V R I ' )% V W U X F W X U H V  R Q H ZLW K  Q R S K D V H V K LIW H U V   D y  S K D V H V K LIW H U V D W
W K H F D YLW \ F H Q W H U D Q G  W ZR y  S K D V H V K LIW H U V D W W K H W K LU G V R I W K H F D YLW \ OH Q J W K 
7K H \ K D YH F R Q F OX G H G W K D W W K H LQ W U R G X F W LR Q R I W K H W ZR y  S K D V H V K LIW U H J LR Q V LV
H oH F W LYH IR U R E W D LQ LQ J q D W W H Q H G LQ W H U Q D O p H OG S U R p OH V D Q G IR U U H D OL] LQ J V W D E OH 6 / 0
R S H U D W LR Q 
: X… Q V F K H HWDO >  @ K D YH S U H V H Q W H G D TX D V L  ' P R G H O W K D W W D NH V LQ W R D F F R X Q W
E R W K OR Q J LW X G LQ D O D Q G OD W H U D O V S D W LD O K R OH E X U Q LQ J  7K H \ K D YH LQ YH V W LJ D W H G W K H F R Q 
YH Q W LR Q D O y  S K D V H V K LIW ' )% V W U X F W X U H  7K H \ K D YH IR X Q G W K D W W K H E H V W V W D E LOLW \
D J D LQ V W E R W K OR Q J LW X G LQ D O D Q G OD W H U D O V LG H P R G H F D Q E H D F K LH YH G IR U x/ E H W ZH H Q 
D Q G  

5 H F H Q W O\ )H V V D Q W >  @ K D V S U R S R V H G D Q R YH O V W U X F W X U H F R P E LQ LQ J D OR F D OL] H G y 
S K D V H V K LIW  D G LV W U LE X W H G R Q H D Q G D V S D W LD OO\G H S H Q G H Q W F R X S OLQ J F R H r F LH Q W  6 X F K D
J U D W LQ J F R Q p J X U D W LR Q LV V K R ZQ W R F R P E LQ H W K H E H Q H p W V R I D K LJ K W K U H V K R OG J D LQ P D U 
J LQ D Q G D U H OD W LYH O\ q D W p H OG G LV W U LE X W LR Q  &R Q V H TX H Q W O\ V LQ J OH P R G H R S H U D W LR Q X S W R
K LJ K E LD V F X U U H Q W V LV P D LQ W D LQ H G  ,Q W K H V D P H \H D U  )H V V D Q W >  @ K D V G H P R Q V W U D W H G
W K H S R V V LE LOLW \ D Q G K D V LQ W U R G X F H G W K H S U LQ F LS OH V R I D Q D G G LW LR Q D O F R Q W U LE X W LR Q W R
W K H P R G D O V H OH F W LYLW \ LQ y  S K D V H V K LIW H G ' )% OD V H U V E \ LQ V H U W LR Q R I D OR F D OL] H G
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

)LJ X U H     $ pYH OD\HU JXLGLQJ ')% VWUXFWXUH ZLWK VHFRQG RUGHU JUDWLQJV RI SHULRG e ZKLFK
LQFOXGHV D JUDWLQJ UHJLRQ RI WKLFNQHVV K DQG DQ DFWLYH UHJLRQ RI WKLFNQHVV E

F H Q W H U LP S X U LW \ LQ V LG H W K H F D YLW \ 7K H W K U H V K R OG J D LQ P D U J LQ K D V E H H Q IR X Q G W R
E H S R V V LE O\ LQ F U H D V H G ZLW K Q R V LJ Q Lp F D Q W H oH F W V R Q W K H W K U H V K R OG F X U U H Q W G H Q V LW \
7K H S U H F LV H OR F D W LR Q R I W K H V H LP S X U LW LH V P D \ E H D V F U LW LF D O D V W K H OR F D W LR Q R I ID F H W
P LU U R U V LQ )D E U \3 H U R W OD V H U V  7K H D E R YH P H Q W LR Q H G P R G H OV K D YH F R Q F H Q W U D W H G R Q
W K H OR Q J LW X G LQ D O K R OH D Q G D V V X P H G D OD W H U D OO\ X Q LIR U P F D U U LH U G H Q V LW \

0R U H U H F H Q W O\ 6 W U H LIH U
V D S S U R D F K >  @ K D V E H H Q J H Q H U D OL] H G IR U 7( P R G H V WR
D S S O\ W R D J H Q H U D O P X OW LV W D F N J X LG LQ J V \V W H P W K U R X J K D W U D Q V IH U P D W U L[ IR U P D OLV P
>  @ E \ . LQ R V K LW D  + LV IR U P X OD W LR Q LV E D V H G R Q D W U D Q V IH U P D W U L[ W H F K Q LTX H IR U F D OF X 
OD W LQ J 6 W U H LIH U
V tW H U P V D G G H G W R W K H R Q H G LP H Q V LR Q D O F R X S OH G ZD YH H TX D W LR Q V  + H
K D V D Q D O\] H G W K H W K U H V K R OG P R G H E H K D YLR U R I ' )% OD V H U V ZLW K R X W D Q G ZLW K D S K D V H
V K LIW  + H K D V V W X G LH G D p YH OD \H U V V H F R Q G R U G H U J U D W LQ J ' )% OD V H U V W U X F W X U H V K R ZQ LQ
p J X U H    D V V X P LQ J ] H U R ID F H W U H q H F W LYLW LH V  7ZR G LoH U H Q W F D V H V  V \P P H W U LF U  
   7+ ( ' ,6 75 ,% 8 7( ' )( ( ' % $ &. ' )% / $ 6 ( 5  

)LJ X U H     o/r/ GLDJUDP IRU WKH QRSKDVHVKLIW VWUXFWXUH ZLWK V\PPHWULFDO FRUUXJDWLRQV
2SHQ FLUFOHV tL   FORVHG GLDPRQGV tL  >@

D Q G E OD ] H G U    W U LD Q J X OD U F R U U X J D W LR Q V  K D YH E H H Q W U H D W H G LQ K LV F D OF X OD W LR Q 
+ H K D V F R Q p U P H G W K D W W K H U D G LD W LR Q P R G H LQ W H Q V LW \ S U R p OH D OR Q J W K H F D YLW \ D [LV
J U H D W O\ D oH F W V W K H OR Q J LW X G LQ D O P R G H V H OH F W LYLW \ G H S H Q G LQ J R Q W K H S K D V H V K LIW V D Q G
W K H E OD ] LQ J D Q J OH  + H K D V F R Q F OX G H G W K D W IR U W K H V H F R Q G R U G H U V \P P H W U LF W U LD Q J X OD U
F R U U X J D W LR Q V 

  7K H Q R V K LIW ' )% OD V H U V V K R Z J R R G V LQ J OH OR Q J LW X G LQ D O P R G H F D S D E LOLW \ G X H W R


U H G X F H G U D G LD W LR Q OR V V LQ IU H TX H Q F \ U D Q J H E H OR Z W K H % U D J J IU H TX H Q F \ D V V K R ZQ
LQ p J X U H     7K H p J X U H V K R ZV W K H W K U H V K R OG J D LQ o/ YH U V X V W K H ZD YH OH Q J W K
V K LIW IU R P W K H % U D J J ZD YH OH Q J W K r/ YD U \LQ J W K H F R U U X J D W LR Q G H S W K IU R P   
W R    zP ZLW K D V W H S R I    zP  7K H P R G H V ZLW K IU H TX H Q LH V OR ZH U W K D Q
W K H % U D J J IU H TX H Q F \ K D YH W K U H V K R OG J D LQ D V OR Z D V W K D W IR U Q R U D G LD W LR Q F D V H
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

)LJ X U H     o/r/ GLDJUDP IRU WKH QRSKDVHVKLIW VWUXFWXUH ZLWK EOD]HG FRUUXJDWLRQV U  
2SHQ FLUFOHV tL   FORVHG GLDPRQGV tL  >@

G X H W R OR Z U D G LD W LR Q OR V V  7K H V H U H V X OW V D U H LQ TX D OLW D W LYH D J U H H P H Q W ZLW K W K H


S X E OLV K H G U H V X OW V E \ + H Q U \ D Q G . D ] D U LQ R Y >     @

  7K H y  V K LIW ' )% OD V H U V V K R Z ZR U V H V LQ J OH OR Q J LW X G LQ D O P R G H E H K D YLR U G X H W R


H Q K D Q F H G U D G LD W LR Q OR V V IR U W K H % U D J J P R G H D V W K H F R U U X J D W LR Q G H S W K LQ F U H D V H V 

2Q W K H R W K H U K D Q G  IR U W K H E OD ] H G V H F R Q G R U G H U F R U U X J D W LR Q V  LW LV IR X Q G W K D W 

  7K H E OD ] H G F R U U X J D W LR Q V OH D G W R OD U J H U YD OX H V R I x/ W K D Q W K H V \P P H W U LF D O R Q H V 

  7K H D [LD O S U R p OH V R I W K H U D G LD W LR Q P R G H D U H G LV F R Q W LQ X R X V D W W K H F H Q W U D O S K D V H
V K LIW ZK H Q W K H E OD ] LQ J D Q J OH LV X Q LIR U P D OR Q J W K H F D YLW \

  7K H W K U H V K R OG P R G H E H K D YLR U LV P R U H V LP LOD U W R W K H Q R U D G LD W LR Q F D V H W K D Q W K D W
IR U W K H V \P P H W U LF F D V H D V V K R ZQ LQ p J X U H     7K H p J X U H V K R ZV W K H W K U H V K R OG
   7+ ( ' ,6 75 ,% 8 7( ' )( ( ' % $ &. ' )% / $ 6 ( 5  

J D LQ o/ YH U V X V W K H ZD YH OH Q J W K V K LIW IU R P W K H % U D J J ZD YH OH Q J W K r/ ZLW K W K H
F R U U X J D W LR Q G H S W K YD U \LQ J IU R P    W R   zP ZLW K D V W H S R I    zP  7K H
o/ r/ G LD J U D P LV D OP R V W V \P P H W U LF D O ZLW K U H V S H F W W R W K H % U D J J ZD YH OH Q J W K 
7K LV E H K D YLR X U LV V LP LOD U W R W K D W LQ W K H D E V H Q F H R I W K H U D G LD W LR Q P R G H 

*DLQJXLGHG ')% ODVHU V

. D S R Q HW DO >  @ K D YH V W X G LH G W K H H oH F W R I W K H F R P S OH [ F R X S OLQ J F R H r F LH Q W R Q


W K H S H U IR U P D Q F H R I ' )% OD V H U V  7K H \ K D YH G LV F X V V H G W K H S K \V LF D O R U LJ LR Q V R I D
F R P S OH [ F R X S OLQ J F R H r F LH Q W D Q G LW V U H OD W LR Q ZLW K W K H J D LQ R U OR V V P H F K D Q LV P V ZK LF K
R F F X U LQ V LG H W K H OD V H U  7K H \ D J U H H ZLW K . R J H OQ LN D Q G 6 K D Q N > @ LQ W K D W W K H P R G H V
G H J H Q U D F \ ZK LF K H [LV W LQ W K H LQ G H [F R X S OH G ' )% OD V H U V LV U H P R YH G LQ W K H S U H V H Q F H
R I D F R P S OH [ F R X S OLQ J F R H r F LH Q W 

/ R ZH U \ D Q G 1 R YD N >  @ K D YH S H U IR U P H G D G H W D LOH G F R P S D U LV R Q E H W ZH H Q W K H S H U IR U 
P D Q F H R I J D LQ F R X S OH G D Q G LQ G H [F R X S OH G ' )% OD V H U V D Q G K D YH V K R ZQ W K H IR OOR ZLQ J 

s + LJ K F R X S OLQ J LQ G H [F R X S OH G V W U X F W X U H V K D YH D OR ZH U W K U H V K R OG F X U U H Q W W K D Q
J D LQ F R X S OH G OD V H U V 

s *D LQ F R X S OH G  OD V H U V R oH U D V W D E OH P R G H R X W S X W  V LP LOD U W R W K D W R E W D LQ H G ZLW K
S K D V H V K LIW H G LQ G H [F R X S OH G V W U X F W X U H V  + R ZH YH U  J D LQ F R X S OH G V W U X F W X U H V G R
Q R W V X oH U IU R P W K H K LJ K 6 + % W K D W R F F X U V LQ K LJ K F R X S OLQ J  TX D U W H U ZD YH 
V K LIW H G  ' )% OD V H U V 

s *D LQ F R X S OH G OD V H U V D U H P R U H V H Q V LW LYH W R H [W H U Q D O IH H G E D F N W K D Q K LJ K F R X S OLQ J 
LQ G H [F R X S OH G  OD V H U V 
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

5 H F H Q W O\ &K H Q HW DO >  @ K D YH H [S OD LQ H G X V LQ J W K H % OR F K ZD YH D Q D O\V LV W K H


H oH F W R I J D LQ F R X S OLQ J R Q W K H V LQ J OH P R G H V H OH F W LR Q LQ ' )% OD V H U V  1 X P H U LF D O U H V X OW V
LOOX V W U D W H W K D W  E \ G H V LJ Q LQ J W K H J D LQ J U D W LQ J V W U X F W X U H S U R S H U O\ D YH U \ K LJ K P R G H
\LH OG  LQ W H U P V R I J D LQ P D U J LQ  F D Q E H D F K LH YH G LQ W K H J D LQ F R X S OH G ' )% OD V H U V 

$ERYHWKU HVKROG EHKDYLRU RI ')% ODVHU V

7K H D E R YH W K U H V K R OG E H K D YLR U R I ' )% OD V H U V  LQ F OX G LQ J W K H H oH F W V R I V H OILQ G X F H G


J U D W LQ J V W K D W D U LV H G X H W R V S D W LD O K R OH E X U Q LQ J  K D V U H F H LYH G F R Q V LG H U D E O\ OH V V D W 
W H Q W LR Q W K D Q W K U H V K R OG E H K D YLR U  6 D U J H Q W HW DO >  @ ZH U H W K H p U V W W R S X E OLV K D
W K H R U \ R I ' )% OD V H U V W K D W LQ F OX G H G W K H V H H oH F W V  7K H \ G LG Q R W  K R ZH YH U D S S O\ W K H LU
W K H R U \ W R P R G H G LV F U LP LQ D W LR Q  E X W R Q O\ W R G H W H U P LQ LQ J R X W S X W S R ZH U  5 D E LQ R YLF K
D Q G )H OG P D Q >     @ K D YH G H U LYH G F R X S OH G P R G H H TX D W LR Q V IR U ' )% OD V H U V D E R YH
W K U H V K R OG LQ F OX G LQ J W K H V S D W LD O K R OH E X U Q LQ J W H U P V ZK LF K F D X V H D V H OILQ G X F H G % U D J J
J U D W LQ J W R D U LV H  ,Q >  @ W K H \ K D YH V W X G LH G S X U H ' )% OD V H U V ZLW K R X W H [W H U Q D O U H q H F 
W R U V R U S K D V H V K LIW H G J U D W LQ J V W U X F W X U H V  7K H LU D Q D O\V LV K D V LQ G LF D W H G  LQ D J U H H P H Q W
ZLW K H [S H U LP H Q W D O U H V X OW V IR X Q G E \ 6 R G D >  @ W K D W W K H LQ G H [F R X S OH G ' )% OD V H U V
P D \ OR V H W K H LU 6 / 0 E H K D YLR U D V W K H LU R X W S X W S R ZH U V H [F H H G D IH Z W LP H V W K H V D W X U D 
W LR Q S R ZH U R I W K H P H G LX P G X H W R W K H V S D W LD O K R OH E X U Q LQ J J U D W LQ J  7K H J D LQ F R X S OH G
S X U H ' )% OD V H U V G R Q R W OR V H W K H LU P R G H G LV F U LP LQ D W LR Q D E R YH W K U H V K R OG  7K H \ K D YH
H [W H Q G H G W K H LU ZR U N >  @ W R LQ F OX G H H [W H U Q D O U H q H F W R U V D Q G S K D V H V K LIW H G ' )% OD V H U V
D Q G K D YH V K R ZQ W K D W W K H V H OD V H U V W R R OR V H W K H LU P R G H G LV F U LP LQ D W LR Q D E R YH W K U H V K R OG
LI W K H \ D U H LQ G H [ F R X S OH G  + R ZH YH U  J D LQ F R X S OH G ' )% OD V H U V P D LQ W D LQ W K H LU P R G H
G LV F U LP LQ D W LR Q LQ F D V H R I H [W H U Q D O U H q H F W R U 
   7+ ( ' ,6 75 ,% 8 7( ' )( ( ' % $ &. ' )% / $ 6 ( 5  

0 RGHOV RI ')% /DVHU V

: H F R Q V LG H U Q H [W V R P H R I W K H D S S U R [LP D W H W ZR  R U W K U H H G LP H Q V LR Q D O P R G H OV  / L HW
DO >  @ S U H V H Q W H G D  ' P R G H O IR U ' )% OD V H U V ZLW K p U V W R U G H U J U D W LQ J V F R Q V LG H U LQ J
V H OI F R Q V LV W H Q W O\ R S W LF D O F R Q p Q H P H Q W  F D U U LH U W U D Q V S R U W D Q G K H D W W U D Q V IH U R YH U W K H  '
F U R V V V H F W LR Q  7K H \ W U H D W H G W K H OR Q J LW X G LQ D O P R G H F R Q V LG H U LQ J R Q O\ W K H W ZR IR U ZD U G
D Q G E D F NZD U G S U R S D J D W LQ J ZD YH V  D Q G OLP LW H G W K H LU H [S D Q V LR Q R I W K H U H IU D F W LYH LQ 
G H [ W R W K H p U V W )R X U LH U K D U P R Q LF V  7K H \ G H P R Q V W U D W H G D Q X P E H U R I W H F K Q LTX H V R I
LP S OH P H Q W LQ J W K H LU P R G H O IR U H r F LH Q W V LP X OD W LR Q R I G F D Q G D F F K D U D F W H U LV W LF V  7K H \
ZH U H LQ W H U H V W H G LQ K R Z W R V D YH F R P S X W D W LR Q W LP H D Q G W R LP S U R YH W K H F R P S X W D W LR Q
H r F LH Q F \ 6 D U D Q J D Q HW DO >  @ S U H V H Q W H G D V W H D G \V W D W H P R G H O IR U U LG J H ZD YH J 
X LG H ' )% OD V H U F R Q V LG H U LQ J W K H H OH F W U R Q D Q G K R OH G LoX V LR Q LQ W K H OD W H U D O G LU H F W LR Q 
7K H \ F R Q V LG H U H G R Q O\ G F R S H U D W LR Q  7K H \ V R OYH G D F R P S OH [ H LJ H Q YD OX H H TX D W LR Q
X V LQ J D p Q LW H G LoH U H Q F H V F K H P H W R J H W W K H R S W LF D O P R G H LQ W K H W U D Q V YH U V H G LU H F W LR Q 
7K H \ K LJ K OLJ K W H G W K H LP S R U W D Q F H R I X V LQ J D  ' R S W LF D O P R G H O IR U V W X G \LQ J W K U H V K R OG
F X U U H Q W E H K D YLR U IR U U LG J H ZLG W K V V P D OOH U W K D Q D E R X W   zP 

< X >  @ S U H V H Q W H G D V LP S OH  TX D V LW K U H H G LP H Q V LR Q D O OD U J H V LJ Q D O G \Q D P LF D O P R G H O


R I W K H ' )% OD V H U  + H D Q D O\] H G W K H W U D Q V LH Q W U H V S R Q V H R I OD V H U V LQ F OX G LQ J W K H OR Q J L
W X G LQ D O D Q G OD W H U D O YD U LD W LR Q R I W K H R S W LF D O P R G H D Q G F D U U LH U G H Q V LW \ S U R p OH V  8 V LQ J
K LV P R G H O K H V W X G LH G W K H LQ q X H Q F H R I W K H S K D V H D G MX V W P H Q W U H J LR Q V K R ZQ LQ p J 
X U H    D R Q W K H V W D W LF D Q G G \Q D P LF E H K D YLR U R I W K H ' )% OD V H U V  + LV U H V X OW V V K R ZH
W K D W ' )% OD V H U V ZLW K ZLG H S K D V H D G MX V W P H Q W U H J LR Q F D Q H Q K D Q F H W K H V W D E LOLW \ R I W K H
OD W H U D O P R G H  E X W IR U OD U J H x/ x/ y   OR Q J LW X G LQ D O V LG H P R G H V D U H H [K LE LW H G G X H
W R V H YH U H OR Q J LW X G LQ D O V S D W LD O K R OH E X U Q LQ J Q H D U W K H S K D V H D G MX V W P H Q W U H J LR Q  2Q
W K H R W K H U K D Q G  IR U G H YLF H V ZLW K Q D U U R Z S K D V H D G MX V W P H Q W U H J LR Q V D Q G OD U J H x/  D
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

)LJ X U H     D 6FKHPDWLF VWUXFWXUH RI D SKDVH DGMXVWHG ')% ODVHU : DQG : DUH WKH ZLGWK
RI WKH ZDYHJXLGH DQG SKDVH DGMXVWPHQW UHJLRQ E 6FKHPDWLF RI D ')% ODVHU ZLWK GRXEOH WDSHUHG
ZDYHJXLGH VWUXFWXUH >@

V LQ J OH OR Q J LW X G LQ D O P R G H R S H U D W LR Q LV P D LQ W D LQ H G G X H W R W K H U H OD W LYH O\ X Q LIR U P UH 
IU D F W LYH LQ G H [ G LV W U LE X W LR Q D OR Q J W K H OR Q J LW X G LQ D O G LU H F W LR Q R I W K H OD V H U  E X W D OD W H U D O
V LG H P R G H D S S H D U V D V D U H V X OW R I V H YH U H OD W H U D O V S D W LD O K R OH E X U Q LQ J LQ W K H ZD YH J 
X LG H U H J LR Q  + H K D V S U R S R V H G D ' )% OD V H U ZLW K G R X E OH W D S H U H G ZD YH J X LG H V W U X F W X U H
V K R ZQ LQ p J X U H    E  V K R ZLQ J W K D W LQ V X F K D V W U X F W X U H  W K H OR Q J LW X G LQ D O D Q G OD W 
H U D O V S D W LD O K R OH E X U Q LQ J D U H P LQ LP L] H G  D Q G V W D E OH V LQ J OH P R G H R S H U D W LR Q F D Q E H
R E W D LQ H G 

0R U LW K LH U >  @ K D V V W D U W H G IU R P W K H F R X S OH G ZD YH H TX D W LR Q V W R G H U LYH D Q D OW H U Q D 
W LYH V H W R I U D W H H TX D W LR Q V W K D W D U H YD OLG IR U V LQ J OH V H F W LR Q G LV W U LE X W H G IH H G E D F N ' )%
OD V H U V  7K H V H U D W H H TX D W LR Q V D U H P R U H X V H IX O W K D Q W K H F R Q YH Q W LR Q D O U D W H H TX D W LR Q V 
LQ S D U W LF X OD U LQ W K H S U H G LF W LR Q R I V S D W LD O K R OH E X U Q LQ J H oH F W V  0R U LW K LH U K D V X V H G
W K H H TX D W LR Q V W R G H U LYH D Q D O\W LF D O H [S U H V V LR Q V IR U W K H OLQ H ZLG W K  W K H IU H TX H Q F \ F K LU S
   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 5 &: $  

G \Q D P LF OLQ H ZLG W K E U R D G H Q LQ J  D Q G W K H K D U P R Q LF G LV W R U W LR Q F D X V H G E \ W K H V S D W LD O
K R OH E X U Q LQ J 

 5LJRU RXV &RXSOHG :DYH $QDO\VLV 5&:$


1 X P H U LF D O P R G H OLQ J R I J X LG H G ZD YH S D V V LYH F R P S R Q H Q W V K D YH E H H Q LP S R U W D Q W U H 
V H D U F K W R S LF V LQ W K H S D V W IR X U G H F D G H V E H F D X V H R I W K H LQ F U H D V H G U H V H D U F K D Q G G H YH OR S 
P H Q W LQ P LOOLP H W H U ZD YH D Q G S K R W R Q LF LQ W H J U D W H G F LU F X LW V  )R U J U D W LQ J V R I D U E LW U D U \
S U R p OH V  Q X P H U LF D O V R OX W LR Q V K D YH E H H Q R E W D LQ H G E \ W K H LQ W H J U D OH TX D W LR Q P H W K R G V
D Q G E \ W K H G LoH U H Q W LD OH TX D W LR Q P H W K R G V  7K H G LoH U H Q W LD OH TX D W LR Q P H W K R G V D U H
W K H P R V W F R P P R Q P H W K R G V R I D Q D O\] LQ J G LoU D F W LR Q E \ J U D W LQ J V  7K H U H D U H W ZR D S 
S U R D F K H V F R Q V LG H U LQ J W K H G LoH U H Q W LD OH TX D W LR Q P H W K R G V Q D P H O\ W K H P R G D O D S S U R D F K
D Q G W K H F R X S OH G ZD YH D S S U R D F K  7K H V H W ZR D S S U R D F K H V D U H V K R ZQ W R E H H TX LYD OH Q W
>  @

> @ ,Q W K H P R G D O D S S U R D F K  W K H V R OX W LR Q LV R E W D LQ H G W K U R X J K H LJ H Q P R G H H [S D Q V LR Q 
LQ ZK LF K W K H V R OX W LR Q D W H D F K U H J LR Q LV H [S D Q G H G LQ W H U P V R I D V H W R I H LJ H Q P R G H V W K D W
V H S D U D W H W K H ZD YH H TX D W LR Q D W W K D W U H J LR Q  7K H D P S OLW X G H V R I W K H P R G H V D V IX Q F W LR Q V
R I G H S W K D U H W K H Q R E W D LQ H G E \ V R OYLQ J D V \V W H P R I F R X S OH G G LoH U H Q W LD O H TX D W LR Q V ZLW K
U H V S H F W W R G H S W K G H V F U LE LQ J W K H F R X S OLQ J V E H W ZH H Q P R G H V D W G LoH U H Q W G H S W K V 

> @ 7K H F R X S OH G ZD YH D S S U R D F K LV W R H [S D Q G W K H V R OX W LR Q LQ W H U P V R I S OD Q H ZD YH


F R P S R Q H Q W V D Q G W K H D P S OLW X G H V R I W K H S OD Q H ZD YH D V IX Q F W LR Q V R I W K H G H S W K D U H
R E W D LQ H G E \ V R OYLQ J D V \V W H P R I F R X S OH G G LoH U H Q W LD O H TX D W LR Q V G H V F U LE LQ J W K H F R X S OLQ J
R I W K H S OD Q H ZD YH V ZLW K U H V S H F W W R G H S W K 
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

,Q E R W K D S S U R D F K H V W K H V \V W H P R I F R X S OH G G LoH U H Q W LD O H TX D W LR Q V P D \ E H OD U J H
D Q G G Lr F X OW W R V R OYH  ,Q D G G LW LR Q V R P H R I W K H V R OX W LR Q D OJ R U LW K P V P D \ E H X Q V W D E OH
IR U W K LF N J U D W LQ J V  1 R Z W K H U H H [LV W P D Q \ V W D E OH Q X P H U LF D O D OJ R U LW K P V D Q G V H YH U D O
YD U LD Q W V R I LP S OH P H Q D W LR Q  H [S U H V V H G ZLW K G LoH U H Q W W H U P LQ R OR J LH V D Q G D S S OLH G WR
G LoH U H Q W J U D W LQ J P R G H OV  7K H U LJ R U R X V F R X S OH G ZD YH D Q D O\V LV 5 &: $ LV D U H OD W LYH O\
V W U D LJ K W IR U ZD U G  Q R Q LW H U D W LYH D Q G G H W H U P LQ LV W LF W H F K Q LTX H IR U R E W D LQ LQ J W K H H [D F W
V R OX W LR Q R I W K H 0D [ZH OO
V H TX D W LR Q V IR U W K H H OH F W U R P D J Q H W LF G LoU D F W LR Q E \ J U D W LQ J
V W U X F W X U H V  7K H D F F X U D F \ R I W K H V R OX W LR Q R E W D LQ H G G H S H Q G V R Q W K H Q X P E H U R I W H U P V
U H W D LQ H G LQ W K H V S D F H K D U P R Q LF H [S D Q V LR Q V R I W K H p H OG V  ZLW K F R Q V H U YD W LR Q R I H Q H U J \
D OZD \V E H LQ J V D W LV p H G 

 5HYLHZ RI WKH 5&:$

,Q W K LV V H F W LR Q D E U LH I U H YLH Z R I W K H U LJ R U R X V F R X S OH G ZD YH H TX D W LR Q V LV S U H V H Q W H G 
7K H S LR Q H H U D X W K R U V LQ W K LV p H OG ZK R IR U P X OD W H G W K H 5 &: $ D U H 0R K D U D P D Q G
*D \OR U G >     @ 5 H oH U LQ J W R W K H LU ZR U N >  @ W K H \ F R Q V LG H U H G D W K U H H G LP H Q V LR Q D O
U H F W D Q J X OD U J U R R YH V X U ID F H U H OLH I J U D W LQ J D V V K R ZQ LQ p J X U H     7K H J U D W LQ J S H U LR G
e  LQ J H Q H U D O F R Q V LV W V R I V H YH U D O U H J LR Q V ZLW K G LoH U LQ J U H IU D F W LYH LQ G LF H V  7K H J U D W LQ J
LV E R X Q G E \ W ZR G LoH U H Q W P H G LD ZLW K U H IU D F W LYH LQ G LF H V Q, D Q G Q,,  7K H J U D W LQ J
S H U LR G LF LW \ LV D V V X P H G LQ W K H [ G LU H F W LR Q D Q G W K H Q R U P D O W R W K H E R X Q G D U \ LV W K H
] G LU H F W LR Q  ,Q 5 &: $  W K H S H U LR G LF U H OD W LYH S H U P LW W LYLW \ R I W K H J U D W LQ J U H J LR Q LV
H [S D Q G H G E \ )R X U LH U V H U LH V D V IR OOR ZV

;
sU [ sQ HL}Q[ e
  
Q

ZK H U H sQ LV W K H QW K )R X U LH U F R P S R Q H Q W R I W K H U H OD W LYH S H U P LW W LYLW \ LQ W K H J U D W LQ J
U H J LR Q  7K LV V W H S D OOR ZV R Q H W R W U H D W D ZLG H F OD V V R I J U D W LQ J V S OD Q D U R U V X U ID F H U H OLH I
   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 5 &: $  

)LJ X U H     *HRPHWU\ IRU D UHFWDQJXODUJURRYH JUDWLQJ GLoUDFWLRQ SUREOHP >@

OR V V \ R U OR V V OH V V LQ D X Q Lp H G ZD \ 7K H D F F X U D F \ R I W K H V R OX W LR Q R E W D LQ H G G H S H Q G V
R Q O\ R Q W K H Q X P E H U R I W H U P V U H W D LQ H G LQ W K H V S D F H K D U P R Q LF H [S D Q V LR Q V R I W K H p H OG V 
7K H J H Q H U D O D S S U R D F K IR U V R OYLQ J W K H H [D F W H OH F W U R P D J Q H W LF E R X Q G D U \ YD OX H S U R E 
OH P D V V R F LD W H G ZLW K W K H G LoU D F W LR Q J U D W LQ J LV W R p Q G W K H V R OX W LR Q V W K D W V D W LV I\ W K H
0D [ZH OO
V H TX D W LR Q V LQ G LoH U H Q W U H J LR Q V Q D P H O\ LQ S X W  J U D W LQ J D Q G R X W S X W U H J LR Q V
D Q G W K H Q W K H H OH F W U R P D J Q H W LF E R X Q G D U \ F R Q G LW LR Q V F R Q W LQ X LW \ R I W K H W D Q J H Q W LD O H OH F 
W U LF D Q G P D J Q H W LF p H OG F R P S R Q H Q W V D U H D S S OLH G D W W K H LQ W H U ID F H V E H W ZH H Q G LoH U H Q W
OD \H U V R I W K H V W U X F W X U H W R \LH OG W K H U H q H F W H G D Q G W K H W U D Q V P LW W H G p H OG D P S OLW X G H V 

7K H F D V H R I S OD Q D U G LoU D F W LR Q ZLW K W U D Q V YH U V H H OH F W U LF p H OG 7( S R OD U L] D W LR Q LV
G H V F U LE H G LQ P R U H G H W D LOV D V D V LP S OH H [D P S OH  ,Q W K LV F D V H  W K H LQ F LG H Q W X Q LW H OH F W U LF
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

p H OG  Q R U P D O W R W K H S OD Q H R I LQ F LG H Q F H  LV J LYH Q E \

(LQ F\ H [S >LNR Q, V LQ v[  F R V v] @   

ZK H U H NR  } yR D Q G yR LV W K H ZD YH OH Q J W K R I W K H OLJ K W LQ IU H H V S D F H  7K H V R OX W LR Q V
LQ U H J LR Q , D Q G LQ U H J LR Q ,, D U H J LYH Q E \
;
(,\ (LQ F\  5Q H [S >L N[Q [ b N,]Q ] @   
Q
;
(,,\ 7Q H [S >L N[Q [ b N,,]Q ] b G @   
Q

ZK H U H N[Q LV G H W H U P LQ H G IU R P W K H )OR TX H W F R Q G LW LR Q D Q G LV J LYH Q E \

N[Q NR >Q, V LQ v b Q yR e @   

D Q G ZK H U H

NO]Q NR >QO b N[Q NR  @ 


NR QO ! N[Q 

bLNR > N[Q NR b QO @ 
N[Q ! NR QO

O , ,,   

5Q LV W K H H OH F W U LF p H OG D P S OLW X G H R I W K H QW K E D F NZD U G G LoU D F W H G U H q H F W H G ZD YH LQ


U H J LR Q , 7Q LV W K H H OH F W U LF p H OG D P S OLW X G H R I W K H QW K IR U ZD U G G LoU D F W H G W U D Q V P LW W H G
ZD YH LQ U H J LR Q ,, 7K H P D J Q H W LF p H OG V F D Q E H R E W D LQ H G IU R P 0D [ZH OO
V H TX D W LR Q

L
+ U;(   
z

ZK H U H z LV W K H S H U P H D E LOLW \ R I W K H U H J LR Q D Q G  LV W K H D Q J X OD U R S W LF D O IU H TX H Q F \
,Q W K H J U D W LQ J U H J LR Q W K H W D Q J H Q W LD O H OH F W U LF \F R P S R Q H Q W D Q G P D J Q H W LF [
F R P S R Q H Q W p H OG V P D \ E H H [S U H V V H G ZLW K D )R X U LH U H [S D Q V LR Q LQ W H U P V R I W K H V S D F H 
K D U P R Q LF p H OG V D V
   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 5 &: $  

;
(\ 6\Q ] H [S bLN[Q [ 
Q
sR  
;
+[ bL 8[Q ] H [S bLN[Q [    
zR Q

ZK H U H sR LV W K H S H U P LW W LYLW \ R I W K H IU H H V S D F H  6 \Q ] D Q G 8 [Q ] D U H W K H D P S OLW X G H V R I
W K H QW K V S D F H K D U P R Q LF p H OG V  6 X E V W LW X W LQ J H TX D W LR Q V    LQ W R 0D [ZH OO
V H TX D W LR Q
    W K H IR OOR ZLQ J F R X S OH G ZD YH H TX D W LR Q V F D Q E H R E W D LQ H G

#6\Q
NR 8[Q 
#]
 ;
#8[Q N[Q
6\Q b NR sQbS6\S    
#] NR S

7K H D E R YH H TX D W LR Q V F D Q E H D U U D Q J H G LQ Q d Q P D W U LF H V ZK H U H Q LV W K H Q X P E H U R I
V S D F H K D U P R Q LF V U H W D LQ H G LQ W K H p H OG H [S D Q V LR Q  7K H V H W R I F R X S OH G ZD YH H TX D W LR Q V
D U H V R OYH G E \ F D OF X OD W LQ J W K H H LJ H Q YD OX H V D Q G W K H H LJ H Q YH F W R U V  7K H Q W K H D P S OLW X G H V
R I W K H G LoU D F W H G p H OG V 5Q D Q G 7Q W R J H W K H U ZLW K R W K H U F R Q V W D Q W V U H OD W LQ J W K H H LJ H Q YH F 
W R U V W R 6\Q D Q G 8[Q D U H F D OF X OD W H G E \ P D W F K LQ J W K H W D Q J H Q W LD O H OH F W U LF D Q G P D J Q H W LF
p H OG F R P S R Q H Q W V D W W K H E R X Q G D U LH V  7K H G LoU D F W LR Q H r F LH Q F LH V D U H G H p Q H G D V

N,]Q
'(UQ 5Q 5Qe 5H 
NR Q, F R V v
N,,]Q
'(WQ 7Q 7Qe 5H    
NR Q, F R V v

7K H V X P R I W K H U H q H F W H G D Q G W U D Q V P LW W H G G LoU D F W LR Q H r F LH Q F LH V J LYH Q E \ H TX D W LR Q
   P X V W E H X Q LW \ IR U OR V V OH V V J U D W LQ J V 
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

 6XPPDU \ RI 3 U HYLRXV 3 XEOLFDWLRQV

7K H U LJ R U R X V F R X S OH G ZD YH D Q D O\V LV 5 &: $ ZD V p U V W IR U P X OD W H G E \ 0R K D U D P D Q G
*D \OR U G D V P H Q W LR Q H G LQ W K H S U H YLR X V V H F W LR Q  7K H \ D S S OLH G LW W R S OD Q D U G LH OH F W U LF
J U D W LQ J V E R X Q G H G E \ W ZR G LoH U H Q W P H G LD >  @ 7K H Q  W K H \ H [W H Q G H G D S S O\LQ J W K H
U LJ R U R X V F R X S OH G ZD YH D Q D O\V LV 5 &: $ W R V X U ID F H U H OLH I J U D W LQ J V >  @ 7K H D Q D O\V LV
ZD V D S S OLH G W R D U E LW U D U \ J U D W LQ J S U R p OH V  J U R R YH G H S W K V  D Q J OH V R I LQ F LG H Q F H  D Q G
ZD YH OH Q J W K V  5 LJ R U R X V F R X S OH G ZD YH W K H R U \ R I G LoU D F W LR Q E \ G LH OH F W U LF J U D W LQ J V LV
H [W H Q G H G W R F R YH U W K H 70 S R OD U L] D W LR Q D Q G OR V V H V >  @ 7K H LU U H V X OW V V K R Z W K D W 
LQ 70 S OR D U L] D W LR Q  G LU H F W F R X S OLQ J H [LV W V E H W ZH H Q D OO G LoU D F W H G R U G H U V U D W K H U W K D Q
MX V W E H W ZH H Q D G MD F H Q W R U G H U V D V LQ W K H 7( S R OD U L] D W LR Q  $ J H Q H U D OL] D W LR Q R I WK H
ZR U N R I 0R K D U D P D Q G *D \OR U G LV S U H V H Q W H G E \ *O\W V LV D Q G *D \OR U G >  @ 7K H \ K D YH
W U H D W H G W K H J H Q H U D O W K U H H G LP H Q V LR Q D O S U R E OH P R I G LoU D F W LR Q LQ ZK LF K W K H J U D W LQ J
S H U LR G LF LW \ G R H V Q R W OLH LQ W K H S OD Q H R I LQ F LG H Q F H  7K H \ K D YH F R Q V LG H U H G D U E LW U D U \
D Q J OH R I LQ F LG H Q F H D Q G S R OD U L] D W LR Q  7K H V D P H D X W K R U V K D YH S U H V H Q W H G D U H YLH Z R I
W K H U LJ R U R X V F R X S OH G ZD YH J U D W LQ J G LoU D F W LR Q D Q D O\V LV IR U J H Q H U D O W K U H H G LP H Q V LR Q D O
F D V H  7K H \ K D YH H [W H Q G H G LW W R E LD [LD O D Q LV R W U R S LF P H G LD IR U W K H J U D W LQ J D Q G W K H
V X U U R X Q G LQ J U H J LR Q V >  @ 7K H D Q D O\V LV LV D OV R D S S OLH G W R P X OW LS OH F D V F D G H G J U D W LQ J V 

3 D LG D Q G $ ZD G D >  @ K D YH S U H V H Q W H G D V R OX W LR Q P H W K R G ZLW K LQ W K H F OD V V R I H LJ H Q P R G H
P H W K R G V IR U W K H D Q D O\V LV R I G LH OH F W U LF J U D W LQ J V R I D U E LW U D U \ S U R p OH V D Q G W K LF NQ H V V H V 
7K H LU P H W K R G G LoH U V IU R P W K H X V X D O H LJ H Q P R G H P H W K R G V LV W K D W R Q O\ W ZR V H W V R I
P R G H V D U H F R X S OH G D W D W LP H D Q G W K H p Q D O V R OX W LR Q LV J H Q H U D W H G W K U R X J K D Q LW H U 
D W LYH R Q H ZD \ ZD YH U H q H F W LR Q V H U LH V F R Q V LV W LQ J R I W H U P V F R U U H V S R Q G LQ J W R U H S H D W H G
U H q H F W LR Q V IU R P OD \H U LQ W H U ID F H V  7K H \ K D YH LQ W U R G X F H G OD \H U W U D Q V P LV V LR Q P D W U LF H V
   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 5 &: $  

D Q G LQ W H U ID F H U H q H F W LR Q D Q G W U D Q V P LV V LR Q P D W U LF H V  7K H V R OX W LR Q LV F R P S X W D W LR Q D OO\
V LP S OH 

/ D W H U  0R K D U D P HWDO >     @ G H YH OR S H G D Q H Q K D Q F H G  Q X P H U LF D OO\ V W D E OH W U D Q V P LW 


W D Q F H P D W U L[ D S S U R D F K D Q G D S S OLH G LW W R W K H LP S OH P H Q W D W LR Q R I W K H U LJ R U R X V F R X S OH G
ZD YH D Q D O\V LV IR U V X U ID F H U H OLH I D Q G P X OW LOH YH O J U D W LQ J V  1 X P H U LF D O LQ V W D E LOLW \ Q R U 
P D OO\ D U LV H V LQ W K H F OD V V LF D O W U D Q V P LV V LR Q P D W U L[ D S S U R D F K G X H W R W K H S U H V H Q F H R I
H YD Q H V F H Q W p H OG V  7K H LU Q H Z W H F K Q LTX H D Q W LF LS D W H V D Q G S U H H P S W V W K H V H S R W H Q W LD O
Q X P H U LF D O S U R E OH P V  7K H \ J R W Q X P H U LF D OO\ V W D E OH D Q G F R Q YH U J H Q W U H V X OW V IR U   
ZD YH OH Q J W K G H H S D V \P P H W U LF E LQ D U \ J U D W LQ J V  7K H F D OF X OD W H G G LoU D F W LR Q H r F LH Q F LH V
IR U G LH OH F W U LF J U D W LQ J V D U H V K R ZQ W R F R Q YH U J H W R W K H F R U U H F W YD OX H ZLW K D Q LQ F U H D V LQ J
Q X P E H U R I V S D F H K D U P R Q LF V R YH U D ZLG H U D Q J H R I S D U D P H W H U V  LQ F OX G LQ J YH U \ G H H S
J U D W LQ J V  0R U H p H OG K D U P R Q LF V D U H V K R ZQ W R E H U H TX LU H G IR U W K H F R Q YH U J H Q F H R I
J U D W LQ J V ZLW K OD U J H U J U D W LQ J S H U LR G V  G H H S H U J U D W LQ J V D Q G 70 S R OD U L] D W LR Q 

$ F R P P R Q OLP LW D W LR Q R I 5 &: $ LV W K H G Lr F X OW \ R I F R Q YH U J H Q F H R I W K H V R OX W LR Q ZK H Q D
F R Q G X F W LQ J J U D W LQ J LV LOOX P LQ D W H G ZLW K D W U D Q V YH U V H P D J Q H W LF 70 S R OD U L] H G ZD YH 
$ F F X U D W H U H V X OW V IR U W K H 70 LOOX P LQ D W LR Q F D V H D U H R E W D LQ H G E \ U H W D LQ LQ J D OD U J H Q X P 
E H U R I V S D W LD O K D U P R Q LF V R U G H U V LQ W K H D Q D O\V LV  7K H W U D Q V P LW W LR Q P D W U L[ 7 P D 
W U L[ IR U W K H H LJ H Q S U R E OH P LV X Q V W D E OH ZK H Q D OD U J H Q X P E H U Q R I )R X U LH U K D U P R Q LF V
D U H U H W D LQ H G IR U W K H F R P S X W D W LR Q  R U ZK H Q OD U J H J U D W LQ J S H U LR G V D U H F R Q V LG H U H G  7K LV
G U D ZE D F N U H V W U LF W V W K H G R P D LQ R I D S S OLF D W LR Q R I W K H D S S U R D F K  $ U H F H Q W S X E OLF D W LR Q
>  @ V K R ZV W K D W D S S O\LQ J W K H V F D W W H U LQ J P D W U L[ P H W K R G 6 P D W U L[ F D Q E H X V H IX O W R
U H P R YH W K LV OLP LW D W LR Q  7K H P H W K R G S U R YLG H V D F F X U D W H U H V X OW V D Q G D ID V W F R Q YH U J H Q F H
UD WH 
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

7K H P D LQ G LoH U H Q F H E H W ZH H Q ZD YH J X LG H D Q G J U D W LQ J W K H R U LH V F R Q F H U Q V W K H R X W J R LQ J
D Q G LQ J R LQ J ZD YH F R Q G LW LR Q V  ,Q W K H J U D W LQ J W K H R U \ E H F D X V H R I S H U LR G LF LW \ W K H H OH F 
W U R P D J Q H W LF p H OG V D U H S V H X G R S H U LR G LF IX Q F W LR Q V D Q G W K H R X W J R LQ J D Q G LQ J R LQ J ZD YH
F R Q G LW LR Q V D U H V W U LF W O\ IX Op OOH G  ,Q ZD YH J X LG H W K H R U \ D F R P S X W D W LR Q D O G R P D LQ G H OLP 
LW H G E \ D E V R U E LQ J E R X Q G D U LH V LV G H p Q H G  7K H R X W J R LQ J D Q G LQ J R LQ J ZD YH F R Q G LW LR Q V LV
V D W LV p H G G H S H Q G LQ J R Q W K H TX D OLW \ R I W K H D E V R U E H U V  6 LOE H U V W H LQ HWDO >  @ K D YH V K R ZQ
W K D W W K H H [W H Q V LR Q R I W K H 5 &: $ W R P R G H OLQ J ZD YH J X LG H G LoU D F W LR Q S U R E OH P V U H OLH V
R Q D Q D U W Lp F LD O S H U LR G LF LW \ S U R G X F H G E \ W K H LQ W U R G X F W LR Q R I D E V R U E H U V  7K H \ K D YH
IR X Q G W K D W W K H NLQ G V R I D E V R U E H U P H W D OOLF  D Q LV R W U R S LF  W K D W F D Q E H H r F LH Q W O\
LQ F R U S R U D W H G LQ W R D J LYH Q P H W K R G G H S H Q G R Q W K H P H W K R G LW V H OI

 7 KHVLV 2EMHFWLYH

7K H W K H V LV F R Q V LV W V R I W ZR S D U W V  ,Q W K H p U V W S D U W R I W K LV W K H V LV  D U LJ R U R X V  W U X O\
W ZR G LP H Q V LR Q D O P H W K R G IR U W K U H V K R OG D Q D O\V LV R I G LV W U LE X W H G IH H G E D F N ' )% OD V H U V
E D V H G R Q D F R X S OH G ZD YH W U D Q V IH U P D W U L[ IR U P D OLV P LV S U H V H Q W H G  7K H R E MH F W LYH V F D Q
E H OLV W H G D V IR OOR ZV 

  )R U P X OD W H D V \V W H P D W LF P H W K R G W R V W X G \ W K H H oH F W R I W K H YD U LR X V V W U X F W X U D O
D Q G P D W H U LD O S U R S H U W LH V S D U D P H W H U V R I W K H OD V H U R Q W K H W K U H V K R OG J D LQ D Q G
OD V LQ J IU H TX H Q F \

  $ F F X U D W H O\ U H S U H V H Q W W K H R S W LF D O p H OG V LQ V LG H D Q G R X W V LG H W K H OD V H U W R E H D E OH
W R H [S OD LQ W K H V P D OO G LoH U H Q F H V LQ W K U H V K R OG J D LQ R I S D LU V R I OR Q J LW X G LQ D O OD V H U
P R G H V V \P P H W U LF D OO\ OR F D W H G R Q E R W K V LG H V R I W K H % U D J J IU H TX H Q F \ P R U H D F 
F X U D W H O\ W K D Q LQ D Q \ S U H YLR X V ZR U N
   7+ ( 6 ,6 2% -( &7,9 (  

  *H Q H U D OL] H W K H D Q D O\V LV W R E H D S S OLF D E OH W R J U D W LQ J V R I D Q \ V K D S H IR U E R W K W K H


W U D Q V YH U V H H OH F W U LF D Q G W U D Q V YH U V H P D J Q H W LF P R G H V 

  6 W X G \ W K H H oH F W V R I U D G LD W LR Q OR V V D Q G K LJ K H U R U G H U F R X S OLQ J R Q W K H W K U H V K R OG
J D LQ IR U E R W K W U D Q V YH U V H H OH F W U LF D Q G W U D Q V YH U V H P D J Q H W LF P R G H V 

  8 Q G H U V W D Q G W K H W K U H V K R OG E H K D YLR U R I W K H V W U X F W X U H V ZLW K  D Q G ZLW K R X W y 


S K D V H V K LIW D W W K H P LG G OH R I W K H OD V H U F D YLW \

  &D OF X OD W H W K H U H q H F W LYLW \ R I W K H OD V H U H Q G ID F H W IU R P p U V W S U LQ F LS OH V X Q OLNH S U H 


YLR X V ZR U N F R Q F H U Q LQ J W K LV S R LQ W ZK LF K U H IH U V W R P D Q \ D S S U R [LP D W LR Q P H W K R G V 
7K H H [D F W F D OF X OD W LR Q V R I W K H U H q H F W LYLW LH V F D Q J LYH D J R R G X Q G H U V W D Q G LQ J IR U
D Q H Z H oH F W LYH U H IU D F W LYH LQ G H [ G H p Q H G LQ W K LV W K H V LV W K D Q W K H S U H YLR X V R Q H
G H p Q H G E \ R W K H U S X E OLF D W LR Q V 

,Q W K H V H F R Q G S D U W R I W K LV W K H V LV  W K H P H W K R G R I W K H 5 &: $ LV D S S OLH G W R D W K LQ
W H [W X U H G V R OD U F H OO LQ R U G H U W R

  ,Q YH V W LJ D W H W K H G H YLD W LR Q V R I W K H J H R P H W U LF D OR S W LF V S U H G LF W LR Q V IU R P D F WX D O
YD OX H V W K D W LV F D OF X OD W H G E \ P H D Q V R I D Q H [D F W H OH F W U R P D J Q H W LF D Q D O\V LV 

  6 W X G \ W K H G H S H Q G H Q F H R I W K H D Q W LU H q H F W LYH D Q G OLJ K W G LoX V LQ J S U R S H U W LH V R I


V X U ID F H V ZLW K OLQ H D U S H U LR G LF J U R R YH V R Q W K H J U R R YH V L] H D Q G V K D S H  6 X F K D Q W L
U H q H F W LYH D Q G OLJ K W G LoX V LQ J S U R S H U W LH V D U H YH U \ LP S R U W D Q W F R Q V LG H U LQ J G H D OLQ J
ZLW K W K LQ V R OD U F H OO

7K H W K H V LV LV R U J D Q L] H G V X F K W K D W W K H ZR U N G R Q H LQ W K H ' )% OD V H U p H OG LV S U H V H Q W H G
LQ W K H p U V W W K U H H F K D S W H U V ZK LOH W K H OD V W F K D S W H U F R Q W D LQ V W K H ZR U N G R Q H E \ D S S O\LQ J
W K H 5 &: $ W R D W K LQ V R OD U F H OO
  &+ $ 3 7( 5   ,1 75 2' 8 &7,21

,Q F K D S W H U  D U H YLH Z IR U W K H ' )% OD V H U  LW V S U LQ F LS OH V  W \S H V  ID E U LF D W LR Q P H W K R G V
D Q G W K H S U H YLR X V S X E OLF D W LR Q V D U H S U H V H Q W H G 
,Q F K D S W H U  7K H G H YH OR S P H Q W R I W K H U LJ R U R X V W ZR G LP H Q V LR Q D O IR U P X OD W LR Q R I W K H
' )% OD V H U W K U H V K R OG D Q D O\V LV LV S U H V H Q W H G  ,Q D G G LW LR Q  W K H P H W K R G IR OOR ZH G WR
F D OF X OD W H W K H U H q H F W LYLW \ R I W K H OD V H U H Q G ID F H W LV H [S OD LQ H G 
,Q F K D S W H U  1 X P H U LF D O U H V X OW V IR U E R W K p U V W R U G H U J U D W LQ J V D Q G V H F R Q G R U G H U J U D W 
LQ J V ZLW K U H F W D Q J X OD U D Q G W U LD Q J X OD U W R R W K V K D S H D U H S U H V H Q W H G  % R W K W U D Q V YH U V H
H OH F W U LF D Q G W U D Q V YH U V H P D J Q H W LF P R G H V D U H W U H D W H G  6 W U X F W X U H V ZLW K  D Q G ZLW K R X W
y  S K D V H V K LIW D W W K H P LG G OH R I W K H OD V H U F D YLW \ D U H G H D OW ZLW K 
&K D S W H U  V W D U W V ZLW K D E U LH I U H YLH Z R I V R OD U F H OOV W K H Q D IR U P X OD W LR Q R I W K H H TX D 
W LR Q V W K D W F D Q E H D S S OLH G W R W K LQ W H [W X U H G V R OD U F H OOV LV S U H V H Q W H G  7K H G H S H Q G H Q F H
R I W K H D Q W LU H q H F W LYH D Q G OLJ K W G LoX V LQ J S U R S H U W LH V R I V X U ID F H V ZLW K OLQ H D U S H U LR G LF
J U R R YH V R Q W K H J U R R YH V L] H D Q G V K D S H LV V W X G LH G Q X P H U LF D OO\
&KDSWHU 

