Behavioral finance and investment decisionaashima1806
Behavioral Finance is all related to the behavior of the investor at the time of investing in different market conditions.. same is exhibited in our presentation by compiling different questions related to investment for different investors on the basis of different age groups...
A disequilibrium in the balance of payments (BOP) refers to a surplus or deficit. A surplus occurs when total receipts exceed total payments, while a deficit happens when total payments are greater than total receipts. The BOP can be favorable or unfavorable depending on whether credits are greater or less than debits. Causes of disequilibrium include temporary factors, changes in national income, inflation, economic development stage, borrowing and lending amounts, exchange rate fluctuations, and political instability. There are also different types of disequilibrium such as cyclical, structural, short-run, and long-run. Too much disequilibrium can negatively impact a country's growth and competitiveness. Measures to address
This document discusses money, inflation, and their relationship. It defines money as an asset used to purchase goods and services that serves as a medium of exchange, unit of account, and store of value. The document outlines different monetary aggregates (M0, M1, M2) and explains how too much money growth can lead to inflation according to the quantity theory of money. While money and inflation are linked in the long run, the relationship breaks down in the short run, allowing monetary policy to influence output.
Exchange Traded Funds (ETFs) are baskets of securities that track an index and trade on a stock exchange. The first ETF was launched in the US in 1993, while the first Indian ETF, Nifty BeES, was launched in 2002. ETFs offer diversification and lower costs than traditional index funds. ETFs can be bought and sold throughout the trading day like stocks. They have lower tracking errors than index funds due to arbitrage opportunities. ETFs represent their underlying assets accurately through arbitrage between their price and net asset value.
Behavioral finance and investment decisionaashima1806
Behavioral Finance is all related to the behavior of the investor at the time of investing in different market conditions.. same is exhibited in our presentation by compiling different questions related to investment for different investors on the basis of different age groups...
A disequilibrium in the balance of payments (BOP) refers to a surplus or deficit. A surplus occurs when total receipts exceed total payments, while a deficit happens when total payments are greater than total receipts. The BOP can be favorable or unfavorable depending on whether credits are greater or less than debits. Causes of disequilibrium include temporary factors, changes in national income, inflation, economic development stage, borrowing and lending amounts, exchange rate fluctuations, and political instability. There are also different types of disequilibrium such as cyclical, structural, short-run, and long-run. Too much disequilibrium can negatively impact a country's growth and competitiveness. Measures to address
This document discusses money, inflation, and their relationship. It defines money as an asset used to purchase goods and services that serves as a medium of exchange, unit of account, and store of value. The document outlines different monetary aggregates (M0, M1, M2) and explains how too much money growth can lead to inflation according to the quantity theory of money. While money and inflation are linked in the long run, the relationship breaks down in the short run, allowing monetary policy to influence output.
Exchange Traded Funds (ETFs) are baskets of securities that track an index and trade on a stock exchange. The first ETF was launched in the US in 1993, while the first Indian ETF, Nifty BeES, was launched in 2002. ETFs offer diversification and lower costs than traditional index funds. ETFs can be bought and sold throughout the trading day like stocks. They have lower tracking errors than index funds due to arbitrage opportunities. ETFs represent their underlying assets accurately through arbitrage between their price and net asset value.
An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as a stock index or bond index. ETFs may be attractive as investments because of their low costs, tax efficiency, and stock-like features. ETFs are the most popular type of exchange-traded product.
An ETF combines the valuation feature of a mutual fund or stock, which can be bought or sold at the end of each trading day for its net asset value, with the tradability feature of a closed-end fund, which trades throughout the trading day at prices that may be more or less than its net asset value. Closed-end funds are not considered to be ETFs, even though they are funds and are traded on an exchange.
