Investment Theory

Topics include Efficient Market Hypothesis, Capital Asset Pricing Model (CAPM), Arbitrage Pricing Theory, and investment strategies

1,117 Questions
Investing and Financial Markets
Stock Market
Investment Theory
2008 Federal Bailout

What time does the Stock Market open?

The stock market opens at 9:00 am and closes at around 4:00pm.

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Investment Theory

How is the Treynor ratio Annualized?

The Treynor Ratio is

(expected return - risk free rate) / beta.

Beta is dimensionless and cannot be annualized - the figure is the same whether you use daily, monthly or yearly returns.

The expected return and the risk free rate only need to be annualized. If they're based on daily returns, then raise them to the power (1+daily interest rate)^252 (assuming 252 trading days in one year).

See the link below for an example of a spreadsheet which calculates the Treynor Ratio

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Waste and Recycling
Investment Theory
Investment Banking

Where is smart money investing now?

By way of analogy, you could ask... how do "Fitness Experts" exercise? Or how do "Health Conscious" people eat? Answer= regular balanced exercise, or regular balanced meals.

Smart investors invest regularly (Monthly) into conservative broad based investments , an example would be into very low cost index trackers

Smart investors don't buy heavily into any one sector or company, any more than smart exercisers exercise only biceps (For example).

If an investor wants to buy heavily into (lets say) gold, then go for it. But don't call it investing. Call it by the proper term... Gambling. Who knows, you might get lucky. Don't most gamblers?

Cheers

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Investing and Financial Markets
Stock Market
Investment Theory
Stocks

Do only rich people invest in stock markets?

Because they have the money to ride out the ups and downs of the stock market. If you have a lot of money you can take those risks whithout going backrupt. You can also get even richer. :)

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Investment Theory
Mutual Funds
Stocks

What does Smart Money mean in investing?

Smart Money is the term used to describe institutional investors, such as hedge funds and mutual funds, or well-know individual investors, e.g., Warren Buffet.

It suggests that due to their experience and more sophisticated research capabilities they should be making smarter investment decisions than small individual investors, often referred to as retail investors.

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Computer Terminology
Microsoft Windows
Investment Theory

Explain briefly the various steps involved in processing of data?

5 Steps To Data ProcessingData is an integral part of all business processes. It is the invisible backbone that supports all the operations and activities within a business. Without access to relevant data, businesses would get completely paralyzed. This is because quality data helps formulate effective business strategies and fruitful business decisions.

Therefore, the quality of data should be maintained in good condition in order to facilitate smooth business proceedings. In order to enhance business proceedings, data should be made available in all possible forms in order to increase the accessibility of the same.

Data processing refers to the process of converting data from one format to another. It transforms plain data into valuable information and information into data. Clients can supply data in a variety of forms, be it .xls sheets, audio devices, or plain printed material. Data processing services take the raw data and process it accordingly to produce sensible information. The various applications of data processing can convert raw data into useful information that can be used further for business processes.

Companies and organizations across the world make use of data processing services in order to facilitate their market research interests. Data consists of facts and figures, based on which important conclusions can be drawn. When companies and organizations have access to useful information, they can utilize it for strategizing powerful business moves that would eventually increase the company revenue and decrease the costs, thus expanding the profit margins. Data processing ensures that the data is presented in a clean and systematic manner and is easy to understand and be used for further purposes.

Here are the 5 steps that are included in data processing:

Editing

There is a big difference between data and useful data. While there are huge volumes of data available on the internet, useful data has to be extracted from the huge volumes of the same. Extracting relevant data is one of the core procedures of data processing. When data has been accumulated from various sources, it is edited in order to discard the inappropriate data and retain relevant data.

Coding

Even after the editing process, the available data is not in any specific order. To make it more sensible and usable for further use, it needs to be aligned into a particular system. The method of coding ensures just that and arranges data in a comprehendible format. The process is also known as netting or bucketing.

Data Entry

After the data has been properly arranged and coded, it is entered into the software that performs the eventual cross tabulation. Data entry professionals do the task efficiently.

Validation

After the cleansing phase, comes the validation process. Data validation refers to the process of thoroughly checking the collected data to ensure optimal quality levels. All the accumulated data is double checked in order to ensure that it contains no inconsistencies and is utterly relevant.

Tabulation

This is the final step in data processing. The final product i.e. the data is tabulated and arranged in a systematic format so that it can be further analyzed.

All these processes make up the complete data processing activity which ensures the said data is available for access.

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Symbols for Stocks Mutual Funds and ETFs
Index Funds and ETFs
Investment Theory

What is the term FIs means in Indian stock market?

Financial Institutions

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Investment Theory
Mutual Funds

Difference between retail fund and wholesale fund?

Retail are sales direct to the consumer and wholesale is when you sell to a distributor who then resells.

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Jobs
Calculus
Investment Theory

What does a financial adviser do?

people give money to a financial advisor and he invests the money for them hoping to get a great return for the money invested.

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Investing and Financial Markets
Cars & Vehicles
Investment Theory

What are the listed companies in Colombo stock exchange?