5LJRU RXV &RXSOHG:DYH $QDO\VLV


RI ')% /DVHU V

,Q W K LV F K D S W H U D U LJ R U R X V W ZR G LP H Q V LR Q D O IR U P X OD W LR Q R I W K H ' )% OD V H U W K U H V K R OG
D Q D O\V LV LV G H YH OR S H G  7K H P H W K R G LV D Q H [W H Q V LR Q R I W K H U LJ R U R X V   G LP H Q V LR Q D O
F R X S OH G ZD YH  H OH F W U R P D J Q H W LF D Q D O\V LV R I 7( D Q G 70 P R G H V LQ G LH OH F W U LF U H OLH I
J U D W LQ J V >       @ W R W K H F D V H R I P X OW LOD \H U V \V W H P V ZLW K E R W K 7( D Q G 70 P R G H V
W K U R X J K W K H X V H R I D J H Q H U D OL] H G W U D Q V IH U P D W U L[ IR U P D OLV P  % R X Q G D U \ F R Q G LW LR Q V D W
W K H OD V H U H Q G V D U H U LJ R U R X V O\ W U H D W H G 

7K H F K D S W H U LV G LYLG H G LQ W R V L[ V H F W LR Q V  7K H 7( p H OG V D U H W U H D W H G LQ W K H p U V W
V H F W LR Q ZK LOH W K H 70 p H OG V D U H F R Q V LG H U H G LQ W K H V H F R Q G R Q H  ,Q W K H W K LU G V H F W LR Q W K H
OD V LQ J F R Q G LW LR Q IR U X Q LIR U P p U V W R U G H U J U D W LQ J ' )% OD V H U V LV V W X G LH G LQ W K H J H Q H U D O
F D V H R I Q R Q ] H U R U H q H F W LYLW LH V D W W K H OD V H U H Q G ID F H W V  ,Q W K H IR X U W K V H F W LR Q  D U LJ R U R X V
P H W K R G IR U F D OF X OD W LQ J W K H U H q H F W LYLW \ D W W K H H Q G ID F H W R I W K H OD V H U LV G LV F X V V H G  ,Q
W K H p IW K V H F W LR Q  W K H OD V LQ J F R Q G LW LR Q IR U y  S K D V H V K LIW H G ' )% OD V H U ZLW K Q R Q ] H U R

 
  &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

)LJ X U H    $ IRXUOD\HU JXLGLQJ VWUXFWXUH ZKLFK LQFOXGHV D JUDWLQJ UHJLRQ RI WKLFNQHVV K ZKLFK
KDV D VSDWLDO SHULRGLFLW\ e LQ WKH [GLUHFWLRQ EXW RWKHUZLVH KDV DQ DUELWUDU\ SURpOH 7KH JUDWLQJ
OLHV EHWZHHQ WKH DFWLYH UHJLRQ ZKLFK KDV D FRPSOH[ GLHOHFWULF FRQVWDQW sD DQG WKLFNQHVV E DQG WKH
VXEVWUDWH ZKLFK KDV D FRPSOH[ GLHOHFWULF FRQVWDQW sV  $ERYH WKH DFWLYH UHJLRQ WKHUH LV D WRS PHGLXP
RI D FRPSOH[ GLHOHFWULF FRQVWDQW sW 

U H q H F W LYLW LH V D W W K H OD V H U H Q G ID F H W V LV S U H V H Q W H G  ,Q W K H V L[W K V H F W LR Q  W K H P H W K R G R I
D Q D O\V LV LV H [W H Q G H G W K U R X J K V R P H P R G Lp F D W LR Q V W R W K H F D V H R I V H F R Q G R U G H U J U D W LQ J
' )% OD V H U V 

7K H V W U X F W X U H W R E H V W X G LH G LV V K R ZQ LQ p J X U H    7K H V W U X F W X U H LQ F OX G H V D
J U D W LQ J U H J LR Q ZK LF K K D V D V S D W LD O S H U LR G LF LW \ e LQ W K H [G LU H F W LR Q  E X W R W K H U ZLV H
K D V D Q D U E LW U D U \ S U R p OH  7K H J U D W LQ J U H J LR Q K D V W K LF NQ H V V K D Q G OLH V G LU H F W O\ E H W ZH H Q
W K H D F W LYH U H J LR Q ZK LF K K D V D F R P S OH [ G LH OH F W U LF F R Q V W D Q W sD D Q G W K LF NQ H V V E D Q G W K H
   $ 1 $ / < 6 ,6 2) 7( 02' ( 6  

V X E V W U D W H ZK LF K K D V D F R P S OH [ G LH OH F W U LF F R Q V W D Q W sV  $ E R YH W K H D F W LYH U H J LR Q W K H U H
LV D W R S P H G LX P R I D F R P S OH [ G LH OH F W U LF F R Q V W D Q W sW 

 $QDO\VLV RI 7 ( 0 RGHV


0R Q R F K U R P D W LF OLJ K W R I ZD YH OH Q J W K y S U R S D J D W LQ J D OR Q J W K H IR X U OD \H U J X LG LQ J V W U X F 
W X U H V K R ZQ LQ p J X U H   LV F R Q V LG H U H G  ,Q W K LV V H F W LR Q  W K H 7( F D V H ZK H U H W K H H OH F W U LF
p H OG LV S D U D OOH O W R W K H J U D W LQ J OLQ H V LV F R Q V LG H U H G  + H Q F H W K H H OH F W U LF p H OG K D V R Q O\
D ] F R P S R Q H Q W  ( [S U H V V LR Q V IR U W K H p H OG V LQ W K H J U D W LQ J U H J LR Q D U H R E W D LQ H G p U V W 
W K H Q W K H p H OG V LQ W K H R W K H U U H J LR Q V R I W K H V W U X F W X U H D U H W U H D W H G 

 )LHOGV H[SU HVVLRQV LQ WKH JU DWLQJ U HJLRQ

7K H J U D W LQ J LV G LYLG H G LQ W R D OD U J H Q X P E H U R I W K LQ V OLF H V LQ W K H IR U P R I OD \H U V ZLW K


S D U D OOH OS OD Q H V X U ID F H V  H D F K ZLW K D G LH OH F W U LF IX Q F W LR Q sU [ ZK LF K LV D S LH F H ZLV H 
F R Q V W D Q W S H U LR G LF IX Q F W LR Q R I [ ZLW K S H U LR G LF LW \ e D V V K R ZQ LQ p J X U H    7K LV
IX Q F W LR Q P D \ W D NH R Q H R I W ZR S R V V LE OH YD OX H V Q D P H O\ sD D Q G sV ZK LF K D U H W K H G LH OH F W U LF
F R Q V W D Q W V R I W K H D F W LYH U H J LR Q D E R YH W K H J U D W LQ J D Q G W K H V X E V W U D W H U H J LR Q E H Q H D W K W K H
J U D W LQ J U H V S H F W LYH O\ 7K X V W K H G LH OH F W U LF IX Q F W LR Q sU [ LQ H D F K V OLF H F D Q E H H [S D Q G H G
LQ D )R X U LH U V H U LH V R I V S D F H K D U P R Q LF V 

;
sU [ IQ HLQN [   
Q b

ZK H U H N  } e  7K H H OH F W U LF p H OG (] LQ W K H V OLF H R I W K LF NQ H V V D LV H [S D Q G H G LQ W R
V S D F H K D U P R Q LF V W D NLQ J LQ W R D F F R X Q W W K H )OR TX H W W K H R U H P 

;
(] HL QN c N [
8Q \   
Q
  &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

)LJ X U H    7KH JUDWLQJ UHJLRQ FDQ EH GLYLGHG LQWR D ODUJH QXPEHU RI WKLQ OD\HUV HDFK ZLWK D
GLHOHFWULF IXQFWLRQ sU [ ZKLFK LV DSSUR[LPDWHG E\ D SLHFHZLVHFRQVWDQW SHULRGLF IXQFWLRQ RI [ ZLWK
SHULRGLFLW\ e

6 X E V W LW X W LQ J W K LV LQ W K H ZD YH H TX D W LR Q R E H \H G E \ (]

U  sU NR (]    

ZK H U H NR  } y U H V X OW V LQ
 
; ;
HL QN c N [
#\ 8Q  b QN  c N   NR IP HLPN [ 8Q   
Q P

7K X V  IR U D Q \ LQ W H J H U Q  W K H IR OOR ZLQ J H TX D W LR Q V K R X OG E H V D W LV p H G
;
#\ 8Q  $QP 8P    
P
   $ 1 $ / < 6 ,6 2) 7( 02' ( 6  

ZK H U H W K H P D W U L[ H OH P H Q W V $QP D U H G H p Q H G E \

$QP NR IQbP b QN  c N rPQ   

/ H W ƒ P D Q G yP E H W K H H LJ H Q YH F W R U V D Q G W K H F R U U H V S R Q G LQ J H LJ H Q YD OX H V R I $  W K H Q
W K H J H Q H U D O V R OX W LR Q R I H TX D W LR Q   F D Q E H ZU LW W H Q LQ W K H IR U P

;
8Q \ &P HLyP \b\R  'P HbLyP \b\R ƒQ P   
P

ZK H U H \R LV W K H \F R R U G LQ D W H R I W K H X S S H U E R X Q G D U \ R I W K H V OLF H  8 V LQ J )D U D G D \
V
OD Z W K H [F R P S R Q H Q W R I W K H P D J Q H W LF p H OG F D Q E H ZU LW W H Q D V

 #(] ;
F%[ HL QN c N [
9Q \   
LNR #\ Q

ZK H U H
;
9Q \ z P &P HLyP \b\R b 'P HbLyP \b\R ƒ P 
y  
Q
P

z P u yP NR  7K H V S D F H K D U P R Q LF V 8  8  c c c  9  9  c c c R I (] D Q G F%[ D U H
D Q G y
D U U D Q J H G LQ R Q H F R OX P Q YH F W R U :  D V IR OOR ZV
 
 8 
 
 
:  ccc 
 
  
 
9

7K H W U D Q V IH U P D W U L[ € R I D V OLF H LV G H p Q H G D V W K H P D W U L[ W K D W U H OD W H V W K H V S D F H K D U 
P R Q LF V R I W K H H OH F W U LF D Q G P D J Q H W LF p H OG F R P S R Q H Q W V ZK LF K OLH LQ W K H W R S E R X Q G D U \
S OD Q H R I W K H V OLF H W R W K R V H LQ LW V E R W W R P E R X Q G D U \ S OD Q H  7K X V  W K H W U D Q V IH U P D W U L[
€ U H OD W H V : D W W K H E R X Q G D U \ S OD Q H V R I W K H V OLF H D V IR OOR ZV 

: M\ \R € : M\ \R D   
  &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

6 X E V W LW X W LQ J \ \R LQ H TX D W LR Q V   D Q G   
 
3 P
 P &P  'P ƒQ 
: M\ \R  3    
z P
P
yP &P b 'P ƒQ

7K H D E R YH H TX D W LR Q F D Q E H ZU LW W H Q LQ W K H IR OOR ZLQ J IR U P
  
 ƒ ƒ   &P 
: M\ \R      
z P
ƒ' y z P
bƒ' y 'P

,Q W K H D E R YH H TX D W LR Q  ƒ LV W K H P D W U L[ R I H LJ H Q YH F W R U V R I $ S X W V LG H E \ V LG H D V
F R OX P Q YH F W R U V  ZK LF K P H D Q V W K D W ƒQP ƒ P z P LV D G LD J R Q D O P D W U L[
Q  ZK LOH ' y
z P  6 LP LOD U O\ V X E V W LW X W LQ J \
ZK R V H G LD J R Q D O H OH P H Q W V D U H y \R  D LQ H TX D W LR Q V  
D Q G     
3 LyP D
 P &P H  'P HbLyP D ƒ P
Q 
: M\ \R D  3    
z P
LyP D
yP &P H bLyP D P
b 'P H ƒQ
ZK LF K LQ W X U Q F D Q E H ZU LW W H Q D V
  
 ƒ' HLyP D ƒ' HbLyP D   &P 
: M\ \R D      
z P HLyP D
ƒ' y z P HbLyP D
bƒ' y 'P

6 X E V W LW X W LQ J H TX D W LR Q V    D Q G    LQ W R H TX D W LR Q     W K H W U D Q V IH U P D W U L[ R I D
V OLF H € F D Q E H H [S U H V V H G D V IR OOR ZV 
  b
 ƒ ƒ  ƒ' HLyP D ƒ' HbLyP D 
€       
z P
ƒ' y z P
bƒ' y z P HLyP D
ƒ' y z P HbLyP D
bƒ' y

$ W U D Q V IH U P D W U L[ 7 IR U W K H ZK R OH J U D W LQ J U H J LR Q F D Q E H G H p Q H G W R U H OD W H W K H V S D F H
K D U P R Q LF V R I W K H p H OG V D W LW V E R X Q G D U \ S OD Q H V D V 

: M\  7 : M\ K   
   $ 1 $ / < 6 ,6 2) 7( 02' ( 6  

$ V D U H V X OW R I W K H F R Q W LQ X LW \ R I W K H W D Q J H Q W LD O F R P S R Q H Q W V R I W K H H OH F W U LF D Q G P D J 
Q H W LF p H OG V D F U R V V W K H E R X Q G D U LH V R I W K H V OLF H V  W K LV W U D Q V IH U P D W U L[ U H G X F H V W R W K H
S U R G X F W R I W K H W U D Q V IH U P D W U LF H V R I W K H V OLF H V LQ W K H D S S U R S U LD W H R U G H U 
<
7 €   
VOLFHV

5 H IH U U LQ J W R p J X U H    W K H J U D W LQ J U H J LR Q LV G LYLG H G LQ W R 1 V OLF H V  &R Q V LG H U LQ J W K D W


W K H p U V W V OLF H LV W K H F OR V H V W W R W K H D F W LYH U H J LR Q \R  K D V D W U D Q V IH U P D W U L[ € D Q G
W K H OD V W V OLF H LV W K H F OR V H V W W R W K H V X E V W U D W H \R K b D K D V D W U D Q V IH U P D W U L[ €1 
W K H Q W K H D S S U R S U LD W H P X OW LS O\LQ J R U G H U LQ H TX D W LR Q    LV D V IR OOR ZV

7 €€€ c c c c c c €1   

 )LHOGV H[SU HVVLRQV LQ WKH DFWLYH U HJLRQ

7K H H OH F W U LF p H OG LQ W K H D F W LYH U H J LR Q bE  \   F D Q E H ZU LW W H Q LQ W K H IR U P

; K L
(] HL QN c N [
DQ HLpQ \E  EQ HbLpQ \E   
Q

6 X E V W LW X W LQ J LQ W K H ZD YH H TX D W LR Q   ZH J H W
T
pQ NR sD b QN  c N    

7K H H OH F W U LF p H OG H TX D W LR Q    F D Q E H U H ZU LW W H Q LQ D IR U P V LP LOD U W R   

;
(] HL QN c N [
8Q D \    
Q

ZK H U H 8Q D D U H W K H V S D F H K D U P R Q LF V R I W K H H OH F W U LF p H OG LQ W K H D F W LYH U H J LR Q H [S U H V V H G
D V
8Q D DQ HLpQ \E  EQ HbLpQ \E   
  &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

7K H [F R P S R Q H Q W R I W K H P D J Q H W LF p H OG LV G H U LYH G D V IR OOR ZV 


 #(]
F%[ 
LNR #\
; L QN c N [
u H  9Q D \    
Q

ZK H U H 9Q D D U H W K H V S D F H K D U P R Q LF V R I W K H [F R P S R Q H Q W R I W K H P D J Q H W LF p H OG LQ W K H
D F W LYH U H J LR Q 
K L
9Q D pz Q DQ HLpQ \E b EQ HbLpQ \E    

ZK H U H pz Q u pQ NR  7K H W U D Q V IH U P D W U L[ 7D R I W K H D F W LYH U H J LR Q U H OD W H V W K H V S D F H
K D U P R Q LF V R I W K H H OH F W U LF p H OG D Q G W K H P D J Q H W LF p H OG D W W K H E R X Q G D U \ S OD Q H V R I W K H
D F W LYH U H J LR Q D V IR OOR ZV 
: M\ bE 7 D : M\     

ZK H U H : LV W K H V S D F H K D U P R Q LF V F R OX P Q YH F W R U ZLW K W K H IR OOR ZLQ J IR U P LQ W K H D F W LYH


U H J LR Q   
D
 8 
 
 
:  ccc



  
 
D
9
6 X E V W LW X W LQ J \ bE D Q G \  LQ H TX D W LR Q V    D Q G     \LH OG V
 
 DQ  EQ 
: M\ bE     
pz Q DQ b EQ

D Q G  
 DQ HLpQ E  EQ HbLpQ E 
: M\      
pz Q DQ HLpQ E b EQ HbLpQ E
7K H D E R YH W ZR H TX D W LR Q V F D Q E H ZU LW W H Q D V IR OOR ZV 
  
 '  '    DQ 
: M\ bE      
' pz Q b' pz Q EQ
   $ 1 $ / < 6 ,6 2) 7( 02' ( 6  

D Q G   
 ' HLpQ E ' HbLpQ E   DQ 
: M\       
' pz Q HLpQ E b' pz Q HbLpQ E EQ
8 V LQ J W K H D E R YH IR U P V LQ H TX D W LR Q     W K H IR OOR ZLQ J H [S U H V V LR Q IR U 7D F D Q E H
R E W D LQ H G 
  b
LpQ E
 '  '    ' H ' HbLpQ E 
  
  
7D 
 ccc ccc  ccc ccc    
 
  
' pz Q b' pz Q ' pz Q H LpQ E
b' pz Q H bLpQ E

1 R W H W K D W W K H W U H D W P H Q W R I W K H p H OG V LQ W K H D F W LYH U H J LR Q F D Q E H D S S OLH G W R D Q \ H [F H V V
E X oH U LQ J D Q G  R U F OD G G LQ J OD \H U V W K D W P D \ E H LQ V H U W H G D Q \ZK H U H LQ W K H V W U X F W X U H 
$ V V X P H W K D W D OD \H U R I G LH OH F W U LF F R Q V W D Q W sG LV LQ V H U W H G D W \ \O  ,I W K H W K LF NQ H V V
R I W K H OD \H U LV G  W K H Q LW V W R S D Q G E R W W R P E R X Q G D U LH V ZLOO E H D W \ \O D Q G \
\O  G U H V S H F W LYH O\ $ W U D Q V IH U P D W U L[ 7G IR U W K LV OD \H U F D Q E H G H p Q H G D V : M\ \O

7G : M\ \O G ZK LF K OH D G V W R D Q H [S U H V V LR Q V LP LOD U W R H TX D W LR Q    
  b
LuQ G
 '  '    ' H ' HbLuQ G 
  
  
7G 
 ccc ccc 
 ccc ccc 

  
  
LuQ G bLuQ G
' uz Q b' uz Q ' uz Q H b' uz Q H

ZLW K uQ F D OF X OD W H G IU R P
T
uQ u NR uz Q NR sG b QN  c N    

 )LHOGV H[SU HVVLRQV LQ WRSVXEVWU DWH U HJLRQV

)R U W K H J X LG H G P R G H V  W K H p H OG V LQ W K H W R S U H J LR Q \  bE D Q G LQ W K H V X E V W U D W H
\ ! K V K R X OG J R W R ] H U R D V \  h &R Q V LG H U LQ J W K H W R S U H J LR Q p U V W  W K H H OH F W U LF
  &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

p H OG F D Q E H H [S U H V V H G D V IR OOR ZV 

;
N [ bL qQ R
(] 7Q R HL QN c H \E
   
Q

ZK LF K LQ W X U Q \LH OG V W R W K H IR OOR ZLQ J IR U P IR U W K H [F R P S R Q H Q W R I W K H P D J Q H W LF p H OG 

;
N [ bL qQ R
F%[ b 7Q R qz Q R HL QN c H \E
   
Q

qQ R LV G H W H U P LQ H G E \ V X E V W LW X W LQ J LQ W K H ZD YH H TX D W LR Q W K H p H OG V H [S U H V V LR Q V IR U
W K H W R S U H J LR Q ZK LF K J LYH V
T
qQ R NR qz Q R NR sW b QN  c N    

7K H V S D F H K D U P R Q LF V R I W K H p H OG V D W W K H W R S  D F W LYH U H J LR Q LQ W H U ID F H  \ bE F D Q
E H ZU LW W H Q LQ D P D W U L[ IR U P D V

: M\ bE 4R 7Q R    

ZK H U H  
 '  
 
4R u 


 ccc 

  
 
b' qz Q R

7K H p H OG V LQ W K H V X E V W U D W H U H J LR Q \ ! K F D Q E H ZU LW W H Q LQ W K H IR U P 

; N [ L qQ V
(] 7Q V HL QN c H \bK

Q
; V
F%[ 7Q V qz Q V HL QN c N [ L qQ
H \bK
   
Q

ZK H U H
T
qQ V NR qz Q V NRsV b QN  c N    
   $ 1 $ / < 6 ,6 2) 7( 02' ( 6  

6 LP LOD U O\ W K H V S D F H K D U P R Q LF V R I W K H p H OG V D W W K H LQ W H U ID F H J U D W LQ J  V X E V W U D W H U H J LR Q 
\ K  F D Q E H ZU LW W H Q LQ D P D W U L[ IR U P D V 

: M\ K 4V 7Q V    

ZK H U H  
 '  
 
 
4V 
 ccc 

  
 
V
' qz Q

 'HWHU PLQDWLRQ RI WKH pHOGV FRHrFLHQWV

7K H p H OG V D W W K H W R S  D F W LYH U H J LR Q LQ W H U ID F H  \ bE  LV U H OD W H G W R W K H p H OG V D W W K H
J U D W LQ J  V X E V W U D W H U H J LR Q LQ W H U ID F H  \ K  D V IR OOR ZV 

: M\ bE 7D 7 : M\ K   

6 X E V W LW X W LQ J : M\ bE D Q G : M\ K IU R P H TX D W LR Q V    D Q G    U H V S H F W LYH O\

4R 7Q R 7D 7 4V 7Q V   

7K LV H TX D W LR Q F D Q E H U H D U U D Q J H G W R J H W D V \V W H P R I OLQ H D U K R P R J H Q H R X V H TX D W LR Q V
LQ W K H W U D Q V P LV V LR Q F R H r F LH Q W V 
 
R
 7Q 
 
 
>4R b 7D 7 4V @ 
 ccc
 u 47

   
 
V
7Q

7K H YD Q LV K LQ J R I W K H G H W H U P LQ D Q W R I W K H V \V W H P OH D G V W R G LV S H U V LR Q U H OD W LR Q NR
NR c N  2Q F H W K H LQ p Q LW H V \V W H P R I H TX D W LR Q K D V E H H Q D S S U R S U LD W H O\ W U X Q F D W H G W R D
p Q LW H R Q H D Q G V R OYH G E \ W K H X V X D O P H W K R G V  W K H W U D Q V P LV V LR Q F R H r F LH Q W V R I W K H p H OG V
  &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

D W W K H W R S D Q G W K H V X E V W U D W H U H J LR Q V F D Q E H G H W H U P LQ H G  )U R P H TX D W LR Q V    D Q G
   R Q H F D Q G H W H U P LQ H W K H p H OG F R H r F LH Q W V LQ W K H D F W LYH U H J LR Q Q D P H O\ DQ D Q G EQ 
( TX D W LR Q V        D Q G    F D Q E H X V H G W R H YD OX D W H W K H F R H r F LH Q W V &P D Q G 'P LQ
W K H 1 V OLF H V R I W K H J U D W LQ J U H J LR Q  + H Q F H  W K H p H OG V LQ D OO U H J LR Q V F D Q E H G H W H U P LQ H G 

 $QDO\VLV RI 7 0 0 RGHV


,Q W K LV V H F W LR Q  W K H 70 p H OG V LQ ZK LF K W K H P D J Q H W LF p H OG K D V R Q O\ D ] F R P S R Q H Q W
D U H W U H D W H G  7K H IR X U OD \H U J X LG LQ J V W U X F W X U H V K R ZQ LQ p J X U H   LV F R Q V LG H U H G D OR Q J
ZK LF K D P R Q R F K U R P D W LF ZD YH R I ZD YH OH Q J W K y LV S U R S D J D W LQ J  3 U R F H H G LQ J D V LQ W K H
7( F D V H  H [S U H V V LR Q V IR U W K H p H OG V LQ H D F K U H J LR Q D U H ZU LW W H Q  D Q G D W U D Q V IH U P D W U L[
IR U H D F K U H J LR Q LV G H p Q H G  7K H p H OG V LQ W K H J U D W LQ J U H J LR Q D U H F R Q V LG H U H G p U V W  W K H Q
W K R V H LQ W K H D F W LYH U H J LR Q D Q G p Q D OO\ W K H W R S D Q G V X E V W U D W H U H J LR Q V 

 )LHOGV H[SU HVVLRQV LQ WKH JU DWLQJ U HJLRQ

5 H IH U U LQ J W R p J X U H    W K H J U D W LQ J U H J LR Q LV G LYLG H G LQ W R 1 V OLF H V  H D F K V OLF H K D V


ZLG W K D  7K H P D J Q H W LF p H OG LQ H D F K V OLF H R I W K H J U D W LQ J U H J LR Q LV H [S U H V V H G LQ W H U P V
R I W K H LU V S D F H K D U P R Q LF V 
;
F%] HL QN c N [
8Q \    
Q

7K H ZD YH H TX D W LR Q R E H \H G E \ %] K D V W K H IR U P

7 7%]  NR %]     
sU
8 Q OLNH W K H 7( F D V H   sU U D W K H U W K D Q sU LV H [S D Q G H G LQ D )R X U LH U V H U LH V 
 ;
JQ HLQN [    
sU Q
   $ 1 $ / < 6 ,6 2) 70 02' ( 6  

6 X E V W LW X W LQ J H TX D W LR Q    D Q G H TX D W LR Q    LQ W R W K H ZD YH H TX D W LR Q    D Q G V R OYLQ J
W K H R E W D LQ H G H TX D W LR Q  8Q \ F D Q E H ZU LW W H Q LQ D IR U P V LP LOD U W R H TX D W LR Q   

; P
8Q \  LyP \b\R
&P H  bLyP \b\R
 'P H ƒQ    
P

ZK H U H yP D Q G ƒ P D U H J LYH Q E \ W K H J H Q H U D OL] H G H LJ H Q YD OX H S U R E OH P

$ƒ P y   P
P% ƒ    

ZLW K W K H P D W U LF H V $ D Q G %  J LYH Q E \

$PQ NR rPQ b PN  c N QN  c N JPbQ 



%PQ JPbQ    

7K H [F R P S R Q H Q W R I W K H H OH F W U LF p H OG ([ F D Q E H H YD OX D W H G D V 
„ 
F  #%]
b([ 
LNR sU #\
;
u HL QN c N [
9Q \    
Q

ZK H U H „ 
  #8Q
9Q    
LNR sU #\

/ H W ƒH P

ƒ P sU  W K H Q 9Q F D Q E H H [S U H V V H G D V 

;
yz  P &P
 Ly P \b\R  bLy P \b\R P
9Q \ H b 'P H ƒHQ    
P

ZK H U H yz P u yP NR  7K H W U D Q V IH U P D W U L[ €  R I D V OLF H LV G H p Q H G D V W K H P D W U L[ U H OD W LQ J
W K H V S D F H K D U P R Q LF V R I W K H P D J Q H W LF D Q G H OH F W U LF p H OG D W W K H V OLF H E R X Q G D U LH V 

:  M\ \R €  :  M\ \R D    
  &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

ZK H U H \R LV W K H \F R R U G LQ D W H R I W K H X S S H U E R X Q G D U \ R I W K H V OLF H D V V K R ZQ LQ p J X U H   
D Q G :  LV D F R OX P Q YH F W R U ZK R V H H OH P H Q W V D U H W K H V S D F H K D U P R Q LF V  8  8  c c c  9  9  c c c
R I F%] D Q G b([ U H V S H F W LYH O\  

 8 
 
 
:  ccc 
 
  
 
9

,Q ZK D W IR OOR ZV  OH W ƒ D Q G ƒH E H W ZR P D W U LF H V V X F K W K D W W K H PWK F R OX P Q R I ƒ D Q G


ƒH F R Q W D LQ V W K H YH F W R U V ƒ P D Q G ƒH P U H V S H F W LYH O\ ,Q D G G LW LR Q  ' [P G H Q R W H V D

G LD J R Q D O P D W U L[ ZK R V H G LD J R Q D O H OH P H Q W V D U H [P 
: H V X E V W LW X W H \ \R D Q G \ \R  D LQ H TX D W LR Q V    D Q G    D Q G ZH K D YH 
  
 ƒ ƒ 
  &P 
: M\ \R      
ƒH ' yz P bƒH ' yz  P 
'P

D Q G   

 ƒ ' HLyP D ƒ ' HbLyP D 
  &P 
: M\ \R D      
ƒH ' yz  P HLyP D bƒH ' yz  P HbLyP D

'P

6 X E V W LW X W LQ J H TX D W LR Q V    D Q G    LQ W R H TX D W LR Q     €  F D Q E H H [S U H V V H G D V
  b
 
 ƒ  ƒ  ƒ ' HLyP D  ƒ ' HbLyP D 
  
    
€ 
 ccc  ccc 
 ccccccccc  ccccccccc 

    
ƒH ' yz P  bƒH ' yz  P ƒH ' yz  P HLyP D  bƒH ' yz  P HbLyP D
 

  

% H F D X V H R I W K H F R Q W LQ X LW \ R I W K H P D J Q H W LF p H OG  %]  D Q G W K H [F R P S R Q H Q W R I W K H
H OH F W U LF p H OG  ([  D F U R V V D G MD F H Q W E R X Q G D U LH V R I V OLF H V  W K H W R W D O W U D Q V IH U P D W U L[ 7 
R I W K H J U D W LQ J U H J LR Q F D Q E H H YD OX D W H G E \ W K H S U R G X F W R I W K H W U D Q V IH U P D W U LF H V R I W K H
   $ 1 $ / < 6 ,6 2) 70 02' ( 6  

LQ G LYLG X D O V OLF H V 
<
7 €    
VOLFHV

7K H V OLF H V W U D Q V IH U P D W U LF H V  €   V K R X OG E H D U U D Q J H G V X F K W K D W W K H W U D Q V IH U P D W U L[
F R U U H V S R Q G LQ J W R V OLF H D W W K H W R S R I W K H J U D W LQ J LV R Q W K H H [W U H P H OH IW D Q G W K H R Q H
F R U U H V S R Q G LQ J W R W K H V OLF H D W W K H E R W W R P R I W K H J U D W LQ J LV R Q W K H H [W U H P H U LJ K W
V LP LOD U W R W K H R U G H U G H V F U LE H G LQ H TX D W LR Q    

 )LHOGV H[SU HVVLRQV LQ WKH DFWLYH U HJLRQ

7K H D Q D O\V LV R I W K H p H OG V IR OOR ZV W K H V D P H OLQ H V D V LQ W K H 7( F D V H  7K H P D J Q H W LF


p H OG LQ W K H D F W LYH U H J LR Q  bE  \    F D Q E H ZU LW W H Q LQ W K H IR U P 

; K L
F%] HL QN c N [
DQ HLpQ \E  EQ HbLpQ \E
Q
; D
u HL QN c N [
8Q \    
Q

8 V LQ J 0D [ZH OO$ P S H U H
V OD Z OH D G V W R W K H [F R P S R Q H Q W R I W K H H OH F W U LF p H OG D V IR OOR ZV 

; pz Q K L
b([ HL QN c N [
DQ HLpQ \E b EQ HbLpQ \E
Q sD
; D
u HL QN c N [
9Q \    
Q

T
ZK H U H pQ LV G H p Q H G E \ H TX D W LR Q    pQ u NR pz Q NR sD b QN  c N   7K H
W U D Q V IH U P D W U L[ 7D R I W K H D F W LYH U H J LR Q LV G H p Q H G D V

:  M\ bE 7D :  M\     

ZK H U H W K H V S D F H K D U P R Q LF V YH F W R U  :   LV G H p Q H G LQ W K H D F W LYH U H J LR Q E \
  &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

 
 D
 8 
 
 
:  ccc

   

 
9  D
7K X V  X V LQ J H TX D W LR Q V    D Q G     : M\ bE D Q G :  M\  F D Q E H H [S U H V V H G LQ P D W U L[
IR U P D V

  
  '  '    DQ 
: M\ bE      
' pz Q sD b' pz Q sD EQ
D Q G   
  ' HLpQ E ' HbLpQ E   DQ 
: M\   t u t u     
' pz Q sD HLpQ E b' pz Q sD HbLpQ E EQ
6 X E V W LW X W LQ J :  M\ bE D Q G :  M\  D V J LYH Q E \ H TX D W LR Q V    D Q G    LQ W R H TX D W LR Q
   U H V X OW V LQ W K H IR OOR ZLQ J H [S U H V V LR Q IR U W K H W U D Q V IH U P D W U L[ R I W K H D F W LYH OD \H U 

  b
 
 '   '   ' HLpQ E  ' HbLpQ E 
  
    
7D 
 cccccc  cccccc 
 cccccc  cccccc 

   t u  t u 
' pz Q sD  b' pz Q sD ' pz Q sD HLpQ E  b' pz Q sD HbLpQ E
  
$ V LQ W K H 7( F D V H W K H D Q D O\V LV R I W K H p H OG V LQ D Q \ H [F H V V E X oH U LQ J D Q G  R U F OD G G LQ J
OD \H U V W K D W P D \ E H LQ V H U W H G D Q \ZK H U H LQ W K H V W U X F W X U H LV V LP LOD U W R W K H D Q D O\V LV R I
W K R V H LQ W K H D F W LYH U H J LR Q  7K H W U D Q V IH U P D W U L[ 7G R I D OD \H U ZK LF K K D V G LH OH F W U LF
F R Q V W D Q W sG D Q G ZLG W K G LV G H p Q H G V X F K W K D W W K H V S D F H K D U P R Q LF V R I W K H P D J Q H W LF
D Q G H OH F W U LF p H OG V D W LW V W R S E R X Q G D U \ H TX D OV W K H S U R G X F W R I 7G E \ W K R V H D W W K H
E R WWR P E R X Q G D U \ R I W K H OD \H U  7K X V  7G F D Q E H H [S U H V V H G E \ H [S U H V V LR Q V LP LOD U W R
H TX D W LR Q    
   $ 1 $ / < 6 ,6 2) 70 02' ( 6  

  b
 
 '   '   ' HLuQ G  ' HbLuQ G 
  
    
7G 
 cccccc  cccccc 
 cccccc  cccccc 

   t u  t u 
' uz Q sG  b' uz Q sG ' uz Q sG H LuQ G 
 b' uz Q sG HbLuQ G
  
ZK H U H u LV G H p Q H G E \ H TX D W LR Q    

 )LHOGV H[SU HVVLRQV LQ WRSVXEVWU DWH U HJLRQV

7K H J X LG H G P R G H p H OG V LQ W K H W R S U H J LR Q \  bE D Q G LQ W K H V X E V W U D W H \ ! K
V K R X OG J R W R ] H U R D V \  h &R Q V LG H U LQ J W K H W R S U H J LR Q p U V W  W K H p H OG V D U H
H [S D Q G H G LQ W R V S D F H K D U P R Q LF V D V IR OOR ZV 
; N [ bL qQ R
F%] 7Q R HL QN c H \E

Q
; 7Q R qz Q R
N [ bL qQ R
b([ b HL QN c H \E
   
Q sW
ZK H U H qQ R LV G H p Q H G E \ H TX D W LR Q     7K H p H OG V D W W K H W R S  D F W LYH U H J LR Q LQ W H U ID F H
\ bE F D Q E H ZU LW W H Q LQ P D W U L[ IR U P D V
 
 '  
 
   R
: M\ bE  ccc  7Q u 4R 7Q R    
 
 
qzQ R
b' sW

7K H p H OG V D W W K H V X E V W U D W H U H J LR Q F D Q E H H [S U H V V H G LQ D V LP LOD U ZD \

; N [ L qQ V
F%] 7Q V HL QN c H \bK

Q
; 7Q V qz Q V N [ L qQ V
b([ HL QN c H \bK
   
Q sV
  &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

ZK H U H qQ V LV G H p Q H G E \ H TX D W LR Q     7K H V S D F H K D U P R Q LF V R I W K H p H OG V D W W K H
J U D W LQ J  V X E V W U D W H LQ W H U ID F H  \ K  D U H J LYH Q E \
 
 '  
 
  V
:  M\ K  ccc  7Q u 4V 7Q V    
 
 
qzQ V
' sV

 'HWHU PLQDWLRQ RI WKH pHOGV FRHrFLHQWV

7K H p H OG V D W W K H W R S  D F W LYH U H J LR Q LQ W H U ID F H  \ bE  D U H U H OD W H G W R W K H p H OG V D W W K H
J U D W LQ J  V X E V W U D W H U H J LR Q LQ W H U ID F H  \ K  E \ W K H S U R G X F W R I W K H W U D Q V IH U P D W U LF H V
R I W K H D F W LYH U H J LR Q  7D D Q G W K D W R I W K H J U D W LQ J U H J LR Q  7  D V IR OOR ZV 

:  M\ bE 7D 7  :  M\ K   

6 X E V W LW X W LQ J :  M\ bE D Q G :  M\ K IU R P H TX D W LR Q V    D Q G    D Q G U H D U U D Q J LQ J
W K H W H U P V  W K H IR OOR ZLQ J V \V W H P R I OLQ H D U K R P R J H Q H R X V H TX D W LR Q V LQ W K H )R X U LH U
F R H r F LH Q W V F D Q E H R E W D LQ H G 
 
R
 7Q 
 
>4R b 7  D7  4V @ 
 
 ccc  u 4 7    
 
 
7Q V

7K H YD Q LV K LQ J R I W K H G H W H U P LQ D Q W R I W K H V \V W H P OH D G V W R W K H G LV S H U V LR Q U H OD W LR Q D Q G
W K H p H OG V LQ D OO U H J LR Q V F D Q E H G H W H U P LQ H G 

 7 KH /DVLQJ &RQGLWLRQ IRU 8QLIRU P ')% /DVHU


7K H J H R P H W U \ D Q G G LH OH F W U LF F R Q V W D Q W V R I W K H J X LG LQ J V W U X F W X U H F D Q E H V H OH F W H G V X F K
W K D W IR U H D F K YD OX H R I NR LQ W K H U D Q J H R I LQ W H U H V W  R Q H R E W D LQ V R Q O\ W ZR J X LG H G P R G H V
   7+ ( / $ 6 ,1 * &21 ' ,7,21 )25 8 1 ,)25 0 ' )% / $ 6 ( 5  

ZLW K W ZR YD OX H V R I c N R I R S S R V LW H V LJ Q V  / H W c N D Q G c Nb E H W K H YD OX H V R I c N IR U
W K H P R G H V S U R S D J D W LQ J LQ W K H S R V LW LYH D Q G Q H J D W LYH G LU H F W LR Q V U H V S H F W LYH O\

 7 KH 7 ( FDVH

/ H W (] [ \ D Q G (]b [ \ E H W K H H OH F W U LF p H OG V F R U U H V S R Q G LQ J W R c N D Q G c Nb
U H V S H F W LYH O\ 7K H V H p H OG V F D Q E H Q R U P D OL] H G  IR U H [D P S OH  E \ V H W W LQ J W R X Q LW \ W K H
p H OG D W D S R LQ W W K D W OLH V D W W K H P LG G OH R I W K H D F W LYH U H J LR Q \ bE  D W W K H OH IW
ID F H W [  

(]   bE  (]b   bE      

$ W W K H OD V H U H Q G ID F H W V  W K H W D Q J H Q W LD O H OH F W U LF D Q G P D J Q H W LF p H OG V (] D Q G %\
V K R X OG E H P D W F K H G W R W K H F R U U H V S R Q G LQ J R Q H V R X W V LG H W K H OD V H U  6 LQ F H W K H OD W W H U K D YH
D F R Q W LQ X R X V V S H F W U X P  W K H X Q J X LG H G P R G H V R I W K H J X LG LQ J V W U X F W X U H D U H H [F LW H G 
7K R V H P R G H V D U H F K D U D F W H U L] H G E \ D F R Q W LQ X R X V V S H F W U X P R I c N D Q G LQ F OX G H E R W K
S U R S D J D W LQ J P R G H V ZLW K c N S U H G R P LQ D Q W O\ U H D O LQ D G G LW LR Q W R c N D Q G c Nb
D Q G H YD Q H V F H Q W P R G H V ZLW K c N S U H G R P LQ D Q W O\ LP D J LQ D U \ 7K H OD W W H U ID OO W R ] H U R
D V K R U W G LV W D Q F H LQ V LG H W K H OD V H U  6 LQ F H W K H IR U P H U  X Q OLNH W K H J X LG H G ZD YH V  D U H
Q R W S D U W LF X OD U O\ F R Q p Q H G W R W K H D F W LYH U H J LR Q ZK H U H W K H U H LV D J D LQ  W K H \ J H Q H U D OO\
H [S H U LH Q F H D Q H W OR V V G X H W R D E V R U S W LR Q LQ W K H V X E V W U D W H D V W K H \ S U R S D J D W H LQ V LG H
W K H OD V H U D ZD \ IU R P W K H H Q G ID F H W D W ZK LF K W K H \ K D YH E H H Q H [F LW H G  + H Q F H W K H \ G R
Q R W U H D F K W K H R W K H U H Q G ID F H W  D Q G F D Q Q R W F R X S OH E D F N W R W K H J X LG H G P R G H V W K U R X J K
U H q H F W LR Q W K H U H  7K LV P H D Q V W K D W W K H OD V LQ J F R Q G LW LR Q F D Q E H ZU LW W H Q H Q W LU H O\ LQ
W H U P V R I W K H J X LG H G P R G H V  D Q G W K D W W K H X Q J X LG H G P R G H V V K R X OG R Q O\ E H F R Q V LG H U H G
LQ R U G H U W R F D OF X OD W H W K H U H q H F W LR Q F R H r F LH Q W V R I W K H J X LG H G P R G H V D W W K H OD V H U H Q G
ID F H W V 
  &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

7K X V W K H J X LG H G p H OG LQ V LG H W K H OD V H U F D Q E H ZU LW W H Q LQ W K H IR U P
K L
(] [ \ & (] [ \  ~(]b [ \    

ZK H U H & D Q G ~ D U H F R Q V W D Q W V  ( D F K R I W K H Q R U P D OL] H G J X LG H G P R G H V F D Q E H ZU LW W H Q
LQ W K H IR U P
(]h [ \ (] Uh [ \  (] Oh [ \    

ZK H U H (] Uh D Q G (] Oh G H Q R W H U H V S H F W LYH O\ W K H U LJ K W P R YLQ J D Q G OH IW P R YLQ J S D U W V


R I W K H p H OG 
;
(] Uh [ \ HL QN c ND [
8Qh \
QIQD
U J
;
(] Oh [ \ HL QN c ND [
8Qh \    
QIQD
O J

h
ZK H U H IQh
U J D Q G IQO J D U H W K H YD OX H V R I Q ZK LF K U H V S H F W LYH O\ P D NH QN c Nh S R V LW LYH

D Q G Q H J D W LYH  K H Q F H F R U U H V S R Q G W R U LJ K W P R YLQ J D Q G OH IW P R YLQ J ZD YH V  6 X E V W LW X W LQ J


H TX D W LR Q    LQ W R H TX D W LR Q     W K H W R W D O J X LG H G p H OG F D Q E H H [S U H V V H G D V W K H V X P
R I U LJ K W P R YLQ J D Q G OH IW P R YLQ J ZD YH V 

(] [ \ (] U [ \  (] O [ \    

ZK H U H

( U [ \ & (] U [ \  ~(] Ub [ \ 

( O [ \ & (] O [ \  ~(] Ob [ \    

)LJ X U H   LOOX V W U D W H V W K H U LJ K W P R YLQ J D Q G W K H OH IW P R YLQ J S D U W V R I W K H J X LG H G


P R G H S U R S D J D W LQ J LQ D OD V H U V W U X F W X U H R I OH Q J W K /  7K H D P S OLW X G H U H q H F W LYLW \ R I D
   7+ ( / $ 6 ,1 * &21 ' ,7,21 )25 8 1 ,)25 0 ' )% / $ 6 ( 5  

)LJ X U H    $ VFKHPDWLF IRU LOOXVWUDWLQJ WKH ULJKW PRYLQJ ( U  DQG WKH OHIW PRYLQJ ( O  SDUWV
RI WKH WRWDO JXLGHG pHOG SURSDJDWLQJ LQ D ODVHU VWUXFWXUH RI OHQJWK / (U DQG (U> DUH WKH ULJKW
PRYLQJ SDUWV RI WKH pHOGV FRUUHVSRQGLQJ WR cN DQG cN> UHVSHFWLYHO\ :KLOH (O DQG (O> DUH WKH
OHIW PRYLQJ SDUWV RI WKH pHOGV FRUUHVSRQGLQJ WR cN DQG cN> UHVSHFWLYHO\

OD V H U ID F H W LV G H p Q H G D V W K H U D W LR D W W K H P LG S R LQ W R I W K H D F W LYH U H J LR Q \ bE 
E H W ZH H Q W K H V X P R I W K H H OH F W U LF p H OG V S D F H K D U P R Q LF V P R YLQ J D ZD \ IU R P W K H ID F H W
D Q G W K R V H P R YLQ J W R ZD U G V LW  7K X V  W K H D P S OLW X G H U H q H F W LYLW \ 5O R I W K H OH IW ID F H W D W
[  LV W K H U D W LR R I W K H U LJ K W P R YLQ J ZD YH W R W K H OH IW P R YLQ J ZD YH ZK LF K F D Q E H
H [S U H V V H G LQ W H U P V R I W K H p H OG V D W W K H OH IW ID F H W D V IR OOR ZV 
(] U   bE  (] U   bE   ~(] Ub   bE 
5O u O O Ob
   
(]   bE  (]   bE   ~(]   bE 
6 LP LOD U O\ W K H D P S OLW X G H U H q H F W LYLW \ 5U R I W K H U LJ K W ID F H W D W [ / LV W K H U D W LR R I
W K H OH IW P R YLQ J ZD YH W R W K H U LJ K W P R YLQ J ZD YH ZK LF K F D Q E H H [S U H V V H G LQ W H U P V R I
W K H p H OG V D W W K H U LJ K W ID F H W D V IR OOR ZV 
(] O / bE  (] O / bE   ~(] Ob / bE 
5U u U U Ub
   
(] / bE  (] / bE   ~(] / bE 
   &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

6 R OYLQ J H TX D W LR Q V    D Q G    IR U ~ D Q G H TX D W LQ J W K H U H V X OW V  W K H OD V LQ J F R Q G L
W LR Q LV R E W D LQ H G LQ W K H IR U P
(] U   bE  b 5O (] O   bE  (] O / bE  b 5U (] U / bE 
Ub Ob Ob Ub
   
(]   bE  b 5O (]   bE  (] / bE  b 5U (] / bE 
$ P H W K R G IR U G H W H U P LQ LQ J 5O D Q G 5U ZLOO E H G H V F U LE H G LQ W K H Q H [W V H F W LR Q  ,Q F D V H
R I ] H U R U H q H F W LYLW LH V D W W K H H Q G ID F H W V  W K H OD V LQ J F R Q G LW LR Q    LV U H G X F H G W R W K H
IR OOR ZLQ J V LP S OH IR U P 
(] U   bE  (] O / bE 
Ub Ob
   
(]   bE  (] / bE 

 7 KH 7 0 FDVH

3 U R F H H G LQ J D V W K H LQ W K H 7( F D V H  OH W F%] [ \ D Q G F%]b [ \ E H W K H F R U U H V S R Q G LQ J
P D J Q H W LF p H OG V IR U c N D Q G c Nb  7K H V H p H OG V D U H Q R U P D OL] H G E \ LP S R V LQ J W K H
IR OOR ZLQ J F R Q G LW LR Q
F%]   bE  F%]b   bE      

$ V D U J X H G LQ W K H 7( F D V H  W K H OD V LQ J F R Q G LW LR Q F D Q E H ZU LW W H Q H Q W LU H O\ LQ W H U P V
R I W K H J X LG H G p H OG V ZK LF K F D Q E H H [S U H V V H G LQ W K H IR U P
K L
F%] [ \ & F%] [ \  ~ F%]b [ \    

ZK H U H & D Q G ~ D U H F R Q V W D Q W V  ( D F K R I W K H Q R U P D OL] H G J X LG H G P R G H V F D Q E H ZU LW W H Q
LQ W K H IR U P
F%]h [ \ F%] Uh [ \  F%] Oh [ \    

ZK H U H F%] Uh D Q G F%] Oh G H Q R W H U H V S H F W LYH O\ W K H U LJ K W P R YLQ J D Q G OH IW P R YLQ J S D U W V


R I W K H p H OG 
;
F%] Uh [ \ HL QN c ND [
8Qh \
QIQD
U J
   7+ ( / $ 6 ,1 * &21 ' ,7,21 )25 8 1 ,)25 0 ' )% / $ 6 ( 5   
;
F%] Oh [ \ HL QN c ND [
8Qh \    
QIQD
O J

h
ZK H U H IQh
U J D Q G IQO J D U H W K H YD OX H V R I Q ZK LF K U H V S H F W LYH O\ P D NH QN c Nh S R V LW LYH

D Q G Q H J D W LYH  K H Q F H F R U U H V S R Q G W R U LJ K W P R YLQ J D Q G OH IW P R YLQ J ZD YH V  6 X E V W LW X W LQ J


H TX D W LR Q    LQ W R H TX D W LR Q    \LH OG V 

F%] [ \ F%] U [ \  F%] O [ \    

ZK H U H

F% U [ \ & F%] U [ \  ~ F%] Ub [ \ 

F% O [ \ & F%] O [ \  ~ F%] Ob [ \    

F% U D Q G F% O D U H W K H U LJ K W P R YLQ J D Q G OH IW P R YLQ J S D U W V R I W K H J X LG H G p H OG
S U R S D J D W LQ J LQ V LG H W K H OD V H U D V LOOX V W U D W H G LQ p J X U H    7K H F D OF X OD W LR Q R I WK H
D P S OLW X G H U H q H F W LYLW \ D W W K H OD V H U H Q G ID F H W LV G H V F U LE H G LQ W K H Q H [W V H F W LR Q  7K H
D P S OLW X G H U H q H F W LYLW LH V 5O D Q G 5U R I W K H OH IW [  D Q G U LJ K W [ / ID F H W
U H V S H F W LYH O\ D U H G H p Q H G D V W K H U D W LR D W W K H P LG S R LQ W R I W K H D F W LYH U H J LR Q \ bE 
E H W ZH H Q W K H V X P R I W K H P D J Q H W LF p H OG V S D F H K D U P R Q LF V P R YLQ J D ZD \ IU R P W K H ID F H W
D Q G W K R V H P R YLQ J W R ZD U G V LW  7K X V W K H D P S OLW X G H U H q H F W LYLW \ D W W K H OH IW ID F H W F D Q
E H H [S U H V V H G LQ W H U P V R I W K H p H OG V D W W K H OH IW ID F H W D V IR OOR ZV 

%] U   bE  %] U   bE   ~ %] Ub   bE 
5O u O O Ob
   
%]   bE  %]   bE   ~ %]   bE 

D Q G W K H D P S OLW X G H U H q H F W LYLW \ D W W K H U LJ K W ID F H W F D Q E H H [S U H V V H G LQ W H U P V R I W K H
p H OG V D W W K D W ID F H W E \ W K H IR OOR ZLQ J H TX D W LR Q

%] O / bE  %] O / bE   ~ %] Ob / bE 
5U u U U Ub
   
%] / bE  %] / bE   ~ %] / bE 
   &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

)LJ X U H    $ VFKHPDWLF IRU LOOXVWUDWLQJ WKH ULJKW PRYLQJ % U  DQG WKH OHIW PRYLQJ % O  SDUWV
RI WKH WRWDO JXLGHG pHOG SURSDJDWLQJ LQ D ODVHU VWUXFWXUH RI OHQJWK / %U DQG %U> DUH WKH ULJKW
PRYLQJ SDUWV RI WKH pHOGV FRUUHVSRQGLQJ WR cN DQG cN> UHVSHFWLYHO\ :KLOH %O DQG %O> DUH WKH
OHIW PRYLQJ SDUWV RI WKH pHOGV FRUUHVSRQGLQJ WR cN DQG cN> UHVSHFWLYHO\

6 R OYLQ J H TX D W LR Q V    D Q G    IR U ~ D Q G H TX D W LQ J W K H U H V X OW V  W K H IR OOR ZLQ J


OD V LQ J F R Q G LW LR Q LV R E W D LQ H G 

%] U   bE  b 5O %] O   bE  %] O / bE  b 5U %] U / bE 
   
%] Ub   bE  b 5O %] Ob   bE  %] Ob / bE  b 5U %] Ub / bE 

,Q F D V H R I ] H U R U H q H F W LYLW LH V D W E R W K W K H OH IW D Q G W K H U LJ K W ID F H W V  W K H OD V LQ J F R Q G LW LR Q
   LV U H G X F H G W R W K H IR OOR ZLQ J V LP S OH IR U P 

%] U   bE  %] O / bE 
Ub Ob
   
%]   bE  %] / bE 
   &$ / &8 / $ 7,21 2) 5 ( )/ ( &7,9 ,7<   

 &DOFXODWLRQ RI 5HqHFWLYLW\

7R V LP S OLI\ W K H F D OF X OD W LR Q R I W K H ID F H W U H q H F W LYLW LH V  LW LV D V V X P H G W K D W W K H OD V H U K D V
D V S D W LD O S H U LR G LF LW \ e \ LQ W K H \ G LU H F W LR Q D V V K R ZQ LQ p J X U H    7K H \ G LU H F W LR Q
S H U LR G LF LW \ e \ LV F K R V H Q OD U J H H Q R X J K IR U W K H J X LG H G P R G H V W R ID OO W R ] H U R  7K H
7( D Q G W K H 70 p H OG V D U H W U H D W H G LQ W K H IR OOR ZLQ J W ZR V X E V H F W LR Q V  7K H YD OX H V R I
W K H U H q H F W LYLW LH V V K R X OG Q R W G H S H Q G R Q W K H YD OX H R I e \ D Q G W K LV F D Q E H X V H G D V D
Q X P H U LF D O F K H F N R I W K H D F F X U D F \ R I W K H U H V X OW V 