Only authorized participants, which are large broker-dealers that have entered into agreements with the ETF's distributor, actually buy or sell shares of an ETF directly from or to the ETF, and then only in creation units, which are large blocks of tens of thousands of ETF shares, usually exchanged in-kind with baskets of the underlying securities. Authorized participants may wish to invest in the ETF shares for the long-term, but they usually act as market makers on the open market, using their ability to exchange creation units with their underlying securities to provide liquidity of the ETF shares and help ensure that their intraday market price approximates the net asset value of the underlying assets. Other investors, such as individuals using a retail broker, trade ETF shares on this secondary market
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
O documento discute conceitos econômicos relacionados à moeda, taxas de juros e taxas de câmbio. Explica a demanda individual e agregada por moeda e como são influenciadas por fatores como retorno, risco e liquidez. Também descreve como a taxa de juros de equilíbrio é determinada pela interação entre a oferta e demanda de moeda no mercado monetário.
The Dow Theory originated with Charles Dow and analyzes stock market movements on three levels - daily fluctuations, secondary trends lasting weeks to months, and primary trends spanning multiple years. These trends are compared to ripples, waves, and tides respectively. The theory holds that markets discount all information and move through bull and bear cycles shown by peaks and troughs in the primary trend. Support and resistance levels also factor in where demand or supply prevents further price changes. However, the Dow Theory is not infallible and is based on historical interpretation of data rather than a scientific theory.
The derivatives market worth more than $516 trillion is experiencing a period of unwinding as worried investors pull out their cash. Several banks have reported major losses in the hundreds of millions to over a billion dollars from equity and currency derivatives. The unwinding or "Great Unwind" is a result of investors selecting higher risk investments in hopes of profiting from anticipated price movements but facing extraordinary losses when prices moved against them.
Global Financial Crisis and Singapore Vikas Sharma
Starting with the genesis and global impact of the Global Financial Crisis (GFC), this paper details drills down into its impact on Singapore's economy, and the measures that were taken by the island-state to limit the damage caused.
The document defines and explains recession. It notes that a recession is when a country's GDP declines for two consecutive quarters, indicating the economy is shrinking. Recessions can be caused by overproduction when supply exceeds demand, or by a loss of consumer and business confidence from factors like job losses and company bankruptcies that further reduce spending and demand. Governments try to counter recessions through fiscal policies like tax cuts and increased spending, and monetary policies where central banks lower interest rates and adjust money supply to boost demand and investment.
This lecture covers portfolio performance measurement and risk management. It discusses absolute and relative risk, the market line model, and several ratios to evaluate performance including the Treynor, Sharpe, and Sortino ratios. The Treynor and Sharpe ratios measure risk-adjusted performance using beta and standard deviation respectively. The Sortino ratio focuses on downside risk relative to a minimum acceptable return. These tools help portfolio managers evaluate the risk and return of their strategies.
The document discusses market bubbles and provides several case studies as examples. It defines a market bubble as occurring when prices reach unjustified levels and end up crashing. Several causes of bubbles are mentioned, including excessive leverage, the "greater fool theory," and lack of experience among fund managers. When bubbles burst, they can lead to economic slowdowns as disallocation of resources and spending cuts occur. The case studies examine the market crashes of 1929, the 1960s bubble, the 1987 meltdown, and the late 1990s dot-com bubble. Lessons learned are that the size of declines from bubble peaks has diminished over time, and it can take decades to regain prior market highs after a crash.
The document provides information about the Chartered Market Technician (CMT) Level I exam, including the exam format, length, knowledge domains covered, and the percentage of questions from each domain.
The CMT Level I exam measures basic competence in technical analysis and tests knowledge in 12 domains including theory and history, markets, indicators, chart construction, trend and pattern analysis, cycles, decision making, and ethics. It is a multiple choice exam that is 2 hours and 15 minutes long. The curriculum is organized into the knowledge domains to help candidates recognize and implement investment decisions.
The document discusses different types of foreign exchange transactions and exchange rate quotations. It describes spot transactions which settle within two days at the spot exchange rate. Forward transactions involve a future agreement at a fixed exchange rate after 90 days. Future transactions are also forward contracts but are standardized and traded on exchanges. Swap transactions involve borrowing one currency and lending another. Option transactions give the right but not obligation to exchange currencies at an agreed rate. Exchange rates can be quoted directly, expressing foreign currency in domestic currency terms, or indirectly, expressing domestic currency in foreign currency terms.