Some companies are:

* Ceylinco insurance company * Commerical bank of ceylon * DFCC bank * Hatton National bank * National development bank

* Sampath bank * Nations trust bank * Seylan bank * Distilleries company of Sri Lanka * Hayleys limited * Hemas holdings * John keels holdings * Asian hotels * Caltex lubricants lanka limited * Tokyo cement company * ACL cables * Royal ceramics lanka ltd * Sri lanka telecom * Chemical industries ceylon ltd

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Business & Finance
Investing and Financial Markets
Investment Theory
Stocks

What is the cheapest yet best stock to invest in?

There is no answer to this question since no one knows the future. Also, there is academic research that indicates all stocks are priced correctly meaning the current price of a stock reflects its true value. The book "A Random Walk Down Wall Street" is about this research. So this means you could throw a dart at a list of cheap stocks and have just as good a chance of picking the best stock as an expert in the stock marketwould. Many experts will not buy a stock selling for less than $5 fearing bankruptcy and certainly stocks selling for less than $2 are very risky.

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Jobs
Calculus
Investment Theory

What is financial adviser?

Its exactly what it sounds like, someone that advises you about your financial needs. How to manage your money and save money ect.

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Investing and Financial Markets
Stock Market
Investment Theory
Stock Options and Futures
Stocks

How do you make money on stock market?

In a lot of ways. You can buy low and sell high--called "going long." You can buy, then collect the dividends--called "buy and hold." You can borrow stock, sell it, wait till the price drops, buy it back and pocket the difference--called "going short." There are a lot of funky things you can do with futures and options.

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Football - Soccer
Salary and Pay Rates
Investment Theory
Nike, Inc.

Who makes more money Nike or Adidas?

nike

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Investment Theory

Where can you find Historical prices for hang seng index?

http://finance.yahoo.com/q/hp?s=%5EHSI

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Investing and Financial Markets
Stock Market
Investment Theory

How do you start investing in shares?

First, buy a book (or better, multiple books) on investing. Second, open a mock portfolio. There are many websites. I like investopedia.com. Implement the strategies you learned from the books and start watching cnbc, reading businessweek, etc. Third, open a real investing account. I recommend discount brokers, and specifically Scottrade. Learn from your mistakes, modify your strategy, and make money!

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Insurance
Life Insurance
Investment Theory
Workplace Health and Safety

How are risk exposures classified?

I think its classified as either pure risk or speculative risk

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Business & Finance
Stock Market
Investment Theory
Stocks

How would the price of a stock be affected by its dividend?

Paying a dividend costs the company and as such will decrease the value of the company and the stock. If all other factors are equal, a buyer would prefer a stock that is expected to pay the higher dividend. If Company A is expected to pay $10 per share annually and Company B $8, an investor who wants to make 8% would be willing to bid $125 for a share of Company A but only $100 for Company B. On the date that a dividend is effective, a company's stock will drop by the amount of the dividend because that amount will be paid to the person who owned the stock at the beginning of that day.

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Investment Theory
Stock Options and Futures

Which of the following statement best describes how invertors behave when engaged in a socially responsible inverting?

they investe in companies with a business model and social mission that they support. apex

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Companies
Investment Theory
Walmart
Stocks

How much is one share of walmart's stock?

50.04

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Economics
Investment Theory

The Goals of The Marketing System?

what are the goals of marketing system

-buyers want god quality products at reasonable prices in convenient locations

-they want wide brand and feature assortment

-helpful, pleasant, and honest sales people and strong warrantly backed by good follow-p service

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Investment Theory
IPOs
Mutual Funds

What is 1086 plan investing?

investing in energy pipeline partnerships

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Business & Finance
Investing and Financial Markets
Investment Theory

What are objectives of technical analysis....why to study it and what are its uses?

The point of technical analysis is to properly identify setups where you historically have a high probability of success on any given trade, ideally along with a favorable risk to reward ratio. Psychic ability is an unrealistic goal from using charts, but skewing the odds into your favor is not. In order for a technical trader to have long term success, he/she likely will need to continually alter, tweak, and refine his methods, to compensate for an ever dynamic market.

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Investing and Financial Markets
Stock Market
Investment Theory

Who is a broker in a stock exchange market?

In simple terms Broker is any person who acts as a middleman between investor and stock exchange ( a place where buying and selling of stocks take place).

AnswerIn lay man terms a broker can be referred as an intermediary or a middleman with whom rests the responsibility of investing the client's money towards most suited options. He assesses the client's idea for investment, the tenure of investment, the amount available, his risk taking ability and his spending power. Keeping all these criteria in mind, the broker is entrusted with the responsibility to make the best out of an investor's money. He ensures a brokerage - professional fees for his services. Now days, with online stock trading facilities available, the broker firms play the role of a broker, per se. The professionals in the organization are entrusted with managing client accounts. Equipped with individual online portals, they survey the market regularly, monitor the client's investments and generate updated market trends for clients. Thus, a broker plays an extremely vital role in guiding his client through the speculative stock market.
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Investing and Financial Markets
Investment Theory
IPOs
Stock Options and Futures

Is it necessary a DEMAT Account for applying initial public offering shares?

YES

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