 7 KH 7 ( )LHOGV

: H p U V W F R Q V LG H U W K H 7( F D V H ZK H U H W K H H OH F W U LF p H OG K D V R Q O\ D ] F R P S R Q H Q W  7K H
U H J LR Q   [  e R I W K H V W U X F W X U H LV G LYLG H G LQ W R W K LQ V OLF H V E \ S OD Q H V S H U S H Q G LF X OD U
W R W K H [D [LV D V V K R ZQ LQ p J X U H    7K H G LH OH F W U LF IX Q F W LR Q LQ H D F K V OLF H LV D S S U R [
LP D W H G E \ D S H U LR G LF  S LH F H ZLV H F R Q V W D Q W IX Q F W LR Q asU \ R I S H U LR G LF LW \ e \ D Q G F D Q
E H H [S D Q G H G LQ D )R X U LH U V H U LH V D V IR OOR ZV 

;
sa U \ IQ HLQN\ \   
Q

ZK H U H N\  } e \ 7K H H OH F W U LF p H OG ZLW K LQ H D F K V OLF H F D Q E H H [S D Q G H G LQ V S D F H
K D U P R Q LF V 
;
(] HL QN\ c N\ \
8H Q [   
Q

6 X E V W LW X W LQ J E \ W K H H OH F W U LF p H OG D Q G W K H G LH OH F W U LF F R Q V W D Q W H [S D Q V LR Q V LQ W K H ZD YH
H TX D W LR Q    U  sU NR (]   W K H IR OOR ZLQ J H TX D W LR Q LV R E W D LQ H G 
 
; ;
H LQN\ c N\ \
#[ 8HQ  b QN\  c N\  
NR IP H LPN\ \
8HQ    
Q P
   &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

)LJ X U H    7KH UHJLRQ   [  e RI WKH VWUXFWXUH LV GLYLGHG LQWR WKLQ VOLFHV E\ SODQHV SHU
SHQGLFXODU WR WKH [D[LV HDFK VOLFH ZLWK D GLHOHFWULF IXQFWLRQ asU \ ZKLFK LV DSSUR[LPDWHG E\ D
SLHFHZLVHFRQVWDQW SHULRGLF IXQFWLRQ RI \ ZLWK SHULRGLFLW\ e\

7K LV J LYH V W K H IR OOR ZLQ J H TX D W LR Q IR U D Q \ YD OX H R I Q 

;
#[ 8HQ  $QP 8HP    
P

ZK H U H

$QP NR IQbP b QN\  c N\ rPQ     


   &$ / &8 / $ 7,21 2) 5 ( )/ ( &7,9 ,7<   

/ H W ƒH P D Q G yP E H W K H H LJ H Q YH F W R U V D Q G H LJ H Q YD OX H V R I $  W K X V  D J H Q H U D O V R OX W LR Q
IR U 8HQ F D Q E H ZU LW W H Q LQ W K H IR U P
;
8HQ [ &HP HLyP [b[R  '
I HbLyP [b[R ƒ
P HQ P
   
P

ZK H U H [R LV W K H [F R R U G LQ D W H R I W K H OH IW E R X Q G D U \ R I W K H V OLF H  7K H \F R P S R Q H Q W R I


W K H P D J Q H W LF p H OG F D Q E H G H U LYH G E \ )D U D G D \
V OD Z D V 
 #(]
F%\ 
LNR #[
; L QN c
u H \ N\ \
9HQ [     
Q

ZK H U H
;
9HQ [ z P &HP HLyP [b[R b '
y I HbLyP [b[R ƒ
P
P
HQ    
P
z P D U H W K H Q R U P D OL] H G H LJ H Q YD OX H V y
D Q G y z P u yP NR  7K H D Q D O\V LV R I V H F W LR Q   LV
I LQ ZK LF K W K H )R X U LH U F R H r F LH Q W V 8
IR OOR ZH G  LQ W U R G X F LQ J W K H F R OX P Q YH F W R U : H [
Q

D Q G 9HQ [ D U H D U U D Q J H G  $ W U D Q V IH U P D W U L[ €H R I D V OLF H R I ZLG W K D LV G H p Q H G D V W K H


P D W U L[ U H OD W LQ J W K H V S D F H K D U P R Q LF V R I W K H p H OG V D W W K H OH IW E R X Q G D U \ R I W K H V OLF H W R
W K R V H D W W K H U LJ K W E R X Q G D U \ R I LW D V IR OOR ZV 

IM
: IM
€H :     
[ [R [ [R D

IM
: IM
D Q G : D U H H YD OX D W H G LQ W H U P V R I W K H F R H r F LH Q W V &HP D Q G '
I E \
[ [R [ [R D P

V X E V W LW X W LQ J [ [R D Q G [ [R D LQ W R H TX D W LR Q V     D Q G     U H V S H F W LYH O\ 7K LV
U H V X OW V LQ D IR U P IR U W K H W U D Q V IH U P D W U L[ R I D V OLF H  €H W K D W LV V LP LOD U W R H TX D W LR Q    
  b
 ƒH ƒH  H HLyP D
ƒ' H HbLyP D
ƒ' 
€H        
ƒ'
H y z P bƒ'
H y z P ƒ'
H y z P HLyP D bƒ'
H y z P HbLyP D

$ V D U H V X OW R I W K H F R Q W LQ X LW \ R I W K H W D Q J H Q W LD O F R P S R Q H Q W V R I W K H H OH F W U LF D Q G P D J 
Q H W LF p H OG V D F U R V V W K H E R X Q G D U LH V R I W K H V OLF H V  P X OW LS O\LQ J W U D Q V IH U P D W U LF H V R I D G 
MD F H Q W V OLF H V LQ W K H D S S U R S U LD W H R U G H U U H V X OW V LQ W K H W U D Q V IH U P D W U L[ 7e R I W K H ZK R OH
   &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

  [  e U H J LR Q ZK LF K LV G H p Q H G E \

IM
: IM
7e :     
[  [ e

$ V V K R ZQ LQ p J X U H    ZH D V V X P H W K D W W K H U H J LR Q   [  e LV G LYLG H G LQ W R 1 V OLF H V
R I ZK LF K W K H p U V W V OLF H LV W K H F OR V H V W W R E R X Q G D U \ [R  D Q G K D V D W U D Q V IH U P D W U L[
€H ZK LOH W K H 1 WK V OLF H LV W K H R Q H ZLW K [R e b D D Q G K D V D W U D Q V IH U P D W U L[ €I
1  7K X V 

W K H D S S U R S U LD W H P X OW LS OLF D W LR Q R U G H U LV W R K D YH €H D W W K H H [W U H P H OH IW D Q G €I
1 D W W K H

H [W U H P H U LJ K W LH 7e €H €H €I


1 

&R Q V LG H U W K H H LJ H Q YD OX H H TX D W LR Q

7e uQ yQ uQ     

2Q H F D Q V H H IU R P H TX D W LR Q V          D Q G   W K D W W K H H LJ H Q YH F W R U V uQ D U H W K H
P R G H V R I W K H J X LG LQ J V W U X F W X U H F R U U H V S R Q G LQ J W R W K H YD OX H V R I c NQ J LYH Q E \

HbLc NQ e
yQ     

7K H OD U J H V W W ZR YD OX H V R I Mc NQ M F R U U H V S R Q G W R W K H W ZR J X LG H G P R G H V uh  ZLW K c Nh
E H LQ J W K H F R U U H V S R Q G LQ J c N YD OX H V  7K H X S S H U D Q G OR ZH U K D OYH V R I W K H YH F W R U V uQ
F R Q W D LQ U H V S H F W LYH O\ W K H V S D F H K D U P R Q LF V R I (] D Q G F%\ D W [   7K H p H OG V F D Q E H
Q R U P D OL] H G V X F K W K D W W K H P R G H p H OG H TX D OV R Q H D W W K H P LG S R LQ W R I W K H D F W LYH U H J LR Q
D F F R U G LQ J W R H TX D W LR Q    
)LJ X U H   V K R ZV W K H ub P R G H LQ F LG H Q W R Q W K H OH IW ID F H W  7K H p H OG V W U D Q V P LW W H G
W R W K H [   U H J LR Q D V V X P H G W R K D YH D G LH OH F W U LF F R Q V W D Q W s F D Q E H ZU LW W H Q D V

;
(] 7Q HL QN\ c N\ \ bLqQ [
H
Q
;
F%\ b 7Q qz Q HL QN\ c N\ \ bLqQ [
H     
Q
   &$ / &8 / $ 7,21 2) 5 ( )/ ( &7,9 ,7<   

)LJ X U H    7KH u> PRGH LV LQFLGHQW RQ WKH OHIW IDFHW U LV WKH DPSOLWXGH UHqHFWLRQ FRUUHVSRQGLQJ
WR cN  U u LV WKH UHqHFWHG PRGH 7KH UHJLRQ [   KDV D GLHOHFWULF FRQVWDQW s 7 DUH WKH
H[SDQVLRQ FRHrFLHQWV RI WKH pHOGV LQ WKLV UHJLRQ

ZK H U H
T
qQ NR qz Q NR s b QN\  c N\     

&R OOH F W LQ J W K H W U D Q V P LV V LR Q F R H r F LH Q W V 7Q LQ D F R OX P Q YH F W R U 7  W K H W U D Q V P LW W H G
p H OG V F D Q E H ZU LW W H Q LQ W K H IR U P
 
IM  '  
: WU DQ V [    7 u 47    
b' qz Q
ZK LOH W K H U H q H F W H G p H OG V W D NH W K H IR U P
;
IM
: UQ uQ     
U HI [ 
c NQ !

&R Q W LQ X LW \ R I W K H p H OG V (] D Q G %\ D W [  J LYH V
;
ub  UQ uQ 47    
c NQ !
   &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

7K LV H TX D W LR Q F D Q E H U H D U U D Q J H G LQ D P D W U L[ IR U P D V
 
x y 7

4  b u 


 ub    
U

,Q W K H D E R YH H TX D W LR Q  u LV D P D W U L[ V X F K W K D W LW V QWK F R OX P Q F R Q W D LQ V W K H uQ YH F W R U
D Q G U LV D F R OX P Q YH F W R U F R Q W D LQ LQ J W K H U H q H F W LR Q F R H r F LH Q W V UQ  7K X V  W K H W U D Q V 
P LV V LR Q F R H r F LH Q W V 7 D Q G U H q H F W LR Q F R H r F LH Q W V U F D Q E H G LU H F W O\ G H W H U P LQ H G  7K H
U H q H F W LR Q F R H r F LH Q W R I LQ W H U H V W LV U ZK LF K LV W K H D P S OLW X G H U H q H F W LR Q F R H r F LH Q W
F R U U H V S R Q G LQ J W R c N 
7R p Q G 5O  W K H W ZR J X LG H G P R G H V K D YH W R E H H [S U H V V H G D V U LJ K W P R YLQ J D Q G OH IW 
P R YLQ J S D U W V D F F R U G LQ J W R H TX D W LR Q     7R U H W D LQ  1 V S D F H K D U P R Q LF V  W K H p H OG V
(] D Q G %\ D W 1 H TX LG LV W D Q W S R LQ W V [P Pe 1 bE  ZK H U H P   ccc1 b
D U H F D OF X OD W H G E \ D S S O\LQ J W K H D S S U R S U LD W H S U R G X F W V R I 7P D W U LF H V W R uh W R R E W D LQ
3
8H h [P D Q G 9H h [P  7K H Q H TX D W LR Q   (] Q HL QN N [ 8Q \ LV X V H G W R
R E W D LQ (]h [P  bE  D Q G W R G H W H U P LQ H W K H \F R P S R Q H Q W R I W K H P D J Q H W LF p H OG ZK LF K
LV J LYH Q E \
b #(]
F%\ [ \    
LNR #[
+ H Q F H  D V \V W H P R I  1 OLQ H D U H TX D W LR Q V IR U W K H  1 X Q NQ R ZQ V 8Q bE  D Q G D Q R W K H U
IR U 8Qb bE  F D Q E H R E W D LQ H G 
;
(]h [P  bE  HL QN c ND [P
8Qh bE  
Q
 ;
bF%\h [P  bE  QN  c Nh HL QN c ND [P
8Qh bE      
NR Q
% \ V R OYLQ J W K H D E R YH V H W R I H TX D W LR Q V  W K H U LJ K W P R YLQ J D Q G W K H OH IW P R YLQ J S D U W V
R I W K H p H OG V F D Q E H H YD OX D W H G E \
;
(] Uh   bE  8Qh bE  
QIQD
U J
   &$ / &8 / $ 7,21 2) 5 ( )/ ( &7,9 ,7<   
;
(] Oh   bE  8Qh bE      
QIQD
O J

,Q p J X U H   W K H ub P R G H H [S U H V V H G D V ( Ub  ( Ob LV LQ F LG H Q W R Q W K H OH IW ID F H W
D Q G U LV W K H D P S OLW X G H U H q H F W LR Q F R U U H V S R Q G LQ J W R c N  W K X V U u LV W K H U H q H F W H G
P R G H  7K H P R G H u LQ W X U Q F D Q E H H [S U H V V H G D V ( U  ( O  K H Q F H  W K H D P S OLW X G H
U H q H F W LYLW \ 5O ZK LF K LV W K H U D W LR R I W K H U LJ K W S U R S D J D W LQ J p H OG W R W K H OH IW S U R S D J D W LQ J
p H OG F D Q E H ZU LW W H Q D V 
(] Ub   bE   U (] U   bE 
5O Ob O
    
(]   bE   U (]   bE 
$ W W K H U LJ K W ID F H W R I W K H OD V H U  V LP LOD U W U H D W P H Q W R I W K H p H OG V LV IR OOR ZH G  ,Q
p J X U H   W K H J X LG H G P R G H u LV LQ F LG H Q W R Q W K H U LJ K W ID F H W D Q G Ub LV W K H D P S OLW X G H
U H q H F W LR Q F R H r F LH Q W F R U U H V S R Q G LQ J W R Nb  7K H D P S OLW X G H U H q H F W LYLW \ 5U R I W K H
U LJ K W ID F H W D W [ / LV W K H U D W LR R I W K H OH IW P R YLQ J ZD YH W R W K H U LJ K W P R YLQ J ZD YH
ZK LF K F D Q E H H [S U H V V H G D V 
(] O / bE   Ub (] Ob / bE 
5U U Ub
    
(] / bE   Ub (] / bE 

$QWLU HqHFWLYH FRDWLQJ DW WKH IDFHW

,I W K H OH IW H Q G ID F H W R I W K H OD V H U K D V D Q D Q W LU H q H F W LYH F R D W LQ J $ 5 & R I W K LF NQ H V V


W$ 5& D Q G U H IU D F W LYH LQ G H [ Q$ 5&  W K H H OH F W U LF p H OG LQ W K H F R D W LQ J OD \H U bW$ 5& [
F D Q E H ZU LW W H Q LQ D IR U P V LP LOD U W R H TX D W LR Q     ZLW K 8HQ R E H \LQ J W K H IR OOR ZLQ J
H TX D W LR Q 
;
(] HL QN\ N\ \ 8HQ [ 
Q

8HQ [ DHQ HLpQ [W$ 5&  HEQ HbLpQ [W$ 5&     


   &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

)LJ X U H    7KH u PRGH LV LQFLGHQW RQ WKH ULJKW IDFHW U> LV WKH DPSOLWXGH UHqHFWLRQ FRUUH
VSRQGLQJ WR cN>  U> u> LV WKH UHqHFWHG PRGH 7KH UHJLRQ [ ! / KDV D GLHOHFWULF FRQVWDQW s 7 DUH
WKH H[SDQVLRQ FRHrFLHQWV RI WKH pHOGV LQ WKLV UHJLRQ

ZK H U H pQ LV J LYH Q E \
T
pQ u NR pz Q NR s$ 5& b QN\  c N\     

7K H P D J Q H W LF p H OG LQ W K H F R D W LQ J OD \H U F D Q E H ZU LW W H Q LQ D IR U P V LP LOD U W R H TX D W LR Q
     ZK H U H 9HQ LV J LYH Q E \
;
F%\ HL QN\ N\ \ 9HQ [ 
Q

9HQ [ pz Q DH Q HLpQ [W$ 5& b HEQ HbLpQ [W$ 5&     

7K H F R OX P Q YH F W R U V 8H D Q G 9H D U H D U U D Q J H G LQ W K H V S D F H K D U P R Q LF V YH F W R U :
I $

W U D Q V IH U P D W U L[ 7$ 5& IR U W K H $ 5 & OD \H U LV G H p Q H G E \
p
I pp
: 7$ IM
:     
[ bW$ 5& 5& [ 
   &$ / &8 / $ 7,21 2) 5 ( )/ ( &7,9 ,7<   

ZK H U H
  b
LpQ W$
 '  '    ' H 5& ' HbLpQ W$ 5& 
  
  
7$ 5&  ccc ccc  ccc ccc     
  
  
' pz Q b' pz Q ' pz Q HLpQ W$ 5& b' pz Q HbLpQ W$ 5&

7K H p H OG V LQ W K H [  bW$ 5& LV H [S U H V V H G LQ D IR U P V LP LOD U W R H TX D W LR Q     ZLW K [


U H S OD F H G E \ [  W$ 5& 
;
(] 7Q HL QN\ c N\ \ bLqQ [W$ 5&
H
Q
;
F%\ b 7Q qz Q HL QN\ c N\ \ bLqQ [W$ 5&
H     
Q

ZK H U H qQ LV J LYH Q E \ H TX D W LR Q      ,Q W K LV F D V H  W K H p H OG V D W [ bW$ 5& F D Q E H


ZU LW W H Q D V  
p ' 
I pp
:



 7 u 47    
[ bW$ 5&
b' qz Q
K H Q F H  H TX D W LR Q     F D Q E H U H ZU LW W H Q D V 
;
47 7$ 5& >ub  UQ uQ @    
c NQ !

ZK LF K F D Q E H H [S U H V V H G LQ W K H IR OOR ZLQ J P D W U L[ IR U P 
 
x y
  7 
7$ b
5& 4  b u   ub     
U

IU R P ZK LF K W K H U H q H F W LR Q F R H r F LH Q W V UQ F D Q E H G H W H U P LQ H G 

 7 KH 7 0 )LHOGV

: H Q H [W F R Q V LG H U W K H 70 F D V H ZK H U H W K H P D J Q H W LF p H OG K D V R Q O\ D ] F R P S R Q H Q W 
$ V LQ W K H 7( F D V H W K H U H J LR Q   [  e R I W K H V W U X F W X U H LV G LYLG H G LQ W R W K LQ
   &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

V OLF H V E \ S OD Q H V S H U S H Q G LF X OD U W R W K H [D [LV D V V K R ZQ LQ p J X U H    7K H G LH OH F W U LF


IX Q F W LR Q LQ H D F K V OLF H LV D S S U R [LP D W H G E \ D S H U LR G LF  S LH F H ZLV H F R Q V W D Q W IX Q F W LR Q
sa U \ R I S H U LR G LF LW \ e \ 7K H P D J Q H W LF p H OG ZLW K LQ H D F K V OLF H F D Q E H H [S D Q G H G LQ
V S D F H K D U P R Q LF V 
; N\ \ I
F%] HL QN\ c 8 Q [    
Q

7K H U H F LS U R F D O R I W K H G LH OH F W U LF IX Q F W LR Q F D Q E H H [S D Q G H G D V IR OOR ZV 

 ;
JQ HLQN\ \    
asU \ Q

ZK H U H N\  } e \ 6 X E V W LW X W LQ J W K H P D J Q H W LF p H OG D Q G W K H G LH OH F W U LF F R Q V W D Q W
I [ F D Q E H ZU LW W H Q
H [S D Q V LR Q V LQ W K H ZD YH H TX D W LR Q     D J H Q H U D O V R OX W LR Q IR U 8 Q

LQ W K H IR U P
;
I [
8 I HLy P [b[R  '
& I P
I HbLy P [b[R ƒ    
Q P P Q
P
P
ZK H U H [R LV W K H [F R R U G LQ D W H R I W K H OH IW E R X Q G D U \ R I W K H V OLF H  I
ƒ D Q G y
P D U H W K H

H LJ H Q YH F W R U V D Q G H LJ H Q YD OX H V R I W K H IR OOR ZLQ J H TX D W LR Q V 

P P
I ƒ
$ I y I I
P% ƒ     

I D Q G %
ZK H U H W K H P D W U LF H V $ I J LYH Q E \

I
$ NRrPQ b PN  N\ QN  N\ JPbQ 
PQ

I
% JPbQ     
PQ

7K H \F R P S R Q H Q W R I W K H H OH F W U LF p H OG LV G H U LYH G D V IR OOR ZV

F  #%]
(\ 
LNR sU #[
; L QN c N \
u H \ \
9I Q [     
Q
   &$ / &8 / $ 7,21 2) 5 ( )/ ( &7,9 ,7<   

ZK H U H
; P
9IQ [ yz  P &
I HLy P [b[R b '
P
I HbLy P [b[R I
P ƒ H    
P
P
I
ZK H U H ƒ I P s D Q G
ƒ z P LV W K H Q R U P D OL] H G H LJ H Q YD OX H V y
y z P u yP NR  7K H
H U

D Q D O\V LV R I V H F W LR Q   LV W K H Q IR OOR ZH G  LQ W U R G X F LQ J W K H V S D F H K D U P R Q LF V F R OX P Q
J LQ
YH F W R U : ZK LF K I [ D Q G
W K H )R X U LH U F R H r F LH Q W V 8 9I Q [ D U H D U U D Q J H G  $
Q

W U D Q V IH U P D W U L[ €H R I D V OLF H R I ZLG W K D LV G H p Q H G U H OD W LQ J W K H V S D F H K D U P R Q LF V R I W K H


p H OG V D W W K H OH IW E R X Q G D U \ W R W K R V H D W W K H U LJ K W E R X Q G D U \ D V IR OOR ZV 

J M
: J M
€H :     
[ [R [ [R D

7K H W U D Q V IH U P D W U L[ €H R I D V OLF H F D Q E H H [S U H V V H G LQ D IR U P V LP LOD U W R H TX D W LR Q    


  b
I  I I  I
 ƒ  ƒ  ƒ ' HLyP D  ƒ ' HbLyP D 
  
    
€H  ccc  ccc  ccccccccc  ccccccccc 
  
    
ƒH ' yz  P
I  bIƒH ' yz  P ƒH ' yz P HLyP D
I I ' yz  HbLy P D

 bƒ H P
   
ZK H U H I
ƒ D Q G I
ƒ H D U H W ZR P D W U LF H V V X F K W K D W W K H P F R OX P Q R I I
WK
ƒ D Q G I
ƒH F R Q W D LQ V W K H
P
I
YH F W R U V ƒ I P U H V S H F W LYH O\ 0X OW LS O\LQ J W K H W U D Q V IH U P D W U LF H V R I D G MD F H Q W
D Q G ƒ H

V OLF H V LQ W K H D S S U R S U LD W H R U G H U  W K H W U D Q V IH U P D W U L[ 7 e R I W K H ZK R OH   [  e
U H J LR Q LV R E W D LQ H G  ,W LV G H p Q H G E \

J M
: J M
7 e :     
[  [ e

&R Q V LG H U W K H H LJ H Q YD OX H H TX D W LR Q

7 e uQ yQ uQ     

2Q H F D Q V H H IU R P H TX D W LR Q V          D Q G    W K D W W K H H LJ H Q YH F W R U V uQ D U H W K H
P R G H V R I W K H J X LG LQ J V W U X F W X U H F R U U H V S R Q G LQ J W R c NQ YD OX H V J LYH Q E \

HbLc NQ e
yQ     
   &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

)LJ X U H    7KH u DQG u> PRGHV DUH LQFLGHQW RQ WKH ULJKW DQG RQ WKH OHIW IDFHWV UHVSHFWLYHO\
U DQG U> DUH WKH DPSOLWXGH UHqHFWLRQ FRUUHVSRQGLQJ WR cN DQG cN> UHVSHFWLYHO\ 7KH UHJLRQ
[   KDV D GLHOHFWULF FRQVWDQW s 7 DUH WKH H[SDQVLRQ FRHrFLHQWV RI WKH pHOGV LQ WKLV UHJLRQ


7K H OD U J H V W W ZR YD OX H V R I Mc NQ M F R U U H V S R Q G W R W K H W ZR J X LG H G P R G H V uh  ZLW K c Nh
E H LQ J W K H F R U U H V S R Q G LQ J c N YD OX H V  7K H X S S H U D Q G OR ZH U K D OYH V R I W K H YH F W R U V uQ
F R Q W D LQ U H V S H F W LYH O\ W K H V S D F H K D U P R Q LF V R I F%] D Q G (\ D W [   7K H p H OG V F D Q E H
Q R U P D OL] H G W R R Q H D W W K H P LG S R LQ W R I W K H D F W LYH U H J LR Q D F F R U G LQ J W R H TX D W LR Q    

&R Q V LG H U W K H ub P R G H LQ F LG H Q W R Q W K H OH IW ID F H W D V V K R ZQ LQ p J X U H    7K H p H OG V
W U D Q V P LW W H G W R W K H [   U H J LR Q D V V X P H G W R K D YH D G LH OH F W U LF F R Q V W D Q W s F D Q E H
ZU LW W H Q D V

;
F%] 7Q HL QN\ c N\ \ bLqQ [
H
Q
; 7Q
(\ qz Q HL QN\ c N\ \ bLqQ [
H     
Q s

ZK H U H qQ LV J LYH Q E \ H TX D W LR Q      $ U U D Q J LQ J W K H W U D Q V P LV V LR Q F R H r F LH Q W V 7Q LQ
   &$ / &8 / $ 7,21 2) 5 ( )/ ( &7,9 ,7<   

D F R OX P Q YH F W R U 7  W K H W U D Q V P LW W H G p H OG V F D Q E H ZU LW W H Q LQ W K H IR U P
 
J M  '   
: WU DQ V [    7 u 4 7    
' qz Q s

ZK LOH W K H U H q H F W H G p H OG V D U H H [S U H V V H G LQ W H U P V R I W K H U H q H F W LR Q V D P S OLW X G H D Q G W K H
UH q H F WH G P R G H V D V
;
J M
: UQ uQ     
U HI [ 
c NQ !

&R Q W LQ X LW \ R I W K H p H OG V %] D Q G (\ D W [  J LYH V


;
ub  UQ uQ 47    
c NQ !

7K LV H TX D W LR Q F D Q E H U H D U U D Q J H G LQ D P D W U L[ IR U P D V
 
x y 7
  
4  b u  

ub    
U

$ V LQ W K H 7( F D V H  u  LV D P D W U L[ F R Q W D LQ V W K H uQ YH F W R U V D U U D Q J H G V LG H E \ V LG H D Q G
U LV D YH F W R U F R Q W D LQ LQ J W K H UQ H OH P H Q W V  7K H U H q H F W LR Q F R H r F LH Q W R I LQ W H U H V W LV U
ZK LF K LV W K H D P S OLW X G H U H q H F W LR Q F R H r F LH Q W F R U U H V S R Q G LQ J W R c N 
 
7R p Q G 5O  W K H W ZR J X LG H G P R G H V  ub D Q G u  D U H H [S U H V V H G D V U LJ K W P R YLQ J
D Q G OH IW P R YLQ J S D U W V  7R U H W D LQ  1 V S D F H K D U P R Q LF V  W K H p H OG V %] D Q G (\ D U H
F D OF X OD W H G D W W K H 1 H TX LG LV W D Q W S R LQ W V [P Pe 1 bE  ZK H U H P   ccc1b
 E \ D S S O\LQ J W K H D S S U R S U LD W H S U R G X F W V R I 7P D W U LF H V W R 
uh W R R E W D LQ I h [ D Q G
8 P
h
9I [P  7K H Q H TX D W LR Q    LV X V H G W R R E W D LQ F%]h [P  bE  D Q G (\h [P  bE 
D V IR OOR ZV 
;
F%]h [P  bE  HL QN c ND [P
8Qh bE  
Q
 ;
(\h [P  bE  QN  c Nh HL QN c ND [P
8Qh bE      
sD NR Q
   &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

7ZR V \V W H P V H D F K R I  1 OLQ H D U H TX D W LR Q V IR U W K H  1 X Q NQ R ZQ V D U H R E W D LQ H G  2Q H
IR U 8Q bE  D Q G D Q R W K H U IR U 8Qb bE   % \ V R OYLQ J W K H V H H TX D W LR Q V  R Q H F D Q
G H W H U P LQ H W K H U LJ K W P R YLQ J D Q G W K H OH IW P R YLQ J S D U W V R I W K H p H OG D V
;
F%] Uh   bE  8Qh bE  
QIQD
U J
;
F%] Oh   bE  8Qh bE      
QIQD
O J

7K H D P S OLW X G H U H q H F W LYLW \ 5O ZK LF K LV W K H U D W LR R I W K H U LJ K W S U R S D J D W LQ J p H OG D Q G
W K H OH IW S U R S D J D W LQ J p H OG E H F R P H V 
%] Ub   bE   U %] U   bE 
5O Ob O
    
%]   bE   U %]   bE 
7K H D Q D O\V LV R I W K H p H OG V D W W K H OH IW ID F H W LV U H S H D W H G D W W K H U LJ K W ID F H W W R G H W H U P LQ H
W K H U H q H F W LYLW \ 5U D W [ / : H R E W D LQ 
%] O / bE   Ub %] Ob / bE 
5U U Ub
    
%] / bE   Ub %] / bE 

$QWLU HqHFWLYH FRDWLQJ DW WKH IDFHW

&R Q V LG H U LQ J W K H F D V H ZK H U H W K H OH IW ID F H W R I W K H OD V H U K D V D Q D Q W LU H q H F W LYH F R D W LQ J


$ 5 & R I W K LF NQ H V V W$ 5& D Q G U H IU D F W LYH LQ G H [ Q$ 5&  W K H P D J Q H W LF p H OG LQ W K H F R D W LQ J
OD \H U bW$  [   F D Q E H ZU LW W H Q LQ D IR U P I
V LP LOD U W R H TX D W LR Q      ZLW K 8
5& Q

R E H \LQ J W K H IR OOR ZLQ J H TX D W LR Q


; N\ \ I
F%] HL QN\ c 8 Q [ 
Q
I [
8 Q DHQ HLpQ [W$ 5&  HEQ HbLpQ [W$ 5&     

ZK H U H pQ LV J LYH Q E \ H TX D W LR Q      7K H H OH F W U LF p H OG LQ W K H F R D W LQ J OD \H U F D Q E H
ZU LW W H Q LQ D IR U P V LP LOD U W R H TX D W LR Q      ZK H U H 9IQ LV J LYH Q E \
; N\ \ I
(\ HL QN\ c 9 Q [ 
Q
   &$ / &8 / $ 7,21 2) 5 ( )/ ( &7,9 ,7<   

pz Q
9IQ [ DH Q HLpQ [W$ 5& b HEQ HbLpQ [W$ 5&     
s$ 5&

I D Q G 9
7K H F R OX P Q YH F W R U V 8 I D U H D U U D Q J H G W R IR U P J 
W K H V S D F H K D U P R Q LF V YH F W R U :

$ W U D Q V IH U P D W U L[ 7 $ 5& IR U W K H $ 5 & OD \H U LV G H p Q H G D V U H OD W LQ J W K H V S D F H K D U P R Q LF V
R I W K H p H OG D W LW V E R X Q G D U LH V D V IR OOR ZV 
p
J pp
: 7 $ J M
:     
[ bW$ 5& 5& [ 

ZK H U H
  b
 '  '   ' HLpQ W$ 5& ' HbLpQ W$ 5& 
  
  
7 $ 5& 
 ccc ccc 
 ccc ccc 

  

s$ 5&
' pz Q bs 
' pz Q 
s$ 5&
' pz Q HLpQ W$ 5& bs 
' pz Q HbLpQ W$ 5&
$ 5& $ 5&
   

7K H p H OG V LQ W K H [  bW$ 5& LV H [S U H V V H G LQ D IR U P V LP LOD U W R H TX D W LR Q     ZLW K [


U H S OD F H G E \ [  W$ 5& 

;
F%] 7Q HL QN\ c N\ \ bLqQ [W$ 5&
H
Q
; 7Q
(\ qz Q HL QN\ c N\ \ bLqQ [W$ 5&
H     
Q s

ZK H U H qQ LV H [S U H V V H G E \
T
qQ NR qz Q NR s b QN\  c N\ 

,Q W K LV F D V H  H TX D W LR Q     LV P R G Lp H G W R E H 

;
4 7 7 $ 5&

>ub  UQ uQ @    
c NQ !
   &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

7K H Q  W K H U H q H F W LR Q F R H r F LH Q W V D Q G W K H W U D Q V P LV V LR Q F R H r F H LQ W V D U H G H W H U P LQ H G E \
V R OYLQ J W K H IR OOR ZLQ J P D W U L[ H TX D W LR Q 
 
x y
 7 
7  b
$ 5& 4  b u  

 

ub    
U

 7 KH /DVLQJ &RQGLWLRQ IRU D y 3 KDVH 6KLIWHG


')% /DVHU

 7 KH 7 ( FDVH

)LJ X U H   D V K R ZV D y  S K D V H V K LIW U H J LR Q W K D W LV LQ V H U W H G LQ W K H P LG G OH R I D OD V H U
V W U X F W X U H  7K H OD V H U OH Q J W K LV G LYLG H G LQ W R W K U H H U H J LR Q V  W K H y  S K D V H V K LIW U H J LR Q
W K D W LV V X U U R X Q G H G E \ W ZR U H J LR Q V H D F K ZLW K X Q LIR U P J U D W LQ J ZLW K S H U LR G LF LW \ e  7K H
H OH F W U LF D Q G P D J Q H W LF p H OG V LQ W K H U H J LR Q V ZLW K X Q LIR U P J U D W LQ J V F D Q E H R E W D LQ H G
IR OOR ZLQ J W K H D Q D O\V LV P H Q W LR Q H G LQ V H F W LR Q   
/ H W ( D Q G (  E H W K H H OH F W U LF p H OG V R I W K H W ZR J X LG H G P R G H V LQ W K H X Q LIR U P J U D W LQ J
U H J LR Q V  7K H J X LG H G P R G H V LQ W K H U H J LR Q W R W K H OH IW R I W K H y  S K D V H V K LIW U H J LR Q D U H
G H V F U LE H G E \ H TX D W LR Q     6 LP LOD U H [S U H V V LR Q V F D Q E H ZU LW W H Q IR U W K H P R G H V LQ W K H
U H J LR Q W R W K H U LJ K W R I W K H y  S K D V H V K LIW U H J LR Q  7K H P R G H V F D Q E H H [S U H V V H G D V 

K L
(] [ \ & (] [ \  ~(]b [ \ 
K L
(] [ \ &  (] [ \  q(]b [ \     

ZK H U H & &   ~ D Q G q D U H F R Q V W D Q W V  7K H p H OG V G H Q R W H G E \ W K H S OX V V LJ Q D Q G W K H
P LQ X V V LJ Q V F R U U H V S R Q G W R c N D Q G c Nb U H V S H F W LYH O\ (  D Q G ( b F D Q E H H [S U H V V H G
D V WK H VX P R I U LJ K W P R YLQ J D Q G OH IW P R YLQ J S D U W V  ( h ( Uh ( Oh  F R Q V H TX H Q W O\
   7+ ( / $ 6 ,1 * &21 ' ,7,21 )25 $ y  3 + $ 6 ( 6 + ,)7( ' ' )% / $ 6 ( 5   

)LJ X U H    D $ y SKDVH VKLIW UHJLRQ LV LQVHUWHG LQ WKH PLGGOH RI WKH ODVHU VWUXFWXUH E WKH
OHIW SURSDJDWLQJ JXLGHG PRGH u>  LV LQFLGHQW RQ WKH y SKDVH VKLIW UHJLRQ IURP WKH ULJKW UHJLRQ
DQG F WKH ULJKW SURSDJDWLQJ JXLGHG PRGH u  LV LQFLGHQW RQ WKH y SKDVH VKLIW UHJLRQ IURP WKH
OHIW UHJLRQ

E R W K ( D Q G (  F D Q E H H [S U H V V H G D V U LJ K W D Q G OH IW S U R S D J D W LQ J S D U W V 

(] [ \ ( U [ \  ( O [ \ 

(] [ \ (  U [ \  (  O [ \     

ZK H U H

( U [ \ & (] U  ~(] Ub 
   &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

( O [ \ & (] O  ~(] Ob 

(  U [ \ &  (] U  q(] Ub 

(  O [ \ &  (] O  q(] Ob    

5 H IH U U LQ J W R p J X U H    W R K D YH OD V LQ J  W K U H H F R Q G LW LR Q V V K R X OG E H LP S R V H G R Q W K H
p H OG V  $ W W K H OH IW ID F H W E R X Q G D U \ [ [  W K H U D W LR R I W K H U LJ K W S U R S D J D W LQ J p H OG
W R W K H OH IW S U R S D J D W LQ J H TX D OV 5O  W K H U H q H F W LR Q F R H r F LH Q W S U H YLR X V O\ F D OF X OD W H G E \
H TX D W LR Q     
( U [  bE 
5O    
( O [  bE 
ZK LF K OH D G V W R W K H IR OOR ZLQ J H TX D W LR Q IR U ~

5O ( O [  bE  b ( U [ bE 
~    
( Ub [  bE  b 5O ( Ob [ bE 

6 LP LOD U O\ D W W K H U LJ K W ID F H W E R X Q G D U \ [ [  W K H U D W LR R I W K H OH IW S U R S D J D W LQ J
p H OG W R W K H U LJ K W S U R S D J D W LQ J H TX D OV 5U  W K H U H q H F W LR Q F R H r F LH Q W F D OF X OD W H G LQ W K H
S U H YLR X V V H F W LR Q E \ H TX D W LR Q     

(  O [ bE 
5U    
(  U [ bE 

ZK LF K OH D G V W R W K H IR OOR ZLQ J H TX D W LR Q IR U q

5U (  U [ bE  b (  O [ bE 
q    
(  Ob [  bE  b 5U ( Ub [ bE 

,Q R U G H U W R U H OD W H W K H p H OG V D W W K H U H J LR Q W R W K H OH IW R I W K H y  V H F W LR Q W R W K R V H D W
W K H U H J LR Q W R W K H U LJ K W R I W K H y  V H F W LR Q  D W U D Q V P LV V LR Q P D W U L[ LV G H p Q H G IR U W K H
y  V H F W LR Q D V IR OOR ZV 
    
 U
 (   WUU WUO   ( U 
        
(  O WOU WOO ( O
   7+ ( / $ 6 ,1 * &21 ' ,7,21 )25 $ y  3 + $ 6 ( 6 + ,)7( ' ' )% / $ 6 ( 5   

6 X E V W LW X W LQ J W K H H [S U H V V LR Q V R I W K H p H OG V D W W K H E R X Q G D U LH V R I W K H y  V H F W LR Q  ZH
R E W D LQ
    
&   (] U  q(] Ub   WUU WUO   (] U  ~(] Ub 
        
& (] O  q(] Ob WOU WOO (] O  ~(] Ob
[ [ [ [

6 R OYLQ J W K H V H H TX D W LR Q V IR U &  & R Q H R E W D LQ W K H IR OOR ZLQ J OD V LQ J F R Q G LW LR Q 


WUU (] U  ~(] Ub  WUO (] O  ~(] Ob (] U  q(] Ub
U Ub O Ob
M[ [  O
M
 Ob [ [
   
WOU (]  ~(]  WOO (]  ~(] (]  q(]

7R G H W H U P LQ H W K H H OH P H Q W V WUU  WUO c c c R I W K H W U D Q V P LV V LR Q P D W U L[ R I W K H y  V H F W LR Q 
W K H P H W K R G X V H G LQ G H W H U P LQ LQ J W K H U H q H F W LR Q F R H r F LH Q W D W W K H H Q G ID F H W V R I W K H
OD V H U LV IR OOR ZH G  )LJ X U H   E V K R ZV W K H U LJ K W S U R S D J D W LQ J J X LG H G P R G H ub LQ F LG H Q W
R Q W K H y  S K D V H V K LIW U H J LR Q IU R P W K H U LJ K W U H J LR Q  : H G H R Q W H E \ U D Q G Wb W K H
D P S OLW X G H U H q H F W LR Q F R H r F LH Q W D Q G W K H D P S OLW X G H W U D Q V P LV V LR Q F R H r F LH Q W R I W K H y 
S K D V H V K LIW U H J LR Q F R U U H V S R Q G LQ J W R c N D Q G c Nb U H V S H F W LYH O\ 7K H J X LG H G P R G H ub
F D Q E H G H W H U P LQ H G F R Q V LG H U LQ J W K H H LJ H Q YD OX H H TX D W LR Q      7e uQ yQ uQ  ZK H U H
7e LV G H p Q H G E \
IM
: IM
7e :     
[ [ [ [ e

7K H J X LG H G P R G H V D U H G LYLG H G LQ W R U LJ K W P R YLQ J D Q G OH IW P R YLQ J S D U W V X V LQ J W K H


V \V W H P R I H TX D W LR Q V     

U O
ub ub  ub 
U O
u u  u     

$ S S O\LQ J H TX D W LR Q     W R W K H p H OG V R I p J X U H   E  R Q H J H W V
    
U U U
 ub  U u   WUU WUO   Wb ub 
        
O O O
ub  U u WOU WOO Wb u b
   &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

6 LP LOD U O\ p J X U H   F V K R ZV W K H OH IW S U R S D J D W LQ J J X LG H G P R G H u LQ F LG H Q W R Q W K H
y  S K D V H V K LIW U H J LR Q IU R P W K H OH IW U H J LR Q  : H G H Q R W H E \ Ub D Q G W W K H D P S OLW X G H
U H q H F W LR Q F R H r F LH Q W D Q G W K H D P S OLW X G H W U D Q V P LV V LR Q F R H r F LH Q W R I W K H y  S K D V H
V K LIW U H J LR Q F R U U H V S R Q G LQ J W R c Nb D Q G c N U H V S H F W LYH O\ 7K H J X LG H G P R G H u LV
W K H H LJ H Q YH F W R U F R U U H V S R Q G LQ J W R c N LQ W K H H LJ H Q YD OX H H TX D W LR Q 7e uQ yQ uQ  7K H
W U D Q V IH U P D W U L[ 7e LV G H p Q H G E \ W K H IR OOR ZLQ J H TX D W LR Q

IM
: IM
7e :    
[ [ be [ [

$ S S O\LQ J H TX D W LR Q     W R W K H p H OG V R I p J X U H   F  R Q H J H W V
    
U U U
 W u   WUU WUO   u  Ub ub 
        
O O O
W u WOU WOO u  Ub ub

5 H D U U D Q J LQ J H TX D W LR Q V     D Q G      W K H W H OH P H Q W V D U H J LYH Q E \
   b  
U U O O U
 WUU   u  Ub ub u  Ub ub   W u 
  
U O
 
U U
    
WUO Wb ub Wb u b ub  U u

D Q G
   b  
U U O O O
 WOU   u  Ub ub u  Ub ub   W u 
         
U O O O
WOO Wb ub Wb ub ub  U u

7K H D P S OLW X G H U H q H F W LR Q D Q G D P S OLW X G H W U D Q V P LV V LR Q F R H r F LH Q W V U  Ub  W  D Q G
Wb F D Q E H R E W D LQ H G W K U R X J K G H p Q LQ J D W U D Q V IH U P D W U L[ 7y  IR U W K H y  S K D V H V K LIW
U H J LR Q 
IM
: IM
7y :    
[ [ [ [

7K H Q  W K H P D W U L[ K D V D IR U P V LP LOD U W R H TX D W LR Q     
  b
 ƒH ƒH  H HLyP y 
ƒ' H HbLyP y 
ƒ' 
7y        
ƒ'
H y z P bƒ'
H y z P ƒ'
H y z P HLyP y  bƒ'
H y z P HbLyP y 
   7+ ( / $ 6 ,1 * &21 ' ,7,21 )25 $ y  3 + $ 6 ( 6 + ,)7( ' ' )% / $ 6 ( 5   

$ S S O\LQ J H TX D W LR Q     W R W K H p H OG V V K R ZQ LQ p J X U H   E D W [ [ D Q G D W [ [ 
R Q H J H WV
Q Q
ub WQ 7y >ub  u UQ @    
Q Q
ZK H U H ub D Q G u D U H W ZR P D W U LF H V V X F K W K D W W K H LU F R OX P Q V D U H W K H H LJ H Q YH F W R U V
D U U D Q J H G V LG H E \ V LG H  7K H H OH P H Q W V R I LQ W H U H V W D U H U D Q G Wb W K D W F R U U H V S R Q G LQ J W R
W K H J X LG H G P R G H V u D Q G ub U H V S H F W LYH O\ 7R G H W H U P LQ H UQ D Q G WQ D Q G F R Q V H TX H Q W O\
U D Q G Wb  W K H D E R YH H TX D W LR Q LV D U U D Q J H G D V IR OOR ZV
 
x y
Q  U
Q  Q 
bub u  b 7yb ub      
WQ

6 LP LOD U H TX D W LR Q V F D Q E H ZU LW W H Q IR U W K H p H OG V V K R ZQ LQ p J X U H   F  $ S S O\LQ J W K H
W U D Q V IH U P D W U L[ G H p Q LW LR Q R I W K H y  S K D V H V K LIW U H J LR Q  ZH K D YH

Q Q
u  ub UQ 7y u WQ    

5 H D U U D Q J LQ J W K H P D W U LF H V W R G H W H U P LQ H UQ D Q G WQ 
 
x y U
Q  Q  Q 
bu ub  b 7y u      
WQ

)U R P ZK LF K ZH F D Q H YD OX D W H Ub D Q G W ZK LF K D U H W K H H OH P H Q W V R I W K H UQ D Q G WQ
YH F W R U V F R U U H V S R Q G LQ J W R W K H J X LG H G P R G H V ub D Q G u U H V S H F W LYH O\

 7 KH 7 0 FDVH

: H S U R F H H G D V LQ W K H 7( F D V H  )LJ X U H    D V K R ZV W K H W K U H H U H J LR Q V R I W K H OD V H U
V W U X F W X U H Q D P H O\ W K H y  S K D V H V K LIW U H J LR Q  W K H OH IW U H J LR Q D Q G W K H U LJ K W U H J LR Q
ZLW K X Q LIR U P J U D W LQ J R I S H U LR G LF LW \ e  7K H H OH F W U LF D Q G W K H P D J Q H W LF p H OG V LQ W K H
U H J LR Q V ZLW K X Q LIR U P J U D W LQ J V F D Q E H R E W D LQ H G IR OOR ZLQ J W K H D Q D O\V LV R I V H F W LR Q   
   &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

)LJ X U H     D $ y SKDVH VKLIW UHJLRQ LV LQVHUWHG LQ WKH PLGGOH RI WKH ODVHU VWUXFWXUH E WKH

OHIW SURSDJDWLQJ JXLGHG PRGH u>  LV LQFLGHQW RQ WKH y SKDVH VKLIW UHJLRQ IURP WKH ULJKW UHJLRQ
DQG F WKH ULJKW SURSDJDWLQJ JXLGHG PRGH u  LV LQFLGHQW RQ WKH y SKDVH VKLIW UHJLRQ IURP WKH
OHIW UHJLRQ

/ H W % D Q G %  E H W K H P D J Q H W LF p H OG V R I W K H J X LG H G P R G H V LQ W K H X Q LIR U P J U D W LQ J
U H J LR Q V  7K H J X LG H G p H OG % LQ W K H U H J LR Q W R W K H OH IW R I W K H y  S K D V H V K LIW U H J LR Q
LV J LYH Q E \ H TX D W LR Q     $ V LP LOD U H [S U H V V LR Q F D Q E H ZU LW W H Q IR U W K H p H OG %  R I
P R G H V LQ W K H U H J LR Q W R W K H U LJ K W R I W K H y  S K D V H V K LIW U H J LR Q  K H Q F H 
K L
F%] [ \ & F%] [ \  ~F%]b [ \ 
K L
F%] [ \ &  F%] [ \  qF%]b [ \     
   7+ ( / $ 6 ,1 * &21 ' ,7,21 )25 $ y  3 + $ 6 ( 6 + ,)7( ' ' )% / $ 6 ( 5   

ZK H U H & &   ~ D Q G q D U H F R Q V W D Q W V  : H V S OLW % D Q G %  LQ W R U LJ K W S U R S D J D W LQ J D Q G


OH IW S U R S D J D W LQ J S D U W V D V IR OOR ZV 

F%] [ \ F% U [ \  F% O [ \ 

F%] [ \ F%  U [ \  F%  O [ \     

ZK H U H

F% U [ \ & F%] U  ~F%] Ub 

F% O [ \ & F%] O  ~F%] Ob 

F%  U [ \ &  F%] U  qF%] Ub 

F%  O [ \ &  F%] O  qF%] Ob    

,Q W K H D E R YH H TX D W LR Q V  W K H p H OG V G H Q R W H G E \ W K H S OX V V LJ Q D Q G W K H P LQ X V V LJ Q
F R U U H V S R Q G W R c N D Q G c Nb U H V S H F W LYH O\ 5 H IH U U LQ J W R p J X U H     ZH F D Q ZU LW H
G R ZQ W K H OD V LQ J F R Q G LW LR Q  $ W W K H OH IW ID F H W E R X Q G D U \ [ [  W K H U D W LR R I W K H
U LJ K W S U R S D J D W LQ J p H OG W R W K H OH IW S U R S D J D W LQ J LV G H W H U P LQ H G E \ 5O  W K H U H q H F W LR Q
F R H r F LH Q W H [S U H V V H G E \ H TX D W LR Q      D V IR OOR ZV 

% U [  bE 
5O    
% O [  bE 

ZK LF K OH D G V W R W K H IR OOR ZLQ J H TX D W LR Q IR U ~

5O % O [  bE  b % U [  bE 
~    
% Ub [  bE  b 5O % Ob [  bE 

$ V LP LOD U F R Q G LW LR Q D U LV H V D W W K H U LJ K W ID F H W E R X Q G D U \ [ [ ZLW K 5O U H S OD F H G E \
W K H U H q H F W LR Q F R H r F LH Q W 5U J LYH Q E \ H TX D W LR Q     LQ W K H S U H YLR X V V H F W LR Q  7K H Q

%  O [  bE 
5U    
%  U [  bE 
   &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

ZK LF K OH D G V W R W K H IR OOR ZLQ J H TX D W LR Q IR U q
5U %  U [ bE  b %  O [  bE 
q    
%  Ob [ bE  b 5U %  Ub [  bE 
$ W U D Q V P LV V LR Q P D W U L[ LV G H p Q H G IR U W K H y  V H F W LR Q W R U H OD W H W K H p H OG V D W W K H U H J LR Q
W R W K H OH IW R I W K H y  V H F W LR Q W R W K R V H D W W K H U H J LR Q W R LW V U LJ K W D V IR OOR ZV 
    
 U 
 %   WUU WUO   % U 
        
%  O WOU WOO % O
6 X E V W LW X W LQ J H TX D W LR Q V     IR U W K H p H OG V D W W K H E R X Q G D U LH V R I W K H y  V H F W LR Q 
    
&   %] U  q%] Ub  
 WUU WUO   %] U  ~%] Ub 
        
& %] O  q%] Ob WOU WOO %] O  ~%] Ob
[ [ [ [

6 R OYLQ J W K H V H H TX D W LR Q V IR U &  & ZH R E W D LQ W K H IR OOR ZLQ J OD V LQ J F R Q G LW LR Q 


WUU %] U  ~%] Ub  WUO %] O  ~%] Ob %] U  q%] Ub
U Ub O Ob
M[ [  O
M
 Ob [ [
   
WOU %]  ~%]  WOO %]  ~%] %]  q%]
7K H D Q D O\V LV X V H G LQ G H W H U P LQ LQ J W K H U H q H F W LR Q F R H r F LH Q W D W W K H H Q G ID F H W V R I W K H
OD V H U LV IR OOR ZH G W R G H W H U P LQ H W K H H OH P H Q W V WUU  WUO c c c R I W K H y  V H F W LR Q W U D Q V P LV V LR Q

P D W U L[ )LJ X U H    E V K R ZV W K H U LJ K W S U R S D J D W LQ J J X LG H G P R G H ub LQ F LG H Q W R Q W K H

y  S K D V H V K LIW U H J LR Q IU R P W K H U LJ K W U H J LR Q  : H G H Q R W H E \ U D Q G Wb W K H D P S OLW X G H
U H q H F W LR Q F R H r F LH Q W D Q G W K H D P S OLW X G H W U D Q V P LV V LR Q F R H r F LH Q W R I W K H y  S K D V H

V K LIW U H J LR Q F R U U H V S R Q G LQ J W R c N D Q G c Nb U H V S H F W LYH O\ 7K H J X LG H G P R G H ub F D Q
E H G H W H U P LQ H G IU R P W K H H LJ H Q YD OX H H TX D W LR Q      7  e uQ yQ uQ  ZK H U H 7  e LV
G H p Q H G E \
J M
: J M
7 e :    
[ [ [ [ e

7K H J X LG H G P R G H V F D Q E H H [S U H V V H G D V W K H V X P R I U LJ K W P R YLQ J D Q G OH IW P R YLQ J
S D U W V D V IR OOR Z
U O

ub ub  ub 
   7+ ( / $ 6 ,1 * &21 ' ,7,21 )25 $ y  3 + $ 6 ( 6 + ,)7( ' ' )% / $ 6 ( 5   


u u U  u O     

$ S S O\LQ J H TX D W LR Q     W R W K H p H OG V R I p J X U H    E  R Q H J H W V
 U U
   
U
 
 ub  U u   WUU WUO   Wb ub 

O O    O     

ub  U u WOU WOO Wb ub

6 LP LOD U O\ p J X U H    F V K R ZV W K H OH IW S U R S D J D W LQ J J X LG H G P R G H u LQ F LG H Q W R Q W K H

y  S K D V H V K LIW U H J LR Q IU R P W K H OH IW U H J LR Q  : H G H Q R W H E \ Ub D Q G W W K H D P S OLW X G H
U H q H F W LR Q F R H r F LH Q W D Q G W K H D P S OLW X G H W U D Q V P LV V LR Q F R H r F LH Q W R I W K H y  S K D V H