The document defines recessions and depressions, describing recessions as lasting 6-18 months and involving a decline in GDP over two consecutive quarters, while depressions are longer term declines in GDP that have more severe economic impacts. It discusses the types of recessions, including V-shaped, W-shaped, and L-shaped recessions defined by the pattern of economic decline and recovery. Causes of recessions include deflation, overinvestment, and reduced consumer confidence, while consequences are higher unemployment, falling incomes, and decreased tax revenue. The Great Recession of the late 2000s/early 2010s is examined as the most significant recession in recent decades, caused by the subprime mortgage crisis and housing market collapse in the
Chp 11 efficient market hypothesis by mahmudulMahmudul Hassan
The document discusses the evolution and different forms of the efficient market hypothesis (EMH). It begins by explaining Maurice Kendall's 1953 study that found stock prices move randomly without predictable patterns. This challenged the notion that markets are irrational, and instead suggested markets are efficient. The document then discusses how the EMH developed, with the idea that markets quickly incorporate all available information into stock prices, making them unpredictable. It outlines Fama's three forms of the EMH based on the information reflected in prices. The implications of EMH for technical analysis, fundamental analysis, and active vs passive portfolio management are also discussed. Finally, empirical tests and evidence related to market efficiency are reviewed.
Technical analysis is a method of forecasting the direction of prices through the study of past market data, such as historical prices and trading volumes. It assumes that market behavior repeats itself, and that current prices already reflect all known information. Technical analysts use various methods and tools like charts, indicators and patterns to identify trends and trend reversals in the market. Some of the common technical analysis techniques include Dow theory, Elliott wave theory, and the use of charts like line charts, bar charts and Japanese candlestick charts to identify patterns in price movements over time.
The Efficient Market Hypothesis (EMH) states that current stock prices fully reflect all available public information such that it is impossible to consistently outperform the market through analysis of historical prices or public information alone. There are three forms of the EMH: weak, semi-strong, and strong. The weak form suggests past prices cannot predict future performance, while the semi-strong form incorporates all public information like earnings reports. The strong form suggests even private information cannot be used to outperform, though some studies contradict this. Overall, the EMH implies that markets are rational and prices adjust quickly to new information, making consistent outperformance difficult without private information.
characterstics of derivative market instruments power point presentationaditya singh
This document discusses various derivative market instruments, including their characteristics. It describes forward contracts as bilateral agreements to buy or sell an asset at a future time for a set price, exposing the parties to counterparty risk. Futures contracts are exchange-traded agreements to buy or sell an asset at a future date for a set price. Options contracts give the buyer the right, but not obligation, to buy or sell an asset at a strike price by an expiration date in exchange for an upfront premium. Swaps involve the exchange of financial instruments between two parties based on a net payment amount at settlement dates until the final termination date.
The document discusses the efficient market hypothesis which states that financial markets are efficient and security prices reflect all available information. It provides evidence that markets are at least semi-strong form efficient in that publicly available information does not allow consistently beating the market. The hypothesis implies that no investments are better than others and security prices accurately reflect risk and return. While markets quickly react to new information, predicting short-term movements is very difficult. Overall, the evidence supports some level of market efficiency.
Index funds & its effects on indian economySayoni Ghosh
Index funds aim to replicate the movements of a financial market index at a low cost. In India, index funds may not be the best option due to the small number of stocks covered by indices like the Sensex and Nifty. Index funds offer broad market exposure with low expenses, no analyst fees, and tax benefits. However, they cannot outperform the target index and are subject to tracking errors. People frequently ask about differences between index and equity funds, how to invest in index funds, and ease of starting an index fund.
An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as a stock index or bond index. ETFs may be attractive as investments because of their low costs, tax efficiency, and stock-like features. ETFs are the most popular type of exchange-traded product.
An ETF combines the valuation feature of a mutual fund or stock, which can be bought or sold at the end of each trading day for its net asset value, with the tradability feature of a closed-end fund, which trades throughout the trading day at prices that may be more or less than its net asset value. Closed-end funds are not considered to be ETFs, even though they are funds and are traded on an exchange.