V K LIW U H J LR Q F R U U H V S R Q G LQ J W R c Nb D Q G c N U H V S H F W LYH O\ 7K H J X LG H G P R G H u LV W K H
H LJ H Q YH F W R U F R U U H V S R Q G LQ J W R c N R I W K H H LJ H Q YD OX H S U R E OH P 7  e uQ yQ uQ  ZK H U H
7  e LV G H p Q H G E \
J M
: J M
7 e :    
[ [ be [ [

7K H Q U H IH U U LQ J W R p J X U H    F  H TX D W LR Q     F D Q E H ZU LW W H Q D V 
    
U U U
   
 W u   WUU WUO   u  Ub ub 
    O O     
W u O WOU WOO 
u  Ub ub

5 H D U U D Q J LQ J H TX D W LR Q V     D Q G      W K H IR X U H OH P H Q W V R I W F D Q E H H YD OX D W H G
IU R P 
   b  
U U O O U
  
 WUU   u  Ub ub u  Ub ub   W u 
   U O   U U     
WUO Wb ub Wb ub 
ub  U u

D Q G
   U
b  
O

 WOU   u

 Ub ub U u O  Ub
 O
ub   W u 
   U O   O O     
WOO Wb ub Wb ub ub  
U u
 
7K H D P S OLW X G H U H q H F W LR Q D Q G D P S OLW X G H W U D Q V P LV V LR Q F R H r F LH Q W V U  Ub  W  D Q G Wb
F D Q E H R E W D LQ H G W K U R X J K G H p Q LQ J D W U D Q V IH U P D W U L[ 7 y  IR U W K H y  S K D V H V K LIW
   &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

U H J LR Q E \
J M
: J M
7 y :    
[ [ [ [

7K H Q  W K H P D W U L[ R E H \V H TX D W LR Q     ZLW K D U H S OD F H G E \ y  
  b
I  I I ' HLyP y 
 I
 ƒ  ƒ  ƒ  ƒ ' HbLyP y  
  
     
7 y 
 ccc  ccc 
 ccccccccc  ccccccccc 

    
I ' yz 
ƒ  bƒ H ' yz  P
I I ' yz  HLy P y 
ƒ  bƒ H ' yz P HbLyP y 
I
H P H P
   
*R LQ J E D F N W R p J X U H    E  ZH F D Q V H H W K D W W K H p H OG V D W W K H U LJ K W E R X Q G D U \ R I W K H
y  V H F W LR Q D U H U H OD W H G W R W K R V H D W W K H OH IW E R X Q G D U \ E \ W K H W U D Q V IH U P D W U L[ 7 y 

ubQ WQ 7  y >ub

 uQ UQ @    

ZK H U H ubQ D Q G uQ D U H W ZR P D W U LF H V V X F K W K D W W K H LU F R OX P Q V D U H W K H H LJ H Q YH F W R U V D U 

U D Q J H G V LG H E \ V LG H  U D Q G Wb D U H W K H H OH P H Q W V W K D W F R U U H V S R Q G W R W K H J X LG H G P R G H V
  
u D Q G ub U H V S H F W LYH O\ 7R G H W H U P LQ H U D Q G Wb W K H D E R YH H TX D W LR Q LV D U U D Q J H G D V
IR OOR ZV  
x y U
 Q   Q 
bub u  b 7yb ubQ      
WQ
$ V LP LOD U H TX D W LR Q F D Q E H ZU LW W H Q IR U W K H p H OG V V K R ZQ LQ p J X U H    F  $ S S O\LQ J W K H
W U D Q V IH U P D W U L[ G H p Q LW LR Q R I W K H y  S K D V H V K LIW U H J LR Q  ZH K D YH


u  ubQ UQ 7y uQ WQ    

ZK LF K F D Q E H U H D U U D Q J H G D V 
 
x y U

 b 7y uQ 
 Q Q 
bu ub      
WQ

Ub D Q G W D U H W K H H OH P H Q W V R I W K H U H q H F W LR Q D Q G W K H W U D Q V P LV V LR Q YH F W R U V UQ D Q G WQ
 
F R U U H V S R Q G LQ J W R W K H J X LG H G P R G H V ub D Q G u U H V S H F W LYH O\
   ' )% / $ 6 ( 5 : ,7+ 6 ( &21 ' 25 ' ( 5 *5 $ 7,1 *6   

 ')% /DVHU ZLWK 6HFRQG 2U GHU *U DWLQJV


7K H D Q D O\V LV R I W K H H OH F W U LF D Q G W K H P D J Q H W LF p H OG V LQ D ' )% OD V H U ZLW K V H F R Q G R U G H U
J U D W LQ J V LV V LP LOD U W R W K H D Q D O\V LV R I D ' )% OD V H U ZLW K p U V W R U G H U J U D W LQ J G H V F U LE H G
LQ V H F W LR Q V   D Q G   IR U W K H 7( F D V H D Q G W K H 70 F D V H U H V S H F W LYH O\ ZLW K F H U W D LQ
P R G Lp F D W LR Q V G H V F U LE H G E H OR Z

 0 RGLpFDWLRQV WR WKH /DVLQJ &RQGLWLRQ IRU 8QLIRU P


')% /DVHU V

&R Q V LG H U LQ J W K H 7( F D V H  W K H OD V LQ J F R Q G LW LR Q G LV F X V V H G LQ V H F W LR Q    LV P R G Lp H G
V X F K W K D W W K H Q R U P D OL] H G P R G H H [S U H V V H G E H IR U H D V (]h (] Uh  (] Oh D F F R U G LQ J
W R H TX D W LR Q    ZLOO Q R Z E H 

(]h (] Uh  (] Oh  (] Gh     

ZK H U H (] Uh  (] Oh D Q G (] Gh G H Q R W H U H V S H F W LYH O\ W K H U LJ K W P R YLQ J  W K H OH IW P R YLQ J


D Q G D OP R V W Q R U P D O P R YLQ J U D G LD W LR Q P R G H S D U W V R I W K H p H OG  7K D W LV 

;
(] Uh [ \ HL QN c ND [
8Qh \
QIQD
U J
;
(] Oh [ \ HL QN c ND [
8Qh \
QIQD
O J
;
(] Gh [ \ HL QN c ND [
8Qh \     
QIQD
GJ

ZK H U H IQh
G J D U H W K H YD OX H V R I Q ZK LF K P D NH M QN  c Nh M P X F K V P D OOH U W K D Q  } e

D Q G ZK H U H IQh
U J D Q G IQh
O J D U H W K H YD OX H V R I Q ZK LF K P D NH QN  c Nh S R V LW LYH
D Q G Q H J D W LYH U H V S H F W LYH O\ $ Q X P H U LF D O H [D P S OH P D \ K H OS W R F OD U LI\ K R Z R Q H F D Q
   &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

G H W H U P LQ H W K H YD OX H V R I Q W K D W E H OR Q J W R W K H W K U H H S D U W V R I W K H p H OG  &R Q V LG H U W K H
p H OG F R U U H V S R Q G LQ J W R c N  Q D P H O\ (]  )R U D ' )% OD V H U ZLW K V H F R Q G R U G H U J U D W LQ J 
c N OLH V D U R X Q G  } e  7K X V  D V V X P LQ J W K D W c N  } e  r ZK H U H M r M P X F K
V P D OOH U W K D Q  } e W K H U D G LD W LR Q OR V V S D U W R I W K H p H OG LV D V V R F LD W H G ZLW K Q b
ZK LF K P D NH V QN  c N LQ R U G H U R I r ,Q W K LV F D V H  IQh
UJ LV W K H V H W R I LQ W H J H U V
Q  I      c c cJ ZK LF K P D NH QN  c N H TX D OV I } e  r  } e  r  } e  r c c cJ
ZK LOH IQh
O J LV W K H V H W R I LQ W H J H U V Q  Ib  b  b  c c cJ ZK LF K P D NH QN  c N H TX D OV

Ib } e  r b } e  r b } e  r c c cJ

$ V W K H U D G LD W LR Q P R G H LV W K H S D U W R I W K H p H OG W K D W S U R S D J D W H V D OP R V W Q R U P D O
W R W K H S OD Q H R I W K H J U D W LQ J  LW V H oH F W R Q W K H U H q H F W LR Q D W WK H E R X Q G D U\ F D Q E H
Q H J OH F W H G D Q G W K H G H p Q LW LR Q R I W K H D P S OLW X G H U H q H F W LYLW \ IR OOR ZV H TX D W LR Q V    D Q G
    &R Q V H TX H Q W O\ W K H OD V LQ J F R Q G LW LR Q H [S U H V V H G E \ H TX D W LR Q    LV YD OLG IR U ' )%
OD V H U ZLW K V H F R Q G R U G H U J U D W LQ J 

6 LP LOD U O\ W K H 70 D Q D O\V LV G H V F U LE H G LQ V H F W LR Q    LV P R G Lp H G V X F K W K D W W K H


Q R U P D OL] H G P R G H S U H YLR X V O\ H [S U H V V H G E \ H TX D W LR Q    IR OOR ZV 

F%]h F%] Uh  F%] Oh  F%] Gh     

ZK H U H %] Uh  %] Oh D Q G %] Gh G H Q R W H U H V S H F W LYH O\ W K H U LJ K W P R YLQ J  W K H OH IW P R YLQ J


D Q G W K H U D G LD W LR Q S D U W V R I W K H p H OG  7K H U H q H F W LYLW LH V D W W K H OH IW ID F H W  D W W K H U LJ K W
ID F H W  D Q G W K H OD V LQ J F R Q G LW LR Q R E H \ H TX D W LR Q V        D Q G    U H V S H F W LYH O\
   ' )% / $ 6 ( 5 : ,7+ 6 ( &21 ' 25 ' ( 5 *5 $ 7,1 *6   

 0 RGLpFDWLRQV RI WKH ODVLQJ FRQGLWLRQ IRU D y SKDVH


VKLIWHG ')% ODVHU

,Q ZK D W IR OOR ZV  W K H p H OG V G H Q R W H G E \ W K H S OX V V LJ Q D Q G W K H P LQ X V V LJ Q F R U U H V S R Q G
W R c N D Q G c Nb U H V S H F W LYH O\ ZK LOH W K H V \P E R OV U D Q G O U H IH U W R W K H U LJ K W P R YLQ J
D Q G W K H OH IW P R YLQ J S D U W V R I W K H p H OG V 
,Q V H F W LR Q     W K H 7( F D V H K D V E H H Q W U H D W H G  ,W LV D V V X P H G W K D W ( D Q G (  D U H
W K H H OH F W U LF J X LG H G P R G H V LQ W K H U H J LR Q W R W K H OH IW D Q G LQ W K H U H J LR Q W R W K H U LJ K W R I
W K H y  V H F W LR Q D V V K R ZQ LQ p J X U H    7K H V H p H OG V D U H P R G Lp H G W R LQ F OX G H W H U P V
W K D W U H S U H V H Q W W K H Q R U P D O P R YLQ J p H OG V  W K D W LW F D Q E H H [S U H V V H G D V 

(] [ \ ( U [ \  ( O [ \  ( G [ \ 

(] [ \ (  U [ \  (  O [ \  ( G [ \     

ZK H U H W K H W K LU G W H U P U H S U H V H Q W V W K H U D G LD W LR Q OR V V 

( G [ \ & (] G  ~(] Gb 

(  G [ \ &  (] G  q(] Gb 

   

7K H U H V W R I W K H D Q D O\V LV G H V F U LE H G LQ V H F W LR Q    LV W K H Q D S S OLH G W R D ' )% OD V H U


ZLW K V H F R Q G R U G H U J U D W LQ J V 

6 LP LOD U P R G Lp F D W LR Q V D U H G R Q H IR U W K H 70 F D V H G LV F X V V H G LQ V H F W LR Q     2Q O\
W K H H [S U H V V LR Q V R I W K H p H OG V LQ W K H U H J LR Q W R W K H OH IW D Q G LQ W K H U H J LR Q W R W K H U LJ K W R I
W K H y  V H F W LR Q Q D P H O\ % D Q G %  D U H P R G Lp H G  ,Q D ' )% OD V H U ZLW K V H F R Q G R U G H U
J U D W LQ J V  U D G LD W LR Q OR V V W H U P V D U H D G G H G W R H TX D W LR Q V     W R E H F R P H

%] [ \ % U [ \  % O [ \  % G [ \ 
   &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6

%] [ \ %  U [ \  %  O [ \  % G [ \     

ZK H U H

% G [ \ & %] G  ~%] Gb 

%  G [ \ &  %] G  q%] Gb 

   

7K H U H V W R I W K H D Q D O\V LV G H V F U LE H G LQ V H F W LR Q    LV W K H Q D S S OLH G IR U D ' )% OD V H U


ZLW K V H F R Q G R U G H U J U D W LQ J V 

 0 RGLpFDWLRQV IRU 5HqHFWLYLW\ &DOFXODWLRQV

,Q V H F W LR Q   W K H H TX D W LR Q V Q H H G H G W R F D OF X OD W H W K H ID F H W U H q H F W LYLW \ K D YH E H H Q
G H U LYH G  ,W K D V E H H Q D V V X P H G W K D W W K H OD V H U K D V D V S D W LD O S H U LR G LF LW \ e \ LQ W K H \
G LU H F W LR Q ZLW K e \ OD U J H H Q R X J K IR U W K H J X LG H G P R G H V W R ID OO W R ] H U R  ,Q F D V H R I D
' )% OD V H U ZLW K V H F R Q G R U G H U J U D W LQ J LW LV D V V X P H G W K D W W K H U H LV D Q D E V R U E LQ J OD \H U
E H OR Z W K H OD V H U V W U X F W X U H W K D W J X D U D Q W H H V W K H G H F D \ R I W K H U D G LD W LR Q OR V V ZD YH D V
V K R ZQ LQ p J X U H     ,W LV D V V X P H G W K D W W K H D E V R U E LQ J OD \H U K D V D F R P S OH [ G LH OH F W U LF
F R Q V W D Q W sG D Q G D W K LF NQ H V V G J LYH Q E \

sG sU  LsL 
T
G e sU      

7K H G LH OH F W U LF F R Q V W D Q W sG R I W K H D E V R U E LQ J OD \H U LV F K R V H Q W R U H G X F H W K H U H q H F W LR Q D W
W K H D E V R U E LQ J  W R S OD \H U V E R X Q G D U \ 7K H W K LF NQ H V V R I W K H D E V R U E LQ J OD \H U LV V H OH F W H G
W R H Q V X U H W K D W W K H U D G LD W LR Q OR V V LV F R P S OH W H O\ D W W H Q X D W H G ZLW K LQ W K LV OD \H U 
   ' )% / $ 6 ( 5 : ,7+ 6 ( &21 ' 25 ' ( 5 *5 $ 7,1 *6   

)LJ X U H     7KH UHJLRQ   [  e RI WKH VWUXFWXUH LV GLYLGHG LQWR WKLQ VOLFHV E\ SODQHV
SHUSHQGLFXODU WR WKH [D[LV HDFK VOLFH ZLWK D GLHOHFWULF IXQFWLRQ asU \ ZKLFK LV DSSUR[LPDWHG
E\ D SLHFHZLVHFRQVWDQW SHULRGLF IXQFWLRQ RI \ ZLWK SHULRGLFLW\ e\  $Q DEVRUELQJ OD\HU RI WKLFNQHVV
G DQG GLHOHFWULF FRQVWDQW sG LV LQVHUWHG DW WKH HQG RI WKH \ SHULRG
   &+ $ 3 7( 5   5 ,*25 28 6 &28 3 / ( ' : $ 9 ( $ 1 $ / < 6 ,6 2) ' )% / $ 6 ( 5 6
&KDSWHU 

1 XPHU LFDO 5HVXOWV IRU ')% /DVHU V

 )LU VW2U GHU ')% /DVHU


,Q W K LV V H F W LR Q  Q X P H U LF D O U H V X OW V D U H S U H V H Q W H G IR U D IR X U OD \H U ' )% V W U X F W X U H ZLW K
p U V W R U G H U J U D W LQ J V  7K H W K U H V K R OG J D LQ D Q G OD V LQ J IU H TX H Q F \ IR U E R W K W K H W U D Q V YH U V H
H OH F W U LF D Q G W U D Q V YH U V H P D J Q H W LF OD V H U P R G H V  W K H H oH F W V R I ZD YH J X LG H V W U X F W X U H
D Q G W K H ID F H W U H q H F W LYLW LH V D U H V W X G LH G  7K H IR X U OD \H U ' )% V W U X F W X U H ZLW K p U V W 
R U G H U J U D W LQ J V W R E H F R Q V LG H U H G LV V K R ZQ LQ p J X U H    7K H G H ID X OW YD OX H V IR U W K H
S D U D P H W H U V X V H G LQ W K H Q X P H U LF D O F R P S X W D W LR Q V D U H OLV W H G LQ 7D E OH    ,Q ZK D W
IR OOR ZV  7( hQ D Q G 70hQ G H Q R W H U H V S H F W LYH O\ QWK W U D Q V YH U V H H OH F W U LF D Q G W U D Q V YH U V H
P D J Q H W LF OD V H U P R G H V  ZLW K W K H S OX V D Q G P LQ X V V LJ Q V U H IH U U LQ J U H V S H F W LYH O\ W R P R G H V
D E R YH D Q G E H OR Z W K H F R U U H V S R Q G LQ J J D S V 

  
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6

)LJ X U H    $ IRXUOD\HU JXLGLQJ VWUXFWXUH ZKLFK LQFOXGHV D JUDWLQJ UHJLRQ RI WKLFNQHVV K


 zP ZKLFK KDV D VSDWLDO SHULRGLFLW\ e  zP LQ WKH [GLUHFWLRQ EXW RWKHUZLVH KDV DQ
DUELWUDU\ SURpOH 7KH JUDWLQJ OLHV EHWZHHQ WKH DFWLYH UHJLRQ ZKLFK KDV D UHIUDFWLYH LQGH[ QD 
DQG WKLFNQHVV E  zP DQG WKH VXEVWUDWH ZKLFK KDV D UHIUDFWLYH LQGH[ QV  $ERYH WKH
DFWLYH UHJLRQ WKHUH LV D WRS PHGLXP RI D UHIUDFWLYH LQGH[ QW 
   ),5 6 725 ' ( 5 ' )% / $ 6 ( 5   

3 DU DPHWHU 'HIDXOW 9DOXH


/ D V H U / H Q J WK /    zP
*U D W LQ J 3 H U LR G e   zP
5 H F W D Q J X OD U *U D W LQ J R I G X W \ U D W LR U  
*U D W LQ J 7K LF NQ H V V K    zP
$ F W LYH 5 H J LR Q 7K LF NQ H V V E    zP
6 X E V W U D W H 5 H IU D F W LYH ,Q G H [ QV  
7R S 5 H J LR Q 5 H IU D F W LYH ,Q G H [ QW  
$ F W LYH 5 H J LR Q 5 H IU D F W LYH ,Q G H [ Q  
6 X E V W U D W H / R V V oV 

7D E OH    7KH GHIDXOW YDOXHV IRU WKH SDUDPHWHUV RI WKH pUVWRUGHU ')% VWUXFWXUH XVHG LQ WKH
QXPHULFDO FRPSXWDWLRQV
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6

 =HU R )DFHW 5HqHFWLYLW\

: H V W D U W E \ V W X G \LQ J W K H G LV S H U V LR Q U H OD W LR Q V R I W K H F R X S OH G ZD YH V IR U W K H 7( D Q G
70 P R G H V ZK LF K D U H W K H V R OX W LR Q V R I H TX D W LR Q V    D Q G    U H V S H F W LYH O\ )LJ X U H
  V K R ZV W K H U H OD W LR Q E H W ZH H Q W K H ZD YH Q X P E H U c N D Q G W K H IU H TX H Q F \ IR FNR  }
IR U W K H 7( D Q G 70 P R G H V IR U S D V V LYH ZD YH J X LG H V ZLW K R X W J D LQ  7K H p J X U H V K R ZV
W K D W W K H % U D J J IU H TX H Q F LH V D U H G LoH U H Q W LQ W K H F D V H V R I 7( D Q G 70 P R G H V  D Q G W K D W
W K H V W R S E D Q G V D U H F H Q W H U H G D W W K H F R U U H V S R Q G LQ J % U D J J IU H TX H Q F LH V  $ V V K R ZQ LQ
p J X U H  W K H F H Q W H U H G YD OX H R I c N LV D S S U R [LP D W H O\      d  Pb D Q G D S S U R [LP D W H O\
H TX D OV } e  7K LV c N YD OX H LV ZU LW W H Q D V Q
a Ho NR ZK H U H Q
a Ho LV W K H H oH F W LYH U H IU D F W LYH
LQ G H [ R I W K H ZD YH J X LG H  7K H H oH F W LYH U H IU D F W LYH LQ G H [ H TX D OV    LQ W K H 7( F D VH
D Q G    LQ W K H 70 F D V H X V LQ J R X U S D U D P H W H U V  7K H % U D J J IU H TX H Q F \ IR U W K H 70
P R G H LV K LJ K H U W K D Q W K D W R I W K H 7( P R G H LQ G LF D W LQ J D V P D OOH U H oH F W LYH U H IU D F W LYH
LQ G H [

b
)LJ X U H   V K R ZV Q X P H U LF D O U H V X OW V R I W K H W K U H V K R OG J D LQ o LQ F P YH U V X V IU H 
TX H Q F \ IR U W K H p U V W W ZR OR ZH V W P R G H V R I W K H 7( D Q G 70 P R G H V D U R X Q G W K H F R U U H 
V S R Q G LQ J J D S V  7K U H H J U D W LQ J W K LF NQ H V V  K R I          D Q G    zP D U H F R Q V LG 
H U H G  7K H p J X U H V K R ZV W K D W W K H P R G D O W K U H V K R OG J D LQ LV V P D OOH V W IR U W K H W ZR P R G H V
Q H D U H V W W R W K H % U D J J IU H TX H Q F \ ZK H U H D W W K H % U D J J IU H TX H Q F \ LW V H OI Q R OD V LQ J P R G H
H [LV W V  7K H W K U H V K R OG J D LQ LQ F U H D V H V ZLW K W K H V K LIW IU R P W K H % U D J J IU H TX H Q F \ 7K LV
S U R YLG H V W K H V S H F W U D O V H OH F W LYLW \ R I W K H V W U X F W X U H  7K H V W R S E D Q G P D U NH G O\ LQ F U H D V H V
ZLW K LQ F U H D V LQ J W K H F R X S OLQ J U H V X OW LQ J IU R P W K H LQ F U H D V H LQ W K H J U D W LQ J W K LF NQ H V V LQ
D J U H H P H Q W ZLW K W K H U H V X OW V U H S R U W H G E \ 6 K D Q N > @ 7K H p J X U H V K R ZV W K D W W K H 70
P R G H V K D YH J U H D W H U W K U H V K R OG J D LQ V W K D Q W K H 7( P R G H V  )R U W K H 7( P R G H V WK H
P R G H V V \P P H W U LF D OO\ OR F D W H G U H OD W LYH W R W K H % U D J J IU H TX H Q F \ K D YH D OP R V W W K H V D P H
   ),5 6 725 ' ( 5 ' )% / $ 6 ( 5   




I  ×+]



7(
R

70





         
GN ×Pí

)LJ X U H    7KH GLVSHUVLRQ UHODWLRQ IRU WKH 7( DQG 70 FDVHV SORWWHG DV D IXQFWLRQ RI IUHTXHQF\
DURXQG WKH FRUUHVSRQGLQJ JDSV

W K U H V K R OG J D LQ  )R U H [D P S OH D W K    zP  W K H W K U H V K R OG J D LQ R I W K H 7( b D Q G
b
7(  P R G H V H TX D O o    D Q G    F P U H V S H F W LYH O\ )R U W K H 70 P R G H V  W K H U H
LV D V OLJ K W O\ OD U J H U G LoH U H Q F H LQ W K U H V K R OG J D LQ IR U P R G H V V \P P H W U LF D OO\ OR F D W H G U H O
D W LYH W R W K H % U D J J IU H TX H Q F \ )R U H [D P S OH ZLW K K    zP  W K H W K U H V K R OG J D LQ R I
b
W K H 70b D Q G 70 P R G H V H TX D O o      D Q G      F P U H V S H F W LYH O\ 7K H
W K U H V K R OG J D LQ G LoH U H Q F H V ZLOO E H H [S OD LQ H G LQ D F R P LQ J V H F W LR Q 
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6



70
α FPí

 K μP
7(



      


α FPí

 K μP 70
7(



      


α FPí

 K μP
7( 70



      
IR ×+]

)LJ X U H    7KH ODVHU WKUHVKROG FRQGLWLRQV IRU 7( FORVHG VTXDUHV DQG 70 RSHQ FLUFOHV PRGHV
LQ D ')% ODVHUV LQ WKH IRXU OD\HU VWUXFWXUH VKRZQ LQ pJXUH  7KUHH JUDWLQJ WKLFNQHVV DUH
FRQVLGHUHG K  zP K  zP DQG K  zP

7K H OR Q J LW X G LQ D O LQ W H Q V LW \ G LV W U LE X W LR Q R I W K H p U V W 7( P R G H D E R YH W K H % U D J J
IU H TX H Q F \ W K H 7(  P R G H LV V K R ZQ LQ p J X U H    7K H p J X U H V K R ZV W K H Q R U P D OL] H G
IR U ZD U G ZD YH  W K H U H YH U V H ZD YH D Q G W K H W R W D O p H OG  7K H IR U ZD U G ZD YH V W D U W V D W ] H U R
D W W K H OH IW ID F H W [ b/  LI ID F H W U H q H F W LYLW \ LV ] H U R D Q G J U R ZV D V LW S U R S D J D W H V
LQ W K H S R V LW LYH [ G LU H F W LR Q  0H D Q ZK LOH  W K H U H YH U V H ZD YH V W D U W V D W ] H U R D W W K H U LJ K W
   ),5 6 725 ' ( 5 ' )% / $ 6 ( 5   

1RUPDOL]HG)RUZDUGDQG5HYHUVH:DYHVIRU7(


 )RUZDUG:DYH
K  μP

5HYHUVH:DYH
7RWDO)LHOG


α FPí


í í í    


α FPí
K  μP




í í í    


í
K  μP

 α FP




í í í    
[íD[LV

)LJ X U H    1RUPDOL]HG IRUZDUG UHYHUVH DQG WRWDO pHOGV SURSDJDWLQJ LQ WKH IRXU OD\HU VWUXFWXUH
VKRZQ LQ pJXUH  IRU WKH pUVW 7( PRGH DERYH WKH JDS 7(   7KUHH JUDWLQJ WKLFNQHVV DUH
FRQVLGHUHG K  zP K  zP DQG K  zP

ID F H W [ /  D Q G J U R ZV D V LW S U R S D J D W H V LQ W K H Q H J D W LYH [ G LU H F W LR Q  7K U H H YD OX H V
R I W K H J U D W LQ J W K LF NQ H V V K D U H F R Q V LG H U H G W R LOOX V W U D W H W K H IR OOR ZLQ J W K U H H F D V H V 

 8 Q G H U F R X S OLQ J  W K H F D V H ZK H Q W K H F R X S OLQ J LV V P D OO F R U U H V S R Q G LQ J W R W K H V P D OO
J U D W LQ J W K LF NQ H V V K     zP  7K H OR Q J LW X G LQ D O LQ W H Q V LW \ G LV W U LE X W LR Q H [
K LE LW V P D [LP X P S R ZH U D W W K H H Q G ID F H W V [ h/  D Q G K D V P LQ LP X P YD OX H
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6

D W W K H F H Q W H U R I W K H F D YLW \ V R W K D W W K H W R W D O OR V V LV OD U J H 

 2YH U F R X S OLQ J  W K H F D V H ZK H Q W K H F R X S OLQ J LV OD U J H F R U U H V S R Q G LQ J W R W K H U H OD 


W LYH O\ OD U J H J U D W LQ J W K LF NQ H V V K    zP  7K H OR Q J LW X G LQ D O LQ W H Q V LW \ G LV W U L
E X W LR Q S H D NV LQ W K H F D YLW \ F H Q W H U D Q G G H F U H D V H V W R ZD U G V W K H H Q G V R I W K H OD V H U
\LH OG LQ J OR Z W R W D O OR V V 

 &U LW LF D O F R X S OLQ J  W K H F D V H ZLW K P R G H U D W H J U D W LQ J W K LF NQ H V V K     zP  7K H


OR Q J LW X G LQ D O LQ W H Q V LW \ G LV W U LE X W LR Q R I W K H ZD YH V D U H Q H D U O\ X Q LIR U P WK UR X J K R X W
W K H OD V H U G H YLF H

b
7K H W K U H V K R OG J D LQ LV IR X Q G W R E H           D Q G   F P IR U J U D W LQ J W K LF NQ H V V R I
          D Q G    zP U H V S H F W LYH O\ ZK LF K P H D Q V W K D W W K H W K U H V K R OG J D LQ G H F U H D V H V
D V W K H F R X S OLQ J LQ F U H D V H V 

b
)LJ X U H   V K R ZV W K H W K U H V K R OG J D LQ o LQ F P YH U V X V IU H TX H Q F \ IR U W K H p U V W W K U H H
OR ZH V W P R G H V R I ' )% OD V H U D U R X Q G W K H % U D J J IU H TX H Q F \ IR U W K H 7( D Q G 70 P R G H V 
7ZR OD V H U OH Q J W K V D U H F R Q V LG H U H G  /    D Q G    zP  7K H p J X U H V K R ZV W K D W K LJ K H U
W K U H V K R OG J D LQ LV U H TX LU H G LQ W K H F D V H R I D V K R U W OD V H U G H YLF H  )R U H [D P S OH D W V P D OO
b
OD V H U OH Q J W K /    zP W K H U H TX LU H G W K U H V K R OG J D LQ V H TX D OV    D Q G    F P IR U
b
W K H OR ZH V W 7( D Q G 70 P R G H V U H V S H F W LYH O\ F R P S D U H G W R   D Q G   F P LQ F D V H
R I    zP OD V H U OH Q J W K  )U H TX H Q F \ V S D F LQ J E H W ZH H Q W K H P R G H V G H F U H D V H G ZLW K W K H
OH Q J W K R I W K H OD V H U G H YLF H  )R U D V K R U W OD V H U /    zP R YH U OD S E H W ZH H Q W K H K LJ K H U
R U G H U 7( P R G H V D Q G W K R V H R I 70 P R G H V P D \ R F F X U D V D U H V X OW R I W K H LQ F U H D V H LQ
W K H V K LIW IU R P W K H % U D J J IU H TX H Q F \
   ),5 6 725 ' ( 5 ' )% / $ 6 ( 5   

/ μP



70
α FPí


7(




       

/ μP



 70
α FPí

 7(




       

IR × +]

)LJ X U H    7KH ODVHU WKUHVKROG FRQGLWLRQV IRU 7( FORVHG VTXDUHV DQG 70 RSHQ FLUFOHV PRGHV
LQ D ')% ODVHUV LQ WKH IRXU OD\HU VWUXFWXUH VKRZQ LQ pJXUH  7ZR ODVHU OHQJWKV DUH FRQVLGHUHG
/  zP DQG /  zP

 )DFHW 5HqHFWLYLW\

7K H ID F H W U H q H F W LYLW \ LV F D OF X OD W H G IR U W K H V W U X F W X U H V K R ZQ LQ p J X U H   D W W K H OH IW H Q G
ID F H W X V LQ J H TX D W LR Q V     D Q G     IR U W K H 7( P R G H V D Q G 70 P R G H V U H V S H F W LYH O\
)LJ X U H   V K R ZV W K H ID F H W D P S OLW X G H U H q H F W LYLW \ 5 LQ W K H 7( D Q G 70 F D V H V S OR W W H G
D V D IX Q F W LR Q R I IU H TX H Q F \ D U R X Q G W K H F R U U H V S R Q G LQ J J D S IR U V H YH U D O YD OX H V R I W K H
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6


7(
70

Q 


5HIOHFWLYLW\ 5 

Q 



Q 


Q 

 Q 

7(JDS Q  70JDS



     
I  ×+]
R

)LJ X U H    )DFHW DPSOLWXGH UHqHFWLYLW\ 5 LQ WKH 7( DQG 70 FDVHV SORWWHG DV D IXQFWLRQ RI


IUHTXHQF\ DURXQG WKH FRUUHVSRQGLQJ JDS IRU VHYHUDO YDOXHV RI WKH UHIUDFWLYH LQGH[ Q RI WKH RXWVLGH
UHJLRQ

U H IU D F W LYH LQ G H [ Q R I W K H R X W V LG H U H J LR Q  7K H p J X U H V K R ZV W K D W W K H U H q H F W LYLW \ LV
D OP R V W IU H TX H Q F \LQ G H S H Q G H Q W LQ W K H 7( F D V H  K H Q F H R Q H G R H V Q R W K D YH W R U H F D OF X OD W H
W K H U H q H F W LYLW LH V H D F K W LP H W K H OD V LQ J F R Q G LW LR Q LV F K H F NH G ZLW K Q H Z YD OX H V R I IR D Q G
o 6 X F K D F D OF X OD W LR Q P D NH V K H D Y\ X V H R I F R P S X W H U U H V R X U F H V V LQ F H D V P D Q \ D V   
V S D F H K D U P R Q LF V P D \ E H Q H H G H G IR U U H q H F W LYLW \ F D OF X OD W LR Q LQ V R P H F D V H V LQ F R Q W U D V W
   ),5 6 725 ' ( 5 ' )% / $ 6 ( 5   

 
5 5
P
H
5 5
70
7(
 

 

 

 

 

 

 
       
UHIUDFWLYHLQGH[Q UHIUDFWLYHLQGH[Q

)LJ X U H    7KH DYHUDJHG UHqHFWLYLW\ 57 ( DQG 57 0 RYHU WKH IUHTXHQF\ UDQJH VKRZQ LQ pJXUH
 IRU 7( DQG 70 FDVHV UHVSHFWLYHO\ FRPSDUHG WR WKH UHqHFWLYLWLHV 5H DQG 5P FDOFXODWHG XVLQJ
WKH HoHFWLYH LQGHFLHV IRU WKH 7( DQG 70 FDVHV UHVSHFWLYHO\

W R W K H U H V W R I W K H F D OF X OD W LR Q ZK H U H D V P D OO Q X P E H U R I V S D F H K D U P R Q LF V V X r F H V  7K H
IU H TX H Q F \ G H S H Q G H Q F H LQ W K H 70 F D V H LV V OLJ K W O\ P R U H D S S U H F LD E OH 

7K H YD OX H V R I 5 D U H V R P H ZK D W G LoH U H Q W IU R P ZK D W R Q H ZR X OG J H W IU R P D Q H oH F W LYH
U H IU D F W LYH LQ G H [ c N NR ZK LF K LV D E R X W    D Q G    IR U W K H 7( D Q G 70 F D V H V
U H V S H F W LYH O\ 7K H D YH U D J H G U H q H F W LYLW LH V D U H F D OF X OD W H G R YH U W K H IU H TX H Q F \ U D Q J H D Q G
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6

S OR W W H G LQ p J X U H   IR U W K H 7( D Q G 70 F D V H V  7K H H [S H F W H G U H q H F W LYLW LH V 5H D Q G
5P D U H F D OF X OD W H G E \ Q
a Ho b Q Q
a Ho  Q ZK H U H Q
a Ho LV W K H H oH F W LYH LQ G H [ R I W K H P R G H
LQ TX H V W LR Q  )LJ X U H   V K R ZV W K H D YH U D J H G U H q H F W LYLW \ D Q G W K H H [S H F W H G R Q H YH U V X V
W K H R X W V LG H U H IU D F W LYH LQ G H [ Q : H F D Q V H H IU R P W K H p J X U H W K D W W K H YD OX H V R I W K H
U H q H F W LYLW \ D U H K LJ K H U W K D Q W K H H [S H F W H G YD OX H V IR U W K H 7( P R G H V D Q G OR ZH U W K D Q
W K R V H IR U W K H 70 P R G H V  $ Q H Z H oH F W LYH LQ G H [ QHo Q F D Q E H G H p Q H G E \

 5
QHo Q   
 b5

$ Q D Q W LU H q H F W LYH F R D W LQ J $ 5 & S U R YLG H G D W W K H OD V H U H Q G ID F H W ZLW K D U H IU D F W LYH


LQ G H [ Q$ 5& ZR X OG J D U D Q W H H P LQ LP X P U H q H F W LR Q D W W K D W ID F H W LI Q$ 5& H TX D OV W K H
J H R P H W U LF P H D Q R I U H IU D F W LYH LQ G H [ R I W K H D LU D Q G W K D W R I W K H OD V H U V W U X F W X U H P H G LX P 
1 R W H W K D W W K H Q H Z G H p Q H G H oH F W LYH LQ G H [ QHo G H S H Q G V R Q W K H R X W V LG H U H IU D F W LYH LQ G H [
W K D W LV Q$ 5& QHo Q$ 5&  7K H H oH F W LYH U H IU D F W LYH LQ G H [ LV S OR W W H G LQ p J X U H   D V

D IX Q F W LR Q R I W K H R X W V LG H U H IU D F W LYH LQ G H [ Q D W I       d   + ] LQ W K H 7(

F D VH D Q G D W I      d   + ] LQ W K H 70 F D V H  $ OV R S OR W W H G LQ W K H p J X U H LV W K H

TX D G U D W LF OLQ H QHo Q Q ZK R V H LQ W H U V H F W LR Q V ZLW K W K H 7( D Q G 70 F X U YH V J LYH W K H
R S W LP X P YD OX H V IR U W K H U H IU D F W LYH LQ G H [ R I D Q D Q W LU H q H F W LYH F R D W LQ J $ 5 & R I W K H
OD V H U H Q G ID F H W V LQ W K H W ZR F D V H V  7K H LQ W H U V H F W LR Q V R F F X U V D W Q    D Q G Q   
IR U W K H 7( D Q G 70 F D V H V U H V S H F W LYH O\

7K H F D OF X OD W LR Q V R I U H q H F W LYLW \ LV U H S H D W H G D V V X P LQ J W K D W W K H OD V H U H Q G ID F H W V
K D YH D Q D Q W LU H q H F W LYH F R D W LQ J R I U H IU D F W LYH LQ G H [ Q$ 5& D Q G W K LF NQ H V V W$ 5&  7K H
U H q H F W LYLW \ LV S OR W W H G D V D IX Q F W LR Q R I W K H $ 5 & OD \H U W K LF NQ H V V W$ 5& IR U V H YH U D O YD OX H V
R I LW V U H IU D F W LYH LQ G H [ Q$ 5& D V V K R ZQ LQ p J X U H    7K H R S W LF D O W K LF NQ H V V R I W K H OD \H U
V K R X OG E H D TX D U W H U ZD YH OH Q J W K  % H F D X V H R I W K H R E OLTX H LQ F LG H Q F H R I W K H ZD YH R Q W K H
   ),5 6 725 ' ( 5 ' )% / $ 6 ( 5   




7(


 70
QHII



Q







       
Q

)LJ X U H    7KH HoHFWLYH UHIUDFWLYH LQGH[ DV FDOFXODWHG IURP WKH IDFHW UHqHFWLYLW\ SORWWHG DV
D IXQFWLRQ RI WKH RXWVLGH UHIUDFWLYH LQGH[ Q DW I  d  +] LQ WKH 7( FDVH DQG DW

I  d  +] LQ WKH 70 FDVH $OVR SORWWHG LQ WKH pJXUH LV WKH TXDGUDWLF OLQH QHo Q Q
ZKRVH LQWHUVHFWLRQV ZLWK WKH 7( DQG 70 FXUYHV JLYH WKH RSWLPXP YDOXHV IRU WKH UHIUDFWLYH LQGH[
RI DQ DQWLUHqHFWLYH FRDWLQJ $5& RI WKH ODVHU HQG IDFHWV LQ WKH WZR FDVHV

H Q G ID F H W W K H S U R S D J D W LR Q F R Q V W D Q W LQ W K H [ G LU H F W LR Q LV V P D OOH U W K D Q Q$ 5& NR K H Q F H
W K H U H TX LU H G W K LF NQ H V V W$ 5& R I W K H D Q W LU H q H F W LYH F R D W LQ J ZR X OG E H D OLW W OH J U H D W H U
W K D Q y  Q$ 5&  7K H p J X U H V K R ZV W K D W W K H P LQ LP X P U H q H F W LYLW \ R F F X U V D W W$ 5&

ZK LF K G H F U H D V H V ZLW K LQ F U H D V LQ J Q$ 5&  ,Q R X U F D V H D P LQ LP X P U H q H F W LYLW \ R I      


   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6


Q$5& 
Q 
$5&
 Q 
$5&
Q$5& 
Q$5& 

Q$5& 


5HIOHFWLYLW\5










  
/D\HU7KLFNQHVVW$5& μP

)LJ X U H    7KH IDFHW UHqHFWLYLW\ 5 LV SORWWHG DV D IXQFWLRQ RI WKH $5& OD\HU WKLFNQHVV W$ 5& IRU
VHYHUDO YDOXHV RI LWV UHIUDFWLYH LQGH[ Q$ 5& 

LV R E W D LQ H G ZLW K Q$ 5&    ZK LF K D J U H H V ZLW K W K H Q H Z G H p Q H G H oH F W LYH U H IU D F W LYH


LQ G H [ D Q G W$ 5&      zP F R P S D U H G W R H [S H F W H G W K LF NQ H V V R I       zP LQ F D V H
R I Q R U P D O LQ F LG H Q F H 

: H Q R Z F R Q V LG H U W K H H oH F W R I W K H OR F D W LR Q R I W K H H Q G ID F H W U H OD W LYH W R W K H J U D W LQ J
S H U LR G D V G H p Q H G E \ W K H G LV W D Q F H c P H D V X U H G IU R P W K H OH IW H Q G ID F H W D V LOOX V W U D W H G
   ),5 6 725 ' ( 5 ' )% / $ 6 ( 5   

)LJ X U H     ,OOXVWUDWLRQ IRU WKH ORFDWLRQ RI WKH OHIW HQG IDFHW UHODWLYH WR WKH JUDWLQJ SHULRG

LQ p J X U H     9 D U \LQ J c IU R P ] H U R W R e F R YH U V W K H U D Q J H R I W K H S R V V LE OH OR F D W LR Q V R I
W K H H Q G ID F H W R I W K H OD V H U  7K H U H q H F W LYLW \ 5 LV S OR W W H G YH U V X V W K H U D W LR c e LQ p J X U H
   IR U W K U H H G LoH U H Q W YD OX H V R I W K H U H IU D F W LYH LQ G H [ R I W K H R X W V LG H U H J LR Q Q   D Q G
  ,W F D Q E H V H H Q IU R P W K H p J X U H W K D W W K H U D Q J H R I YD U LD W LR Q ZLW K c R I W K H U H q H F W LYLW \
IR U W K H W K U H H G LoH U H Q W U H IU D F W LYH LQ G LF LH V LV D E R X W      )R U H [D P S OH ZLW K Q  WK H
U H q H F W LYLW \ YD U LH V R YH U W K H U D Q J H          7K LV P H D Q V W K D W W K H G H S H Q G H Q F H R I W K H
U H q H F W LYLW \ 5 R Q W K H OR F D W LR Q R I W K H H Q G ID F H W U H OD W LYH W R W K H J U D W LQ J LV YH U \ ZH D N
7K H P D LQ H oH F W R I W K H ID F H W OR F D W LR Q F D Q LQ ID F W E H W D NH Q LQ W R D F F R X Q W W K U R X J K X V LQ J
W K H F R U U H F W OD V H U OH Q J W K /

 0 RGH 6WU XFWXU H DQG 6\PPHWU \

,Q W K LV V H F W LR Q OD V H U S D U D P H W H U V G H S H Q G H Q F H R I W K H W K U H V K R OG J D LQ G LoH U H Q F H E H W ZH H Q
W K H p U V W W ZR OR ZH V W P R G H V R I ' )% OD V H U D E R YH D Q G E H OR Z W K H % U D J J IU H TX H Q F \ IR U W K H
7( D Q G 70 P R G H V LV V W X G LH G  &D OF X OD W LR Q V D U H G R Q H D V V X P LQ J W K D W W K H U H q H F W LYLW \
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6



Q 


5




5

Q 



5

Q 

          
ΔΛ

)LJ X U H     7KH GHSHQGHQFH RI 5 RQ WKH ORFDWLRQ RI WKH HQG IDFHW UHODWLYH WR WKH JUDWLQJ DV
UHSUHVHQWHG E\ WKH UDWLR c e ZKHUH c LV GHpQHG LQ pJXUH 

D W W K H U LJ K W D Q G OH IW ID F H W V D U H H TX D O D Q G ZLOO E H G H Q R W H G E \ 5

)LJ X U H    V K R ZV W K H H oH F W R I ID F H W D P S OLW X G H U H q H F W LYLW LH V 5 R Q W K H OD V LQ J IU H TX H Q F \


IR D Q G W K H W K U H V K R OG J D LQ o IR U W K H OR ZH U R U G H U 7( D Q G 70 P R G H V  7K H p J X U H
V K R ZV W K D W W K H W K U H V K R OG J D LQ V R I W K H 7( b D Q G 7(  P R G H V D U H YH U \ Q H D U O\ H TX D O
b
o    D Q G    F P U H V S H F W LYH O\ IR U ] H U R U H q H F W LYLW \ $ V 5 LQ F U H D V H V  o G H F U H D V H V
P R Q R W R Q LF D OO\ IR U 7( bQ P R G H V  ZK LOH IR U 7( Q P R G H V LW LQ F U H D V H V W R D P D [LP X P
   ),5 6 725 ' ( 5 ' )% / $ 6 ( 5   


5 
5 
5 
 5 
5 
5 



70í

 70
α FP
í

70

 7(
í

7( 70í
 7(

7(í




     
I  ×+]
R

)LJ X U H     7KH GHSHQGHQFH RI WKH ODVLQJ IUHTXHQF\ IR DQG WKH WKUHVKROG JDLQ o RI WKH ORZHU
RUGHU 7( DQG 70 PRGHV RQ WKH IDFHW DPSOLWXGH UHqHFWLYLWLHV 5

D W 5
  W K H Q V W D U W V W R G H F U H D V H  7K H W K U H V K R OG IU H TX H Q F \ IR U W K H 7( bQ P R G H V
LV D OP R V W 5LQ G H S H Q G H Q W  E X W LQ LW LD OO\ G H F U H D V H V V OLJ K W O\ ZLW K W K H LQ F U H D V H R I 5 IR U
W K H 7( Q P R G H V E H IR U H LW E H F R P H V D OP R V W F R Q V W D Q W E H \R Q G W K H S R LQ W R I P D [LP X P
W K U H V K R OG J D LQ 

7K H 70 P R G H V K D YH D V LP LOD U E H K D YLR U  E X W W K H U H LV D V R P H ZK D W J U H D W H U G LoH U H Q F H


LQ W K H W K U H V K R OG J D LQ E H W ZH H Q P R G H V E H OR Z D Q G D E R YH W K H % U D J J IU H TX H Q F \ o   
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6


(]IRU7(íPRGH
% IRU70 PRGH
] í

7RWDO)LHOG DUELWUDU\XQLWV






í í í í    
\ μP

)LJ X U H     7KH pHOG SURpOHV IRU WKH 7(> DQG 70> PRGHV SORWWHG DV IXQFWLRQV RI WKH
WUDQVYHUVH FRRUGLQDWH \ DW WKH ODVHU HQG [ 

b
D Q G     F P IR U W K H 70b D Q G 70 P R G H V U H V S H F W LYH O\  D Q G W K H W K U H V K R OG J D LQ
R I D 70 P R G H LV D E R X W W ZLF H LW V YD OX H IR U W K H F R U U H V S R Q G LQ J 7( P R G H  7K H 70
J D S LV E OX H V K LIW H G U H OD W LYH W R W K H 7( J D S D V V K R ZQ E H IR U H 

,Q R UG H U WR X Q G H UVWD Q G W K H D E R YH U H V X OW V W K H H OH F W U LF D Q G W K H P D J Q H W LF p H OG
S U R p OH V IR U W K H 7( b D Q G 70b P R G H V D U H U H V S H F W LYH O\ S OR W W H G LQ p J X U H    D V
IX Q F W LR Q V R I W K H W U D Q V YH U V H F R R U G LQ D W H \ D W W K H OD V H U H Q G [   7K H p H OG G H F D \V
V OR ZO\ LQ W K H V X E V W U D W H U H J LR Q \ !   ZK LOH LW G H F D \V P X F K ID V W H U LQ W K H D LU U H J LR Q
\  b    7K H p H OG S U R p OH S H D NV LQ W K H D F W LYH U H J LR Q b    \   ZK LF K
LV H [S H F W H G W R U H G X F H W K H J D LQ Q H H G H G  7K H p J X U H V K R ZV W K D W W K H 70 p H OG V D U H
D S S U H F LD E O\ OH V V F R Q p Q H G W R W K H D F W LYH U H J LR Q bE  \   E    zP  K H Q F H LW V
F R Q V LG H U D E O\ K LJ K H U W K U H V K R OG J D LQ  ,Q D G G LW LR Q  W K H 70 p H OG V S H Q H W U D W H G H H S H U LQ W R
   ),5 6 725 ' ( 5 ' )% / $ 6 ( 5   


Δ(
]
Δ%]




í

í
í í í    
\ μP

)LJ X U H     7KH GLoHUHQFH EHWZHHQ WKH 7( DQG 70 pHOGV EHORZ JDS DQG WKH FRUUHVSRQGLQJ
RQHV DERYH WKH JDSV DV D IXQFWLRQ RI WKH WUDQVYHUVH FRRUGLQDWH \ DW WKH ODVHU HQG [ 

W K H V X E V W U D W H ZK LF K K D V D OR ZH U U H IU D F W LYH LQ G H [ W K D Q W K H D F W LYH U H J LR Q  ZK LF K P H D Q V
W K D W W K H 70 P R G H V K D YH OR ZH U H oH F W LYH U H IU D F W LYH LQ G H [ D Q G F R Q V H TX H Q W O\ W K H 70
P R G H V D U H E OX H V K LIW H G U H OD W LYH W R W K H 7( P R G H V 

)LJ X U H    V K R ZV W K H G LoH U H Q F H E H W ZH H Q W K H p H OG S U R p OH R I W K H 7( b P R G H
D Q G 7(  G H Q R W H G E \ (] D Q G W K D W G LoH U H Q F H E H W ZH H Q 70b P R G H D Q G 70
G H Q R W H G E \ %] S OR W W H G YH U V X V W K H W U D Q V YH U V H F R R U G LQ D W H \ 7K H S U R p OH V R I W K H
H OH F W U LF p H OG (] R I W K H 7( h P R G H V D U H D OP R V W LG H Q W LF D O ZK H U H D V W K H U H LV V R P H
G LV W LQ J X LV K D E OH G LoH U H Q F H E H W ZH H Q W K H S U R p OH V R I W K H P D J Q H W LF p H OG R I W K H 70h
P R G H V  7K LV H [S OD LQ V W K H D OP R V W H TX D O W K U H V K R OG J D LQ V LQ W K H p U V W F D V H  D Q G W K H
V R P H ZK D W G LoH U H Q W R Q H V LQ W K H V H F R Q G F D V H 
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6


Δ α FP
í

 7(
7(í
7(
7(
í

     
5HIOHFWLYLW\5

)LJ X U H     7KH GHSHQGHQFH RI WKH WKUHVKROG JDLQ GLoHUHQFH WKUHVKROG JDLQ LQ WKH FDVH RI DQ
DVVXPHG VXEVWUDWH ORVV RI  FP>  WKUHVKROG JDLQ FDOFXODWHG DVVXPLQJ ORVV IUHH VXEVWDUH  IRU
7(  7(  7(>  DQG 7(> RQ WKH IDFHW UHqHFWLYLW\

 ( oHFW RI 6XEVWU DWH /RVV

)LJ X U H    V K R ZV W K H G LoU H Q F H E H W ZH H Q W K H W K U H V K R OG J D LQ LQ W K H F D V H R I D Q D V V X P H G
b
V X E V W U D W H OR V V R I   F P D Q G W K D W F D OF X OD W H G D V V X P LQ J ] H U R V X E V W U D W H OR V V YH U V X V
W K H ID F H W U H q H F W LYLW \ IR U W K H 7( P R G H V  7K H W K U H V K R OG J D LQ G LoH U H Q F H LV D OP R V W
LQ G H S H Q G H Q W R I W K H ID F H W U H q H F W LYLW \ 7K H D YH U D J H G W K U H V K R OG J D LQ G LoH U H Q F H LV D E R X W
b
   D Q G    F P IR U W K H 7( Q D Q G W K H 7( bQ P R G H V U H V S H F W LYH O\ 7K X V W K H OR V V
b
LQ W U R G X F H G LQ W K H V X E V W U D W H OH D G V W R D W K U H V K R OG J D LQ LQ F U H D V H R I W K H R U G H U R I  F P 

 ( oHFW RI *U DWLQJ *HRPHWU \

)LJ X U H    V K R ZV W K H G H S H Q G H Q F H R I W K H W K U H V K R OG J D LQ D Q G OD V LQ J IU H TX H Q F \ R Q W K H
J U D W LQ J W K LF NQ H V V K IR U U H F W D Q J X OD U J U D W LQ J V  )LYH YD OX H V R I W K H J U D W LQ J W K LF NQ H V V K
   ),5 6 725 ' ( 5 ' )% / $ 6 ( 5   


K 
K 
 K 
K 
K 



70

α FP

70
í

í



7( 7(
í 


70 70
í 

 7(
í
7(



      

IR × +]

)LJ X U H     7KH GHSHQGHQFH RI WKH WKUHVKROG JDLQ DQG IUHTXHQF\ RQ WKH JUDWLQJ WKLFNQHVV K IRU
UHFWDQJXODU JUDWLQJV

LQ W K H U D Q J H         zP D U H F R Q V LG H U H G  7K H W K U H V K R OG J D LQ LV F D OF X OD W H G IR U
E R W K W K H 7( D Q G 70 F D V H V  7K H 70 P R G H V D OZD \V K D YH J U H D W H U W K U H V K R OG J D LQ D V
G LV F X V V H G E H IR U H  )R U E R W K W K H 7( D Q G W K H 70 P R G H V  W K H LQ F U H D V H R I K OH D G V W R W K H
LQ F U H D V H R I W K H J U D W LQ J H oH F W LYH F R X S OLQ J  ZK LF K OH D G V W R D G H F U H D V H LQ W K H W K U H V K R OG
J D LQ D Q G W R W K H ZLG H Q LQ J R I W K H J D S  7K H OD V LQ J IU H TX H Q F LH V D U H U H G V K LIW H G ZLW K W K H
LQ F U H D V H LQ K D V D U H V X OW R I W K H LQ F U H D V H LQ W K H H oH F W LYH U H IU D F W LYH LQ G H [
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6



K 
K 
 K 
K 
K  70

 70
í


α FPí


7(í
7(


70
í 70



7( 7(
í 




      

IR × +]

)LJ X U H     7KH GHSHQGHQFH RI WKH WKUHVKROG JDLQ DQG IUHTXHQF\ RQ WKH JUDWLQJ WKLFNQHVV K IRU
WULDQJXODU JUDWLQJV

7K H G H S H Q G H Q F H R I W K H W K U H V K R OG J D LQ D Q G OD V LQ J IU H TX H Q F \ R Q W K H J U D W LQ J W K LF N
Q H V V K IR U W U LD Q J X OD U J U D W LQ J V LV V K R ZQ LQ p J X U H     7K H V D P H YD OX H V R I W K H J U D W LQ J
W K LF NQ H V V F R Q V LG H U H G ZLW K U H F W D Q J X OD U J U D W LQ J D U H F K R V H Q IR U V D NH R I F R P S D U LV LR Q 
% R WK W K H 7( D Q G 70 F D V H V D U H W U H D W H G  7K H S U H YLR X V F R Q F OX V LR Q F R Q F H U LQ J W K H
W K U H V K R OG J D LQ G H F U H D V H ZLW K W K H LQ F U H D V H LQ K F D Q E H H D V LO\ V H H Q  7D E OH   OLV W V
W K H YD OX H V R I W K U H V K R OG J D LQ IR U W K H 7( D Q G 70 F D V H V Q D P H O\ W K H W K U H V K R OG J D LQ R I
   ),5 6 725 ' ( 5 ' )% / $ 6 ( 5   

K 7( b U H F W  7( b W U L 70b U H F W  70b W U L
b b b b
   zP     F P     F P   F P     F P
b b b b
    zP     F P    F P    F P      F P

7D E OH    7KH WKUHVKROG JDLQ RI 7(> PRGH DQG WKDW RI 70> PRGH LQ WKH FDVH RI ERWK
UHFWDQJXODU DQG WULDQJXODU JUDWLQJV IRU WZR YDOXHV RI WKH JUDWLQJ WKLFNQHVV K

7( b P R G H D Q G W K D W R I 70b P R G H LQ W K H F D V H R I E R W K U H F W D Q J X OD U D Q G W U LD Q J X OD U
J U D W LQ J V  7K H W D E OH V K R ZV W K D W W U LD Q J X OD U J U D W LQ J V Q H H G V K LJ K H U W K U H V K R OG J D LQ W K D Q
U H F W D Q J X OD U R Q H V  ZK LF K LQ G LF D W H V W K D W W K H IR U P H U K D YH OR ZH U H oH F W LYH F R X S OLQ J W K D Q
W K H OD W W H U  + H Q F H  W U LD Q J X OD U J U D W LQ J V K D YH Q D U U R ZH U J D S V D V V H H Q IU R P p J X U H    

7K H H oH F W R I W K H ID F H W U H q H F W LYLW \ R Q W K H W K U H V K R OG J D LQ D Q G OD V LQ J IU H TX H Q F \ LV
V W X G LH G IR U V P D OO J U D W LQ J W K LF NQ H V V  7K H U H q H F W LYLW \ D W W K H U LJ K W D Q G OH IW ID F H W V D U H
D V V X P H G W R E H H TX D O D Q G ZLOO E H G H Q R W H G E \ 5 )LJ X U H    V K R ZV W K H W K U H V K R OG
J D LQ D Q G W K H OD V LQ J IU H TX H Q F \ R I W K H IR X U 7( P R G H V D U R X Q G W K H % U D J J IU H TX H Q F \ IR U
W K U H H J U D W LQ J W K LF NQ H V V H V D Q G YD OX H V R I 5 LQ W K H U D Q J H       7K H p J X U H V K R ZV
W K D W IR U K LJ K 5 5 !   W K H J D S ZLG W K G H F U H D V H V D V K G H F U H D V H V  $ W YH U \ V P D OO
K K  Q P W K H IU H TX H Q F \ J D S V E H W ZH H Q D G MD F H Q W 7( P R G H V D U H P R U H R U OH V V W K H
V D P H  P H D Q ZK LOH W K H W K U H V K R OG J D LQ LV D OP R V W W K H V D P H IR U W K H V H IR X U P R G H V 

7K H YD OX H V R I W K H W K U H V K R OG J D LQ V D Q G W K H OD V LQ J IU H TX H Q F LH V R I W K H IR X U 7( P R G H V
D W K  Q P IR U 5   D U H OLV W H G LQ 7D E OH    7K H W K U H H IU H TX H Q F \ J D S V E H W ZH H Q

W K H V H IR X U P R G H V D U H YH U \ F OR V H LH                 D Q G        [  + ] 
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6



7(
í

7(
K QP 7( 7( 
í 
K QP
 K QP

7(
α FPí


7(
 í

7(

7( 7(
í í
7(
 

5 
7( 7( 5 
í
 5 
 5 
5 
5 


         
I  ×+]
R

)LJ X U H     7KH GHSHQGHQFH RI WKH ODVLQJ IUHTXHQF\ IR DQG WKH WKUHVKROG JDLQ o RI WKH ORZHU
RUGHU 7( PRGHV RQ WKH IDFHW DPSOLWXGH UHqHFWLYLWLHV 5 SORWWHG IRU VHYHUDO VPDOO YDOXHV RI WKH
JUDWLQJ WKLFNQHVV K

7K H W U D Q V LW LR Q IU R P ' )% P R G H V W R )D E U \3 H U R W P R G H V ZLW K W K H G H F U H D V H LQ K D Q G


LQ F U H D V H LQ 5 LV H YLG H Q W IU R P p J X U H     7K LV U H V X OW F R Q p U P V ZK D W &K LQ Q >  @
U H S R U W H G  W K D W LQ W K H F D V H R I V P D OO F R X S OLQ J D V W K H ID F H W U H q H F W LYLW \ LQ F U H D V H V  W K H
W K U H V K R OG V H OH F W LYLW \ R I W K H ' )% OD V H U LV OR V W 
   ),5 6 725 ' ( 5 ' )% / $ 6 ( 5   


0R G H 7K U H V K R OG J D LQ )U H TX H Q F \ [  + ]
b
7(       F P        
b
7(      F P         
b
7( b     F P         
b
7( b     F P          

7D E OH    7KH WKUHVKROG JDLQ RI WKH ORZHVW IRXU RUGHU 7( PRGHV DW K  QP IRU 5 

7K H G H S H Q G H Q F H R I W K H W K U H V K R OG S D U D P H W H U V R Q W K H OH Q J W K R I W K H OD V H U / LV V K R ZQ
LQ p J X U H     7K H OH Q J W K R I W K H OD V H U LV YD U LH G R YH U D U D Q J H IU R P    W R    zP 
7K H R X W V LG H U H J LR Q U H IU D F W LYH LQ G H [ Q LV V H W W R    7K H W K U H V K R OG J D LQ LV F D OF X OD W H G
IR U W K H OR ZH V W V L[ 7( D Q G 70 P R G H V  W K H W K U H H P R G H V D E R YH W K H % U D J J IU H TX H Q F \
D Q G W K R V H E H OR Z LW  ,Q W K LV F D V H  ZK LF K F R U U H V S R Q G V W R D YH U \ V P D OO 5 W K H W K U H V K R OG
J D LQ V D Q G W K H OD V LQ J IU H TX H Q F LH V IR U W K H 7( D Q G 70 P R G H V D U H D OP R V W V \P P H W U LF
D U R X Q G W K H F R U U H V S R Q G LQ J J D S V  ,W F D Q E H H D V LO\ Q R W LF H G IU R P WK H p J X UH WK D W WK H
W K U H V K R OG J D LQ G H F U H D V H V D Q G W K H J D S E H F R P H V Q D U U R ZH U D V / LQ F U H D V H V IR U E R W K W K H
7( P R G H V D Q G 70 P R G H V  7K H K LJ K H U W K H P R G H R U G H U W K H K LJ K H U LV W K H W K U H V K R OG
J D LQ 

7K H G H S H Q G H Q F H R I W K H W K U H V K R OG J D LQ D Q G OD V LQ J IU H TX H Q F \ R Q W K H OD V H U OH Q J W K
/ D V V X P LQ J W K H R X W V LG H U H J LR Q U H IU D F W LYH LQ G H [ Q LV R Q H LV V K R ZQ LQ p J X U H    
7K H V \P P H W U \ R I W K H W K U H V K R OG S D U D P H W H U V LQ p J X U H    LV Q R OR Q J H U D S S D U H Q W LQ
W K LV F D V H  ,Q E R W K F D V H V W K H W K U H V K R OG J D LQ G H F U H D V H V D Q G W K H J D S ZLG W K E H F R P H V
Q D U U R ZH U D V / LQ F U H D V H V  &R P S D U LQ J W K H YD OX H V R I W K U H V K R OG J D LQ LQ W K H W ZR F D V H V 
ZH p Q G W K D W W K H YD OX H V R I W K U H V K R OG J D LQ D U H J H Q H U D OO\ P X F K V P D OOH U LQ W K H V H F R Q G
F D V H  7D E OH   OLV W V W K H YD OX H V R I W K H W K U H V K R OG J D LQ IR U W K H 7( P R G H V D W /   
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6


/ μP
/ μP 70
 í 70
/ μP 
/ μP
/ μP 70
 70í
/ μP
/ μP


7(
7( 
í

α FPí

70

7(í 7( 70
 í


 7( 7(
í




Q 


        

IR × +]

)LJ X U H     7KH GHSHQGHQFH RI WKH WKUHVKROG JDLQ DQG IUHTXHQF\ RQ WKH OHQJWK RI WKH ODVHU
FDYLW\ IRU RXWVLGHUHJLRQ UHIUDFWLYH LQGH[ Q HTXDO WR 

zP D V D Q H [D P S OH LQ W K H W ZR F D V H V Q  D Q G   

,Q W K H F D V H ZLW K Q R Q ] H U R U H q H F W LYLW \ F D V H  Q  K LJ K W K U H V K R OG J D LQ G LoH U H Q F H


F D Q E H R E W D LQ H G E H W ZH H Q W K H P R G H V MX V W D E R YH D Q G E H OR Z W K H % U D J J IU H TX H Q F \ 7K H
P R G H V ZLW K IU H TX H Q F LH V J U H D W H U W K D Q W K H % U D J J IU H TX H Q F \ D OZD \V K D YH K LJ K W K U H V K R OG
J D LQ W K D Q W K H F R U U H V S R Q G LQ J R Q H V IR U W K H 7( D Q G 70 P R G H V  7K LV S U R S H U W \ S U R YLG H V
K LJ K P R G H V H OH F W LYLW \ D Q G V LQ J OH P R G H R S H U D W LR Q LV P R U H OLNH O\ D F K H LYH G 
   ),5 6 725 ' ( 5 ' )% / $ 6 ( 5   


/ μP
/ μP 70

 / μP
/ μP
/ μP
/ μP 70

 / μP


70
α FP
í

í
70í
7(


70
í

 7(
í
7( 70
í 
7(

7(
í


7(
 Q 

        
IR ×+]

)LJ X U H     7KH GHSHQGHQFH RI WKH WKUHVKROG JDLQ DQG IUHTXHQF\ RQ WKH OHQJWK RI WKH ODVHU
FDYLW\ IRU RXWVLGHUHJLRQ UHIUDFWLYH LQGH[ Q HTXDO WR RQH

Q ob ob ob o o o


                       
                 

7D E OH    7KH WKUHVKROG JDLQ RI WKH ORZHVW VL[ 7( PRGHV LQ FP> DW ODVHU OHQJWK /  zP LQ
WKH WZR FDVHV WKDW WKH RXWVLGHUHJLRQ UHIUDFWLYH LQGH[ Q HTXDOV  DQG 
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6


U  70
U  
 70
U  
U  70í
U 

U 
U  70
í


 7(

7(
α FPí


 7(
í 7(
í










     

I  × +]
R

)LJ X U H     7KH HoHFW RI WKH GXW\ UDWLR U RI D UHFWDQJXODU JUDWLQJ GHpQHG LQ pJXUH  RQ WKH
ODVLQJ IUHTXHQF\ IR DQG WKH WKUHVKROG JDLQ o

: H Q H [W F R Q V LG H U W K H H oH F W R I W K H G X W \ U D W LR U R I W K H J U D W LQ J G H p Q H G LQ p J X U H   
)LJ X U H    V K R ZV W K H W K U H V K R OG J D LQ IR U W K H 7( P R G H V D Q G 70 P R G H V IR U YD OX H V
R I U LQ W K H U D Q J H        YH U V X V W K H IU H TX H Q F \ ,W LV F OH D U IU R P WK H p J X UH WK D W
W K H P LQ LP X P W K U H V K R OG J D LQ LV D F K LH YH G ZLW K U   F R U U H V S R Q G LQ J W R W K H K LJ K H V W
J U D W LQ J H oH F W LYH F R X S OLQ J  ZK LOH W K H % U D J J IU H TX H Q F \ LQ F U H D V H V ZLW K W K H LQ F U H D V H LQ
U D V D U H V X OW R I W K H G H F U H D V H R I W K H H oH F W LYH U H IU D F W LYH LQ G H [ 7K H IU H TX H Q F \ J D S
   ),5 6 725 ' ( 5 ' )% / $ 6 ( 5   


E 
7( 7(
í 
 E 

E 
 7(

7( 7(í


 7(í


α FP
í

7(

 7(í

7( 7(
7(  7(í 
í







      

IR × +]

)LJ X U H     7KH HoHFW RI WKH DFWLYH UHJLRQ WKLFNQHVV E RQ WKH ODVLQJ IUHTXHQF\ IR DQG WKH
WKUHVKROG JDLQ o 6ROLG VTXDUHV IRU E  zP (PSW\ VTXDUHV IRU E  zP 6ROLG FLUFOHV IRU
E  zP

D U R X Q G W K H % U D J J IU H TX H Q F \ LV D OV R P D [LP X P D W U    7K H 70 P R G H V K D YH D
V LP LOD U E H K D YLR U 

7K H p Q D O OD V H U V W U X F W X U H S D U D P H W H U W R E H F R Q V LG H U H G LV W K H W K LF NQ H V V E R I W K H
D F W LYH U H J LR Q  )LJ X U H    V K R ZV W K H W K U H V K R OG J D LQ D Q G W K H OD V LQ J IU H TX H Q F LH V IR U
W K H OR ZH V W IR X U 7( P R G H V  W ZR P R G H V D E R YH D Q G W ZR P R G H V E H OR Z W K H % U D J J
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6

IU H TX H Q F \ IR U W K U H H G LoH U H Q W YD OX H V R I W K H D F W LYH U H J LR Q W K LF NQ H V V  E 7K H p J X U H
V K R ZV W K D W LQ F U H D V LQ J E OH D G V W R D V OLJ K W G H F U H D V H LQ W K H W K U H V K R OG J D LQ D V D U H V X OW
R I D V OLJ K W O\ H Q K D Q F H G R S W LF D O F R Q p Q H P H Q W LQ W K H D F W LYH U H J LR Q  7K H IU H TX H Q F \ J D S
E H W ZH H Q W K H P R G H V D E R YH W K H % U D J J IU H TX H Q F \ D Q G W K H P R G H V E H OR Z LW LV D OP R V W
W K H V D P H IR U W K H F R Q V LG H U H G YD OX H V R I E ,W LV NQ R ZQ W K D W LQ F U H D V LQ J E OH D G V W R D Q
LQ F U H D V H LQ W K H H oH F W LYH U H IU D F W LYH LQ G H [ D Q G F R Q V H TX H Q F W O\ D G H F U H D V H LQ W K H OD V LQ J
IU H TX H Q F \ D V V H H Q IU R P WK H p J X UH 

 6HFRQG 2U GHU ')% ODVHU


,Q W K LV V H F W LR Q  Q X P H U LF D O U H V X OW V D U H S U H V H Q W H G IR U D p YH OD \H U ' )% V W U X F W X U H ZLW K
V H F R Q G R U G H U J U D W LQ J V  &D OF X OD W LR Q V IR U W K U H V K R OG J D LQ IR U E R W K W K H W U D Q V YH U V H H OH F W U LF
D Q G W K H W U D Q V YH U V H P D J Q H W LF P R G H V D U H F D U U LH G R X W IR U F H Q W U D OS K D V H V K LIW D Q G Q R 
V K LIW ' )% OD V H U V W U X F W X U H V  7K H H oH F W V R I U D G LD W LR Q OR V V D Q G K LJ K H U R U G H U F R X S OLQ J
R Q W K H W K U H V K R OG J D LQ D U H V W X G LH G V K R ZLQ J W K H G LoH U H Q F H E H W ZH H Q W K H 7( D Q G 70
P R G H V E H K D YLR U  ,Q D G G LW LR Q  W K H H oH F W R I ID F H W U H q H F W LYLW \ LV V W X G LH G 

7K H V W U X F W X U H W R E H V W X G LH G LV W K H S U D F W LF D O V W U X F W X U H R I    zP ,Q *D $ V 3 ' )%
OD V H U ZLW K D V H F R Q G R U G H U J U D W LQ J D V V K R ZQ LQ p J X U H     ,W LV F R P S R V H G R I IR X U
V H P LF R Q G X F W R U P D W H U LD OV   W K H ,Q 3 F OD G G LQ J OD \H U   W K H ,Q *D $ V 3    zP J X LG LQ J
OD \H U   W K H ,Q *D $ V 3    zP D F W LYH OD \H U D Q G W K H ,Q 3 V X E V W U D W H  7K H U H IU D F W LYH
LQ G H [H V R I W K H V H P D W H U LD OV D U H           D Q G    U H V S H F W LYH O\ >  @ 7K H G H ID X OW
YD OX H V R I W K H S D U D P H W H U V X V H G LQ W K H Q X P H U LF D O F R P S X W D W LR Q V D U H OLV W H G LQ 7D E OH   
,Q W K H P LG G OH R I W K H OD V H U  F D V H V R I Q R S K D V H V K LIW D Q G S K D V H V K LIW H G ' )% VWUX F WX UH
D U H F R Q V LG H U H G 
   6 ( &21 ' 25 ' ( 5 ' )% / $ 6 ( 5   

)LJ X U H     $ pYH OD\HU JXLGLQJ ')% VWUXFWXUH ZLWK VHFRQGRUGHU JUDWLQJV RI SHULRG e ZKLFK
LQFOXGHV D JUDWLQJ UHJLRQ RI WKLFNQHVV K DQG DQ DFWLYH UHJLRQ RI WKLFNQHVV E

3 DU DPHWHU 'HIDXOW 9DOXH


/ D V H U / H Q J WK /    zP
*U D W LQ J 3 H U LR G e    zP
*U D W LQ J 7K LF NQ H V V K   zP
$ F W LYH 5 H J LR Q 7K LF NQ H V V E    zP
5 H J LR Q 7K LF NQ H V V G    zP
*X LG LQ J / D \H U 7K LF NQ H V V <JXG   zP

7D E OH    7KH GHIDXOW YDOXHV RI WKH VHFRQGRUGHU ')% VWUXFWXUH SDUDPHWHUV XVHG LQ WKH QXPHULFDO
FRPSXWDWLRQV
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6


K 
U  K 
7( K 
í
 K 
K 
K 
K 
 K 
7(



α FPí



7(



7(
í




     
I  ×+]
R

)LJ X U H     7KH GHSHQGHQFH RI WKH WKUHVKROG JDLQ IRU 7( PRGHV RQ WKH JUDWLQJ WKLFNQHVV K IRU
V\PPHWULFDO WULDQJXODU JUDWLQJV

 =HU R )DFHW 5HqHFWLYLW\

8QLIRU P ')% ODVHU

)LJ X U H    V K R ZV W K H G H S H Q G H Q F H R I W K H W K U H V K R OG J D LQ D Q G OD V LQ J IU H TX H Q F \ R I W K H
7( P R G H V R Q W K H J U D W LQ J W K LF NQ H V V K LQ W K H U D Q J H       zP IR U X Q LIR U P  Q R 
S K D V H V K LIW  ' )% OD V H U V D Q G ] H U R ID F H W U H q H F W LYLW LH V ZLW K W K H J X LG LQ J OD \H U W K LF NQ H V V
< JXG p [H G D W   zP  7K H LQ F U H D V H R I W K H J U D W LQ J W K LF NQ H V V K OH D G V W R W K H G H F U H D V H
   6 ( &21 ' 25 ' ( 5 ' )% / $ 6 ( 5   

R I W K H H oH F W LYH U H IU D F W LYH LQ G H [ ZK LF K H [S OD LQ V W K H E OX H V K LIW R I W K H OD V LQ J IU H TX H Q F \


ZLW K LQ F U H D V LQ J J U D W LQ J W K LF NQ H V V V K R ZQ LQ p J X U H     ,Q D G G LW LR Q  W K H LQ F U H D V H R I
K OH D G V W R D Q LQ F U H D V H R I W K H J U D W LQ J H oH F W LYH F R X S OLQ J  ZK LF K OH D G V W R D G H F U H D V H LQ
W K H W K U H V K R OG J D LQ D Q G D ZLG H Q LQ J R I W K H J D S V 

: H F D Q V H H W K D W W K H W K U H V K R OG J D LQ YD OX H V R I W K H 7( bQ P R G H V D U H P X F K OR ZH U
W K D Q W K R V H R I W K H 7( Q P R G H V  0R U H R YH U  D V W K H J U D W LQ J W K LF NQ H V V LQ F U H D V H V W K H
W K U H V K R OG J D LQ G LoH U H Q F H E H W ZH H Q W K H 7( Q D Q G 7( bQ P R G H V LQ F U H D V H V  7K H U D W LR
R I W K H W K U H V K R OG J D LQ R I W K H 7(  P R G H W R W K D W R I W K H 7( b P R G H LQ F U H D V H V IU R P
   W R    D V K LQ F U H D V H V IU R P   W R    U H V S H F W LYH O\ 7K LV J D LQ D V \P P H W U \ D U LV H V
IU R P D V \P P H W U LF D O U D G LD W LR Q P R G H S U R p OH V IR U E R W K P R G H V  7K H 7( Q P R G H V V X oH U
K LJ K H U U D G LD W LR Q OR V V D Q G W K H U H IR U H D K LJ K H U W K U H V K R OG J D LQ LV U H TX LU H G 

7K H U D G LD W LR Q P R G H S U R p OH V D OR Q J W K H F D YLW \ IR U W K H 7( b P R G H D Q G 7(  P R G H
D U H V K R ZQ LQ p J X U H    D W K    zP  7K H S OR W W H G U D G LD W LR Q S U R p OH V D U H Q R U P D OL] H G
D V W K H LQ W H J U D W LR Q R I W K H V X P R I E R W K W K H U LJ K W S U R S D J D W LQ J ZD YH D Q G W K H OH IW S U R S 
D J D W LQ J ZD YH R YH U W K H OH Q J W K R I W K H OD V H U F D YLW \ H TX D O W R R Q H  7K H p J X U H V K R ZV W K D W
U D G LD W LR Q P R G H D V V R F LD W H G ZLW K W K H 7( b P R G H K D V D F R Q F D YH S U R p OH D U LV LQ J IU R P
G H V W U X F W LYH LQ W H U IH U H Q F H R I W K H W ZR F R X Q W H U S U R S D J D W LQ J J X LG H G P R G H V  0H D Q ZK LOH 
W K H U D G LD W LR Q P R G H D V V R F LD W H G ZLW K W K H 7(  P R G H K D V D Q D OP R V W F R Q YH [ S U R p OH
D U LV LQ J IU R P F R Q V W U X F W LYH LQ W H U IH U H Q F H R I W K H W ZR F R X Q W H U S U R S D J D W LQ J J X LG H G P R G H V 
7K LV U H V X OW D J U H H V ZLW K S X E OLV K H G U H V X OW V H OV H ZK H U H >  @

7K H G H S H Q G H Q F H R I W K H W K U H V K R OG J D LQ D Q G OD V LQ J IU H TX H Q F \ R I W K H 70 P R G H V
R Q W K H J U D W LQ J W K LF NQ H V V K LV V K R ZQ LQ p J X U H     8 Q OLNH W K H W K U H V K R OG J D LQ R I W K H
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6

í
[



7( UDGLDWLRQ





í í í í     
[ μP
í
[

7( UDGLDWLRQ


í


í í í í     
[ μP

)LJ X U H     5DGLDWLRQ ORVV IRU 7( FDVH ZLWK K  zP IRU QR VKLIW ')% VHFRQG RUGHU VWUXFWXUH

7( P R G H V  W K H 70 P R G H V W K U H V K R OG J D LQ LV D OP R V W V \P P H W U LF D O D U R X Q G W K H % U D J J
IU H TX H Q F \ 7K LV J D LQ V \P P H W U \ LV D U H V X OW R I W K H ID F W W K D W E R W K W K H P R G H V ZLW K
IU H TX H Q F LH V J U H D W H U W K D Q W K H % U D J J IU H TX H Q F \ D Q G W K H F R U U H V S R Q G LQ J R Q H V K D YH YH U \
OR Z U D G LD W LR Q OR V V  7K H U D W LR R I W K H W K U H V K R OG J D LQ R I W K H 70b P R G H W R W K D W R I
W K H 70 P R G H LV D OP R V W R Q H R YH U D J U D W LQ J W K LF NQ H V V U D Q J H       zP  $ V W K H
J U D W LQ J W K LF NQ H V V K LQ F U H D V H V W K H W K U H V K R OG J D LQ G H F U H D V H V IR U E R W K W K H 7( P R G H V
D Q G 70 P R G H V E H F D X V H R I W K H LQ F U H D V H G H oH F W LYH F R X S OLQ J ZLW K W K H LQ F U H D V H LQ K
   6 ( &21 ' 25 ' ( 5 ' )% / $ 6 ( 5   


K 
K 
 U  K 
70 K 
70  K 
í
 K 
K 
K 



α FPí








70 70
í




     

I  × +]
R

)LJ X U H     7KH GHSHQGHQFH RI WKH WKUHVKROG JDLQ IRU 70 PRGHV RQ WKH JUDWLQJ WKLFNQHVV K IRU
V\PPHWULFDO WULDQJXODU JUDWLQJV

6 LP LOD U O\ W K H 7( F D V H  W K H LQ F U H D V H LQ W K H J U D W LQ J W K LF NQ H V V K OH D G V W R D G H F U H D V H R I
W K H H oH F W LYH LQ G H [ R I W K H V W U X F W X U H  ZK LF K F D X V H V W K H LQ F U H D V H R I W K H OD V LQ J IU H TX H Q F \

&R P S D U LQ J p J X U H    W R     ZH F D Q V H H W K D W 

s $ W V P D OO K W K H YD OX H V R I W K H W K U H V K R OG J D LQ R I W K H 70 P R G H V D U H K LJ K H U W K D Q
W K R V H R I W K H 7( P R G H V ZK LF K LV H [S H F W H G E H F D X V H W K H IR U P H U K D YH OH V V F R X S OLQ J
W K D Q W K H OD W H U 
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6

s $ W OD U J H K W K H H oH F W R I U D G LD W LR Q OR V V P D NH V W K H W K U H V K R OG J D LQ R I W K H 7( Q

P R G H V H [F H H G W K R V H R I W K H 70Q P R G H V  $ W K    zP  W K H 7(  P R G H
b b
K D V W K U H V K R OG J D LQ R I    F P F R P S D UH G WR    F P W K U H V K R OG J D LQ IR U W K H
70 P R G H 

')% ODVHU ZLWK FHQWU DO SKDVH VKLIW

)LJ X U H    V K R ZV W K H G H S H Q G H Q F H R I W K H W K U H V K R OG J D LQ D Q G W K H OD V LQ J IU H TX H Q F \ R I
W K H 7( P R G H V R Q W K H J U D W LQ J W K LF NQ H V V K IR U V \P P H W U LF D O W U LD Q J X OD U J U D W LQ J V ZLW K
y  S K D V H V K LIW D Q G ] H U R U H q H F W LYLW LH V D W W K H OD V H U H Q G ID F H W V  )R X U YD OX H V R I W K H
J U D W LQ J W K LF NQ H V V R I           D Q G    zP D U H F R Q V LG H U H G  7K H OR Q J LW X G LQ D O
P R G H 7( R LQ W K H YLF LQ LW \ R I W K H % U D J J IU H TX H Q F \ K D V W K H OR ZH V W W K U H V K R OG J D LQ IR U
D J U D W LQ J W K LF NQ H V V K x   zP  0H D Q ZK LOH  ZLW K K    zP  W K H W K U H V K R OG J D LQ
R I W K H 7(  P R G H LV D OP R V W H TX D O W R W K D W R I W K H 7( b P R G H  7K LV S R LQ W F D Q E H
H [S OD LQ H G E \ W K H U D G LD W LR Q OR V V W K D W LV W K H % U D J J P R G H V X oH U V YH U \ K LJ K U D G LD W LR Q
OR V V IR U OD U J H K LH  K y    zP  7K X V  W K H % U D J J P R G H Q R W Q H V V H F H U O\ K D V W K H
OR ZH V W W K U H V K R OG J D LQ  ,W F D Q E H Q R W LF H G W K D W W K H 7(  P R G H D OZD \V K D V W K H J U H D W H V W
W K U H V K R OG J D LQ  7K H G LoH U H Q F H LQ W K U H V K R OG J D LQ R I W K H 7(  P R G H D Q G WK D W R IWK H
7( b LQ F U H D V H V D V W K H J U D W LQ J W K LF NQ H V V K LQ F U H D V H V E H F D X V H R I W K H U D G LD W LR Q OR V V 

)LJ X U H    V K R ZV W K H E H K D YLR U R I W K H W K U H V K R OG J D LQ D Q G OD V LQ J IU H TX H Q F \ IR U W K H
70 P R G H V R Q W K H J U D W LQ J W K LF NQ H V V K IR U V \P P H W U LF D O W U LD Q J X OD U J U D W LQ J V ZLW K y 
S K D V H V K LIW D Q G ] H U R U H q H F W LYLW LH V D W W K H OD V H U H Q G ID F H W V  : H V H H IU R P WK H p J X UH 

s 7K H OR Q J LW X G LQ D O P R G H 70R LQ W K H YLF LQ LW \ R I W K H % U D J J IU H TX H Q F \ D OZD \V K D V


W K H OR ZH V W W K U H V K R OG J D LQ 
   6 ( &21 ' 25 ' ( 5 ' )% / $ 6 ( 5   


K 
7(

U ZLWKπSKDVHVKLIW K 
7( K 
í
 K 

7( 7(
 


7(
í
 7(
α FPí

7(

7(

 7(
í

 7(

7(í 7(





     

IR × +]

)LJ X U H     7KH GHSHQGHQFH RI WKH WKUHVKROG JDLQ IRU 7( PRGHV RQ WKH JUDWLQJ WKLFNQHVV K IRU
V\PPHWULFDO WULDQJXODU JUDWLQJV ZLWK y SKDVH VKLIW U  

s 7K H G LoH U H Q F H LQ W K U H V K R OG J D LQ R I W K H 70 P R G H D Q G W K D W R I W K H 70b LV


D OP R V W LQ G H S H Q G H Q W R I W K H J U D W LQ J W K LF NQ H V V 

)R U E R W K W K H 7( D Q G 70 P R G H V  W K H LQ F U H D V H R I K OH D G V W R D G H F U H D V H R I W K H W K U H V K R OG
J D LQ  7K H OD V LQ J IU H TX H Q F LH V G H F U H D V H ZLW K K LJ K H U J U D W LQ J W K LF NQ H V V LQ E R W K F D V H V D V
LQ W K H F D V H ZLW K R X W D F H Q W U D OS K D V H V K LIW 
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6


70 K 

K 
70
 í U ZLWKπSKDVHVKLIW K 
K 

 70
70



70
í


α FPí

70
70


70
í


70

70
70 í
 

70





     

I  × +]
R

)LJ X U H     7KH GHSHQGHQFH RI WKH WKUHVKROG JDLQ IRU 70 PRGHV RQ WKH JUDWLQJ WKLFNQHVV K IRU
V\PPHWULFDO WULDQJXODU JUDWLQJV ZLWK y SKDVH VKLIW U  

 )DFHW U HqHFWLYLW\

7K H ID F H W U H q H F W LYLW \ LV F D OF X OD W H G IR U W K H V W U X F W X U H V K R ZQ LQ p J X U H    D W W K H OH IW
H Q G ID F H W X V LQ J H TX D W LR Q V     D Q G     IR U W K H 7( D Q G 70 P R G H V U H V S H F W LYH O\
)LJ X U H    V K R ZV W K H ID F H W D P S OLW X G H U H q H F W LYLW \ 5 LQ W K H 7( D Q G 70 F D V H V S OR W W H G
D V D IX Q F W LR Q R I IU H TX H Q F \ D U R X Q G W K H F R U U H V S R Q G LQ J J D S IR U V H YH U D O YD OX H V R I W K H
U H IU D F W LYH LQ G H [ Q R I W K H R X W V LG H U H J LR Q  7K H ID F H W U H q H F W LYLW \ 5 LV D OP R V W IU H TX H Q F \
   6 ( &21 ' 25 ' ( 5 ' )% / $ 6 ( 5   


7(
70


Q 



Q 
5



Q 


Q 


Q  70JDS
7(JDS
Q 

         
I  ×+]
R

)LJ X U H     )DFHW DPSOLWXGH UHqHFWLYLW\ 5 LQ WKH 7( DQG 70 FDVHV SORWWHG DV D IXQFWLRQ RI


IUHTXHQF\ DURXQG WKH FRUUHVSRQGLQJ JDS IRU VHYHUDO YDOXHV RI WKH UHIUDFWLYH LQGH[ Q RI WKH RXWVLGH
UHJLRQ

LQ G H S H Q G H Q W LQ E R W K 7( D Q G 70 F D V H V D V ZH F D Q V H H IU R P W K H p J X U H  7K LV E H K D YLR U
R I W K H U H q H F W LYLW \ 5 V D YH V D OR W R I F R P S X W D W LR Q D O W LP H W K D W P D \ E H ZD V W H G LI R Q H K D V
W R F D OF X OD W H 5 H D F K W LP H W K H OD V LQ J F R Q G LW LR Q LV F K H F NH G ZLW K Q H Z YD OX H V R I IR D Q G
o 2Q H F D Q V H H W K D W W K H D P S OLW X G H U H q H W LYLW \ 5 IR U V H F R Q G R U G H U J U D W LQ J V LV V OLJ K W O\
V P D OOH U W K D Q W K D W IR U p U V W R U G H U J U D W LQ J V p J X U H   ZK LF K U H q H F W V W K H ID F W W K D W
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6

5 5
H P
5 5
7( 70

 

 

 

 

 

 
         
UHIUDFWLYHLQGH[Q UHIUDFWLYHLQGH[Q

)LJ X U H     7KH DYHUDJHG UHqHFWLYLWLHV 57 ( DQG 57 0 RYHU WKH IUHTXHQF\ UDQJH VKRZQ LQ pJXUH
 IRU WKH 7( DQG 70 FDVHV UHVSHFWLYHO\ FRPSDUHG WR WKH UHqHFWLYLWLHV 5H DQG 5P FDOFXODWHG
XVLQJ WKH HoHFWLYH LQGHFHV IRU WKH 7( DQG 70 FDVHV UHVSHFWLYHO\

)R X U LH U V S D F H K D U P R Q LF V F R P S R V LW LR Q R I W K H p H OG V LQ W K H p U V W R U G H U D Q G V H F R Q G R U G H U
F D V H V D U H TX LW H G LoH U H Q W 

$ V LQ W K H F D V H R I ' )% OD V H U ZLW K p U V W R U G H U J U D W LQ J V  W K H YD OX H V R I F D OF X OD W H G
U H q H F W LYLW \ 5 D U H F R P S D U H G W R W K R V H R Q H ZR X OG J H W IU R P W K H H oH F W LYH LQ G H [ Q
a Ho u
c N NR ZK LF K LV D E R X W     D Q G     IR U W K H 7( D Q G 70 F D V H V U H V S H F W LYH O\ 7K H
   6 ( &21 ' 25 ' ( 5 ' )% / $ 6 ( 5   

D YH U D J H G U H q H F W LYLW LH V D U H F D OF X OD W H G R YH U W K H IU H TX H Q F \ U D Q J H D Q G S OR W W H G LQ p J X U H
   IR U W K H 7( D Q G 70 F D V H V  7K H H [S H F W H G U H q H F W LYLW LH V 5H D Q G 5P D U H F D OF X OD W H G
E \
Q
a Ho b Q
5H  
Qa Ho  Q
)LJ X U H    V K R ZV W K H D YH U D J H G U H q H F W LYLW \ D Q G W K H H [S H F W H G R Q H YH U V X V W K H R X W V LG H
U H IU D F W LYH LQ G H [ Q : H F D Q V H H IU R P W K H p J X U H W K D W W K H YD OX H V R I W K H U H q H F W LYLW \
D U H K LJ K H U W K D Q W K H H [S H F W H G YD OX H V IR U W K H 7( P R G H V D Q G OR ZH U W K D Q W K R V H IR U W K H
70 P R G H V  $ V Q D S S U R D F K V W K H OD V H U P H G LX P H oH F W LYH LQ G H [ YD OX H  W K H D YH U D J H G
U H q H F W LYLW \ D Q G W K H H [S H F W H G R Q H D S S U R D F K H ] H U R 

$ Q H Z H oH F W LYH LQ G H [ QHo Q G H p Q H G E \ H TX D W LR Q   LV F D OF X OD W H G IR U V H F R Q G R U G H U

J U D W LQ J V LQ W K H 7( F D V H D W I          d   + ]  : H S U R F H H G D V LQ W K H F D V H R I
' )% OD V H U ZLW K p U V W R U G H U J U D W LQ J V  W K H R S W LP X P U H IU D F W LYH LQ G H [ R I D Q D Q W LU H q H F W LYH
F R D W LQ J $ 5 & D W W K H OD V H U H Q G ID F H W LV IR X Q G     7K LV U H V X OW LV YH U Lp H G W K U R X J K
p J X U H    ZK H U H W K H U H q H F W LYLW \ 5 LV S OR W W H G D V D IX Q F W LR Q R I W K H $ 5 & OD \H U W K LF NQ H V V
W$ 5& IR U V H YH U D O YD OX H V R I LW V U H IU D F W LYH LQ G H [ Q$ 5& LQ W K H 7( F D V H  7K H W K LF NQ H V V
W$ 5& R I W K H D Q W LU H q H F W LYH F R D W LQ J V K R X OG E H OLW W OH J U H D W H U W K D Q y  Q$ 5& E H F D X VH R I
R E OLTX H LQ F LG H Q F H R I W K H p H OG V  7K H OR ZH V W U H q H F W LYLW \ 5       F D Q E H R E W D LQ H G
X V LQ J D OD \H U ZLW K U H IU D F W LYH LQ G H [ Q$ 5&    D Q G W K LF NQ H V V W$ 5&     zP
F R P S D U H G W R W K LF NQ H V V R I       zP IR U Q R U P D OO\ LQ F LG H Q W p H OG V 

)LJ X U H    V K R ZV W K H G H S H Q G H Q F H R I W K H OD V LQ J IU H TX H Q F \ IR D Q G W K H W K U H V K R OG
J D LQ o R I W K H OR ZH U R U G H U 7( D Q G 70 P R G H V R Q W K H ID F H W D P S OLW X G H U H q H F W LYLW LH V IR U
V H F R Q G R U G H U J U D W LQ J V  7K H U H q H F W LYLW \ D W W K H U LJ K W D Q G OH IW ID F H W V D U H D V V X P H G W R E H
H TX D O D Q G ZLOO E H G H Q R W H G E \ 5 ZK LF K LV YD U LH G R YH U W K H U D Q J H       ,W F D Q E H V H H Q
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6


Q$5& 
Q$5& 

Q$5& 
Q$5& 
 Q$5& 


5HIOHFWLYLW\5










  
/D\HU7KLFNQHVVW  μP
$5&

)LJ X U H     7KH IDFHW UHqHFWLYLW\ 5 LV SORWWHG DV D IXQFWLRQ RI WKH $5& OD\HU WKLFNQHVV W$ 5&
IRU VHYHUDO YDOXHV RI LWV UHIUDFWLYH LQGH[ Q$ 5& 

IU R P W K H p J X U H W K D W D V 5 LQ F U H D V H V W K H W K U H V K R OG J D LQ G H F U H D V H V IR U W K H 7( bQ D Q G
70hQ P R G H V  )R U W K H 7( Q P R G H V W K H W K U H V K R OG J D LQ LQ F U H D V H V D V W K H U H q H F W LYLW \
LQ F U H D V H V W LOO U H D F K H V D S H D N D W 5    W K H Q W K H W K U H V K R OG J D LQ G H F U H D V H V V K D U S O\
$ V 5 J H W V F OR V H W R R Q H  LW LV R E V H U YH G W K D W

s W K H W K U H V K R OG J D LQ R I W K H 70hQ P R G H V D U H YH U \ F OR V H W R ] H U R ZK LF K YH U Lp H V
W K D W W K H 70 P R G H V K D YH D OP R V W Q H J OLJ LE OH U D G LD W LR Q OR V V 
   6 ( &21 ' 25 ' ( 5 ' )% / $ 6 ( 5   



 70
í
70


7( 70í
 70

 7(
í

 7(

7(í
α FPí





5 
 5 
5 
5 
 5 
5 



         

I  × +]
R

)LJ X U H     7KH GHSHQGHQFH RI WKH ODVLQJ IUHTXHQF\ IR DQG WKH WKUHVKROG JDLQ o RI WKH ORZHU
RUGHU 7( DQG 70 PRGHV RQ WKH IDFHW DPSOLWXGH UHqHFWLYLWLHV 5

b
s W K H 7( bQ P R G H V K D YH P R G H U D W H W K U H V K R OG J D LQ R I D E R X W   F P 

b
s W K H 7( Q P R G H V K D YH W K H J U H D W H V W W K U H V K R OG J D LQ R I D E R X W   F P ZK LF K
YH U Lp H V W K D W W K H U D G LD W LR Q OR V V D oH F W V W K H 7( Q P R G H V W K D Q W K H 7( bQ P R G H V
D V P H Q W LR Q H G E H IR U H U H IH U U LQ J W R p J X U H    
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6


K 
K 


7(



Δ α α


7(
70


70
í

í
          
%OD]LQJ5DWLRU

)LJ X U H     7KH GHSHQGHQFH RI WKH WKUHVKROG JDLQ IRU 7( PRGHV DQG 70 PRGHV RQ WKH EOD]LQJ
UDWLR U IRU WULDQJXODU JUDWLQJV

 ( oHFW RI % OD]LQJ DQJOH

7 KH XQLIRU P ')% ODVHU

7K H W K U H V K R OG E H K D YLR U R I W K H V W U X F W X U H V ZLW K V H F R Q G R U G H U D V \P P H W U LF D O W U LD Q J X OD U
J U D W LQ J V ZLW K D E OD ] LQ J U D W LR U u c e    LV F R Q V LG H U H G  )LJ X U H    V K R ZV W K H
G H S H Q G H Q F H R Q W K H W K H E OD ] LQ J U D W LR U R I W K H U H OD W LYH W K U H V K R OG J D LQ G LoH U H Q F H G H p Q H G
D V W K H U D W LR E H W ZH H Q W K H G LoH U H Q F H LQ W K U H V K R OG J D LQ R I W K H W ZR P R G H V D U R X Q G W K H
   6 ( &21 ' 25 ' ( 5 ' )% / $ 6 ( 5   

% U D J J IU H TX H Q F \ c o o  ob D Q G W K H W K U H V K R OG J D LQ R I W K H P R G H D E R YH W K H
J D S LH  o  7K H 7( D Q G 70 F D V H V D U H F R Q V LG H U H G IR U W ZR YD OX H V R I W K H J U D W LQ J
W K LF NQ H V V K ZLW K R Q O\ YD OX H V R I U V P D OOH U W K D Q   V LQ F H J U D W LQ J V ZLW K E OD ] LQ J U D W LR V
U D Q G  b U D U H H TX LYD OH Q W  )R U W K H 7( F D V H  W K H IR OOR ZLQ J S R LQ W V F D Q E H V H H Q IU R P
WK H p J X UH 

s ZLW K U   6 \P P H W U LF D O W U LD Q J OH V W K H P D [LP X P U H OD W LYH W K U H V K R OG J D LQ G LI


IH U H Q F H LV R E W D LQ H G IR U W K H W ZR F R Q V LG H U H G J U D W LQ J W K LF NQ H V V H V 

s 7K H F D V H ZLW K K   zP K D V ZH D NH U F R X S OLQ J W K D Q W K D W ZLW K K   zP  K H Q F H


W K H YD U LD W LR Q R I W K H U H OD W LYH W K U H V K R OG J D LQ G LoH U H Q F H LV ZH D NH U W K D Q W K D W LQ
W K H K   zP F D VH 

s 7K H U H OD W LYH W K U H V K R OG J D LQ G LoH U H Q F H F U R V V H V W K H ] H U R S R LQ W D W U   IR U
K   zP D Q G D W U    IR U K   zP  $ W W K H V H S R LQ W V W K H E OD ] LQ J H oH F W
E D OD Q F H V W K H U D G LD W LR Q OR V V 

8 Q OLNH W K H 7( F D V H  W K H F OR V H V W S R LQ W R I W K H U H OD W LYH W K U H V K R OG J D LQ G LoH U H Q F H W R ] H U R


IR U W K H 70 P R G H V R F F X U V D W U    $ V U LQ F U H D V H V W K H U H OD W LYH W K U H V K R OG J D LQ
G LoH U H Q F H LQ F U H D V H V U D W K H U V OR ZO\

)LJ X U H    V K R ZV W K H W K U H V K R OG J D LQ YH U V X V W K H OD V LQ J IU H TX H Q F \ R I D V H F R Q G 
R U G H U D V \P P H W U LF D O J U D W LQ J V ZLW K E OD ] LQ J D Q J OH U    IR U W K H 7( P R G H V IR U
YD U LR X V YD OX H V R I W K H J U D W LQ J W K LF NQ H V V K LQ W K H U D Q J H       zP  : H F D Q V H H
IU R P W K H p J X U H W K D W W K H LQ F U H D V H R I W K H J U D W LQ J W K LF NQ H V V K OH D G V W R G H F U H D V H R I W K H
W K U H V K R OG J D LQ D Q G LQ F U H D V H R I W K H % U D J J IU H TX H Q F \ D V LQ W K H V \P P H W U LF J U D W LQ J F D V H 
&R P S D U LV LR Q ZLW K p J X U H    IR U W K H V \P P H W U LF D O J U D W LQ J V V K R ZV W K D W W K H E OD ] H G
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6


K 
U  K 
K 
K 
 K 
7(í 7( K 

K 
K 

α FPí






7( 7(
í 


     

I  × +]
R

)LJ X U H     7KH GHSHQGHQFH RI WKH WKUHVKROG JDLQ IRU 7( PRGHV RQ WKH JUDWLQJ WKLFNQHVV K IRU
DV\PPHWULFDO WULDQJXODU JUDWLQJV U  

J U D W LQ J V Q H H G V OR ZH U W K U H V K R OG J D LQ W K D Q W K H V \P P H W U LF D O R Q H V  ZK LF K F OD U Lp H V W K H
H oH F W W K H E OD ] LQ J K D YH R Q H Q K D Q F LQ J W K H F R X S OLQ J 
   6 ( &21 ' 25 ' ( 5 ' )% / $ 6 ( 5   


K 
K 
7( 7( U ZLWKπSKDVHVKLIW K 
í

 K 

7( 7(
 í


7(

7( 7(
í 

α FPí

7(
í
 7(


7(
7( 7(






     

IR × +]

)LJ X U H     7KH GHSHQGHQFH RI WKH WKUHVKROG JDLQ IRU 7( PRGHV RQ WKH JUDWLQJ WKLFNQHVV K IRU
DV\PPHWULFDO WULDQJXODU JUDWLQJV ZLWK y SKDVH VKLIW U  

')% ODVHU ZLWK FHQWU DO SKDVH VKLIW

)R U W K H y  V K LIW V W U X F W X U H V  W K H G H S H Q G H Q F H R I W K H W K U H V K R OG J D LQ IR U 7( P R G H V R Q
W K H J U D W LQ J W K LF NQ H V V K IR U D V \P P H W U LF D O W U LD Q J X OD U J U D W LQ J V U    LV V K R ZQ LQ
p J X U H     7K H U H V X OW V D U H V R P H K R Z G LoH U H Q W IU R P W K H V \P P H W U LF D O J U D W LQ J ZLW K
y  S K D V H V K LIW F D OF X OD W LR Q V S OR W W H G LQ p J X U H     7K H % U D J J P R G H K D V W K H OR ZH V W
W K U H V K R OG J D LQ H YH Q ZLW K K LJ K F R X S OLQ J  U D G LD W LR Q OR V V  7K LV U H V X OW LV F R Q V LV W H Q W ZLW K
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6


K 
K 
7( K 
 7(  K 
í
K 
K 
 K 
7(


 7(
í
α FPí








U 


      

IR × +]

)LJ X U H     7KH GHSHQGHQFH RI WKH WKUHVKROG JDLQ IRU 7( PRGHV RQ WKH JUDWLQJ WKLFNQHVV K IRU
V\PPHWULFDO UHFWDQJXODU JUDWLQJV

ZK D W . LQ R V K LW D >  @ J R W 

 5HFWDQJXODU *U DWLQJ

7K H G H S H Q G H Q F H R I W K H W K U H V K R OG J D LQ IR U W K H 7( P R G H V R Q W K H J U D W LQ J W K LF NQ H V V K
IR U V \P P H W U LF D O U H F W D Q J X OD U J U D W LQ J V LV V K R ZQ LQ p J X U H     : H V H H IU R P WK H p J X UH
W K D W W K H LQ F U H D V H LQ W K H F R X S OLQ J W K U R X J K K LJ K H U J U D W LQ J W K LF NQ H V V K OH D G V W R 
   6 ( &21 ' 25 ' ( 5 ' )% / $ 6 ( 5   

s D G H F U H D V H LQ W K H W K U H V K R OG J D LQ 

s D Q LQ F U H D V H LQ W K H W K U H V K R OG J D LQ G LoH U H Q F H E H W ZH H Q W K H 7(  P R G H D Q G WK H
7( b P R G H 

s D Q LQ F U H D V H LQ W K H % U D J J IU H TX H Q F \ D Q G

s D ZLG H Q LQ J LQ W K H J D S

ZK LF K LV LQ TX D OLW D W LYH D J U H H P H Q W ZLW K W K H F D V H R I W U LD Q J X OD U J U D W LQ J V p J X U H    

K ob  W U L ob  U H F 
           
            
            
            
           
           

7D E OH    7KH WKUHVKROG JDLQ RI WKH 7(> PRGH LQ FP> IRU WULDQJXODU WUL DQG UHFWDQJXODU
UHF JUDWLQJ DW GLoHUHQW JUDWLQJ WKLFNQHVV K LQ zP

7D E OH   OLV W V W K H YD OX H V R I W K H W K U H V K R OG J D LQ R I W K H 7( b P R G H IR U V \P P H W U LF D O
W U LD Q J X OD U D Q G U H F W D Q J X OD U J U D W LQ J  7K H LQ W H U H V W LQ J S R LQ W W K D W F D Q E H R E V H U YH G
LV W K D W W K H W K U H V K R OG J D LQ Q H H G H G LQ W K H U H F W D Q J X OD U F D V H LV J U H D W H U W K D Q W K D W LQ
W K H W U LD Q J X OD U F D V H  ZK LF K LV W K H R S S R V LW H R I W K H E H K D YLR U R I W K H ' )% OD V H U V ZLW K
p U V W R U G H U J U D W LQ J V  7K H G LoH U H Q F H E H W ZH H Q W K H W ZR F D V H V F D Q E H H [S OD LQ H G D V D
U H V X OW R I W K H G LoH U H Q F H LQ W K H )R X U LH U F R P S R Q H Q W V R I W K H G LH OH F W U LF F R Q V W D Q W ZK LF K LV
U H V S R Q V LE OH IR U W K H F R X S OLQ J R I W K H W ZR F R X Q W H U S U R S D J D W LQ J ZD YH V 
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6


K 
K 
 70í 70 5HFWDQJXODU*UDWLQJVU  K 

K 
K 
 K 
K 

 70í

70
 
α FPí










      
I  ×+]
R

)LJ X U H     7KH GHSHQGHQFH RI WKH WKUHVKROG JDLQ IRU 70 PRGHV RQ WKH JUDWLQJ WKLFNQHVV K IRU
V\PPHWULFDO UHFWDQJXODU JUDWLQJV

7R F OD U LI\ W K LV S R LQ W F R Q V LG H U W K H F D V H R I V LP S OH S H U LR G LF U H F W D Q J X OD U YD U LD W LR Q LQ W K H
WK
G LH OH F W U LF F R Q V W D Q W  W K H Q )R X U LH U F R P S R Q H Q W sQ R I W K H G LH OH F W U LF F R Q V W D Q W LV S U R S R U 
W LR Q D O W R V LQ Q}U )R U D p U V W R U G H U J U D W LQ J  W K H )R X U LH U F R P S R Q H Q W ZK LF K D F K LH YH W K H
F R X S OLQ J LV s ZK LF K K D V D P D [LP X P YD OX H D W U   V \P P H W U LF U H F W D Q J X OD U J U D W LQ J 
)R U D V H F R Q G R U G H U J U D W LQ J  W K H )R X U LH U F R P S R Q H Q W ZK LF K D F K LH YH W K H F R X S OLQ J LV s
ZK LF K K D V D P LQ LP X P YD OX H D W U   
   &203 $ 5 ,6 21 : ,7+ 3 5 ( 9 ,28 6 : 25 .   