Only authorized participants, which are large broker-dealers that have entered into agreements with the ETF's distributor, actually buy or sell shares of an ETF directly from or to the ETF, and then only in creation units, which are large blocks of tens of thousands of ETF shares, usually exchanged in-kind with baskets of the underlying securities. Authorized participants may wish to invest in the ETF shares for the long-term, but they usually act as market makers on the open market, using their ability to exchange creation units with their underlying securities to provide liquidity of the ETF shares and help ensure that their intraday market price approximates the net asset value of the underlying assets. Other investors, such as individuals using a retail broker, trade ETF shares on this secondary market
Advance Option Trading Strategy Mentorship Program - For More Details Visit - https://www.ptaindia.com/advance-option-trading-strategies-mentorship-program/
Or Call +91 9261211003
O documento discute conceitos econômicos relacionados à moeda, taxas de juros e taxas de câmbio. Explica a demanda individual e agregada por moeda e como são influenciadas por fatores como retorno, risco e liquidez. Também descreve como a taxa de juros de equilíbrio é determinada pela interação entre a oferta e demanda de moeda no mercado monetário.
The Dow Theory originated with Charles Dow and analyzes stock market movements on three levels - daily fluctuations, secondary trends lasting weeks to months, and primary trends spanning multiple years. These trends are compared to ripples, waves, and tides respectively. The theory holds that markets discount all information and move through bull and bear cycles shown by peaks and troughs in the primary trend. Support and resistance levels also factor in where demand or supply prevents further price changes. However, the Dow Theory is not infallible and is based on historical interpretation of data rather than a scientific theory.
The derivatives market worth more than $516 trillion is experiencing a period of unwinding as worried investors pull out their cash. Several banks have reported major losses in the hundreds of millions to over a billion dollars from equity and currency derivatives. The unwinding or "Great Unwind" is a result of investors selecting higher risk investments in hopes of profiting from anticipated price movements but facing extraordinary losses when prices moved against them.
Global Financial Crisis and Singapore Vikas Sharma
Starting with the genesis and global impact of the Global Financial Crisis (GFC), this paper details drills down into its impact on Singapore's economy, and the measures that were taken by the island-state to limit the damage caused.
The document defines and explains recession. It notes that a recession is when a country's GDP declines for two consecutive quarters, indicating the economy is shrinking. Recessions can be caused by overproduction when supply exceeds demand, or by a loss of consumer and business confidence from factors like job losses and company bankruptcies that further reduce spending and demand. Governments try to counter recessions through fiscal policies like tax cuts and increased spending, and monetary policies where central banks lower interest rates and adjust money supply to boost demand and investment.
This lecture covers portfolio performance measurement and risk management. It discusses absolute and relative risk, the market line model, and several ratios to evaluate performance including the Treynor, Sharpe, and Sortino ratios. The Treynor and Sharpe ratios measure risk-adjusted performance using beta and standard deviation respectively. The Sortino ratio focuses on downside risk relative to a minimum acceptable return. These tools help portfolio managers evaluate the risk and return of their strategies.
The document discusses market bubbles and provides several case studies as examples. It defines a market bubble as occurring when prices reach unjustified levels and end up crashing. Several causes of bubbles are mentioned, including excessive leverage, the "greater fool theory," and lack of experience among fund managers. When bubbles burst, they can lead to economic slowdowns as disallocation of resources and spending cuts occur. The case studies examine the market crashes of 1929, the 1960s bubble, the 1987 meltdown, and the late 1990s dot-com bubble. Lessons learned are that the size of declines from bubble peaks has diminished over time, and it can take decades to regain prior market highs after a crash.
The document provides information about the Chartered Market Technician (CMT) Level I exam, including the exam format, length, knowledge domains covered, and the percentage of questions from each domain.
The CMT Level I exam measures basic competence in technical analysis and tests knowledge in 12 domains including theory and history, markets, indicators, chart construction, trend and pattern analysis, cycles, decision making, and ethics. It is a multiple choice exam that is 2 hours and 15 minutes long. The curriculum is organized into the knowledge domains to help candidates recognize and implement investment decisions.