)LJ X U H    V K R ZV W K H G H S H Q G H Q F H R I W K H W K U H V K R OG J D LQ IR U W K H 70 P R G H V R Q
W K H J U D W LQ J W K LF NQ H V V K IR U V \P P H W U LF D O U H F W D Q J X OD U J U D W LQ J V  : H V H H IU R P WK H p J X UH
W K D W  MX V W D V LQ W K H 7( F D V H  D K LJ K H U W K U H V K R OG J D LQ LV Q H H G H G ZLW K D U H F W D Q J X OD U
J U D W LQ J F R P S D U H G W R W K D W ZLW K D W U LD Q J X OD U R Q H p J X U H     0R U H R YH U W K H G H S H Q 
G H Q F H R Q K IR U D U H F W D Q J X OD U J U D W LQ J LV YH U \ V LP LOD U W R W K D W IR U D W U LD Q J X OD U R Q H 
7K H p J X U H LV F K D U D F W U L] H G E \ D W K U H V K R OG J D LQ D OP R V W V \P P H W U LF D O D U R X Q G W K H % U D J J
IU H TX H Q F \

 &RPSDU LVRQ ZLWK SU HYLRXV ZRU N

 )DFHW 5HqHFWLYLW\

,Q W K LV V H F W LR Q D F R P S D U LV R Q LV P D G H E H W ZH H Q R X U U H V X OW V D Q G W K R V H R I R W K H U D X W K H U V 
0D Q \ D X W K H U V >           @ K D YH V W X G LH G W K H H oH F W R I W K H U H q H F W LYLW \ R I W K H OD V H U
H Q G ID F H W W K U R X J K H LW K H U D V V X P LQ J D F R Q V W D Q W YD OX H IR U LW R U X V LQ J D Q D S S U R [LP D W H
a Ho b Q Q
H V W LP D W H R I W K H U H q H F W LYLW \ G H p Q LQ J LW D V Q a Ho  Q ZK H U H Q
a Ho LV W K H H oH F 
W LYH LQ G H [ Q
a Ho u c N NR  7K H LU U H V X OW V V K R Z W K D W W K H W K U H V K R OG E H K D YLR U R I W K H
' )% OD V H U V LV TX LW H V H Q V LW LYH W R W K H YD OX H V R I W K H U H q H F W LYLW \ K H Q F H P R U H D F F X U D W H
H YD OX D W LR Q R I W K H U H q H F W LYLW \ LV Q H F H V V D U \
: H K D YH V K R ZQ LQ V H F W LR Q V   D Q G   W K D W W K H U H LV D Q H Z H oH F W LYH LQ G H [ G H p Q H G E \
H TX D W LR Q    V K R X OG E H X V H G W R H YD OX D W H W K H U H q H F W LYLW \ D W W K H OD V H U H Q G ID F H W  7K H
a Ho D Q G W K H Q H Z H oH F W LYH LQ G H [ LV W K D W W K H IR U P H U ZK LF K LV
P D LQ G LoH U H Q F H E H W ZH H Q Q
X V H G LQ H YD OX D W LQ J W K H OD V LQ J IU H TX H Q F \ LV U H OD W H G W R W K H J X LG H G P R G H V R Q O\ ZK LOH W K H
Q H Z H oH F W LYH LQ G H [ LV D oH F W H G E \ W K H X Q J X LG H G P R G H V H [F LW H G D W W K H OD V H U H Q G ID F H W
D Q G W K H LU F R X S OLQ J E D F N W R W K H J X LG H G P R G H V ZK LF K LV Q H F H V V D U \ W R E H LQ F OX G H G LQ
H YD OX D W LQ J W K H U H q H F W LYLW \ D W W K H OD V H U H Q G ID F H W  2X U Q X P H U LF D O U H V X OW V V K R Z W K D W W K H
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6

U H q H F W LYLW LH V H YD OX OD W H G E \ W K H Q H Z H oH F W LYH LQ G H [ D U H V R P H ZK D W K LJ K H U D Q G OR ZH U
W K D Q W K R V H H YD OX D W H G X V LQ J Q
a Ho IR U W K H 7( D Q G 70 F D V H V U H V S H F W LYH O\

 )LU VW 2U GHU ')% ODVHU

6 D W R D Q G + R U L >     @ K D YH S U H V H Q W H G D W ZR G LP H Q V LR Q D O F R X S OH G ZD YH W K H R U \ IR U D
W K U H H OD \H U ' )% OD V H U V W U X F W X U H ZLW K P D Q \ D S S U R [LP D W LR Q V  7K H W K U H H OD \H U P R G H O
LV W R R V LP S OLp H G W R E H U H D OLV W LF  ,Q D OD W H U S D S H U  W K H \ >  @ K D YH F R Q V LG H U H G D IR X U
OD \H U ' )% OD V H U V W U X F W X U H  7K H S R LQ W V R I D J U H H P H Q W E H W ZH H Q R X U U H V X OW V D Q G W K R V H
R I6 D WR D Q G + R ULD UH 

s W K H V P D OOH U W K U H V K R OG J D LQ IR U W K H 7( P R G H F R P S D U H G ZLW K W K H 70 P R G H LV
G X H W R D OD U J H U H oH F W LYH F R X S OLQ J R I W K H IR U P H U F R P S D U H G W R W K D W R I W K H OD W H U 

s W K H W K U H V K R OG J D LQ G LoH U H Q F H E H W ZH H Q W K H W ZR OD V LQ J OR Q J LW X G LQ D O P R G H V MX V W
D E R YH D Q G E H OR Z W K H % U D J J IU H TX H Q F \ LV G X H W R W K H G LoH U H Q F H LQ F R Q p Q H P H Q W
ID F W R U V ZK LF K D U H G H S H Q G H Q W R Q W K H ZD YH J X LG H V W U X F W X U H  )R U W K H LU V W U X F W X U H 
W K H \ K D YH IR X Q G W K D W W K H P R G H E H OR Z W K H % U D J J IU H TX H Q F \ K D V D W K U H V K R OG
J D LQ OR ZH U W K D Q W K D W R I W K H P R G H D E R YH W K H W K H % U D J J IU H TX H Q F \

7K H S R LQ W V R I G LV D J U H H P H Q W E H W ZH H Q R X U P H W K R G D Q G W K D W R I 6 D W R D Q G + R U L D U H 

s ,Q F R Q W U D V W W R R X U U H V X OW V  6 D W R D Q G + R U L K D YH R E W D LQ H G D YH U \ K LJ K W K U H V K R OG
b
J D LQ G LoH U H Q F H ZK LF K LV R YH U   F P IR U W K H 7( F D V H  7K H W K U H V K R OG J D LQ
b
G LoH U H Q F H F D OF X OD W H G E \ R X U P H WK R G G R H V Q R W H [F H H G   F P IR U YD U LR X V
F R Q V LG H U H G S D U D P H W H U V 

s 6 D W R D Q G + R U L K D YH F OD LP H G W K D W W K H LU D Q D O\V LV LV D W ZR G LP H Q V LR Q D O W U H D W P H Q W
R I W K H OD V H U V W U X F W X U H ZK LOH W K H \ K D YH D V V X P H G W K H YD OX H R I W K H F R X S OLQ J F R H r 
F LH Q W x LQ V W H D G R I F D OF X OD W LQ J LW IU R P U H D O V W U X F W X U H V  + H Q F H  W K H LU D Q D O\V LV F D Q
   &203 $ 5 ,6 21 : ,7+ 3 5 ( 9 ,28 6 : 25 .   

)LJ X U H     $ pYHOD\HU JXLGLQJ VWUXFWXUH ZKLFK LQFOXGHV D JUDWLQJ UHJLRQ RI WKLFNQHVV K ZKLFK
KDV D VSDWLDO SHULRGLFLW\ e LQ WKH [GLUHFWLRQ 7KH JUDWLQJ OLHV EHWZHHQ WKH JXLGLQJ UHJLRQ ZKLFK
KDV D UHIUDFWLYH LQGH[ QJ DQG WKLFNQHVV GJ b K DQG ORZHU FODGGLQJ UHJLRQ ZLWK D UHIUDFWLYH LQGH[
QF  $ERYH WKH JXLGLQJ UHJLRQ LV WKH DFWLYH UHJLRQ ZKLFK KDV D UHIUDFWLYH LQGH[ QD DQG WKLFNQHVV E
7KH XSSHU FODGGLQJ UHJLRQ KDV D UHIUDFWLYH LQGH[ QF WRR

Q R W G LoH U H Q W LD W H E H W ZH H Q G LoH U H Q W J U D W LQ J S U R p OH V ZK LF K LV D P D LQ G U D ZE D F N LQ
W K H LU ZR U N 7K H ID F W W K D W 6 D W R D Q G + R U L K D YH D V V X P H G D YD OX H IR U W K H F R X S OLQ J
F R H r F LH Q W P D NH V G LU H F W F R P S D U LV R Q ZLW K W K H LU ZR U N Q R W S R V V LE OH 

0D NLQ R >  @ ZD V Q R W F R Q YLQ F H G E \ W K H H [S OD Q D W LR Q 6 D W R D Q G + R U L K D YH S U H V H Q W H G IR U


W K H K LJ K J D LQ G LoH U H Q F H W K H \ K D YH R E W D LQ H G  V LQ F H LW LV G Lr F X OW W R H [S OD LQ D W K U H V K R OG
b
J D LQ G LoH U H Q F H D V OD U J H D V   F P E \ D V P D OO G LoH U H Q F H R I OH V V W K D Q    LQ W K H
F R Q p Q H P H Q W ID F W R U LQ W K H J U D W LQ J OD \H U  + H K D V F D OF X OD W H G W K H W K U H V K R OG J D LQ IR U D
' )% OD V H U V W U X F W X U H LOOX V W U D W H G LQ p J X U H     7K H V W U X F W X U H K D V D p YH OD \H U V Q D P H O\
D F W LYH  J X LG LQ J  J U D W LQ J  X S S H U D Q G OR ZH U F OD G G LQ J OD \H U V W K D W F R Q V LV W R I ,Q *D $ V 3
W K H % U D J J ZD YH OH Q J W K LV   zP  ,Q *D $ V 3  D Q G ,Q 3 U H V S H F W LYH O\ 0D NLQ R K D V X V H G
W K H YD OX H V OLV W H G LQ W D E OH   IR U W K H V W U X F W X U H S D U D P H W H U V 
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6

3 DU DPHWHU 9DOXH
/ D V H U OH Q J W K /    zP
*U D W LQ J S H U LR G e   zP
5 H F W D Q J X OD U J U D W LQ J S U R p OH R I G X W \ U D W LR U  
*U D W LQ J W K LF NQ H V V  K LV W D NH Q D V D YD U LD E OH    zP W R    zP
*X LG LQ J U H J LR Q W K LF NQ H V V GJ   zP
$ F W LYH U H J LR Q W K LF NQ H V V E   zP
&OD G G LQ J U H J LR Q U H IU D F W LYH LQ G H [ QF  
*X LG LQ J U H J LR Q U H IU D F W LYH LQ G H [ QJ  
$ F W LYH U H J LR Q U H IU D F W LYH LQ G H [ QD  
6 X E V W U D W H OR V V oV 

7D E OH    0DNLQR >@ KDV XVHG WKH DERYH OLVWHG YDOXHV IRU GLoHUHQW VWUXFWXUH SDUDPHWHUV VKRZQ
LQ pJXUH 

0D NLQ R ZD V LQ W H U H V W H G LQ W K H W K U H V K R OG J D LQ LQ W K H W U D Q V YH U V H H OH F W U LF F D V H D Q G
W K H W K U H V K R OG J D LQ G LoH U H Q F H E H W ZH H Q W K H W ZR P R G H V D U R X Q G W K H % U D J J IU H TX H Q F \
+ H K D V U H S R U W H G W K D W  LQ F R Q W U D V W W R 6 D W R D Q G + R U L U H V X OW V  W K H OR ZH V W D Q G W K H V H F R Q G
OR ZH V W W K U H V K R OG J D LQ V D U H D OZD \V R E W D LQ H G IR U W K H 7(  D Q G W K H 7( b P R G H V WK D W
D U H OR F D W H G MX V W D E R YH D Q G E H OR Z W K H % U D J J IU H TX H Q F \ U H V S H F W LYH O\ ,Q R UG H U WR
X Q G H U V W D Q G W K LV S R LQ W  W K H G LoH U H Q F H E H W ZH H Q W K H p H OG S U R p OH R I W K H 7( b D Q G 7( 

P R G H V 7( b  7(  G H Q R W H G E \ (] LV S OR W W H G LQ p J X U H    D V D IX Q F W LR Q R I W K H
W U D Q V YH U V H F R R U G LQ D W H \ ZLW K J U D W LQ J W K LF NQ H V V K    zP D W W K H OD V H U H Q G  : H F D Q
V H H IU R P W K H p J X U H W K D W W K H 7( b p H OG LV V R P H K R Z OH V V F R Q p Q H G W R W K H D F W LYH U H J LR Q
   &203 $ 5 ,6 21 : ,7+ 3 5 ( 9 ,28 6 : 25 .   



 $FWLYH *XLGLQJ


Δ(  DUELWUDU\XQLWV

í

í
]

*UDWLQJ
í

í

í
í í 
\ μP

)LJ X U H     7KH GLoHUHQFH EHWZHHQ WKH 7( pHOG EHORZ JDS DQG WKH FRUUHVSRQGLQJ RQH DERYH
WKH JDS DV D IXQFWLRQ RI WKH WUDQVYHUVH FRRUGLQDWH \ DW WKH ODVHU HQG [ 

   zP  \     zP ZK LF K H [S OD LQ H V LW V K LJ K H U W K U H V K R OG J D LQ  7K LV S R LQ W
H P S K D V L] H V W K D W W K H W K U H V K R OG J D LQ G LoH U H Q F H E H W ZH H Q W K H W ZR OD V LQ J OR Q J LW X G LQ D O
P R G H V D U R X Q G W K H % U D J J IU H TX H Q F \ LV G H S H Q G H Q W R Q W K H ZD YH J X LG H V W U X F W X U H R I W K H
OD V H U 

0D NLQ R K D V R E W D LQ H G W K H W K U H V K R OG J D LQ G LoH U H Q F H W D NLQ J LQ W R F R Q V LG H U D W LR Q W K H


H oH F W V R I LQ W U R G X F LQ J OR V V LQ W K H J X LG LQ J U H J LR Q  )LJ X U H    V K R ZV K LV Q X P H U LF D O
U H V X OW V D Q G R X U V IR U W K H W K U H V K R OG J D LQ G LoH U H Q F H YH U V X V W K H J U D W LQ J W K LF NQ H V V R YH U
W K H U D Q J H        zP LQ W ZR F D V H V  L W K H F D V H R I OR V V IU H H J X LG LQ J U H J LR Q G H Q R W H G
b b
E \o  F P D Q G  LL W K H F D V H ZLW K D   F P OR V V LQ W K H J X LG LQ J U H J LR Q 
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6


2XU5HVXOWV
 0DNLQR¶VUHVXOWV

 í
α FP



α FPí
í
ΔJLQFP



 í
α FP

α FPí



          
*UDWLQJWKLFNQHVVKLQμP

)LJ X U H     7KH GLoHUHQFH EHWZHHQ WKUHVKROG JDLQ RI WKH 7(  DQG WKDW RI WKH 7(> PRGHV DV
D IXQFWLRQ RI WKH JUDWLQJ WKLFNQHVV VKRZQ LQ pJXUH  IRU WZR FDVHV o  DQG  FP>  7KH VROLG
OLQH UHSUHVHQWV RXU UHVXOWV DQG WKH GRWWHG RQH UHSUHVHQWV WKH UHVXOWV FDOFXODWHG E\ 0DNLQR >@

,Q W K H p U V W F D V H  0D NLQ R K D V R E W D LQ H G D YH U \ V P D OO W K U H V K R OG J D LQ G LoH U H Q F H W K D W
b
G R H V Q R W H [F H H G   F P R YH U W K H F R Q V LG H U H G J U D W LQ J W K LF NQ H V V U D Q J H  P H D Q ZK LOH
R X U Q X P H U LF D O U H V X OW V V K R Z W K D W W K H W K U H V K R OG J D LQ G LoH U H Q F H V OLJ K W O\ G H F U H D V H V D V
W K H J U D W LQ J W K LF NQ H V V LQ F U H D V H V  7K LV G H F U H D V H F D Q E H H [S OD LQ H G U H IH U U LQ J E D F N W R
p J X U H    ZK LF K V K R ZV W K D W W K H 7( b p H OG LV V OLJ K W O\ E H W W H U F R Q p Q H G W R W K H J U D W LQ J
U H J LR Q W K D Q W K H 7(  p H OG  K H Q F H W K H LQ F U H D V H LQ W K H J U D W LQ J W K LF NQ H V V F R P S H Q V D W H IR U
W K H F R Q p Q P H Q W G LoH U H Q F H LQ W K H D F W LYH U H J LR Q D Q G F R Q V H TX H Q W O\ D V P D OOH U W K U H V K R OG
J D LQ G LoH U H Q F H U H V X OW V 
   &203 $ 5 ,6 21 : ,7+ 3 5 ( 9 ,28 6 : 25 .   

b
,Q W K H V H F R Q G F D V H ZK H U H W K H U H LV   F P OR V V LQ W K H J X LG LQ J U H J LR Q  0D NLQ R K D V
R E W D LQ H G V R P H ZK D W P R U H U D S LG O\ LQ F U H D V LQ J W K U H V K R OG J D LQ G LoH U H Q F H ZLW K W K H J U D W 
LQ J W K LF NQ H V V W K D Q R X U U H V X OW V  7K H YD OX H V R I W K U H V K R OG J D LQ G LoH U H Q F H LQ W K LV F D V H
LV J H Q H U D OO\ J U H D W H U W K D Q W K R V H LQ W K H F D V H ZLW K R X W OR V V ZK LF K F D Q E H H [S OD LQ H G U H 
IH U U LQ J E D F N D J D LQ W R p J X U H     7K H p J X U H V K R ZV W K D W W K H 7(  p H OG H [S H U LH Q F H V
K LJ K H U OR V V LQ W K H J X LG LQ J U H J LR Q W K D Q W K H 7( b p H OG  K H Q F H K LJ K H U J D LQ LV Q H H G H G
IR U W K H IR U P H U  0D NLQ R K D V V X J J H V W H G W K D W W K H J D LQ S H U LR G LF LW \ LQ G X F H G E \ W K H P R G 
X OD W LR Q R I W K H F R Q p Q H P H Q W ID F W R U V D OR Q J W K H S U R S D J D W LR Q LV W K H P D LQ P H F K D Q LV P R I
W K H W K U H V K R OG J D LQ G LoH U H Q F H 

 6HFRQG 2U GHU ')% ODVHU

< X D Q G / LX >  @ K D YH H [W H Q G H G W K H P H W K R G R I 6 W U H LIH U >  @ W R V W X G \ W K H V LQ J OH P R G H


F K D U D F W H U LV W LF V R I ' )% OD V H U V ZLW K V H F R Q G R U G H U J U D W LQ J V  7K H \ K D YH F R Q V LG H U H G
W K H W K U H V K R OG J D LQ G LoH U H Q F H ZK LF K LV W K H G LoH U H Q F H E H W ZH H Q W K H OR ZH V W D Q G V H F R Q G
OR ZH V W W K U H V K R OG J D LQ D V W K H R Q O\ S D U D P H W H U G H W H U P LQ LQ J W K H V LQ J OH P R G H R S H U D W LR Q
R I D ' )% OD V H U  ,Q R U G H U W R P D NH D F R P S D U LV R Q ZLW K W K H LU U H V X OW V ZH U H IH U E D F N W R
p J X U H V            D Q G     )LJ X U H    V K R ZV W K H W K U H V K R OG J D LQ G LoH U H Q F H
H YD OX D W H G IR U R X U V W U X F W X U H V K R ZQ LQ p J X U H    YH U V X V W K H J U D W LQ J W K LF NQ H V V K R YH U
W K H U D Q J H       zP LQ W K H F D V H R I D OD V H U ZLW K R X W D Q G ZLW K F H Q W U D O S K D V H V K LIW 
)R X U S R V V LE LOLW LH V P D \ K D S S H Q

  7( G R P LQ D W H V D Q G W K H V H F R Q G D U \ P R G H LV 70 P R G H G H Q R W H G E \ 7( 70 

  70 G R P LQ D W H V D Q G W K H V H F R Q G D U \ P R G H LV 7( P R G H G H Q R W H G E \ 707( 

  7( G R P LQ D W H V D Q G W K H V H F R Q G D U \ P R G H LV 7( P R G H G H Q R W H G E \ 7( 7(  D Q G
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6


7(í7(
D :LWKRXWSKDVHíVKLIW 7(í70
ΔJLQFPí






         


E :LWKλSKDVHíVKLIW 7(í7(
7(í70
ΔJLQFPí

 70í7(




         
*UDWLQJWKLFNQHVVKLQμP

)LJ X U H     7KH WKUHVKROG JDLQ GLoHUHQFH cJ EHWZHHQ WKH ORZHVW DQG VHFRQG ORZHVW WKUHVKROG
JDLQ HYDOXDWHG IRU RXU VWUXFWXUH VKRZQ LQ pJXUH  YHUVXV WKH JUDWLQJ WKLFNQHVV K LQ WKH FDVH RI
ODVHUV ZLWKRXW DQG ZLWK FHQWUDO SKDVHVKLIW

  70 G R P LQ D W H V D Q G W K H V H F R Q G D U \ P R G H LV 70 P R G H G H Q R W H G E \ 7070 

2X U U H V X OW V TX D OLW D W LYH O\ D J U H H ZLW K W K R V H R I < X D Q G / LX LQ W K D W 

s W K H G R P LQ D Q W P R G H LV X V X D OO\ D 7( P R G H  D Q G W K H V H F R Q G D U \ P R G H LV R Q H R I
W K H 70 P R G H V 

s W K H 70 H P LV V LR Q G R P H Q D W LH V R Q O\ X Q G H U F R Q G LW LR Q V R I  y  S K D V H V K LIW D Q G
 OD U J H J U D W LQ J W K LF NQ H V V ZK LF K F D Q E H V H H Q IU R P p J X U H    E ZLW K D J U D W LQ J
W K LF NQ H V V K J U H D W H U W K D Q   zP 

s W K H 7( U D G LD W LR Q OR V V LV K LJ K H U W K D Q W K H 70 U D G LD W LR Q OR V V 
   &203 $ 5 ,6 21 : ,7+ 3 5 ( 9 ,28 6 : 25 .   

: H Q H [W F R Q V LG H U D P R U H G H W D LOH G F R P S D U LV R Q E H W ZH H Q R X U U H V X OW V D Q G W K R V H R I
. LQ R V K LW D >  @ ,Q V H F W LR Q    ZH K D YH R E W D LQ H G Q X P H U LF D O U H V X OW V IR U W K H V D P H ' )%
V W U X F W X U H F R Q V LG H U H G E \ . LQ R V K LW D  + LV ZR U N K D V E H H Q F K R V H Q E H F D X V H LW LV W K H P R V W
U H F H Q W D Q G F R P S U H K H Q V LYH ZR U N G H D OLQ J ZLW K W K LV W R S LF  . LQ R V K LW D K D V D Q D O\] H G W K H
W K U H V K R OG P R G H E H K D YLR U R I ' )% OD V H U V LQ W K H F D V H R I OD V H U V ZLW K R X W D Q G ZLW K S K D V H
V K LIW D V V X P LQ J ] H U R ID F H W U H q H F W LYLW LH V  7K H S R LQ W V R I D J U H H P H Q W E H W ZH H Q R X U U H V X OW V
D Q G W K R V H R I . LQ R V K LW D D U H 

s )R U V \P P H W U LF W U LD Q J X OD U J U D W LQ J V  W K H Q R V K LIW ' )% OD V H U V V K R Z J R R G V LQ J OH
OR Q J LW X G LQ D O P R G H F D S D E LOLW \ G X H W R U H G X F H G U D G LD W LR Q P R G H V LQ W K H IU H TX H Q F \
U D Q J H E H OR Z W K H % U D J J IU H TX H Q F \ P H D Q ZK LOH W K H y  V K LIW ' )% OD V H U V V K R Z
ZR U V H V LQ J OH OR Q J LW X G LQ D O P R G H E H K D YLR U 

s 7K H E OD ] H G J U D W LQ J V OH D G W R OD U J H U H oH F W LYH F R X S OLQ J W K D Q W K H V \P P H W U LF D O
R Q H V

. LQ R V K LW D K D YH F R Q V LG H U H G R Q O\ W K H W U D Q V YH U V H H OH F W U LF P R G H V LQ W ZR G LoH U H Q W
F D V H V  V \P P H W U LF U   D Q G E OD ] H G U    W U LD Q J X OD U J U D W LQ J V  % R W K W K H
7( D Q G 70 F D V H V K D YH E H H Q W U H D W H G LQ R X U F D OF X OD W LR Q  : H K D YH V W X G LH G W K H H oH F W
R I E OD ] H G W U LD Q J X OD U J U D W LQ J V P R U H W K R U R X J K O\ E \ YD U \LQ J W K H E OD ] LQ J U D W LR U LQ W K H
U D Q J H      2X U U H V X OW V V K R Z W K D W W K H S R LQ W D W ZK LF K W K H E OD ] LQ J H oH F W V E D OD Q F H W K H
U D G LD W LR Q OR V V W K H W K U H V K R OG J D LQ G LoH U H Q F H E H W ZH H Q W K H W ZR OD V LQ J P R G H V D U R X Q G
W K H % U D J J IU H TX H Q F \ H TX D OV ] H U R G R H V Q R W Q H F H V V D U LO\ R F F X U D W U    D V . LQ R V K LW D
K D V U H S R U W H G  : H K D YH V K R ZQ W K D W W K H S R LQ W ZLW K ] H U R W K U H V K R OG J D LQ G LoH U H Q F H P D \
R F F X U D W D Q \ YD OX H R I W K H E OD ] LQ J U D W LR G H S H Q G LQ J R Q W K H J U D W LQ J W K LF NQ H V V 
   &+ $ 3 7( 5   1 8 0( 5 ,&$ / 5 ( 6 8 / 76 )25 ' )% / $ 6 ( 5 6
&KDSWHU 

6RODU &HOOV

 % DVLF 3 U LQFLSOHV


7K H G H YH OR S P H Q W R I V R OD U F H OO X V H K D V E H H Q V W LP X OD W H G E \

s W K H Q H H G IR U OR Z P D LQ W H Q D Q F H  OR Q J OD V W LQ J V R X U F H V R I H OH F W U LF LW \ V X LW D E OH IR U
S OD F H V U H P R W H IU R P E R W K W K H P D LQ H OH F W U LF LW \ J U LG D Q G IU R P S H R S OH  H J V D W H O
OLW H V  U H P R W H V LW H ZD W H U S X P S LQ J  R X W E D F N W H OH F R P P X Q LF D W LR Q V V W D W LR Q V D Q G
OLJ K W K R X V H V 

s W K H Q H H G IR U F R V W H oH F W LYH S R ZH U V X S S OLH V IR U S H R S OH U H P R W H IU R P W K H P D LQ
H OH F W U LF LW \ J U LG  H J $ E R U LJ LQ D O V H W W OH P H Q W V  R X W E D F N V K H H S D Q G F D W W OH V W D W LR Q V 
D Q G V R P H K R P H V LW H V LQ J U LG F R Q Q H F W H G D U H D V 

s W K H Q H H G IR U Q R Q S R OOX W LQ J D Q G V LOH Q W V R X U F H V R I H OH F W U LF LW \ H J W R X U LV W V LW H V 
F D U D YD Q V D Q G F D P S H U V

s W K H Q H H G IR U D F R Q YH Q LH Q W D Q G q H [LE OH V R X U F H R I V P D OO D P R X Q W V R I S R ZH U  H J
F D OF X OD W R U V  ZD W F K H V  OLJ K W P H W H U V D Q G F D P H U D V 

  
   &+ $ 3 7( 5   6 2/ $ 5 &( / / 6

)LJ X U H    $ VFKHPDWLF UHSUHVHQWDWLRQ RI D FRQYHQWLRQDO VRODU FHOO

s W K H Q H H G IR U U H Q H ZD E OH D Q G V X V W D LQ D E OH S R ZH U  D V D P H D Q V R I U H G X F LQ J J OR E D O
ZD U P LQ J

7K H P R V W F R P P R Q IR U P R I D V R OD U F H OO LV Q S MX Q F W LR Q G H V LJ Q H G W R F R Q YH U W OLJ K W
LQ W R H OH F W U LF LW \ $ W \S LF D O Q S MX Q F W LR Q V R OD U F H OO LV V K R ZQ LQ p J X U H    7K H U H J LR Q
ID F LQ J W K H OLJ K W D E R YH W K H MX Q F W LR Q LV F D OOH G W K H HPLWWHU R I X V X D OO\ D K H D YLO\ G R S H G
Q W \S H P D W H U LD O ZK LF K LV W K LQ Q H U W K D Q W K H U H J LR Q E H OR Z ZK LF K LV F D OOH G W K H EDVH $
IU R Q W D Q G D E D F N P H W D O F R Q W D F W V W R H OH F W U LF D OO\ F R Q Q H F W W K H F H OO W R W K H H [W H U Q D O F LU F X LW 
3 K R W R Q V ZLW K LQ W K H LQ F R P LQ J OLJ K W W K D W K D YH H Q H U J \ K LJ K H U W K D Q W K H V H P LF R Q G X F W R U
E D Q G J D S J LYH X S W K H LU H Q H U J \ W R F U H D W H H OH F W U R Q K R OH S D LU V LQ V LG H W K H F H OO 0LQ R U LW \
F D U U LH U V G LoX V H W R W K H MX Q F W LR Q W R E H V ZH S W E \ W K H V W U R Q J H OH F W U LF p H OG V LQ W K H V S D F H
F K D U J H U H J LR Q U H V X OW LQ J LQ D F X U U H Q W q R ZV LQ W R W K H H [W H U Q D O F LU F X LW  7K H OLP LW LQ J
ID F W R U V IR U V R OD U F H OOV H r F LH Q F \ D U H 

s 3 K R W R Q V ZLW K H Q H U J LH V OR ZH U W K D Q W K H E D Q G J D S R I W K H V H P LF R Q G X F W R U ZLOO Q R W
J H Q H U D W H F D U U LH U V 
   % $ 6 ,& 3 5 ,1 &,3 / ( 6   

s 3 K R W R Q V ZLW K H Q H U J LH V J U H D W H U W K D Q W K H E D Q G J D S R I W K H V H P LF R Q G X F W R U U D U H O\
J H Q H U D W H P R U H W K D Q R Q H H OH F W U R Q K R OH S D LU 

s 1 R W D OO W K H S K R W R J H Q H U D W H G F D U U LH U V P D Q D J H W R U H D F K W K H MX Q F W LR Q E H F D X V H R I
E X ON D Q G V X U ID F H U H F R P E LQ D W LR Q 

s 6 R P H R S W LF D O OR V V H V LQ F OX G H U H q H F W LR Q OR V V H V IR U OLJ K W H Q W H U LQ J W K H F H OO D Q G
V K D G R ZLQ J E \ W K H F R Q W D F W V p Q J H U V 

7K X V  P LQ LP L] LQ J R I E X ON D Q G V X U ID F H U H F R P E LQ D W LR Q OH D G V W R K LJ K H U V R OD U F H OO H r 
F LH Q F \ 7K LV U H G X F W LR Q R I F D U U LH U U H F R P E LQ D W LR Q F D Q E H D F K LH YH G E \ S U R S H U O\ G H V LJ Q 
LQ J W K H F H OO X V LQ J D K LJ K TX D OLW \ V X E V W U D W H D Q G P LQ LP L] LQ J W K H F H OO YR OX P H  W K H OD W W H U
F K R LF H OH D G V W R V D YLQ J V LOLF R Q P D W H U LD O D Q G K H Q F H V K R X OG K D YH D F R Q V LG H U D E OH LP S D F W
R Q W K H F R V W D Q G V X S S O\ IR U V LOLF R Q F H OO P D Q X ID F W X U LQ J  + R ZH YH U  W K H U H G X F W LR Q R I W K H
W K LF NQ H V V OH D G V W R U H G X F W LR Q R I W K H OLJ K W D E V R U S W LR Q ZK LF K U H V X OW V LQ D U H G X F W LR Q R I
W K H F H OO H r F LH Q F \ 7K LV S U R E OH P F D Q E H U H V R OYH G E \ LQ F U H D V LQ J W K H S D W K OH Q J W K R I
OLJ K W U D \V LQ V LG H W K H F H OO YR OX P H  7K LV J R D O F D Q E H D F K LH YH G E \ LP S OH P H Q W LQ J OLJ K W
W U D S S LQ J V F K H P H V 
/LJKW WU DSSLQJ >  @ P H D Q V F R Q p Q LQ J P R V W R I LQ F LG H Q W OLJ K W E \ P X OW LS OH LQ W H U Q D O
U H q H F W LR Q V LQ V LG H W K H F H OO YR OX P H  7K X V  LI W K H W U D Q V P LW W H G OLJ K W LV Q R W D E V R U E H G
G X U LQ J LW V p U V W S D V V D J H W K U R X J K W K H F H OO YR OX P H  LW ZLOO K D YH D G G LW LR Q D O R S S R U W X Q LW LH V
W R E H D E V R U E H G  7K H U H D U H W ZR W \S H V R I OLJ K W W U D S S LQ J V F K H P H V  IU R Q W D Q G  R U E D F N
V X U ID F H W H [W X U H V Q D P H O\ ODPEHUWLDQ D Q G JHRPHWULFDO W H [W X U H V 

 /DPEHU WLDQ WH[WXU LQJ LV E D V H G X S R Q W K H U D Q G R P L] D W LR Q R I W K H G LU H F W LR Q R I


W K H OLJ K W LQ V LG H W K H F H OO YR OX P H  )LJ X U H   D V K R ZV D V F K H P D W LF IR U D OD P E H U W LD Q
U D Q G R P L] LQ J W H [W X U LQ J D W W K H E D F N V LG H R I D V R OD U F H OO ZK LF K U H q H F W V W K H LQ F LG H Q W
   &+ $ 3 7( 5   6 2/ $ 5 &( / / 6

)LJ X U H    D $ VFKHPDWLF UHSUHVHQWDWLRQ RI D ODPEHUWLDQ UDQGRPL]LQJ WH[WXULQJ DQG E $


VFKHPDWLF LOOXVWUDWLQJ WKH ORVV FRQH LQ D ODPEHUWLDQ WH[WXULQJ

OLJ K W R Q W K H E D F N V LG H LQ U D Q G R P G LU H F W LR Q V  $ F F R U G LQ J W R / D P E H U W
V F R V LQ H OD Z >  @
W K H D P R X Q W R I U D G LD W H G S R ZH U S H U X Q LW V R OLG D Q J OH W K D W OH D YH V D OD P E H U W LD Q V X U ID F H
H OH P H Q W LQ D J LYH Q G LU H F W LR Q LV S U R S R U W LR Q D O W R W K H F R V LQ H R I W K H D Q J OH LW P D NH V ZLW K
W K H Q R U P D O W R W K H D U H D H OH P H Q W  7K H U D G LD Q F H R I D OD P E H U W LD Q V X U ID F H  W K H D P R X Q W
R I S R ZH U U H q H F W H G D W W K LV V X U ID F H S H U X Q LW S U R MH F W H G D U H D S H U X Q LW V R OLG D Q J OH  LV
W K H V D P H LQ D OO G LU H F W LR Q V >     @ 5 D \V U H q H F W H G IU R P W K H E D F N V LG H K D YH S D W K
OH Q J W K V OR Q J H U W K D Q W K H F H OO W K LF NQ H V V D Q G D U H G H S H Q G H Q W R Q W K H U D Q G R P L] H G D Q J OH
R I U H q H F W LR Q  $ OLJ K W U D \ K D V W R V W U LNH W K H V X U ID F H R I W K H F H OO ZLW K LQ D Q D Q J OH W R
   % $ 6 ,& 3 5 ,1 &,3 / ( 6   

)LJ X U H    $ VFKHPDWLF UHSUHVHQWDWLRQ RI D JHRPHWULFDO UHJXODU WH[WXULQJ

W K H Q R U P D O V P D OOH U W K D Q W K H F U LW LF D O D Q J OH W R E H F R X S OH G R X W R I W K H F H OO R W K H U ZLV H
W K H OLJ K W LV U H q H F W H G E \ W R W D O LQ W H U Q D O U H q H F W LR Q D V V K R ZQ LQ p J X U H   E  7K H F R Q H
b
G H p Q H G E \ W K H F U LW LF D O D Q J OH  vF V LQ   Q ZK H U H Q LV W K H U H IU D F W LYH LQ G H [ R I F H OO
P D W H U LD O LV F D OOH G W K H OR V V F R Q H  )R U ZH D NO\ D E V R U E H G OLJ K W  W K H IU D F W LR Q R I OLJ K W
U H q H F W H G E \ W R W D O LQ W H U Q D O U H q H F W LR Q D W W K H LQ W H U Q D O 6 L D LU LQ W H U ID F H  IR U LQ F LG H Q F H
D Q J OH J U H D W H U W K D Q W K H F U LW LF D O D Q J OH LV H TX D O W R    Q  )R U D W \S LF D O YD OX H R I Q R I
   W K H S H U F H Q W D J H R I OLJ K W U H q H F W H G E D F N W R W K H V LOLF R Q F H OO LV D U R X Q G    D Q G WK H
U H V W H V F D S H V R X W R I W K H F H OO

 *HRPHWU LFDO U HJXODU WH[WXU LQJ W K H V H F R Q G OLJ K W W U D S S LQ J V F K H P H  LV


LOOX V W U D W H G LQ p J X U H   ZK LF K V K R ZV D V F K H P D W LF IR U D U H J X OD U W U LD Q J X OD U W H [W X U LQ J
D W W K H IU R Q W V LG H R I D V R OD U F H OO 6 R OD U F H OO V X U ID F H W H [W X U LQ J LV D F R P P R Q S U R F H G X U H
W R R E W D LQ V R P H LQ W H U Q D O R S W LF D O F R Q p Q H P H Q W  G H F U H D V H R S W LF D O OR V V H V D Q G LQ F U H D V H W K H
R YH U D OO F H OO H r F LH Q F \ >  @>  @ $ W H [W X U H G IU R Q W V X U ID F H K D V D OR ZH U U H q H F W D Q F H W K D Q
D q D W V X U ID F H V LQ F H W K H U D \V W K D W K D YH Q R W H Q W H U H G W K H F H OO G X H W R U H q H F W LR Q D W LW V
IU R Q W V X U ID F H V W LOO K D YH R Q H R U P R U H F K D Q F H V R I G R LQ J V R  0H D Q ZK LOH  V X U ID F H W H [W X U H V
   &+ $ 3 7( 5   6 2/ $ 5 &( / / 6

)LJ X U H    6FKHPDWLF GUDZLQJ RI D WKH VODWHV DQG E WKH SHUSHQGLFXODU VODWV JHRPHWU\ IRU
WH[WXUHG VXUIDFHV >@

LQ F U H D V H W K H OLJ K W S D W K OH Q J W K LQ V LG H W K H F H OO D Q G K H Q F H H Q K D Q F H OLJ K W D E V R U S W LR Q 


6 R P H OLJ K W U D \V K LW W K H F H OO
V OR ZH U V X U ID F H D W D Q D Q J OH J U H D W H U W K D Q W K H V LOLF R Q
F U LW LF D O D Q J OH  D Q G K H Q F H H [S H U LH Q F H W R W D O LQ W H U Q D O U H q H F W LR Q D V V K R ZQ LQ p J X U H   
$ W H [W X U H G E D F NV X U ID F H K D V D V LP LOD U OLJ K W W U D S S LQ J H oH F W  E X W R E YLR X V O\ G R H V Q R W
K H OS U H G X F H U H q H F W LR Q OR V V H V 

*H R P H W U LF D O W H [W X U H V D U H U H OD W LYH O\ H D V \ W R IR U P R Q V LOLF R Q V X U ID F H V  8 S U LJ K W S \U D 
P LG V  LQ YH U W H G S \U D P LG V  V OD W V D Q G S H U S H Q G LF X OD U V OD W V p J X U H   D U H F R P P R Q W H [
W X U H V W U X F W X U H V  6 W X G \LQ J OLJ K W W U D S S LQ J G X H W R J H R P H W U LF D O W H [W X U H V LV V R P H K R Z
F R P S OLF D W H G D Q G LV P D LQ O\ G R Q H W K U R X J K F R P S X W H U D LG H G U D \W U D F LQ J W H F K Q LTX H V 
% H F D X V H R I LQ F U H D V LQ J LQ W H U H V W LQ Q D Q R V W U X F W X U H G V R OD U F H OOV ZLW K V X E P LF U R Q J H R P H W 
U LF D O W H [W X U H V  W K LV LV V X H LV V W X G LH G LQ W K LV W K H V LV 
   % $ 6 ,& 3 5 ,1 &,3 / ( 6   

 3 U HYLRXV VWXGLHV RQ JHRPHWU LFDO WH[WXU LQJ

( D U OLH U V W X G LH V R I J H R P H W U LF D O W H [W X U H V K D YH E H H Q S U H V H Q W H G E \ P D Q \ D X W K R U V  &D P S 
E H OO D Q G *U H H Q >  @ D Q D O\] H G W K H OLJ K W W U D S S LQ J S U R S H U W LH V R I D V R OD U F H OO ZLW K D
S \U D P LG D OO\ W H [W X U H G IU R Q W V X U ID F H  7K H D X W K R U V K D YH F R Q V LG H U H G V TX D U H E D V H G S \U D 
P LG V ZK LF K D U H G H p Q H G E \ LQ W H U V H F W LQ J    ! F U \V W D OOR J U D S K LF S OD Q H V  7K H \ K D YH
F R Q F OX G H G W K D W S \U D P LG D O W H [W X U LQ J J LYH V U LV H W R D V LJ Q Lp F D Q W G H J U H H R I OLJ K W W U D S 
S LQ J ZLW K LQ W K H F H OO 0R U H R YH U  W K H U H V X OW V K D YH V K R ZQ W K D W S \U D P LG D O W H [W X U LQ J R I
W K H W R S V X U ID F H R I D V R OD U F H OO F R P E LQ H G ZLW K D S OD Q D U U H q H F W LYH U H D U V X U ID F H J LYH V
S R R U H U OLJ K W W U D S S LQ J W K D Q W K H F R U U H V S R Q G LQ J F D V H ZK H U H W K H W R S V X U ID F H LV OD P E H U 
W LD Q  7K H \ D OV R K D YH U H S R U W H G W K D W S H U S H Q G LF X OD U V OD W W H [W X U LQ J J LYH V W K H E H V W OLJ K W
W U D S S LQ J S U R S H U W LH V 

3  &D P S E H OO HW DO >  @ K D YH H [D P LQ H G W K H V X U ID F H W H [W X U H V P D G H R I    !


F U \V W D OOR J U D S K LF R U LH Q W H G ID F H W V W R V K R Z W K D W W K LV W H [W X U H S U R YLG H V D Q H oH F W LYH ZD \
W R H Q K D Q F H W K H D E V R U S W LR Q R I OLJ K W  7K H \ K D YH F R Q F OX G H G W K D W D   P P F H OO ZLW K
D Q X S U LJ K W S \U D P LG W H [W X U H D Q G D F U \V W D OOR J U D S K LF R U LH Q W D W LR Q V \P P H W U LF D OO\ W LOW H G
E \   R  F D Q J H Q H U D W H W K H V D P H F X U U H Q W D V D F H OO W H Q W LP H V W K LF NH U W K D W X V H V X Q W LOW H G
S \U D P LG V 

7 8 H P D W V X HW DO >  @ K D YH S U R S R V H G D F H OO V W U X F W X U H ZLW K D OLJ Q H G 9 J U R R YH V


R Q E R W K W K H IU R Q W D Q G E D F N V X U ID F H V  7K H OLJ K W J H Q H U D W H G F X U U H Q W IR U D F R U U X J D W H G

F H OO ZLW K   P P V X E V W U D W H W K LF NQ H V V F D OF X OD W H G D V     P $  F P F R P S D U H G W R   

P $  F P IR U D 9 J U R R YH G F H OO R I W K H V D P H F H OO W K LF NQ H V V 

6 P LW K D Q G 5 R K D W J L >  @ K D YH S U R S R V H G W K H W H [W X U LQ J J H R P H W U \ F R Q V LV W LQ J R I W K U H H
S H U S H Q G LF X OD U S OD Q H V R Q W K H IU R Q W V X U ID F H F U H D W H G E \ LQ W H U V H F W LQ J    !    !
   &+ $ 3 7( 5   6 2/ $ 5 &( / / 6

)LJ X U H    6FKHPDWLF GUDZLQJ RI WKH WKUHH SHUSHQGLFXODU SODQHV JHRPHWU\ IRU WH[WXUHG VXUIDFHV
>@

D Q G    ! S OD Q H V D Q G D S OD Q D U E D F N V X U ID F H V K R ZQ LQ p J X U H    7( ; 78 5 ( 
D U D \ W U D F LQ J V LP X OD W LR Q F R G H >  @ K D V E H H Q X VH G W R S U H G LF W W K H S H U IR U P D Q F H R I
W K H Q H Z G H V LJ Q  7K H S U R S R V H G W H [W X U LQ J  ZLW K R X W W K H X V H R I D Q W LU H q H F W LR Q F R D W LQ J 
S U R YLG H V V X S H U LR U OLJ K W W U D S S LQ J F K D U D F W H U LV W LF V F R P S D U H G W R W K H S H U S H Q G LF X OD U V OD W V
J H R P H W U \ ZLW K D G R X E OH OD \H U D Q W LU H q H F W LR Q F R D W LQ J F R Q V LG H U H G W R E H W K H E H V W F H OO
W H [W X U LQ J G H V LJ Q  7K H LU G H V LJ Q  ZLW K R X W D Q D Q W LU H q H F W LR Q F R D W LQ J D Q G    H oH F W LYH

E D F N U H q H F W R U  S U R G X F H V D P D [LP X P V K R U W F LU F X LW F X U U H Q W G H Q V LW \ R I     P $  F P D V
 
F R P S D U H G W R     P $  F P D Q G     P $  F P IR U W K H S H U S H Q G LF X OD U V OD W H V J H R P H W U \
D Q G q D W V X U ID F H V  U H V S H F W LYH O\ ZLW K D V LQ J OH OD \H U $ 5 F R D W LQ J R Q W K H IU R Q W 

6 P LW K D Q G 5 R K D W J L >  @ K D YH H [D P LQ H G V H YH U D O F R P P R Q W H [W X U LQ J J H R P H W U LH V V OD W V 
S \U D P LG V W R G H W H U P LQ H W K H LU OLJ K W W U D S S LQ J S U R S H U W LH V  7K H \ TX D Q W LW D W LYH O\ D Q D 
O\] H G W K H LQ W H U Q D O D Q G H [W H U Q D O OLJ K W W U D S S LQ J F K D U D F W H U LV W LF V R I W K H LQ YH U W H G S \U D 
   % $ 6 ,& 3 5 ,1 &,3 / ( 6   

)LJ X U H    8QLW FHOOV RI WKH LQYHVWLJDWHG WH[WXUHV E\ %UHQGHO >@ (DFK WH[WXUH LV FKDUDFWHUL]HG
E\ WKH IDFHW DQJOH q EHWZHHQ WKH IDFHW DQG WKH PDFURVFRSLF FHOO VXUIDFH D S\UDPLGV ZLWK DOO IDFHWV
LQFOLQHG E\ q E VLPSOH SULVP JURRYHV ZLWK WZR IDFHWV LQFOLQHG q DQG RSSRVLWH IDFHWV PHHWLQJ DW
D ULJKW DQJOH F JURRYHV ZLWK DOO IDFHWV LQFOLQHG E\ q G VLPSOH SULVP JURRYHV ZLWK WZR IDFHWV
LQFOLQHG E\ q DQG RSSRVLWH IDFHWV PHHWLQJ DW D ULJKW DQJOH DQG H VKDUS JURRYHV ZLWK WZR IURQW
IDFHWV LQFOLQHG E\ R DQG WKH WZR IDFHWV RQ WKH EDFN LQFOLQHG E\ q

P LG J H R P H W U \ 7K H \ IR X Q G W K D W D E R X W    R I W K H LQ F LG H Q W OLJ K W H [S H U LH Q F H D W U LS OH
E R X Q F H R Q W K H IU R Q W V X U ID F H R I W K H LQ YH U W H G S \U D P LG J H R P H W U \ ZK LOH Q R U D \V H [S H 
U LH Q F H D W U LS OH E R X Q F H LQ W K H V OD W D Q G X S U LJ K W S \U D P LG J H R P H W U LH V  7K H LQ YH U W H G
S \U D P LG V R Q D    P P F H OO ZLW K D G R X E OH D Q W LU H q H F W LR Q F R D W LQ J LV H V W LP D W H G W R J LYH

   P $  F P D Q G F H OO H r F LH Q F LH V D U R X Q G    ZLW K U H D OLV W LF F H OO G H V LJ Q 

% U H Q G H O >  @ K D V D Q D O\] H G W K H OLJ K W F R X S OLQ J LQ W R P H F K D Q LF D OO\ W H [W X U H G  H Q F D S 


V X OD W H G S R O\F U \V W D OOLQ H V LOLF R Q V R OD U F H OOV X V LQ J W K H Q X P H U LF D O U D \ W U D F LQ J S U R J U D P
6 8 1 5 $ < 6  7K H U H V X OW V V K R Z W K D W W K H P D [LP X P D YH U D J H S D W K OH Q J W K X Q G H U LV R W U R S LF
LOOX P LQ D W LR Q LV D F W X D OO\ D F K LH YH G E \ V H YH U D O W \S H V R I W H [W X U H V V K R ZQ LQ p J X U H   LQ 
F OX G LQ J X S U LJ K W S \U D P LG V  V LP S OH S U LV P S \U D P LG V  V \P P H W U LF J U R R YH V  V LP S OH S U LV P
   &+ $ 3 7( 5   6 2/ $ 5 &( / / 6

J U R R YH V D Q G V \P P H W U LF V K D U S J U R R YH V  $ P R Q J D OO W H [W X U H V F R Q V LG H U H G  V R OD U F H OOV
ZLW K D V K D U S J U R R YH W H [W X U H D Q G Q R D Q W LU H q H F W LR Q F R D W LQ J J LYH W K H OD U J H V W F X U U H Q W
G H Q V LW LH V 

=K D R HW DO >  @ K D YH U H S R U W H G D   P P W K LQ F H OO P D G H R Q D V H OIV X S S R U W LQ J


W K LQ Q H G V LQ J OH F U \V W D OOLQ H V LOLF R Q ZD IH U ZLW K F R Q YH U V LR Q H r F LH Q F \      ( Q H U J \
F R Q YH U V LR Q H r F LH Q F \ D E R YH    LV D F K LH YH G IR U D V LOLF R Q F H OO R I V X F K W K LF NQ H V V  % H 
V LG H W K LV ZR U N 0 $  *U H H Q HW DO >  @ G H P R Q V W U D W H G W K H H [F H OOH Q W OLJ K W W U D S S LQ J
S U R S H U W LH V LQ H [S H U LP H Q W D O     H r F LH Q W W K LQ V LOLF R Q V R OD U F H OOV 

' LU H F W W H [W X U LQ J R I V LOLF R Q E \ D Q LV R W U R S LF H W F K LQ J P D \ Q R W E H D S S OLF D E OH W R W K LQ


p OP V  2Q H R I W K H S U R P LV LQ J R S W LR Q V LV W R G H S R V LW p OP V F R Q IR U P D OO\ R Q W R V X E V W U D W H V
W H [W X U H G ZLW K P D F U R V F R S LF J H R P H W U LF D O IH D W X U H V  7K R U S HW DO >  @ K D YH LQ YH V W LJ D W H G
W K H D Q W L U H q H F W LYH D Q G OLJ K W W U D S S LQ J S U R S H U W LH V R I W K LQ V LOLF R Q p OP V F R Q IR U P D OO\
G H S R V LW H G R Q V X E V W U D W H V W H [W X U H G ZLW K IH D W X U H V L] H V J U H D W H U W K D Q W K H p OP W K LF NQ H V V 
7K H Q  7K R U S D Q G : H Q K D P >  @ K D YH LQ W U R G X F H G D U D \W U D F LQ J S U R J U D P  % ,5 $ 1 ' < 
IR U P R G H OLQ J W K H D Q W LU H q H F W LR Q D Q G OLJ K W W U D S S LQ J S U R S H U W LH V R I D U E LW U D U \ V X U ID F H
W H [W X U H V  7K H S U R J U D P LV X V H G W R V LP X OD W H W K LQ F U \V W D OOLQ H V LOLF R Q V R OD U F H OOV W K D W
P LJ K W E H G H S R V LW H G R Q W R F K H P LF D OO\ H W F K H G J OD V V 

6LPXODWLRQ 3 U RJU DPV

0D Q \ S U R J U D P V K D YH E H H Q G H YH OR S H G W R V LP X OD W H W K H R S H U D W LR Q R I V R OD U F H OOV  W K H
P R V W ID P R X V IR X U F R P P H U F LD O S U R J U D P V D U H 3 & '  7( ; 78 5 (  6 8 1 5 $ < 6 D Q G
,4(  '  ,Q H D U O\     % D V R U H >  @ G H YH OR S H G W K H F R P S X W H U S U R J U D P 3 & ' ZK LF K LV
ZLG H O\ X V H G IR U P R G H OLQ J F U \V W D OOLQ H V R OD U F H OOV  ,W LV D TX D V LR Q H G LP H Q V LR Q D O p Q LW H
H OH P H Q W V S U R J U D P WK D W F D Q UX Q R Q S H UVR Q D OF R P S X WH UV
   % $ 6 ,& 3 5 ,1 &,3 / ( 6   

6 P LW K HW DO >  @ K D YH S U H V H Q W H G 7( ; 78 5 (  D 0R Q W H &D U OR U D \W U D F LQ J S U R J U D P 


7( ; 78 5 ( S H U IR U P V W K U H H G LP H Q V LR Q D O D Q D O\V LV LQ D OO P R G H V R I R S H U D W LR Q  ,W F D Q
V X S S R U W YD U LR X V V X U ID F H V W U X F W X U H V LQ F OX G LQ J q D W  / D P E H U W LD Q  V OD W V  S \U D P LG V  W H W U D 
K H G U R Q V D Q G V TX D U H ZH OOV 

% U H Q G H O >  @ K D V G H YH OR S H G D W K U H H G LP H Q V LR Q D O U D \W U D F LQ J S U R J U D P 6 8 1 5 $ < 6  ,W


H P S OR \V J H R P H W U LF D O R S W LF V LQ F R P E LQ D W LR Q ZLW K 0D [ZH OO
V H TX D W LR Q V D W G LH OH F W U LF D OO\
F R D W H G LQ W H U ID F H V E H W ZH H Q G LoH U H Q W P D W H U LD OV  6 8 1 5 $ < 6 D F F R X Q W V IR U W K H G H S H Q 
G H Q F H R I U H q H F W LR Q D Q G W U D Q V P LV V LR Q R Q W K H ZD YH OH Q J W K  W K H D Q J OH R I LQ F LG H Q F H D Q G
W K H S R OD U L] D W LR Q R I OLJ K W  + H K D V G H YH OR S H G D S U R J U D P ,4(  ' >  @ D R Q H G LP H Q V LR Q D O
D Q D O\W LF D O P R G H O IR U W K H R S W LF V D V ZH OO D V W K H H OH F W U LF D O F K D U D F W H U LV W LF V R I W K H V R OD U
F H OO

6XEPLFU RQ 7 H[WXU HV

: LW K W K H U H F H Q W LQ W H U H V W LQ Q D Q R V W U X F W X U H G V R OD U F H OOV  LW P D \ E H R I V R P H LQ W H U H V W
W R V W X G \ K R Z V X E P LF U R Q W H [W X U H V ZR X OG S H U IR U P  ( D U OLH U V W X G LH V LQ W K LV G LU H F W LR Q
LQ F OX G H W K H V W X G \ E \ 0R U I D Q G . LH V V >   @ R I W K H OLJ K W W U D S S LQ J D F W LR Q R I V X E P LF U R Q
P H W D OL] H G U H F W D Q J X OD U J U R R YH V R Q W K H F H OO
V E D F NV X U ID F H LQ W K H F D V H R I 7( LQ F LG H Q W
OLJ K W ZLW K W K H H OH F W U LF p H OG S R OD U L] H G S D U D OOH O W R W K H J U R R YH V  1 X P H U LF D O F D OF X OD W LR Q V
V K R Z W K D W  IR U J U D W LQ J V ZLW K D U H F W D Q J X OD U F U R V V V H F W LR Q H W F K H G LQ W R D V H P L LQ V X OD W LQ J
S R O\F U \V W D OOLQ H V LOLF R Q F R D W LQ J R I W K H V LOLF R Q F H OO D Q G V X E V H TX H Q W O\ P H W D OL] H G  R S W L
P X P OLJ K W W U D S S LQ J LV D F K LH YH G IR U D J U D W LQ J S H U LR G S }   zP D Q G D G H S WK G 
  zP  7K H G LV F X V V LR Q LV OLP LW H G W R R Q H G LP H Q V LR Q D O J U D W LQ J V 

3 OwD HW DO >   @ K D YH P D G H D F R P S D U LV R Q E H W ZH H Q U D \W U D F LQ J D Q G H OH F W U R P D J 


Q H W LF P H W K R G V D V U H J D U G V U H q H F W LR Q IU R P D 9 J U R R YH G S H U IH F W F R Q G X F W LQ J V X U ID F H 
   &+ $ 3 7( 5   6 2/ $ 5 &( / / 6

7K H F R P S D U LV R Q ZD V U H V W U LF W H G W R W K H 7( F D V H  $ P R U H G H W D LOH G V W X G \ R I W K H D Q W L
U H q H F W LYH D Q G OLJ K W W U D S S LQ J H oH F W R I OLQ H D U S H U LR G LF J U R R YH V R I D U E LW U D U \ V K D S H LV
G R Q H E \ $ E R X OV D R R G >   @ 7K H V W X G \ K D V V K R ZH G W K D W W K H P R V W LP S R U W D Q W S K \V LF D O
R S W LF V H oH F W V D U H W K H G LoU D F W LR Q R I OLJ K W D W W K H J U R R YH H G J H V  W K H LQ W H U IH U H Q F H R I OLJ K W
U H q H F W H G E \ W K H G LoH U H Q W J U R R YH V X U ID F H V  D Q G W K H W X Q Q H OLQ J D F U R V V W K H J U R R YH G V X U 
ID F H R I OLJ K W LQ F LG H Q W IU R P W K H V LOLF R Q V LG H D W R Q H D Q J OH J U H D W H U W K D Q W K H F U LW LF D O D Q J OH 
5 H V X OW V D S S U R D F K W K H J H R P H W U LF D O R S W LF V S U H G LF W LR Q V V OR ZO\ D Q G LQ D Q R V F LOOD W R U \ ZD \
ZK H Q W K H J U R R YH S H U LR G LQ F U H D V H V D E R YH W K H ZD YH OH Q J W K  ,Q V R P H F D V H V W K H U H LV D
V LJ Q Lp F D Q W G LV F U H S D Q F \ E H W ZH H Q W K H H [D F W D Q G J H R P H W U LF D O R S W LF V S U H G LF W LR Q H YH Q IR U
D J U D W LQ J S H U LR G D V OD U J H D V W H Q W LP H V W K H ZD YH OH Q J W K 

 5&:$ RI D WH[WXU HG VRODU FHOO

7K H S X U S R V H R I D S S O\LQ J W K H 5 &: $ P H WK R G W R W H [W X U H G V R OD U F H OOV LV W R V W X G \


W K H D Q W LU H q H F W LYH D Q G OLJ K W W U D S S LQ J S U R S H U W LH V R I OLQ H D U S H U LR G LF W H [W X U H V R I P LF U R Q
D Q G V X E P LF U R Q V L] H V  7K H P H W K R G F D Q E H D S S OLH G W R J U D W LQ J V R I D U E LW U D U \ S U R p OH 
)LJ X U H   V K R ZV D V LP S OH W H [W X U H G IU R Q W V X U ID F H V R OD U F H OO ZK H U H P R Q R F K U R P D W LF OLJ K W
R I ZD YH OH Q J W K y LV Q R U P D OO\ LQ F LG H Q W LQ W K H \G LU H F W LR Q R Q D V LOLF R Q OD \H U W K U R X J K
D V LOLF R Q J U D W LQ J U H J LR Q ZK LF K K D V D V S D W LD O S H U LR G LF LW \ e LQ W K H [G LU H F W LR Q  E X W
R W K H U ZLV H K D V D Q D U E LW U D U \ S U R p OH  ,Q W K LV F D V H  W K H U H D U H W K U H H U H J LR Q V  W K H J U D W LQ J
U H J LR Q LQ W K H P LG G OH  D Q D LU U H J LR Q D E R YH LW D Q G D E X ON V LOLF R Q U H J LR Q E H OR Z LW  7K H
p H OG V LQ W K H J U D W LQ J U H J LR Q D U H F R Q V LG H U H G p U V W  W K H Q W K R V H LQ W K H D LU D Q G E X ON U H J LR Q V 
7K H 7( F D V H D Q G W K H 70 F D V H D U H W U H D W H G LQ W K H IR OOR ZLQ J V H F W LR Q V 
   5 &: $ 2) $ 7( ; 78 5 ( ' 6 2/ $ 5 &( / /   

)LJ X U H    /LJKW RI ZDYHOHQJWK y LV QRUPDOO\ LQFLGHQW LQ WKH \GLUHFWLRQ RQ D VLOLFRQ VXEVWUDWH


WKURXJK D VLOLFRQ JUDWLQJ UHJLRQ ZKLFK KDV D VSDWLDO SHULRGLFLW\ e LQ WKH [GLUHFWLRQ EXW RWKHUZLVH
KDV DQ DUELWUDU\ SURpOH 7KH DLU UHJLRQ DQG WKH VLOLFRQ UHJLRQ KDYH FRPSOH[ GLHOHFWULF FRQVWDQW s
DQG s UHVSHFWLYHO\

 $QDO\VLV RI 7 ( )LHOGV

)LHOGV H[SU HVVLRQV LQ WKH JU DWLQJ U HJLRQ

$ V V K R ZQ LQ p J X U H   W K H J U D W LQ J LV G LYLG H G LQ W R D OD U J H Q X P E H U R I W K LQ V OLF H V LQ
W K H IR U P R I OD \H U V ZLW K S D U D OOH OS OD Q H V X U ID F H V  H D F K ZLW K D G LH OH F W U LF IX Q F W LR Q sU [
W K D W F D Q E H H [S D Q G H G LQ D )R X U LH U V H U LH V H TX D W LR Q   


;
sU [ IQ HLQN [ 
Q b

7K H H TX D W LR Q V S U H YLR X V O\ J LYH Q H TX D W LR Q   W R H TX D W LR Q    D U H YD OLG ZLW K c N


V H W H TX D O W R ] H U R D V Q R U P D O LQ F LG H Q W OLJ K W LV F R Q V LG H U H G  7K H H OH F W U LF p H OG (] LQ W K H
V OLF H R I W K LF NQ H V V D LV V LP LOD U O\ H [S D Q G H G 

;
(] HLQN [ 8Q \   
Q
   &+ $ 3 7( 5   6 2/ $ 5 &( / / 6

)LJ X U H    7KH JUDWLQJ UHJLRQ FDQ EH GLYLGHG LQWR D ODUJH QXPEHU RI WKLQ OD\HUV HDFK ZLWK D
GLHOHFWULF IXQFWLRQ sU [ ZKLFK LV DSSUR[LPDWHG E\ D SLHFHZLVHFRQVWDQW SHULRGLF IXQFWLRQ RI [ ZLWK
SHULRGLFLW\ e

ZK H U H N  } e  6 X E V W LW X W LQ J W K H p H OG LQ W K H ZD YH H TX D W LR Q   U  sU NR (]
  U H V X OW V LQ
 
; ;
HLQN [ #\8Q  bQ N   NR IP HLPN [ 8Q   
Q P

+ H Q F H  IR U D Q \ LQ W H J H U Q  W K H IR OOR ZLQ J H TX D W LR Q LV YD OLG

;
#\ 8Q  $HQP 8P    
P
   5 &: $ 2) $ 7( ; 78 5 ( ' 6 2/ $ 5 &( / /   

ZK H U H W K H P D W U L[ H OH P H Q W V $HQP D U H G H p Q H G E \

$HQP NR IQbP b Q N rPQ   

H W K H Q
/ H W ƒ P D Q G yP E H W K H H LJ H Q YH F W R U V D Q G W K H F R U U H V S R Q G LQ J H LJ H Q YD OX H V R I $
8Q F D Q E H ZU LW W H Q LQ D IR U P V LP LOD U W R H TX D W LR Q   
;
8Q \ &P HLyP \b\R  'P HbLyP \b\R ƒ P
Q
P

7K H [F R P S R Q H Q W R I W K H P D J Q H W LF p H OG F D Q E H ZU LW W H Q D V
 #(] ;
F%[ HLQN [ 9Q \   
LNR #\ Q

ZK H U H 9Q F D Q E H ZU LW W H Q LQ D IR U P V LP LOD U W R H TX D W LR Q   
;
9Q \ z P &P HLyP \b\R b 'P HbLyP \b\R ƒ P 
y Q
P

7K H V S D F H K D U P R Q LF V R I W K H H OH F W U LF D Q G P D J Q H W LF p H OG V D U H D U U D Q J H G LQ R Q H F R O
X P Q :  7K H W U D Q V IH U P D W U L[ € R I D V OLF H LV G H p Q H G D V W K H P D W U L[ W K D W U H OD W H V W K H
V S D F H K D U P R Q LF V R I W K H H OH F W U LF D Q G P D J Q H W LF p H OG F R P S R Q H Q W V ZK LF K OLH LQ W K H W R S
E R X Q G D U \ S OD Q H R I W K H V OLF H W R W K R V H LQ LW V E R W W R P E R X Q G D U \ S OD Q H 

: M\ \R € : M\ \R D

7K H W U D Q V IH U P D W U L[ € F D Q E H F D OF X OD W H G E \ H TX D W LR Q     % H F D X V H R I W K H F R Q W LQ X LW \
R I W K H W D Q J H Q W LD O F R P S R Q H Q W V R I W K H H OH F W U LF D Q G P D J Q H W LF p H OG V D F U R V V W K H E R X Q G D U LH V
R I W K H V OLF H V  W K H W U D Q V IH U P D W U L[ 7 IR U W K H ZK R OH J U D W LQ J U H J LR Q G H p Q H G E \

: M\  7 : M\ K

ZLOO E H W K H S U R G X F W R I W K H W U D Q V IH U P D W U LF H V R I W K H V OLF H V LQ W K H D S S U R S U LD W H R U G H U
G H p Q H G E \ H TX D W LR Q    
   &+ $ 3 7( 5   6 2/ $ 5 &( / / 6

)LHOGV H[SU HVVLRQV LQ WRS U HJLRQ

,W LV D V V X P H G W K D W OLJ K W LV Q R U P D OO\ LQ F LG H Q W IU R P W K H W R S U H J LR Q R I G LH OH F W U LF F R Q V W D Q W
s D V LOOX V W U D W H G LQ p J X U H    7K H H OH F W U LF D Q G P D J Q H W LF p H OG V LQ W K LV W R S U H J LR Q
\   F D Q E H H [S U H V V H G D V IR OOR ZV 
S ;
(] HL s NR \
 5Q HLQN [ HbLoQ \ 
Q
S S
L s NR \
;
F%[ s H  oz Q 5Q HLQN [ HbLoQ \   
Q

ZK H U H
T
oQ u NR oz Q QN  b NR s  

7K H V S D F H K D U P R Q LF V R I (] D Q G F%[ D W W K H W R S  J U D W LQ J U H J LR Q LQ W H U ID F H  \  F D Q
E H D U U D Q J H G LQ R Q H F R OX P Q D V
   
 rQR   '  
   
   
: M\   ccc  ccc  5  
   
 S   
s rQR ' boz Q
ZK H U H rQR LV D F R OX P Q YH F W R U ZLW K W K H R Q O\ Q R Q ] H U R H OH P H Q W K D YLQ J D YD OX H R I X Q LW \
D Q G F R U U H V S R Q G LQ J W R W K H ] H U R V S D F H K D U P R Q LF D Q G ' [Q LV D G LD J R Q D O P D W U L[ ZK R V H
G LD J R Q D O H OH P H Q W V D U H [Q 

)LHOGV H[SU HVVLRQV LQ VXEVWU DWH U HJLRQ

$ V V X P LQ J W K D W Q R OLJ K W LV LQ F LG H Q W IU R P W K H V X E V W U D W H U H J LR Q \ ! K  W K H H OH F W U LF
D Q G P D J Q H W LF p H OG V W U D Q V P LW W H G W R W K LV U H J LR Q V K R X OG G H F D \ D Q G J R W R ] H U R D V \ W H Q G V
W R  K H Q F H W K H p H OG V F D Q E H ZU LW W H Q LQ W K H IR U P 
;
(] 7Q HLQN [ HLqQ \bK 
Q
;
F%[ qz Q 7Q HLQN [ HLqQ \bK   
Q
   5 &: $ 2) $ 7( ; 78 5 ( ' 6 2/ $ 5 &( / /   

)LJ X U H    $ VLOLFRQ OD\HU RI WKLFNQHVV E ZLWK D SHUIHFW PHWDOOLF UHqHFWRU RQ ZKLFK (] YDQLVK

ZK H U H
T
qQ u NR qz Q QN  b NR  s   

7K H F R H r F LH Q W V 7Q D U H D V V H P E OH G LQ W R D F R OX P Q YH F W R U 7 W K H V S D F H K D U P R Q LF V R I
W K H p H OG D W W K H J U D W LQ J  V X E V W U D W H U H J LR Q LQ W H U ID F H \ K F D Q E H H [S U H V V H G D V
 
 '  
 
 
: M\ K  ccc

 7 u 47

  
 
' qz Q

,I W K H V X E V W U D W H K D V E X ON U H J LR Q W K LF NQ H V V E D Q G D S H U IH F W E D F NV LG H P H W D OOLF U H q H F W R U
R Q ZK LF K (] YD Q LV K H V D V V K R ZQ LQ p J X U H    W K H p H OG V LQ W K H E X ON U H J LR Q F D Q E H
   &+ $ 3 7( 5   6 2/ $ 5 &( / / 6

ZU LW W H Q LQ W K H IR U P

;
(] 7Q HLQN [ V LQ TQ K  E b \ 
Q
;
F%[ L zTQ 7Q HLQN [ F R V TQ K  E b \    
Q

ZK H U H
T
TQ u NR zTQ QN  b NR  s   

7K H F R H r F LH Q W V 7Q D U H D V V H P E OH G LQ W R D F R OX P Q YH F W R U 7 W K H V S D F H K D U P R Q LF V R I
W K H H OH F W U LF D Q G P D J Q H W LF p H OG V D W W K H J U D W LQ J  V X E V W U D W H U H J LR Q LQ W H U ID F H \ K F D Q
E H H [S U H V V H G LQ P D W U L[ IR U P 
 
 ' V LQ TQ E 
 
 
: M\ K 
 ccc  7 u 47

  
 
L' zTQ F R V TQ E

&DOFXODWLRQ RI U HqHFWHG DQG WU DQVPLWWHG SRZHU

7K H V S D F H K D U P R Q LF V D W W K H W R S E R X Q G D U \ R I W K H J U D W LQ J U H J LR Q H [S U H V V H G E \ H TX D 
W LR Q   D U H U H OD W H G W R W K R V H D W W K H E R W W R P E R X Q G D U \ R I W K H J U D W LQ J U H J LR Q H [S U H V V H G
E \ H TX D W LR Q    R U    E \ W K H W U D Q V IH U P D W U L[ R I W K H J U D W LQ J U H J LR Q D V IR OOR ZV 
   
 rQR   '  
   
   
 ccc  ccc 5 7 47   
   
 S   
s rQR b' oz Q

7K LV H TX D W LR Q LV U H D U U D Q J H G W R J H W D V H W R I OLQ H D U D OJ H E U D LF H TX D W LR Q V IR U W K H U H q H F W LR Q
   5 &: $ 2) $ 7( ; 78 5 ( ' 6 2/ $ 5 &( / /   

D Q G W K H W U D Q V P LV V LR Q F R H r F LH Q W V R I W K H V S D F H K D U P R Q LF V D V IR OOR ZV 
    

 b'    5   rQR 
    
     
 ccc
  7 4
 ccc 
  
 ccc 

  
     S 
' oz Q  7 s rQR

2Q F H W K H U H q H F W LR Q D Q G W K H W U D Q V P LV V LR Q F R H r F LH Q W V D U H G H W H U P LQ H G  W K H p H OG V LQ
G LoH U H Q W U H J LR Q V F D Q E H H YD OX D W H G  &R Q V H TX H Q W O\ W K H S R ZH U U H q H F W H G IU R P  3U 
D E VR UE H G LQ  D Q G W U D Q V P LW W H G  3W W K U R X J K W K H V W U X F W X U H R U D Q \ R I LW V U H J LR Q V LQ
W H U P V R I W K H LQ F LG H Q W S R ZH U F D Q E H G H W H U P LQ H G  7K H IR OOR ZLQ J H [S U H V V LR Q V D U H X V H G
W R H YD OX D W H Q R U P D OL] H G 3U D Q G 3W 

;  oz Q
3U S M5Q M 
Q s
;  qz Q
3W S M7Q M   
Q  s
ZK H U H  [ G H Q R W H V W K H U H D O S D U W R I [ 3U D Q G 3W D U H Q R U P D OL] H G U H OD W LYH W R W K H
LQ F LG H Q W S R ZH U 

 $QDO\VLV RI 7 0 )LHOGV

)LHOGV H[SU HVVLRQV LQ WKH JU DWLQJ U HJLRQ

3 U R F H H G LQ J LQ W K H V D P H ZD \ D V LQ W K H 7( F D V H  W K H J U D W LQ J LV G LYLG H G LQ W R D OD U J H
Q X P E H U R I W K LQ V OLF H V LQ W K H IR U P R I OD \H U V ZLW K S D U D OOH OS OD Q H V X U ID F H V  H D F K ZLW K D
G LH OH F W U LF IX Q F W LR Q sU [ D V V K R ZQ LQ p J X U H    7K H U H F LS U R F D O R I sU [ LV H [S D Q G H G
LQ D )R X U LH U V H U LH V H TX D W LR Q    
 ;
JQ HLQN [ 
sU Q
   &+ $ 3 7( 5   6 2/ $ 5 &( / / 6

7K H p H OG V LQ W K H J U D W LQ J U H J LR Q R E H \ H TX D W LR Q    W K U R X J K    ZLW K c N V H W W R
] H U R D V Q R U P D O LQ F LG H Q W OLJ K W LV F R Q V LG H U H G  7K H P D J Q H W LF p H OG %] LQ W K H V OLF H R I
W K LF NQ H V V D F D Q E H ZU LW W H Q D V 
;
F%] HLQN [ 8Q \    
Q

6 X E V W LW X W LQ J W K LV LQ W K H ZD YH H TX D W LR Q    7 sU 7%]  NR %]   8Q K D V W K H


IR U P   
; P
8Q \  LyP \b\R
&P H  bLyP \b\R
 'P H ƒQ 
P

ZK H U H yP D Q G ƒ P D U H Q R Z J LYH Q E \ W K H J H Q H U D OL] H G H LJ H Q YD OX H H TX D W LR Q $ƒ P


y   P
P% ƒ ZLW K W K H P D W U LF H V $ D Q G %  J LYH Q E \

$PQ NRrPQ b P QN  JPbQ 



%PQ JPbQ    

7K H [F R P S R Q H Q W R I W K H H OH F W U LF p H OG ([ 
„ 
F  #%]
b([ 
LNR sU #\
;
u HLQN [ 9Q \    
Q

ZK H U H 9Q F D Q E H ZU LW W H Q LQ IR U P V LP LOD U W R H TX D W LR Q    
„ 
  #8Q
9Q 
LNR sU #\
7K H W U D Q V IH U P D W U L[ €  R I D V OLF H LV G H p Q H G D V W K H P D W U L[ W K D W U H OD W H V W K H V S D F H
K D U P R Q LF V R I W K H P D J Q H W LF D Q G H OH F W U LF p H OG F R P S R Q H Q W V ZK LF K OLH LQ W K H W R S E R X Q G 
D U \ S OD Q H R I W K H V OLF H W R W K R V H LQ LW V E R W W R P E R X Q G D U \ S OD Q H  7K LV P D W U L[ F D Q E H
H [S U H V V H G E \ H TX D W LR Q     % H F D X V H R I W K H F R Q W LQ X LW \ R I W K H W D Q J H Q W LD O F R P S R Q H Q W V
R I W K H H OH F W U LF D Q G P D J Q H W LF p H OG D F U R V V W K H E R X Q G D U LH V R I W K H V OLF H V  W K H W U D Q V IH U
P D W U L[ 7  IR U W K H ZK R OH J U D W LQ J U H J LR Q ZLOO E H W K H S U R G X F W R I W K H W U D Q V IH U P D W U LF H V
R I W K H V OLF H V LQ W K H D S S U R S U LD W H R U G H U G H p Q H G E \ H TX D W LR Q    
   5 &: $ 2) $ 7( ; 78 5 ( ' 6 2/ $ 5 &( / /   

)LHOGV H[SU HVVLRQV LQ WRS U HJLRQ

5 H IH U U LQ J W R p J X U H    W K H P D J Q H W LF D Q G W K H H OH F W U LF p H OG V LQ W K H W R S U H J LR Q \  
F R Q V LV W V R I D Q LQ F LG H Q W D Q G D U H q H F W H G S D U W W K D W F D Q E H H [S U H V V H G D V 

S ;
F%] HL s NR \
 5Q HLQN [ HbLoQ \ 
Q
S
z Q
HL s NR \ ; bo
b([ S  5Q HLQN [ HbLoQ \    
s Q s 

ZK H U H oQ LV G H p Q H G E \ H TX D W LR Q    3 U R F H H G LQ J D V LQ W K H 7( F D VH  WK H VS D F H
K D U P R Q LF V R I W K H p H OG V D U H D U U D Q J H G LQ R Q H F R OX P Q YH F W R U :  W K D W F D Q E H H [S U H V V H G
D W W K H D LU  J U D W LQ J U H J LR Q LQ W H U ID F H LQ P D W U L[ IR U P D V IR OOR ZV 
   
 rQR   '  
   
   
:  M\  
 ccc 
  ccc  5

  
 S   
rQR s b' oz Q s

ZK H U H rQR LV D F R OX P Q YH F W R U ZLW K W K H R Q O\ Q R Q ] H U R H OH P H Q W K D YLQ J D YD OX H R I X Q LW \


D Q G F R U U H V S R Q G LQ J W R W K H ] H U R V S D F H K D U P R Q LF D Q G D Q G ' [Q LV D G LD J R Q D O P D W U L[
ZK R V H G LD J R Q D O H OH P H Q W V D U H [Q 

)LHOGV H[SU HVVLRQV LQ VXEVWU DWH U HJLRQ

$ V V X P LQ J W K D W Q R OLJ K W LV LQ F LG H Q W IU R P W K H V X E V W D U W H U H J LR Q \ ! K  W K H P D J Q H W LF
D Q G W K H H OH F W U LF p H OG V F D Q E H H [S U H V V H G D V 

;
F%] 7Q HLQN [ HLqQ \bK 
Q
; qz Q
b([ 7Q HLQN [ HLqQ \bK    
Q s
   &+ $ 3 7( 5   6 2/ $ 5 &( / / 6

ZK H U H qQ LV G H p Q H G E \ H TX D W LR Q     7K H V S D F H K D U P R Q LF V R I F%] D Q G b([ D W
W K H J U D W LQ J  V X E V W U D W H U H J LR Q LQ W H U ID F H \ K D U H H [S U H V V H G LQ W K H IR OOR ZLQ J P D W U L[
IR U P   
 '  
 
 
:  M\ K 
 ccc  7Q u 4 7

  
 
' qz Q s

,I W K H V X E V W U D W H K D V D S H U IH F W E D F NU H q H F W R U D W W K H E D F N R I W K H V LOLF R Q OD \H U  W K H p H OG V
W D NH W K H IR U P 

;
F%] 7Q HLQN [ F R V TQ K  E b \ 
Q
; bL
b([ zTQ 7Q HLQN [ V LQ TQ K  E b \    
Q s

ZK H U H TQ LV G H p Q H G E \ H TX D W LR Q     $ V V H P E OLQ J W K H F R H r F LH Q W V 7Q LQ W R D F R O
X P Q YH F W R U 7 W K H V S D F H K D U P R Q LF V R I W K H H OH F W U LF D Q G P D J Q H W LF p H OG V D W W K H J U D W 
LQ J  V X E V W U D W H U H J LR Q LQ W H U ID F H \ K F D Q E H H [S U H V V H G LQ P D W U L[ IR U P 
 
 ' F R V TQ E 
 
 
:  M\ K 
 ccc  7 u 4 7

  
 
bL' Tz Q V LQ TQ E sV

&DOFXODWLRQ RI U HqHFWHG DQG WU DQVPLWWHG SRZHU

7K H J U D W LQ J W U D Q V IH U P D W U L[ 7   U H OD W H V W K H p H OG V D W W K H D LU  J U D W LQ J LQ W H U ID F H H [
S U H V V H G E \ H TX D W LR Q V    W R W K R V H D W W K H E R W W R P R I W K H J U D W LQ J U H J LR Q H [S U H V V H G
   7+ ( $ 1 7,5 ( )/ ( &7,9 ( $ 1 ' / ,*+ 7 75 $ 3 3 ,1 * 3 5 23 ( 5 7,( 6   

E \ H TX D W LR Q V    R U    D V IR OOR ZV 
   
 rQR   '  
   
   

 ccc 
  ccc 5

7  4 7   
 S   
rQR s b' oz Q s

+ H Q F H  D V H W R I OLQ H D U D OJ H E U D LF H TX D W LR Q V IR U W K H U H q H F W LR Q D Q G W U D Q V P LV V LR Q F R H r 
F LH Q W V R I W K H V S D F H K D U P R Q LF V F D Q E H R E W D LQ H G LQ W K H IR OOR ZLQ J IR U P 
    

 b'    5   rQR 

    

 






 ccc  7 4 ccc 
  
 ccc 

  
      S 
' oz Q s  7 rQR s

2Q F H W K H U H q H F W LR Q D Q G W K H W U D Q V P LV V LR Q F R H r F LH Q W V D U H G H W H U P LQ H G  W K H IR OOR ZLQ J
H TX D W LR Q V F D Q E H X V H G W R R E W D LQ W K H U H q H F W H G 3U D Q G W U D Q V P LW W H G 3W S R ZH U W K U R X J K
W K H V W U X F W X U H LQ W H U P V R I W K H LQ F LG H Q W S R ZH U 
S ;  oz Q
3U s M5Q M 
Q s
S ;  qz Q
3W s M7Q M    
Q s

 7 KH $QWL5HqHFWLYH DQG /LJKW WU DSSLQJ SU RS


HU WLHV
,Q W K LV V H F W LR Q W K H D Q W LU H q H F W LYH D Q G OLJ K W G LoX V LQ J S U R S H U W LH V R I V X U ID F H F R U U X J D 
W LR Q V LV V W X G LH G  7K H IR U P D OLV P G H V F U LE H G LQ W K H S U H YLR X V V H F W LR Q LV D S S OLH G W R D
V LOLF R Q OD \H U ZLW K H LW K H U U H F W D Q J X OD U R U W U LD Q J X OD U J U R R YH V D V V K R ZQ LQ p J X U H    
7K H U H q H F W LR Q D Q G W K H G LoX V H W U D Q V P LV V LR Q D W D J U R R YH G IU R Q W V X U ID F H R I D YH U \ W K LF N
   &+ $ 3 7( 5   6 2/ $ 5 &( / / 6

)LJ X U H     $ VLOLFRQ OD\HU ZLWK VXUIDFH JURRYHV RI HLWKHU UHFWDQJXODU RU WULDQJXODU FURVV VHFWLRQ

V LOLF R Q OD \H U LV F R Q V LG H U H G LQ W K H p U V W W ZR V X E V H F W LR Q V  ,Q W K H OD V W V X E V H F W LR Q  W K H
D E V R U S W LR Q H Q K D Q F H P H Q W E \ D p Q LW H W K LF NQ H V V V LOLF R Q OD \H U ZLW K H LW K H U IU R Q W V X U ID F H
J U R R YH V D Q G D S H U IH F W E D F NU H q H F W R U R U E D F NV X U ID F H J U R R YH V D Q G Q R U H q H F W R U LV V W X G 
LH G  7K H YD OX H V R I W K H F R P S OH [ G LH OH F W U LF IX Q F W LR Q R I F U \V W D OOLQ H V LOLF R Q X V H G LQ R X U
F D OF X OD W LR Q V D U H W D NH Q IU R P $ S S H Q G L[ & R I W K H E R R N R I *U H H Q >  @

 $QWLU HqHFWLRQ $FWLRQ RI *U RRYHG 6XU IDFHV

)LJ X U H    V K R ZV W K H U H q H F W D Q F H R I D J U R R YH G V LOLF R Q V X U ID F H D V D IX Q F W LR Q R I W K H
ZD YH OH Q J W K IR U W U LD Q J X OD U J U R R YH V R I W K U H H YD OX H V R I W K H D Q J OH v D Q G W ZR YD OX H V R I W K H
S H U LR G e  7K H p J X U H D OV R V K R ZV W K H U H q H F W D Q F H R I D q D W V LOLF R Q V X U ID F H IR U W K H V D NH
R I F R P S D U LV R Q V K R ZLQ J W K H D G YD Q W D J H W K D W W H [W X U H G IU R Q W V X U ID F H K D V R Q H Q K D Q F LQ J
W K H U H q H F W D Q F H  7K H D YH U D J H YD OX H V R I W K H U H q H F W D Q F H ZH LJ K W H G E \ W K H $ 0  V R OD U
VS H F WUX P D U H OLV W H G LQ W D E OH    7K H p J X U H V K R ZV W K D W  IR U D J LYH Q J U R R YH S H U LR G 
   7+ ( $ 1 7,5 ( )/ ( &7,9 ( $ 1 ' / ,*+ 7 75 $ 3 3 ,1 * 3 5 23 ( 5 7,( 6   

W K H U H q H F W D Q F H LQ F U H D V H V ZLW K W K H J U R R YH D Q J OH D V H [S H F W H G IU R P J H R P H W U LF D O R S W LF V
F R Q V LG H U D W LR Q V  7K H U H q H F W D Q F H  K R ZH YH U  LQ F U H D V H V ZLW K W K H G H F U H D V H LQ W K H J U R R YH
S H U LR G D Q G D E U X S W O\ G U R S V D W W K H ZD YH OH Q J W K V D W ZK LF K D V S D F H K D U P R Q LF E H F R P H V
H YD Q H V F H Q W LQ D LU  Q D P H O\ D W y e Q ZK H U H Q LV D Q LQ W H J H U  7K LV LV Q R W LF H G F OH D U O\
IR U e    zP D W ZD YH OH Q J W K V y    D Q G   zP 

 R
θ   Λ μP
WULDQJXODUJURRYHV θ R Λ μP
 θ
R
  Λ μP
R
θ   Λ μP
 θ R Λ μP
θ R Λ μP
VLOLFRQ



5HIOHFWDQFH












        
:DYHOHQJWK λ μP

)LJ X U H     7KH UHqHFWDQFH RI D JURRYHG VLOLFRQ VXUIDFH DV D IXQFWLRQ RI WKH ZDYHOHQJWK y IRU
WULDQJXODU JURRYHV RI WKUHH YDOXHV RI WKH DQJOH v DQG WZR YDOXHV RI WKH SHULRG e 7KH pJXUH DOVR
VKRZV WKH UHqHFWDQFH RI D qDW VLOLFRQ VXUIDFH IRU WKH VDNH RI FRPSDULVRQ
   &+ $ 3 7( 5   6 2/ $ 5 &( / / 6

R R R R R R
v                   
e    zP    zP    zP    zP    zP    zP
z
5                        

7D E OH    7KH UHqHFWDQFH 5z DYHUDJHG RYHU WKH $0 VRODU VSHFWUXP RI VXUIDFHV ZLWK WULDQJXODU
JURRYHV RI YDULRXV YDOXHV RI WKH DQJOH v DQG WKH SHULRG e

)LJ X U H    V K R ZV W K H U H q H F W D Q F H R I D J U R R YH G V LOLF R Q V X U ID F H D V D IX Q F W LR Q R I
W K H ZD YH OH Q J W K IR U U H F W D Q J X OD U J U R R YH V R I K H LJ K W K   zP D Q G YD U LR X V YD OX H V R I
W K H S H U LR G e  7K H J U R R YH ZLG W K Z LQ W K LV p J X U H D Q G D OO V X E V H TX H Q W p J X U H V H [F H S W
p J X U H    LV W D NH Q H TX D O W R K D OI W K H S H U LR G  7K H D YH U D J H YD OX H V R I W K H U H q H F W D Q F H
ZH LJ K W H G E \ W K H $ 0  V R OD U V S H F W U X P D U H OLV W H G LQ W D E OH    7K H p J X U H V K R ZV W K D W
W K H D Q W LU H q H F W LYH D F W LR Q LV Q R W YH U \ V W U R Q J D W V K R U W ZD YH OH Q J W K V Q R U IR U J U R R YH V R I
U H OD W LYH O\ OD U J H e )R U ZD YH OH Q J W K V V P D OOH U W K D Q   zP R U IR U S H U LR G D U R X Q G   zP
W K H U H q H F W D Q F H LV F OR V H W R LW V YD OX H LQ F D V H R I D F H OO ZLW K q D W V X U ID F H  2Q W K H R W K H U
K D Q G  W K H D Q W LU H q H F W LYH D F W LR Q J U R ZV D V W K H S H U LR G G H F U H D V H V X Q W LOO D F H U W D LQ OLP LW
W K H Q W K H U H q H F W D Q F H LQ F U H D V H V ZLW K W K H G H F U H D V H R I W K H S H U LR G  7D E OH   V K R ZV D
V LJ Q Lp F D Q W LP S U R YH P H Q W LQ W K H U H q H F W D Q F H IR U S H U LR G V D U R X Q G   zP X Q OLNH V P D OOH U
D Q G OD U J H U YD OX H V R I e 

)LJ X U H    V K R ZV W K H G H S H Q G H Q F H R I W K H U H q H F W D Q F H R Q W K H J U R R YH K H LJ K W K
IR U U H F W D Q J X OD U J U R R YH V R I S H U LR G e    zP  7K H U H q H F W D Q F H LV S OR W W H G YH U V X V
W K H ZD YH OH Q J W K IR U YD U LR X V YD OX H V R I W K H J U R R YH K H LJ K W K LQ W K H U D Q J H      
zP  7K H p J X U H V K R ZV W K D W W K H U H Q R V LJ Q Lp F D Q W H Q K D Q F H P H Q W R Q W K H D Q W LU H q H F W LR Q
D F W LR Q IR U V K D OOR Z J U R R YH V LH  K    zP  7K H D YH U D J H YD OX H V R I W K H U H q H F W D Q F H
ZH LJ K W H G E \ W K H $ 0  V R OD U V S H F W U X P D U H OLV W H G LQ W D E OH    )U R P W K H W D E OH R Q H
   7+ ( $ 1 7,5 ( )/ ( &7,9 ( $ 1 ' / ,*+ 7 75 $ 3 3 ,1 * 3 5 23 ( 5 7,( 6   

F D Q F R Q F OX G H W K D W W K H D Q W LU H q H F W LYH D F W LR Q LV J U H D W H V W IR U U H F W D Q J X OD U J U R R YH V R I
K H LJ K W K
  zP  E X W G H F U H D V H V IR U V P D OOH U D Q G OD U J H U YD OX H V R I K


Λ μP
Λ μP
UHFWDQJXODUJURRYHV K μP
 Λ μP
Λ μP
Λ μP


 VLOLFRQ


5HIOHFWDQFH












        
:DYHOHQJWK λ μP

)LJ X U H     7KH UHqHFWDQFH RI D JURRYHG VLOLFRQ VXUIDFH DV D IXQFWLRQ RI WKH ZDYHOHQJWK y IRU
UHFWDQJXODU JURRYHV RI KHLJKW K  zP DQG YDULRXV YDOXHV RI WKH SHULRG e 7KH JURRYH ZLGWK Z
LQ WKLV pJXUH DQG DOO VXEVHTXHQW pJXUHV H[FHSW pJXUH  LV WDNHQ HTXDO WR KDOI WKH SHULRG 7KH
pJXUH DOVR VKRZV WKH UHqHFWDQFH RI D qDW VLOLFRQ VXUIDFH IRU WKH VDNH RI FRPSDULVRQ
   &+ $ 3 7( 5   6 2/ $ 5 &( / / 6

e    zP    zP    zP    zP    zP
z
5                    

7D E OH    7KH UHqHFWDQFH 5z DYHUDJHG RYHU WKH $0 VRODU VSHFWUXP RI VXUIDFHV ZLWK UHFWDQJXODU
JURRYHV RI KHLJKW K  zP DQG YDULRXV YDOXHV RI WKH SHULRG e


K μP
UHFWDQJXODUJURRYHV Λ μP K μP
 K μP
K μP
K μP


 VLOLFRQ


5HIOHFWDQFH












        
:DYHOHQJWK λ μP

)LJ X U H     7KH UHqHFWDQFH RI D JURRYHG VLOLFRQ VXUIDFH DV D IXQFWLRQ RI WKH ZDYHOHQJWK y IRU
UHFWDQJXODU JURRYHV RI SHULRG e  zP DQG YDULRXV YDOXHV RI WKH KHLJKW K 7KH pJXUH DOVR
VKRZV WKH UHqHFWDQFH RI D qDW VLOLFRQ VXUIDFH IRU WKH VDNH RI FRPSDULVRQ
   7+ ( $ 1 7,5 ( )/ ( &7,9 ( $ 1 ' / ,*+ 7 75 $ 3 3 ,1 * 3 5 23 ( 5 7,( 6   

K    zP    zP    zP    zP
z
5                

7D E OH    7KH UHqHFWDQFH 5z DYHUDJHG RYHU WKH $0 VRODU VSHFWUXP RI VXUIDFHV ZLWK UHFWDQJXODU
JURRYHV RI SHULRG e  zP DQG YDULRXV YDOXHV RI WKH KHLJKW K

)LJ X U H    V K R ZV W K H U H q H F W D Q F H D W y  zP R I D J U R R YH G V LOLF R Q V X U ID F H D V D
IX Q F W LR Q R I W K H J U R R YH S H U LR G e IR U W U LD Q J X OD U J U R R YH V R I W ZR G LoH U H Q W D Q J OH V v   
D Q G    R D Q G U H F W D Q J X OD U J U R R YH V R I W ZR G LoH U H Q W K H LJ K W V K   D Q G   zP  7K H
V K R U W K R U L] R Q W D O OLQ H V D W W K H U LJ K W V LG H D Q G W K H OH IW V LG H R I W K H p J X U H U H S U H V H Q W U H V S H F 
W LYH O\ W K H J H R P H W U LF D O R S W LF V OLP LW D Q G W K H H oH F W LYH P H G LX P OLP LW R I W K H U H q H F W D Q F H 

7K H p U V W OLP LW LV F D OF X OD W H G E \ U D \ W U D F LQ J  ZK LOH W K H V H F R Q G R Q H LV F D OF X OD W H G E \
U H S OD F LQ J W K H J U D W LQ J OD \H U ZLW K D Q H oH F W LYH OD \H U R I W K H V D P H W K LF NQ H V V D Q G ZLW K D Q
H oH F W LYH G LH OH F W U LF F R Q V W D Q W  7K H H oH F W LYH G LH OH F W U LF F R Q V W D Q W H TX D OV W R W K H D YH U D J H
R I W K H G LH OH F W U LF F R Q V W D Q W V R I IU H H V S D F H D Q G V LOLF R Q IR U D Q H OH F W U LF p H OG F R P S R Q H Q W
S D U D OOH O W R W K H J U R R YH V LG H V  D Q G H TX D O W R W K H U H F LS U R F D O R I W K H D YH U D J H R I W K H U H F LS U R 
F D OV R I W K H G LH OH F W U LF F R Q V W D Q W V IR U D Q H OH F W U LF p H OG F R P S R Q H Q W S H U S H Q G LF X OD U W R W K H
J U R R YH V LG H V W K H F D S D F LW D Q F H D G G LW LR Q U X OH 
   &+ $ 3 7( 5   6 2/ $ 5 &( / / 6


R
WULDQJOHV θ 
WULDQJOHV θ R
 λ μP UHFWDQJOHV K μP
UHFWDQJOHV K μP




5HIOHFWDQFH










      
3HULRG Λ μP

)LJ X U H     7KH UHqHFWDQFH DW y  QP RI D JURRYHG VLOLFRQ VXUIDFH DV D IXQFWLRQ RI WKH


JURRYH SHULRG e IRU WULDQJXODU JURRYHV RI DQJOH v R  WULDQJXODU JURRYHV RI DQJOH v R 
UHFWDQJXODU JURRYHV RI KHLJKW K  zP DQG UHFWDQJXODU JURRYHV RI KHLJKW K  zP 7KH
VKRUW KRUL]RQWDO OLQHV DW WKH ULJKWVLGH DQG WKH OHIWVLGH RI WKH pJXUH UHSUHVHQW UHVSHFWLYHO\ WKH
JHRPHWULFDO RSWLFV OLPLW DQG WKH HoHFWLYH PHGLXP OLPLW RI WKH UHqHFWDQFH
   7+ ( $ 1 7,5 ( )/ ( &7,9 ( $ 1 ' / ,*+ 7 75 $ 3 3 ,1 * 3 5 23 ( 5 7,( 6   

: H F D Q V H H IU R P p J X U H    W K D W W K H U H q H F W D Q F H LQ D OO F D V H V D S S U R D F K H V LW V J H R P H W U LF D O
R S W LF V OLP LW J U D G X D OO\ D Q G LQ D Q R V F LOOD W R U \ ZD \ D V W K H S H U LR G LQ F U H D V H V  ZK LOH LW
J H Q H U D OO\ D S S U R D F K H V LW V H oH F W LYH P H G LX P OLP LW D V W K H S H U LR G J R H V W R ] H U R  )R U
e    zP  W K H U H q H F W D Q F H LV J H Q H U D OO\ K LJ K H U W K D Q LW V J H R P H W U LF D O R S W LF V OLP LW LQ
W K H F D V H R I W U LD Q J X OD U J U R R YH V  ZK LOH IR U e    zP  W K H U H q H F W D Q F H LV OR ZH U W K D Q LW V
J H R P H W U LF D O R S W LF V YD OX H LQ W K H F D V H R I U H F W D Q J X OD U J U R R YH V  7K H U H q H F W D Q F H R I U H F W 
D Q J X OD U J U R R YH V R I S H U LR G e    zP D Q G K H LJ K W   zP LV LQ J H Q H U D O LQ W H U P H G LD W H
R R
E H W ZH H Q W K R V H R I W U LD Q J X OD U J U R R YH V R I D Q J OH V    D Q G    D Q G W K H V D P H S H U LR G 
7K H U H q H F W D Q F H R I U H F W D Q J X OD U J U R R YH V R I K H LJ K W   zP R V F LOOD W H V ZLOG O\ ZLW K W K H
S H U LR G e LQ W K H U D Q J H    e    zP D V D U H V X OW R I OLJ K W LQ W H U IH U H Q F H  E X W LV
J H Q H U D OO\ K LJ K H U W K D Q W K D W R I U H F W D Q J X OD U J U R R YH V R I K H LJ K W   zP 

 /LJKW'LoXVLRQ $FWLRQ RI *U RRYHG 6XU IDFHV

)LJ X U H    V K R ZV W K H G LoX V H W U D Q V P LW W D Q F H R X W V LG H W K H OR V V ZH G J H G H p Q H G E \ W K H


b
F U LW LF D O D Q J OH R I V LOLF R Q vF V LQ  QV  ZK H U H QV LV W K H U H D O S D U W R I W K H V LOLF R Q
U H IU D F W LYH LQ G H [ R I D J U R R YH G V LOLF R Q V X U ID F H D V D IX Q F W LR Q R I W K H ZD YH OH Q J W K IR U
R
W U LD Q J X OD U J U R R YH V R I D Q J OH v    D Q G YD U LR X V YD OX H V R I W K H S H U LR G e  7K H
p J X U H V K R ZV W K D W IR U W K H V P D OOH V W YD OX H R I W K H S H U LR G F R Q V LG H U H G e    zP  W K H
G LoX V H W U D Q V P LW W D Q F H LV J H Q H U D OO\ OR Z D Q G LQ ID F W YD Q LV K H V IR U ZD YH OH Q J W K V D E R YH
|   zP ZK H U H R Q O\ W K H Q  V S D F H K D U P R Q LF F D Q S U R S D J D W H LQ V LOLF R Q  7K H G LoX V H
W U D Q V P LW W D Q F H LV U H OD W LYH O\ K LJ K IR U W K H R W K H U YD OX H V R I e F R Q V LG H U H G  D Q G LQ J H Q H U D O
LQ F U H D V H V ZLW K e 
   &+ $ 3 7( 5   6 2/ $ 5 &( / / 6

 WULDQJXODUJURRYHV θ R


7UDQVPLWWDQFHRXWVLGH/RVV:HGJH










Λ μP
Λ μP
 Λ μP
Λ μP



         
:DYHOHQJWK λ μP

)LJ X U H     7KH GLoXVH WUDQVPLWWDQFH RXWVLGH WKH ORVVZHGJH RI D JURRYHG VLOLFRQ VXUIDFH DV D
IXQFWLRQ RI WKH ZDYHOHQJWK y IRU WULDQJXODU JURRYHV RI DQJOH v R DQG YDULRXV YDOXHV RI WKH
SHULRG e
   7+ ( $ 1 7,5 ( )/ ( &7,9 ( $ 1 ' / ,*+ 7 75 $ 3 3 ,1 * 3 5 23 ( 5 7,( 6   

)LJ X U H    V K R ZV W K H G LoX V H W U D Q V P LW W D Q F H R X W V LG H W K H OR V V ZH G J H R I D J U R R YH G


V LOLF R Q V X U ID F H D V D IX Q F W LR Q R I W K H ZD YH OH Q J W K IR U U H F W D Q J X OD U J U R R YH V R I K H LJ K W
K   zP D Q G YD U LR X V YD OX H V R I W K H S H U LR G e  )U R P WK H p J X UH R Q H F D Q VH H WK D W

 7K H U H LV Q R OLJ K W G LoX V LR Q ZK H Q R Q O\ W K H Q  V S D F H K D U P R Q LF LQ V LOLF R Q LV


S U R S D J D W LQ J  ZK LF K LV W K H F D V H ZK H Q y ! QV e  7K LV LV Q R W LF H G IR U e    zP
LQ W K H U D Q J H y !   zP 

 7K H G LoX V H W U D Q V P LW W D Q F H LV Q R Q ] H U R E X W U D W K H U OR Z ZK H Q R Q O\ W K H V S D F H
K D U P R Q LF V ZLW K Q   h LQ V LOLF R Q D U H S U R S D J D W LQ J  ZK LF K F R U U H V S R Q G V W R
QV e   y  QV e  7K LV LV F D Q E H V H H Q IR U e    zP LQ W K H U D Q J H y !   
zP R U IR U e    zP LQ W K H U D Q J H y !    zP 

 7K H G LoX V H W U D Q V P LW W D Q F H LV U H OD W LYH O\ K LJ K ZK H Q W K H MQM  R U K LJ K H U V S D F H


K D U P R Q LF V LQ V LOLF R Q D U H S U R S D J D W LQ J D V OR Q J D V W K H MQM  V S D F H K D U P R Q LF V
LQ D LU D U H H YD Q H V F H Q W  ZK LF K F R UUH VS R Q G V WR e  y  QV e   7K LV U D Q J H
D S S U R [LP D W H O\    zP  y     zP IR U e    zP 

 7K H G LoX V H W U D Q V P LW W D Q F H E H F R P H V OR Z D J D LQ ZK H Q W K H MQM  VS D F H K D U
P R Q LF V LQ D LU D U H S U R S D J D W LQ J  ZK LF K F R U U H V S R Q G V W R y  e  7K LV H [S OD LQ V
W K H OR Z G LoX V H W U D Q V P LW W D Q F H IR U OD U J H S H U LR G D V e   zP LQ W K H F R Q V LG H U H G
ZD YH OH Q J W K U D Q J H 

)LJ X U H    V K R ZV W K H G H S H Q G H Q F H R I W K H W U D Q V P LW W D Q F H R X W V LG H W K H OR V V ZH G J H
R Q W K H J U R R YH K H LJ K W K IR U U H F W D Q J X OD U J U R R YH V R I S H U LR G e    zP ZLW K YD OX H V
R I W K H J U R R YH K H LJ K W K LQ W K H U D Q J H       zP  7K H p J X U H V K R ZV W K D W V K D OOR Z
   &+ $ 3 7( 5   6 2/ $ 5 &( / / 6

Λ μP
Λ μP
Λ μP
 UHFWDQJXODUJURRYHV K μP Λ μP
Λ μP
7UDQVPLWWDQFHRXWVLGH/RVV:HGJH










        
:DYHOHQJWK λ μP

)LJ X U H     7KH GLoXVH WUDQVPLWWDQFH RXWVLGH WKH ORVVZHGJH RI D JURRYHG VLOLFRQ VXUIDFH DV D
IXQFWLRQ RI WKH ZDYHOHQJWK y IRU UHFWDQJXODU JURRYHV RI KHLJKW K  zP DQG YDULRXV YDOXHV RI
WKH SHULRG e

J U R R YH V K    zP K D YH YH U \ OR Z G LoX V H W U D Q V P LW W D Q F H W K D W G R Q R W H [F H H G  
LQ W K H F R Q V LG H U H G ZD YH OH Q J W K U D Q J H  7K H R W K H U F R Q V LG H U H G J U R R YH V K H LJ K W V K D YH D Q
D YH U D J H G LoX V H W U D Q V P LW W D Q F H R I   H [F H S W J U R R YH V R I K H LJ K W K   zP ZK LF K D U H
W K H P R V W H r F LH Q W OLJ K W G LoX V H U V D P R Q J U H F W D Q J X OD U J U R R YH V R I S H U LR G    zP ZLW K
D YH U D J H W U D Q V P LW W D Q F H R I     7K H G LoX V H W U D Q V P LW W D Q F H IR U D OO YD OX H V R I K G U R S V
W R U H OD W LYH O\ OR Z YD OX H V D W y    zP D V W K H MQM  V S D F H K D U P R Q LF V LQ V LOLF R Q
   7+ ( $ 1 7,5 ( )/ ( &7,9 ( $ 1 ' / ,*+ 7 75 $ 3 3 ,1 * 3 5 23 ( 5 7,( 6   

K μP
K μP
K μP
 UHFWDQJXODUJURRYHV Λ μP K μP
K μP
7UDQVPLWWDQFHRXWVLGH/RVV:HGJH










         
:DYHOHQJWK λ μP

)LJ X U H     7KH GLoXVH WUDQVPLWWDQFH RXWVLGH WKH ORVVZHGJH RI D JURRYHG VLOLFRQ VXUIDFH DV D
IXQFWLRQ RI WKH ZDYHOHQJWK y IRU UHFWDQJXODU JURRYHV RI SHULRG e  zP DQG YDULRXV YDOXHV RI
WKH KHLJKW K

E H F R P H H YD Q H V F H Q W 

)LJ X U H    V K R ZV W K H G H S H Q G H Q F H R I W K H W U D Q V P LW W D Q F H R X W V LG H W K H OR V V ZH G J H
R Q W K H J U R R YH ZLG W K Z IR U U H F W D Q J X OD U J U R R YH V R I S H U LR G e    zP D Q G K H LJ K W
K   zP  : H V H H IU R P W K H p J X U H W K D W W K H J U R R YH V R I ZLG W K Z   e D UH WK H
P R V W H r F LH Q W OLJ K W G LoX V H U V D P R Q J U H F W D Q J X OD U J U R R YH V R I S H U LR G    zP D Q G K H LJ K W
   &+ $ 3 7( 5   6 2/ $ 5 &( / / 6