The document discusses different types of foreign exchange transactions and exchange rate quotations. It describes spot transactions which settle within two days at the spot exchange rate. Forward transactions involve a future agreement at a fixed exchange rate after 90 days. Future transactions are also forward contracts but are standardized and traded on exchanges. Swap transactions involve borrowing one currency and lending another. Option transactions give the right but not obligation to exchange currencies at an agreed rate. Exchange rates can be quoted directly, expressing foreign currency in domestic currency terms, or indirectly, expressing domestic currency in foreign currency terms.
The document defines recessions and depressions, describing recessions as lasting 6-18 months and involving a decline in GDP over two consecutive quarters, while depressions are longer term declines in GDP that have more severe economic impacts. It discusses the types of recessions, including V-shaped, W-shaped, and L-shaped recessions defined by the pattern of economic decline and recovery. Causes of recessions include deflation, overinvestment, and reduced consumer confidence, while consequences are higher unemployment, falling incomes, and decreased tax revenue. The Great Recession of the late 2000s/early 2010s is examined as the most significant recession in recent decades, caused by the subprime mortgage crisis and housing market collapse in the
Chp 11 efficient market hypothesis by mahmudulMahmudul Hassan
The document discusses the evolution and different forms of the efficient market hypothesis (EMH). It begins by explaining Maurice Kendall's 1953 study that found stock prices move randomly without predictable patterns. This challenged the notion that markets are irrational, and instead suggested markets are efficient. The document then discusses how the EMH developed, with the idea that markets quickly incorporate all available information into stock prices, making them unpredictable. It outlines Fama's three forms of the EMH based on the information reflected in prices. The implications of EMH for technical analysis, fundamental analysis, and active vs passive portfolio management are also discussed. Finally, empirical tests and evidence related to market efficiency are reviewed.
Technical analysis is a method of forecasting the direction of prices through the study of past market data, such as historical prices and trading volumes. It assumes that market behavior repeats itself, and that current prices already reflect all known information. Technical analysts use various methods and tools like charts, indicators and patterns to identify trends and trend reversals in the market. Some of the common technical analysis techniques include Dow theory, Elliott wave theory, and the use of charts like line charts, bar charts and Japanese candlestick charts to identify patterns in price movements over time.
The Efficient Market Hypothesis (EMH) states that current stock prices fully reflect all available public information such that it is impossible to consistently outperform the market through analysis of historical prices or public information alone. There are three forms of the EMH: weak, semi-strong, and strong. The weak form suggests past prices cannot predict future performance, while the semi-strong form incorporates all public information like earnings reports. The strong form suggests even private information cannot be used to outperform, though some studies contradict this. Overall, the EMH implies that markets are rational and prices adjust quickly to new information, making consistent outperformance difficult without private information.
characterstics of derivative market instruments power point presentationaditya singh
This document discusses various derivative market instruments, including their characteristics. It describes forward contracts as bilateral agreements to buy or sell an asset at a future time for a set price, exposing the parties to counterparty risk. Futures contracts are exchange-traded agreements to buy or sell an asset at a future date for a set price. Options contracts give the buyer the right, but not obligation, to buy or sell an asset at a strike price by an expiration date in exchange for an upfront premium. Swaps involve the exchange of financial instruments between two parties based on a net payment amount at settlement dates until the final termination date.
The document discusses the efficient market hypothesis which states that financial markets are efficient and security prices reflect all available information. It provides evidence that markets are at least semi-strong form efficient in that publicly available information does not allow consistently beating the market. The hypothesis implies that no investments are better than others and security prices accurately reflect risk and return. While markets quickly react to new information, predicting short-term movements is very difficult. Overall, the evidence supports some level of market efficiency.
Index funds & its effects on indian economySayoni Ghosh
Index funds aim to replicate the movements of a financial market index at a low cost. In India, index funds may not be the best option due to the small number of stocks covered by indices like the Sensex and Nifty. Index funds offer broad market exposure with low expenses, no analyst fees, and tax benefits. However, they cannot outperform the target index and are subject to tracking errors. People frequently ask about differences between index and equity funds, how to invest in index funds, and ease of starting an index fund.
C:\documents and settings\administrator\my documents\(10.06.11)주간금융시장동향Joonhoan Kim
경제동향
-10일 한국은행 금융통화위원회는 2010년 6월의 기준금리를 현재의 연 2% 수준으로 유지하기로 결정. 이는 2009년 3월 이후 16개월째 같은 수준의 금리를 유지
-유럽국가들의 재정위기와 미국의 경기둔화 우려로 아시아 국가들의 출구전략이 늦춰지고 있음. 인도네시아, 필리핀, 한국 등이 금리를 동결하였으며, 아시아 지역의 금리인상을 주도한 호주마저 이달에는 기준금리를 동결.
-미 연방준비제도이사회의 밴버냉키 의장은 미국경제가 더블딥에 빠지지 않을 것으로 의견을 밟힘. 지난해 기업부문의 회복이 이어졌다면, 올해는 민간 부문에서 경제회복을 이끌것으로 기대.
주식시장동향
-6월초 헝가리 재정위기 우려감과 미국의 고용과 관련된 경기지표 둔화로 글로벌 증시가 급락한 가운데, 한국의 증시도 주초 1,630선까지 내려왔지만, 유럽의 재정위기 회복 기대감과 메릴린치의 한국증시에 대한 호의적 의견으로 인해 주후반 1,670선까지 회복하는 견조한 모습을 보임
-단기적으로는 1,550~1,750의 박스권으로 예상되지만, 전문가들의 의견이 3분기 중반 이전에는 코스피가 다시 강세로 발전할 수 있다고 예상. 한국 주식의 가치가 유럽발 재정위기로 인해 지수 자체가 많이 낮아져 있고, 저금리 기조가 유지되고 있기 때문에, 한 분기 정도의 조정 이후 주가는 재차 강세로 반전 될 수 있을 것으로 예상됨.
경제동향
-10일 한국은행 금융통화위원회는 2010년 6월의 기준금리를 현재의 연 2% 수준으로 유지하기로 결정. 이는 2009년 3월 이후 16개월째 같은 수준의 금리를 유지
-유럽국가들의 재정위기와 미국의 경기둔화 우려로 아시아 국가들의 출구전략이 늦춰지고 있음. 인도네시아, 필리핀, 한국 등이 금리를 동결하였으며, 아시아 지역의 금리인상을 주도한 호주마저 이달에는 기준금리를 동결.
-미 연방준비제도이사회의 밴버냉키 의장은 미국경제가 더블딥에 빠지지 않을 것으로 의견을 밟힘. 지난해 기업부문의 회복이 이어졌다면, 올해는 민간 부문에서 경제회복을 이끌것으로 기대.
주식시장동향
-6월초 헝가리 재정위기 우려감과 미국의 고용과 관련된 경기지표 둔화로 글로벌 증시가 급락한 가운데, 한국의 증시도 주초 1,630선까지 내려왔지만, 유럽의 재정위기 회복 기대감과 메릴린치의 한국증시에 대한 호의적 의견으로 인해 주후반 1,670선까지 회복하는 견조한 모습을 보임
-단기적으로는 1,550~1,750의 박스권으로 예상되지만, 전문가들의 의견이 3분기 중반 이전에는 코스피가 다시 강세로 발전할 수 있다고 예상. 한국 주식의 가치가 유럽발 재정위기로 인해 지수 자체가 많이 낮아져 있고, 저금리 기조가 유지되고 있기 때문에, 한 분기 정도의 조정 이후 주가는 재차 강세로 반전 될 수 있을 것으로 예상됨.
11. Section05 채권의듀레이션
□듀레이션
만기까지각기간에기간별현금흐름의현재가치가채권가격대비차지하는비중을곱하여
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▶투자원금의평균회수기간
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▶채권포트폴리오의듀레이션은포함된개별채권의듀레이션의가중평균으로산정
▶이자율변동에대한가격탄력성
→ 듀레이션을이자율에다1을더한값으로나눈것:수정듀레이션
→ 채권또는채권포트폴리오의가치에다가수정듀레이션을곱하고이자율변동분을곱하면가치변동분이됨
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