Z Λ
Z Λ
Z Λ
 UHFWDQJXODUJURRYHV Λ μPK μP Z Λ
Z Λ
7UDQVPLWWDQFHRXWVLGH/RVV:HGJH










         
:DYHOHQJWK λ μP

)LJ X U H     7KH GLoXVH WUDQVPLWWDQFH RXWVLGH WKH ORVVZHGJH RI D JURRYHG VLOLFRQ VXUIDFH DV D
IXQFWLRQ RI WKH ZDYHOHQJWK y IRU UHFWDQJXODU JURRYHV RI SHULRG e  zP KHLJKW K  zP
DQG YDULRXV YDOXHV RI WKH JURRYH ZLGWK Z

K    zP  7K H D YH U D J H G LoX V H W U D Q V P LW W D Q F H LQ W K LV F D V H LV D U R X Q G    7K H
G LoX V H W U D Q V P LW W D Q F H G H F U H D V H V IR U V P D OOH U D Q G OD U J H U YD OX H V R I Z

)LJ X U H    V K R ZV W K H G LoX V H W U D Q V P LW W D Q F H R X W V LG H W K H OR V V ZH G J H D W ZD YH OH Q J W K


y  zP R I D J U R R YH G V LOLF R Q V X U ID F H D V D IX Q F W LR Q R I W K H J U R R YH S H U LR G e IR U
R R
W U LD Q J X OD U J U R R YH V R I W ZR G LoH U H Q W D Q J OH V v    D Q G    D Q G U H F W D Q J X OD U J U R R YH V
   7+ ( $ 1 7,5 ( )/ ( &7,9 ( $ 1 ' / ,*+ 7 75 $ 3 3 ,1 * 3 5 23 ( 5 7,( 6   

λ μP



7UDQVPLWWDQFHRXWVLGH/RVV:HGJH



 R
WULDQJOHV θ 
WULDQJOHV θ R
 UHFWDQJOHV K μP
UHFWDQJOHV K μP










      
3HULRG Λ μP

)LJ X U H     7KH GLoXVH WUDQVPLWWDQFH RXWVLGH WKH ORVVZHGJH DW y  QP RI D JURRYHG


VLOLFRQ VXUIDFH DV D IXQFWLRQ RI WKH JURRYH SHULRG e IRU WULDQJXODU JURRYHV RI DQJOH v R 
R
WULDQJXODU JURRYHV RI DQJOH v   UHFWDQJXODU JURRYHV RI KHLJKW K  zP DQG UHFWDQJXODU
JURRYHV RI KHLJKW K  zP

R I W ZR G LoH U H Q W K H LJ K W V K   D Q G   zP  7K H p J X U H V K R ZV W K D W U H F W D Q J X OD U
J U R R YH V R I K H LJ K W   zP D Q G S H U LR G V LQ W K H U D Q J H    e    zP D U H D V H oH F W LYH
OLJ K W G LoX V H U V D W y  zP D V W U LD Q J X OD U J U R R YH V R I W K H V D P H S H U LR G  )R U e !  zP 
W K H OLJ K W G LoX V LR Q D F W LR Q R I U H F W D Q J X OD U J U R R YH V D W y  zP G LP LQ LV K H V ZK LOH W K D W
R I W U LD Q J X OD U J U R R YH V D S S U R D F K H V D S H U LR G LQ G H S H Q G H Q W OLP LW  5 H F W D Q J X OD U J U R R YH V
   &+ $ 3 7( 5   6 2/ $ 5 &( / / 6

R I K H LJ K W   zP D U H Q R W H oH F W LYH OLJ K W G LoX V H U V D W y  zP  S D U W LF X OD U O\ IR U


e !   zP 

 $EVRU EDQFH ( QKDQFHPHQW LQ D VLOLFRQ OD\HU ZLWK D


JU RRYHG VXU IDFH

)LJ X U H V    D Q G    V K R Z W K H D E V R U E D Q F H R I D V LOLF R Q OD \H U R I H oH F W LYH W K LF NQ H V V 


zP ZLW K D J U R R YH G IU R Q W V X U ID F H D Q G D S H U IH F W E D F NU H q H F W R U D Q G ZLW K D J U R R YH G
E D F NV X U ID F H D Q G Q R E D F NU H q H F W R U U H V S H F W LYH O\ D V D IX Q F W LR Q R I W K H ZD YH OH Q J W K IR U
U H F W D Q J X OD U J U R R YH V R I K H LJ K W K   zP D Q G S H U LR G e    zP D Q G W U LD Q J X OD U
R
J U R R YH V R I D Q J OH v    D Q G S H U LR G e   zP  $ OV R V K R ZQ LQ W K H W ZR p J X U H V LV
W K H D E V R U E D Q F H R I D V LOLF R Q OD \H U R I W K LF NQ H V V  zP D Q G q D W V X U ID F H V ZLW K D S H U IH F W
E D F NU H q H F W R U LQ W K H F D V H R I p J X U H    IR U W K H V D NH R I F R P S D U LV R Q  ,Q G U D ZLQ J
W K H V H W ZR p J X U H V  ZH K D YH V P R R W K H G R X W W K H R V F LOOD W LR Q V LQ W K H D E V R U E D Q F H ZLW K
ZD YH OH Q J W K U H V X OW LQ J IU R P OLJ K W LQ W H U IH U H Q F H E \ D YH U D J LQ J R YH U R Q H R V F LOOD W LR Q S H U LR G
LQ R U G H U W R J LYH D P R U H P H D Q LQ J IX O U H S U H V H Q W D W LR Q R I W K H U H V X OW V 

7K H G LP H Q V LR Q V R I W K H U H F W D Q J X OD U J U R R YH V LQ W K H W ZR p J X U H V K D YH E H H Q F K R V H Q W R
D F K LH YH W K H P R V W H oH F W LYH D Q W LU H q H F W LR Q D Q G OLJ K W G LoX V LR Q LQ W K H LQ IU D U H G S D U W R I
R
W K H V R OD U V S H F W U X P  7K H D Q J OH v    R I W K H W U LD Q J X OD U J U R R YH V LV W K H D Q J OH
E H W ZH H Q W K H V LOLF R Q >   @ F U \V W D OOLQ H S OD Q H V D Q G K H Q F H LV W K H J U R R YH D Q J OH ZK LF K F D Q
E H S U D F W LF D OO\ D F K LH YH G E \ P D V NLQ J W K H V X U ID F H ZLW K D J U LG R I S D U D OOH O OLQ H V IR OOR ZH G
E \ D Q LV R W U R S LF H W F K LQ J LQ D Q D OND OLQ H V R OX W LR Q  7K H S H U LR G e  zP LV F K R V H Q V LQ F H LW
LV OD U J H H Q R X J K IR U W K H D Q W LU H q H F W LR Q D Q G OLJ K W G LoX V LR Q D F W LR Q V R I W U LD Q J X OD U J U R R YH V
W R U H D F K W K H LU J H R P H W U LF R S W LF V OLP LW 
   7+ ( $ 1 7,5 ( )/ ( &7,9 ( $ 1 ' / ,*+ 7 75 $ 3 3 ,1 * 3 5 23 ( 5 7,( 6   

 IURQWJURRYHV DQGDEDFNíUHIOHFWRU

 UHFWDQJOHV Λ μPK μP


WULDQJOHV Λ μP θ R
 IODW
$EVRUEDQFH 6PRRRWKHG














      
:DYHOHQJWK λ QP

)LJ X U H     7KH DEVRUEDQFH RI D VLOLFRQ OD\HU RI HoHFWLYH WKLFNQHVV  zP ZLWK D JURRYHG IURQW
VXUIDFH DQG D SHUIHFW EDFN UHqHFWRU DV D IXQFWLRQ RI WKH ZDYHOHQJWK y IRU UHFWDQJXODU JURRYHV RI
KHLJKW K  zP DQG SHULRG e  zP DQG WULDQJXODU JURRYHV RI DQJOH v R DQG SHULRG
e  zP $OVR VKRZQ LV WKH DEVRUEDQFH RI D VLOLFRQ OD\HU RI WKLFNQHVV  zP DQG qDW VXUIDFHV IRU
WKH VDNH RI FRPSDULVRQ

: H V H H IU R P p J X U H    W K D W IU R Q W U H F W D Q J X OD U J U R R YH V LQ W K LV F D V H OH D G W R D Q
D E V R U E D Q F H H Q K D Q F H P H Q W F R P S D U D E OH W R W K D W R I W U LD Q J X OD U J U R R YH V  7K H D YH U D J H
D E V R U E D Q F H ZH LJ K W H G E \ W K H $ 0  V R OD U V S H F W U X P LQ W K LV F D V H H TX D OV     ZK LF K LV
D E R X W    K LJ K H U W K D Q W K H     D E V R U E D Q F H R I D V LOLF R Q OD \H U R I W K H V D P H W K LF NQ H V V
   &+ $ 3 7( 5   6 2/ $ 5 &( / / 6


UHFWDQJOHV Λ μPK μP
 WULDQJOHV Λ μP θ R
IODW


 EDFNJURRYHV DQGQRUHIOHFWRU


$EVRUEDQFH 6PRRRWKHG














      
:DYHOHQJWK λ QP

)LJ X U H     7KH DEVRUEDQFH RI D VLOLFRQ OD\HU RI HoHFWLYH WKLFNQHVV  zP ZLWK D JURRYHG EDFN
VXUIDFH DV D IXQFWLRQ RI WKH ZDYHOHQJWK y IRU UHFWDQJXODU JURRYHV RI KHLJKW K  zP DQG SHULRG
e  zP DQG WULDQJXODU JURRYHV RI DQJOH v R DQG SHULRG e  zP $OVR VKRZQ LV WKH
DEVRUEDQFH RI D VLOLFRQ OD\HU RI WKLFNQHVV  zP DQG qDW VXUIDFHV IRU WKH VDNH RI FRPSDULVRQ

ZLW K q D W V X U ID F H V D Q G D S H U IH F W E D F NU H q H F W R U  $ E V R U E D Q F H H Q K D Q F H P H Q W LV J H Q H D OO\


OR ZH U LQ W K H F D V H R I E D F N J U R R YH V D V R Q H F D Q V H H IU R P p J X U H     P D LQ O\ D V D U H V X OW
R I W K H D E V H Q F H R I W K H D Q W LU H q H F W LR Q D F W LR Q LQ W K LV F D V H  $ OW K R X J K E D F NV X U ID F H U H F W 
D Q J X OD U J U R R YH V OH D G W R V R P H D E V R U E D Q F H H Q K D Q F H P H Q W  W K H LU S H U IR U P D Q F H V R P H ZK D W
ID OOV V K R U W R I W K D W R I E D F NV X U ID F H W U LD Q J X OD U J U R R YH V 
&KDSWHU 

&RQFOXVLRQV

$ W U X O\ W ZR G LP H Q V LR Q D O P H W K R G IR U W K U H V K R OG D Q D O\V LV R I G LV W U LE X W H G IH H G E D F N OD V H U V
LV S U H V H Q W H G  $ V \V W H P D W LF V W X G \ R I W K H H oH F W R I YD U LR X V V W U X F W X U D O D Q G P D W H U LD O
S U R S H U W LH V S D U D P H W H U V R I W K H OD V H U R Q W K H W K U H V K R OG J D LQ D Q G OD V LQ J IU H TX H Q F \ LV
S R V V LE OH  7K H P H W K R G LV D S S OLF D E OH W R J U D W LQ J V R I D Q \ D U E LW U D U \ F U R V V V H F W LR Q D O V K D S H
IR U E R W K W K H 7( D Q G 70 P R G H V  E X W Q X P H U LF D O U H V X OW V D U H J LYH Q R Q O\ IR U J U D W LQ J V
ZLW K U H F W D Q J X OD U D Q G W U LD Q J X OD U W R R W K V K D S H  )LU V W D Q G V H F R Q G R U G H U J U D W LQ J V D U H
G H D OW ZLW K LQ W K H Q X P H U LF D O F R P S X W D W LR Q V  K R ZH YH U W K H D Q D O\V LV LV H D V LO\ H [W H Q G H G
W R J U D W LQ J V R I K LJ K R U G H U V  7K H D Q D O\V LV LV F D U U LH G R X W IR U E R W K V \P P H W U LF D Q G
D V \P P H W U LF E OD ] H G J U D W LQ J V IR U Q R V K LIW D Q G ZLW K }  S K D V H V K LIW V ' )% OD V H U V 
5 H q H F W LYLW LH V R I W K H OD V H U H Q G ID F H W V K D YH E H H Q F D OF X OD W H G IU R P p U V W S U LQ F LS OH V X Q OLNH
S U H YLR X V ZR U N 7K H U H q H F W LYLW \ F D OF X OD W LR Q V LV J H Q H U D OO\ ZH D NO\ G H S H Q G H Q W R Q W K H
OR F D W LR Q R I W K H H Q G ID F H W U H OD W LYH W R W K H J U D W LQ J S H U LR G 

)LU V W R U G H U W U LD Q J X OD U J U D W LQ J V V K R Z OR ZH U H oH F W LYH F R X S OLQ J W K D Q U H F W D Q J X OD U R Q H


R I W K H V D P H W K LF NQ H V V  6 \P P H W U LF p U V W R U G H U U H F W D Q J X OD U J U D W LQ J V K D YH K LJ K F R X S OLQ J

  
   &+ $ 3 7( 5   &21 &/ 8 6 ,21 6

F R P S D U H G W R D V \P P H W U LF R Q H  7K H R S W LF D O p H OG V LQ V LG H D Q G R X W V LG H W K H OD V H U D U H YH U \
D F F X U D W H O\ U H S U H V H Q W H G LQ R X U D Q D O\V LV  &R Q V H TX H Q W O\ W K H V P D OO G LoH U H Q F H V LQ J D LQ
E H W ZH H Q S D LU V R I OR Q J LW X G LQ D O p U V W R U G H U OD V H U P R G H V V \P P H W U LF D OO\ OR F D W H G R Q E R W K
V LG H V R I W K H % U D J J IU H TX H Q F \ LV P R U H D F F X U D W H O\ F D OF X OD W H G W K D Q LQ D Q \ S U H YLR X V ZR U N
D Q G H [S OD LQ H G ZLW K U H IH U H Q F H W R W K H p H OG V S U R p OH V R I W K H W ZR OR Q J LW X G LQ D O P R G H V 

7K H H oH F W V R I W K H U D G LD W LR Q P R G H R Q W K H W K U H V K R OG E H K D YLR U R I ' )% ZLW K V H F R Q G 


R U G H U J U D W LQ J V D U H D Q D O\] H G  ,W LV F R Q p U P H G W K D W W K H U D G LD W LR Q P R G H LQ W H Q V LW \ S U R p OH
D OR Q J W K H OD V H U F D YLW \ J U H D W O\ D oH F W V W K H P R G H V H OH F W LYLW \ G H S H Q G LQ J R Q W K H S K D V H
V K LIW D Q G E OD ] H  8 Q OLNH W K H p U V W R U G H U F D V H  D V H F R Q G R U G H U W U LD Q J X OD U J U D W LQ J V K R ZV
K LJ K H U H oH F W LYH F R X S OLQ J W K D Q D U H F W D Q J X OD U R Q H R I W K H V D P H W K LF NQ H V V  0R U H R YH U D
E OD ] H G W U LD Q J X OD U J U D W LQ J V K R ZV E H W W H U F R X S OLQ J W K D Q D V \P P H W U LF R Q H  ,Q W K H F D V H
R I E OD ] H G J U D W LQ J V  W K H W K U H V K R OG P R G H E H K D YLR U LV P R U H V LP LOD U W R W K H Q R U D G LD W LR Q
F D V H W K D Q W K D W IR U W K H V \P P H W U LF F D V H  *R R G  V LQ J OH OR Q J LW X G LQ D O P R G H F D S D E LOLW \ LV
S U H G LF W H G LQ W ZR F D V H V   ,Q W K H IU H TX H Q F \ U D Q J H E H OR Z W K H % U D J J IU H TX H Q F \ IR U W K H
Q R V K LIW V \P P H W U LF V H F R Q G R U G H U J U D W LQ J ' )% OD V H U V E H F D V X H R I U H G X F H G U D G LD W LR Q
P R G H V  D Q G  D W W K H YLF LQ LW \ R I W K H % U D J J IU H TX H Q F \ IR U E OD ] H G V H F R Q G R U G H U J U D W LQ J
' )% OD V H U V ZLW K y  S K D V H V K LIW 

6 X U ID F H V ZLW K V K D OOR Z V X E P LF U R Q U H F W D Q J X OD U J U R R YH V K D YH V X E V W D Q W LD O D Q W L
U H q H F W LYH D Q G OLJ K W G LoX V LQ J D F W LR Q F R Q W U D U \ W R J H R P H W U LF D O R S W LF V U H V X OW V  7K H P R V W
H oH F W LYH D Q W LU H q H F W LR Q LV D F K LH YH G ZLW K J U R R YH S H U LR G V LQ W K H U D Q J H        zP
G H S H Q G LQ J R Q W K H ZD YH OH Q J W K D Q G R I K H LJ K W |   zP  ,Q W K LV F D V H  OLJ K W G LoX V LR Q
LV P R V W H oH F W LYH ZK H Q W K H J U R R YH ZLG W K H TX D OV K D OI W K H J U R R YH S H U LR G  7K H D Q W L
U H q H F W LR Q D Q G OLJ K W G LoX V LR Q D F W LR Q R I U H F W D Q J X OD U J U R R YH V E H F R P H V LQ V LJ Q Lp F D Q W LQ
W K H F D V H R I J U R R YH V R I D S H U LR G e !   zP LQ D J U H H P H Q W ZLW K J H R P H W U LF D O R S W LF V 
  

$ W ZD YH OH Q J W K  zP  V X U ID F H V ZLW K V X E P LF U R Q W U LD Q J X OD U J U R R YH V D U H OH V V H r F LH Q W
D Q W LU H q H F W R U V D Q G OLJ K W G LoX V H U V W K D Q ZH H [S H F W IU R P J H R P H W U LF D O R S W LF V S U H G LF W LR Q V 
ZK LF K D U H V OR ZO\ D S S U R D F K H G LQ D Q R V F LOOD W R U \ ZD \ D V W K H S H U LR G LQ F U H D V H V  7K H
LQ F U H D V H R I W K H U H q H F W D Q F H ZLW K W K H J U R R YH D Q J OH S U H G LF W H G E \ J H R P H W U LF D O R S W LF V LV
H YLG H Q W H YH Q IR U V P D OO S H U LR G V  7K H OLJ K W G LoX V LR Q D F W LR Q R I W U LD Q J X OD U J U R R YH V G R H V
Q R W VH H P W R G H S H Q G V W U R Q J O\ R Q W K H J U R R YH D Q J OH D V OR Q J D V LW LV Q R W F OR V H W R    R 
/ LJ K W G LoX V LR Q LV W R W D OO\ D E V H Q W IR U J U R R YH V R I H LW K H U W \S H ZLW K D S H U LR G e    zP 

5 H F W D Q J X OD U J U R R YH V R I S H U LR G    zP D Q G K H LJ K W   zP R Q W K H IU R Q W V X U 
ID F H R I D W K LQ V LOLF R Q OD \H U OH D G W R D Q D E V R U E D Q F H H Q K D Q F H P H Q W LQ W K H LQ IU D U H G S D U W
R I W K H V R OD U V S H F W U X P ZK LF K LV F R P S D U D E OH W R W K D W D F K LH YH G ZLW K S U D F W LF D O    R 
W U LD Q J X OD U J U R R YH V LQ W K H J H R P H W U LF D O R S W LF V OLP LW  % D F NV X U ID F H U H F W D Q J X OD U J U R R YH V
D U H V R P H ZK D W LQ IH U LR U W R E D F NV X U ID F H W U LD Q J X OD U J U R R YH V  W K R X J K W K H \ OH D G W R V R P H
LP S U R YH P H Q W F R P S D U H G W R W K H F D V H R I q D W V X U ID F H V 
   &+ $ 3 7( 5   &21 &/ 8 6 ,21 6
% LEOLRJU DSK\

> @ 5  & ( Q J H U D Q G 6  .  &D V H  2SWLFDO HOHPHQWV ZLWK XOWUDKLJK VSDWLDO IUHTXHQF\


VXUIDFH FRUUXJDWLRQV $ S S O 2S W            2F W       

> @ 7 .  *D \OR U G D Q G 0 * 0R K D U D P  $QDO\VLV DQG $SSOLFDWLRQ RI 2SWLFDO


' LoUDFWLRQ E\ *UDWLQJV  3 U R F  ,( ( (            

> @ 0 /  ' D NV V  /  . X K Q  3  ) + H LG H LF K  D Q G %  $  6 F R W W  *UDWLQJ FRXSOHU IRU


Hr FLHQW H[FLWDWLRQ RI RSWLFDO JXLGHG ZDYHV LQ WKLQ pOPV $ S S O 3 K \V  / H W W 
        -X Q H        

> @ - 6 LQ J K  6HPLFRQGXFWRU 2SWRHOHFWURQLFV 3 K\VLFV DQG 7HFKQRORJ\ 0F *U D Z


+ LOO 6 LQ J D S R U H      

> @ - 7 9 H U G H \H Q  / DVHU ( OHFWURQLFV U G ( G  3 U H Q W LF H + D OO 1 H Z -H U V H \ 8 6 $ 


    

> @ - &D U U R OO - : K LW H D ZD \ D Q G '  3 OX P E  ' LVWULEXWHG IHHGEDFN VHPLFRQGXFWRU


ODVHUV 7K H ,Q V W LW X W LR Q R I ( OH F W U LF D O ( Q J LQ H H U V  / R Q G R Q  8 Q LW H G . LQ J G R P 
    

> @ (  . D S R Q  6HPLFRQGXFWRU / DVHUV ,, 0 DWHULDOV DQG 6WUXFWXUHV $ F D G H P LF


3 UH VV    

  
   % ,% / ,2*5 $ 3 + <

> @ +  . R J H OQ LN D Q G & 9  6 K D Q N &RXSOHG: DYH 7KHRU\ RI ' LVWULEXWHG ) HHGEDFN


/ DVHUV  - $ S S O 3 K \V               

> @ 6  : D Q J  3 ULQFLSOHV RI ' LVWULEXWHG ) HHGEDFN DQG ' LVWULEXWHG % UDJJ5 HqHFWRU
/ DVHUV  ,( ( ( - 4X D Q W X P ( OH F W U R Q             

>  @ 6  5  &K LQ Q  ( oHFWV RI 0 LUURU 5 HqHFWLYLW\ LQ D ' LVWULEXWHG ) HHGEDFN / DVHU 


,( ( ( - 4X D Q W X P ( OH F W U R Q             

>  @ :  6 W U H LIH U  '  5  6 F LIU H V D Q G 5  '  % X U Q K D P  ( oHFW RI ( [WHUQDO 5 HqHFWRUV


RQ / RQJLWXGLQDO 0 RGHV RI ' LVWULEXWHG ) HHGEDFN / DVHUV  ,( ( ( - 4X D Q W X P
( OH F W U R Q             

>  @ .  8 W D ND  6  $ NLE D  .  6 D ND L D Q G <  0D W V X V K LP D  ( oHFW RI 0 LUURU ) DFHWV


RQ / DVLQJ &KDUDFWHULVWLFV RI ' LVWULEXWHG ) HHGEDFN ,Q*D$V3 K3 / DVHU ' LRGHV
DW  zP 5 DQJH  ,( ( ( - 4X D Q W X P ( OH F W U R Q             

>  @ :  6 W U H LIH U  '  5  6 F LIU H V D Q G 5  '  % X U Q K D P  $QDO\VLV RI *UDWLQJ&RXSOHG


5 DGLDWLRQ LQ *D$V*D$O$V ODVHUV DQG : DYHJXLGHV  ,( ( ( - 4X D Q W X P ( OH F 
W U R Q             

>  @ :  6 W U H LIH U  5  '  % X U Q K D P D Q G '  5  6 F LIU H V  $QDO\VLV RI *UDWLQJ &RXSOHG


5 DGLDWLRQ LQ *D$V*D$O$V ODVHUV DQG : DYHJXLGHV ,,% OD]LQJ ( oHFWV ,( ( (
- 4X D Q W X P ( OH F W U R Q             

>  @ :  6 W U H LIH U  '  5  6 F LIU H V D Q G 5  '  % X U Q K D P  &RXSOHG : DYH $QDO\VLV RI


' ) % DQG ' % 5 / DVHUV  ,( ( ( - 4X D Q W X P ( OH F W U R Q             
% ,% / ,2*5 $ 3 + <   

>  @ :  6 W U H LIH U  5  '  % X U Q K D P D Q G '  5  6 F LIU H V  5 DGLDWLRQ / RVVHV LQ ' LV


WULEXWHG / DVHUV DQG / RQJLWXGLQDO 0 RGH 6HOHFWLRQ  ,( ( ( - 4X D Q W X P ( OH F 
W U R Q             

>  @ <  < D P D P R W R  7 . D P L\D D Q G +  < D Q D L ,PSURYHG &RXSOHG 0 RGH $QDO\VLV RI


&RUUXJDWHG : DYHJXLGHV DQG / DVHUV ,( ( ( - 4X D Q W X P ( OH F W U R Q        
    

>  @ <  < D P D P R W R  7 . D P L\D D Q G +  < D Q D L ,PSURYHG &RXSOHG 0 RGH $QDO\VLV


RI &RUUXJDWHG : DYHJXLGHV DQG / DVHUV ,, 70 PRGH ,( ( ( - 4X D Q W X P
( OH F W U R Q             

>  @ & + H Q U \ 5  . D ] D U LQ R Y 5  $  / R J D Q D Q G 5  < H Q  2EVHUYDWLRQ 6RI ' HVWUXF


WLYH ,QWHUIHUHQFH LQ WKH 5 DGLDWLRQ / RVV RI 6HFRQG2UGHU ' LVWULEXWHG ) HHGEDFN
/ DVHUV  ,( ( ( - 4X D Q W X P ( OH F W U R Q             

>  @ 5  . D ] D U LQ R Y D Q G & + H Q U \ 6HFRQG2UGHU ' LVWULEXWHG ) HHGEDFN / DVHUV ZLWK


0 RGH 6HOHFWLRQ 3 URYLGHG E\ ) LUVW2UGHU 5 DGLDWLRQ / RVVHV  ,( ( ( - 4X D Q W X P
( OH F W U R Q             

>  @ +  6 D W R D Q G <  + R U L 7ZR' LPHQVLRQDO 7KHRU\ RI ' LVWULEXWHG ) HHGEDFN 6HPL


FRQGXFWRU / DVHUV  ,( ( ( - 4X D Q W X P ( OH F W U R Q             

>  @ <  + R U L D Q G +  6 D W R  $QDO\VLV RI ' LVWULEXWHG ) HHGEDFN 6HPLFRQGXFWRU / DVHUV


E\ 7ZR' LPHQVLRQDO 7KHRU\  ,( ( ( - 4X D Q W X P ( OH F W U R Q        
    

>  @ <  + R U L D Q G +  6 D W R  $QDO\VLV RI 7( DQG 70 0 RGHV LQ ' ) % / DVHUV E\ 7ZR


' LPHQVLRQDO 7KHRU\  ,( ( ( - 4X D Q W X P ( OH F W U R Q               
   % ,% / ,2*5 $ 3 + <

>  @ :  6 W U H LIH U  '  5  6 F LIU H V D Q G 5  '  % X U Q K D P  70 0 RGH &RXSOLQJ &RHI


pFLHQWV LQ *XLGHG: DYH ' LVWULEXWHG ) HHGEDFN / DVHUV  ,( ( ( - 4X D Q W X P
( OH F W U R Q           

>  @ 7 0D NLQ R  ( oHFWLYH,QGH[ 0 DWUL[ $QDO\VLV RI ' LVWULEXWHG ) HHGEDFN 6HPL


FRQGXFWRU / DVHUV  ,( ( ( - 4X D Q W X P ( OH F W U R Q             

>  @ %  0 < X D Q G - / LX  *DLQ 0 DUJLQ $QDO\VLV RI ' LVWULEXWHG ) HHGEDFN / DVHUV IRU
% RWK 7UDQVYHUVH ( OHFWULF DQG 0 DJQHWLF 0 RGHV  ,( ( ( - 4X D Q W X P ( OH F W U R Q 
           

>  @ +  $  + D X V D Q G & 9  6 K D Q N $QWLV\PPHWULF 7DSHU RI ' LVWULEXWHG ) HHGEDFN


/ DVHUV  ,( ( ( - 4X D Q W X P ( OH F W U R Q             

>  @ 6  /  0F &D OO D Q G 3  0 3 OD W ] P D Q  $Q 2SWLPL]HG } ' LVWULEXWHG ) HHGEDFN


/ DVHU  ,( ( ( - 4X D Q W X P ( OH F W U R Q               

>  @ +  6 R G D  <  . R W D NL +  6 X G R  +  ,V K LND ZD  6  < D P D NR V K L D Q G +  ,P D L


6WDELOLW\ LQ 6LQJOH / RQJLWXGLQDO 0 RGH 2SHUDWLRQ LQ *D,Q$V3 ,Q3 3 KDVH
$GMXVWHG ' ) % / DVHUV  ,( ( ( - 4X D Q W X P ( OH F W U R Q             

>  @ 0 2ND L 6  7V X ML D Q G 1  &K LQ R Q H  6WDELOLW\ RI WKH / RQJLWXGLQDO 0 RGH LQ


y6KLIWHG ,Q*D$V3 ,Q3 ' ) % / DVHUV  ,( ( ( - 4X D Q W X P ( OH F W U R Q  
            

>  @ - (  $  : K LW H D ZD \ * +  %  7K R P S V R Q  $  - &R OOD U D Q G & - $ U P LV W H D G 


7KH ' HVLJQ DQG $VVHVVPHQW RI y SKDVHVKLIWHG ' ) % / DVHU VWUXFWXUHV 
,( ( ( - 4X D Q W X P ( OH F W U R Q               
% ,% / ,2*5 $ 3 + <   

>  @ - (  $  : K LW H D ZD \ %  *D U U H W W  * +  %  7K R P S V R Q  $  - &R OOD U  & -


$ U P LV W H D G D Q G 0 - )LF H  7KH 6WDWLF DQG ' \QDPLF &KDUDFWHULVWLFV RI 6LQ
JOH DQG 0 XOWLSOH 3 KDVHVKLIWHG ' ) % / DVHU VWUXFWXUHV  ,( ( ( - 4X D Q W X P
( OH F W U R Q               

>  @ * 3  $ J U D ZD O D Q G $  +  % R E H F N 0 RGHOLQJ RI ' LVWULEXWHG ) HHGEDFN 6HPLFRQ


GXFWRU / DVHUV ZLWK $[LDOO\9DU\LQJ 3 DUDPHWHUV  ,( ( ( - 4X D Q W X P ( OH F W U R Q 
             

>  @ - . LQ R V K LW D  $QDO\VLV RI 7( 70 0 RGH 6HOHFWLYLW\ LQ ' ) % / DVHUV ZLWK D


3 KDVH6KLIW 5 HJLRQ ,( ( ( 3 K R W R Q  7H F K Q R O / H W W         

>  @ - . LQ R V K LW D  $[LDO 3 URpOH RI *UDWLQJ &RXSOHG 5 DGLDWLRQ IURP 6HFRQG2UGHU


' ) % / DVHUV ZLWK 3 KDVH 6KLIWV ,( ( ( - 4X D Q W X P ( OH F W U R Q        
    

>  @ 0 8 V D P L 6  $ NLE D  D Q G .  8 W D ND $V\PPHWULF y6KLIWHG ,Q*D$V3 ,Q3


' ) % / DVHUV ,( ( ( - 4X D Q W X P ( OH F W U R Q             

>  @ 0 8 V D P L D Q G 6  $ NLE D  6XSSUHVVLRQ RI / RQJLWXGLQDO 6SDWLDO +ROH% XUQLQJ


( oHFW LQ y6KLIWHG ' ) % / DVHUV E\ 1RQXQLIRUP &XUUHQW ' LVWULEXWLRQ ,( ( (
- 4X D Q W X P ( OH F W U R Q               

>  @ .  < R NR \D P D  7 < D P D Q D ND D Q G 6  6 H NL 7ZR' LPHQVLRQDO 1XPHULFDO 6LP


XODWRU IRU 0 XOWLHOHFWURGH ' LVWULEXWHG ) HHGEDFN / DVHU ' LRGHV  ,( ( ( - 4X D Q 
WX P ( OH F W U R Q             

>  @ .  < R NR \D P D  7 < D P D Q D ND  6  6 H NL D Q G :  / X L 6WDWLF : DYHOHQJWK 6KLIW


IRU 0 XOWLHOHFWURGH ' ) % / DVHUV ZLWK / RQJLWXGLQDO 0 RGH 6SDWLDO +ROH % XUQLQJ
   % ,% / ,2*5 $ 3 + <

8VLQJ D 7ZR' LPHQVLRQDO 1\PHULFDO 6LPXODWRU ,( ( ( - 4X D Q W X P ( OH F W U R Q 


             

>  @ 7 0D NLQ R D Q G - *OLQ V NL ( oHFWV RI 5 DGLDWLRQ / RVV RQ WKH 3 HUIRUPDQFH RI


6HFRQG2UGHU ' ) % 6HPLFRQGXFWRU / DVHUV  ,( ( ( - 4X D Q W X P ( OH F W U R Q  
        

>  @ - . LQ R V K LW D D Q G .  0D W V X P R W R  <LHOG $QDO\VLV RI 6/ 0 ' ) % / DVHUV ZLWK DQ


$[LDOO\) ODWWHQHG ,QWHUQDO ) LHOG ,( ( ( - 4X D Q W X P ( OH F W U R Q          
    

>  @ +  - : X… Q V F K H  8  % D Q G H OR Z D Q G +  : H Q ] H O &DOFXODWLRQ RI &RPELQHG / DW


HUDO DQG / RQJLWXGLQDO 6SDWLDO +ROH % XUQLQJ LQ y 6KLIWHG ' ) % / DVHUV 
,( ( ( - 4X D Q W X P ( OH F W U R Q               

>  @ 7 )H V V D Q W D Q G ;  ' R \H OOH  ( QKDQFHG 6LQJOH0 RGH 2SHUDWLRQ LQ 0 XOWLVHFWLRQ


' ) % / DVHUV ZLWK % RWK / RFDOL]HG DQG ' LVWULEXWHG 3 KDVH 6KLIW  ,( ( ( 3 K R W R Q 
7H F K Q R O / H W W           

>  @ 7 )H V V D Q W D Q G <  % R X F K H U  $GGLWLRQDO 0 RGDO 6HOHFWLYLW\ ,QGXFHG E\ D / RFDO


L]HG ' HIHFW LQ 4XDUWHU: DYH6KLIWHG ' ) % / DVHUV ,( ( ( - 4X D Q W X P ( OH F 
W U R Q             

>  @ - . LQ R V K LW D  $QDO\VLV RI 5 DGLDWLRQ 0 RGH ( oHFWV RQ 2VFLOODWLQJ 3 URSHUWLHV


RI ' ) % / DVHUV  ,( ( ( - 4X D Q W X P ( OH F W U R Q               

>  @ (  . D S R Q  $  + D U G \ D Q G $  . D W ] LU  7KH ( oHFW RI &RPSOH[ &RXSOLQJ &R


Hr FLHQWV RQ ' LVWULEXWHG ) HHGEDFN / DVHUV ,( ( ( - 4X D Q W X P ( OH F W U R Q  
        
% ,% / ,2*5 $ 3 + <   

>  @ $  - / R ZH U \ '  1 R YD N 3 HUIRUPDQFH &RPSDULVLRQ RI *DLQ&RXSOHG DQG


,QGH[&RXSOHG ' ) % 6HPLFRQGXFWRU / DVHUV ,( ( ( - 4X D Q W X P ( OH F W U R Q  
            

>  @ - &K H Q  $  &K D P S D J Q H  5  0D F LH MNR D Q G 7 0D NLQ R  ,PSURYHPHQW RI 6LQJOH


0 RGH *DLQ 0 DUJLQ LQ *DLQ&RXSOHG ' ) % / DVHUV ,( ( ( - 4X D Q W X P ( OH F 
W U R Q           

>  @ 0 6 D U J H Q W  :  +  6 ZD Q W Q H U D Q G - '  7K R P D V  7KHRU\ RI D ' LVWULEXWHG


) HHGEDFN / DVHU ,( ( ( - 4X D Q W X P ( OH F W U R Q             

>  @ :  6  5 D E LQ R YLF K D Q G %  - )H OG P D Q  6SDWLDO +ROH % XUQLQJ ( oHFWV LQ ' LV


WULEXWHG ) HHGEDFN / DVHUV ,( ( ( - 4X D Q W X P ( OH F W U R Q           

>  @ :  6  5 D E LQ R YLF K D Q G %  - )H OG P D Q  $ERYH7KUHVKROG 0 RGH ' LVFULPLQD


WLRQ LQ ( [WHUQDO 5 HqHFWRU DQG 3 KDVH6KLIWHG ' ) % / DVHUV ,( ( ( - 4X D Q W X P
( OH F W U R Q               

>  @ ;  / L $  '  6 D G R YQ LNR Y :  3  + X D Q J D Q G 7 0D NLQ R  $ 3 K\VLFV% DVHG


7KUHH' LPHQVLRQDO 0 RGHO IRU ' LVWULEXWHG ) HHGEDFN / DVHU ' LRGHV  ,( ( ( -
4X D Q W X P ( OH F W U R Q               

>  @ $  0 6 D U D Q J D Q  :  3  + X D Q J  * 3  / L D Q G 7 0D NLQ R  $ 5 LGJH : DYHJXLGH


' ) % / DVHU 0 RGHO ,QFOXGLQJ 7UDQVYHUVH &DUULHU DQG 2SWLFDO ( oHFWV ,( ( (
- 4X D Q W X P ( OH F W U R Q             

>  @ 6  ) < X  $ 4XDVL7KUHH' LPHQVLRQDO / DUJH6LJQDO ' \QDPLF 0 RGHO RI ' LV
WULEXWHG ) HHGEDFN / DVHUV ,( ( ( - 4X D Q W X P ( OH F W U R Q             
   % ,% / ,2*5 $ 3 + <

>  @ * 0R U LW K LH U  $Q $FFXUDWH 5 DWH( TXDWLRQ ' HVFULSWLRQ IRU ' ) % / DVHUV DQG
6RPH ,QWHUHVWLQJ 6ROXWLRQV ,( ( ( - 4X D Q W X P ( OH F W U R Q             

>  @ 5  0D J Q X V V R Q D Q G 7 .  *D \OR U G  ( TXLYDOHQFH RI PXOWLZDYH FRXSOHGZDYH


WKHRU\ DQG PRGDO WKHRU\ RI SHULRGLFPHGLD GLoUDFWLRQ - 2S W  6 R F  $ P  
            

>  @ 0 * 0R K D U D P D Q G 7 .  *D \OR U G  5 LJRURXV FRXSOHGZDYH DQDO\VLV RI


SODQDUJUDWLQJ GLoUDFWLRQ - 2S W  6 R F  $ P             

>  @ 0 * 0R K D U D P D Q G 7 .  *D \OR U G  ' LoUDFWLRQ DQDO\VLV RI GLHOHFWULF VXUIDFH


UHOLHI JUDWLQJV  - 2S W  6 R F  $ P               

>  @ 0 * 0R K D U D P  (  %  *U D Q Q  '  $  3 R P P H W  D Q G 7 .  *D \OR U G  ) RUPX


ODWLRQ IRU VWDEOH DQG Hr FLHQW LPSOHPHQWDWLRQ RI WKH ULJRURXV FRXSOHGZDYH
DQDO\VLV RI ELQDU\ JUDWLQJV - 2S W  6 R F  $ P  $              

>  @ 0 * 0R K D U D P D Q G 7 .  *D \OR U G  5 LJRURXV FRXSOHGZDYH DQDO\VLV RI JUDW


LQJ GLoUDFWLRQ ( PRGH SRODUL]DWLRQ DQG ORVVHV - 2S W  6 R F  $ P        
    

>  @ (  1  *O\W V LV D Q G 7 .  *D \OR U G  5 LJRURXV WKUHHGLPHQVLRQDO FRXSOHGZDYH


GLoUDFWLRQ DQDO\VLV RI VLQJOH DQG FDVFDGHG DQLVRWURSLF JUDWLQJV - 2S W  6 R F 
$ P  $              

>  @ (  1  *O\W V LV D Q G 7 .  *D \OR U G  7KUHHGLPHQVLRQDO YHFWRU ULJRURXV


FRXSOHGZDYH DQDO\VLV RI DQLVRWURSLF JUDWLQJ GLoUDFWLRQ - 2S W  6 R F  $ P 
$              
% ,% / ,2*5 $ 3 + <   

>  @ '  0 3 D L D Q G .  $  $ ZD G D  $QDO\VLV RI GLHOHFWULF JUDWLQJV RI DUELWUDU\


SURpOHV DQG WKLFNQHVVHV - 2S W  6 R F  $ P  $            

>  @ 0 * 0R K D U D P  '  $  3 R P P H W  (  %  *U D Q Q D Q G 7 .  *D \OR U G  6WDEOH LP


SOHPHQWDWLRQ RI WKH ULJRURXV FRXSOHGZDYH DQDO\VLV IRU VXUIDFHUHOLHI JUDWLQJV
HQKDQFHG WUDQVPLWWDQFH PDWUL[ DSSURDFK - 2S W  6 R F  $ P  $         
    

>  @ 4 &D R  3  / D OD Q Q H D Q G -3 + X J R Q LQ  6WDEOH DQG Hr FLHQW % ORFKPRGH FRP


SXWDWLRQDO PHWKRG IRU RQHGLPHQVLRQDO JUDWLQJ ZDYHJXLGHV - 2S W  6 R F  $ P 
$            

>  @ (  6 LOE H U V W H LQ  3  / D OD Q Q H  -3 + X J R Q LQ D Q G 4 &D R  8VH RI JUDWLQJ WKHRULHV


LQ LQWHJUDWHG RSWLFV - 2S W  6 R F  $ P  $              

>  @ 6  3 H Q J D Q G * 0 0R U U LV  ( r FLHQW LPSOHPHQWDWLRQ RI ULJRURXV FRXSOHGZDYH


DQDO\VLV IRU VXUIDFHUHOLHI JUDWLQJV - 2S W  6 R F  $ P  $              

>  @ /  / L ) RUPXODWLRQ DQG FRPSDULVRQ RI WZR UHFXUVLYH PDWUL[ DOJRULWKPV IRU


PRGHOLQJ OD\HUHG GLoUDFWLRQ JUDWLQJV - 2S W  6 R F  $ P  $         
    

>  @ .  6 D ND L .  8 W D ND  6  $ NLE D D Q G <  0D W V X V K LP D   zP 5 DQJH ,Q


*D$V,Q3 ' LVWULEXWHG ) HHGEDFN / DVHUV  ,( ( ( - 4X D Q W X P ( OH F W U R Q  
            

>  @ 6  $  ( O1 D J J D U  $ ' HWDLOHG $QDO\VLV RI &XUUHQW ( QKDQFHPHQW LQ 7KLQ 6LOLFRQ


6RODU FHOOV XVLQJ ' LoHUHQW / LJKW 7UDSSLQJ 6FKHPHV 0D U F K      
   % ,% / ,2*5 $ 3 + <

>  @ 0 % R U Q  D Q G (  : R OI 3 ULQFLSOHV RI 2SWLFV ( OHFWURPDJQHWLF 7KHRU\ RI 3 URS


DJDWLRQ 3 URSDJDWLRQ DQG ' LoUDWLRQ RI OLJKW WK ( G   3 H U J D P R Q 3 U H V V      

>  @ - 5  0H \H U $ U H Q G W  ,QWURGXFWLRQ WR &ODVVLFDO DQG 0 RGHUQ 2SWLFV U G ( G 


3 U H Q W LF H + D OO     

>  @ $  *R H W ] E H U J H U  2SWLFDO &RQpQHPHQW LQ WKLQ 6L VRODU FHOOV E\ GLoXVH EDFN


UHqHFWRUV &R Q I 5 H F R U G  WK ,( ( ( 3 9 6 &           

>  @ 0 $  *U H H Q  6LOLFRQ VRODU FHOOV $GYDQFHG SULQFLSOHV DQG SUDFWLFH % U LG J H


3 U LQ W H U \ 6 \G Q H \     

>  @ (  < D E OR Q R YLW F K D Q G * &R G \ ,QWHQVLW\ ( QKDQFHPHQW LQ WH[WXUHG RSWLFDO


VKHHWV IRU VRODU FHOOV ,( ( ( 7U D Q V  ( OH F  ' H Y ( '           

>  @ 7 7LH G MH  (  < D E OR Q R YLW F K  * &R G \ D Q G %  % U R R N / LPLWLQJ Hr FLHQF\ RI


VLOLFRQ VRODU FHOOV ,( ( ( 7U D Q V  ( OH F  ' H Y ( '           

>  @ 9  ' L[LW  - / R G H Q TX D L D Q G - 0F 7D YLV K 5 DGLDWLRQ qX[ HQKDQVPHQW DQG


DEVRUEDQFH LQ WKLQ pOPV ,( ( ( 7U D Q V  ( OH F  ' H Y ( '             

>  @ - & 0LaQ D Q R  2SWLFDO FRQpQHPHQW LQ SKRWRYROWDLFV LQ  3 K\VLFDO / LPLWDWLRQV


WR 3 KRWRYROWDLF ( QHUJ\ &RQYHUVLRQ ( G  E \ $  / X TX H D Q G * /  $ U D X v MR     
$ G D P + LOJ H U  % U LV W R O     

>  @ 5  % LV F R Q W L D Q G +  2V V H Q E U LQ N/ LJKW WUDSSLQJ LQ VSKHULFDO VRODU FHOOV 3 U R F 


  W K ( X U R S H D Q 3 K R W R YR OW D LF 6 R OD U ( Q H U J \ &R Q IH U H Q F H            

>  @ 5  % U H Q G H O&RXSOLQJ RI OLJKW LQWR PHFKDQLFDOO\ WH[WXUHG VLOLFRQ VRODU FHOOV D


UD\ WUDFLQJ VWXG\ 3 U R J  LQ 3 K R W R YR OW D LF 5 H V H D U F K D Q G $ S S OLF D W LR Q V      
   
% ,% / ,2*5 $ 3 + <   

>  @ 5  % U H Q G H O2SWLFDO GHVLJQ RI FU\VWDOOLQH WKLQ OD\HU VLOLFRQ VRODU FHOOV RQ JODVV
3 U R F    W K ( X U R S H D Q 3 K R W R YR OW D LF 6 R OD U ( Q H U J \ &R Q IH U H Q F H            

>  @ 3  6 K H Q J 2SWLFDO DEVRUSWLRQ RI WKLQ pOPV RQ D ODPEHUWLDQ UHqHFWRU VXEVWUDWH


,( ( ( 7U D Q V  ( OH F  ' H Y ( '           

>  @ * : LOOH NH  +  1 X V V E D X P H U  +  % H Q G H U  D Q G (  % X F K H U  $ VLPSOH DQG HI


IHFWLYH OLJKW WUDSSLQJ WHFKQLTXH IRU SRO\FU\VWDOOLQH VLOLFRQ VRODU FHOOV 6 R OD U
( Q H U J \ 0D W H U LD OV D Q G 6 R OD U &H OOV            

>  @ 5  - 5 R H G H O D Q G 3  0 + R OP  7KH GHVLJQ RI DQLVRWURSLFDOO\ HWFKHG ,,,9


VRODU FHOOV 6 R OD U &H OOV            

>  @ .  0X NK D S D K K \D \ 6  ' D W W D  D Q G +  6 D K D ' HSHQGHQFH RI Hr FLHQF\ RQ VODW


DQJOHV RI PLFURPDFKLQHG VRODU FHOOV 6 R OD U ( Q H U J \ 0D W H U LD OV D Q G 6 R OD U &H OOV
         

>  @ 3  &D P S E H OO D Q G 0 $  *U H H Q  / LJKW WUDSSLQJ SURSHUWLHV RI S\UDPLGDOO\ WH[


WXUHG VXUIDFHV -R X U Q D O R I $ S S OLH G 3 K \V LF V               

>  @ 3  &D P S E H OO 6  5  : H Q K D P D Q G 0 $  *U H H Q  / LJKW WUDSSLQJ DQG UHqHF


WLRQ FRQWURO LQ VRODU FHOOV XVLQJ WLOWHG FU\VWDOORJUDSKLF VXUIDFH WH[WXUHV 6 R OD U
( Q H U J \ 0D W H U LD OV D Q G 6 R OD U &H OOV             

>  @ 7 8 H P D W V X  0 ,G D  .  + D Q H  6  . R NX Q D L D Q G 7 6 D LW R K  $ QHZ FHOO VWUXF


WXUH IRU YHU\ WKLQ KLJK Hr FLHQF\ 6LOLFRQ VRODU FHOOV ,( ( ( 7U D Q V D F W LR Q V R Q
( OH F W U R Q ' H YLF H V             
   % ,% / ,2*5 $ 3 + <

>  @ :  6 P LW K D Q G $  5 R K D W J L $ QHZ WH[WXULQJ JHRPHWU\ IRU SURGXFLQJ KLJK


Hr FLHQF\ VRODU FHOOV ZLWK QR DQWLUHqHFWLRQ FRDWLQJV 6 R OD U ( Q H U J \ 0D W H U LD OV
D Q G 6 R OD U &H OOV           

>  @ :  6 P LW K  $  5 R K D W J L D Q G 6  & 1 H H O 7( ;785 (  $ UD\ WUDFLQJ SURJUDP IRU


SKRWRYROWLDF FRPPXQLW\ 8 V H U + D Q G E R R N *H R U J LD ,Q V W LW X W H R I 7H F K Q R OR J \
$ W OD Q W D  0D U F K     

>  @ :  6 P LW K D Q G $  5 R K D W J L 5 D\ WUDFLQJ DQDO\VLV RI WKH LQYHUWHG S\UDPLG WH[


WXULQJ JHRPHWU\ IRU KLJK Hr FLHQF\ VLOLFRQ VRODU FHOOV 6 R OD U ( Q H U J \ 0D W H U LD OV
D Q G 6 R OD U &H OOV           

>  @ 5  % U H Q G H O &RXSOLQJ RI / LJKW LQWR 0 HFKDQLFDOO\ 7H[WXUHG 6LOLFRQ 6RODU &HOOV


D 5 D\ 7UDFLQJ 6WXG\ 3 U R J U H V V LQ 3 K R W R YR OW D LF V           

>  @ - =K D R  $  : D Q J  6  5  : H Q K D PD Q G 0 $  *U H H Q   Hr FLHQW 


PP WKLQ OD\HU VLOLFRQ FHOO LQ 3 U R F H H G LQ J V   WK ( X U R S H D Q 3 K R W R YR OW D LF 6 R OD U
( Q H U J \ &R Q IH U H Q F H       1 LF H     

>  @ 0 $  *U H H Q  $  : D Q J  - =K D R  6  5  : H Q K D P  3  &D P S E H OO D Q G '  7K R U S 


( QKDQFHG OLJKW WUDSSLQJ LQ  Hr FLHQW WKLQ VLOLFRQ VRODU FHOOV LQ 3 U R 
F H H G LQ J V   WK ( X U R S H D Q 3 K R W R YR OW D LF 6 R OD U ( Q H U J \ &R Q IH U H Q F H       1 LF H
    

>  @ '  7K R U S  3  &D P S E H OO D Q G


6  5  : H Q K D P  $EVRUSWLRQ HQKDQFHPHQW LQ
FRQIRUPDOO\ WH[WXUHG WKLQ pOP VLOLFRQ VRODU FHOOV LQ 3 U R F H H G LQ J V   WK ,( ( (
3 K R W R YR OW D LF 6 S H F LD OLV W V &R Q IH U H Q F H            
% ,% / ,2*5 $ 3 + <   

>  @ '  7K R U S D Q G 6  5  : H Q K D P  5 D\WUDFLQJ RI DUELWUDU\ VXUIDFH WH[WXUHV IRU


OLJKW WUDSSLQJ LQ WKLQ VLOLFRQ VRODU FHOOV 6 R OD U ( Q H U J \ 0D W H U LD OV D Q G 6 R OD U
&H OOV             

>  @ 3  $  % D V R U H  1XPHULFDO PRGHOLQJ RI WH[WXUHG VLOLFRQ VRODU FHOOV XVLQJ 3 &' 


,( ( ( 7U D Q V D F W LR Q V R Q ( OH F W U R Q ' H YLF H V             

>  @ 5  % U H Q G H O 6815 $<6 $ YHUVDWLOH UD\ WUDFLQJ SURJUDP IRU WKH SKRWRYROWDLF
FRPPXQLW\ 8 V H U + D Q G E R R N S U H V H Q W H G D W W K H WK ( X U R S H D Q 3 K R W R YR OW D LF
6 R OD U ( Q H U J \ &R Q IH U H Q F H  $ P V W H U G D P  $ S U LO     

>  @ 5  % U H Q G H O D Q G 5  3 OLH Q LQ J H U  7H F K Q  ' LJ H V W R I WK ,Q W O 3 9 6 ( &   


0L\D ] D NL     

>   @ 5  +  0R U I D Q G +  . H LV V  6XEPLFURQ *UDWLQJV IRU / LJKW 7UDSSLQJ LQ 6LOLFRQ


6RODU &HOOV D 7KHRUHWLFDO 6WXG\  3 U R F   W K ( X U R S H D Q 3 K R W R YR OW D LF 6 R OD U
( Q H U J \ &R Q IH U H Q F H            

>   @ - & 3 OwD  - & ' X U wD Q  '  & 6 NLJ LQ D Q G 5  $  ' H S LQ H 5 D\ WUDFLQJ YV
HOHFWURPDJQHWLF PHWKRGV LQ WKH DQDO\VLV RI DQWLUHqHFWLYH WH[WXUHG VXUIDFHV
3 U R F    W K 3 K R W R YR OW D LF 6 S H F LD OLV W &R Q IH U H Q F H            

>   @ $  $  $ E R X H OV D R R G  0 <  *K D Q Q D P D Q G $  6  $ O 2P D U  / LPLWDWLRQ RI UD\


WUDFLQJ WHFKQLTXHV LQ RSWLFDO PRGHOLQJ RI VLOLFRQ VRODU FHOOV DQG SKRWRGLRGHV
- $ S S O 3 K \V           

You might also like