StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Investment and Portfolios assignment - Essay Example

Cite this document
Summary
The other approach is the fundamental tool. Both tools attempt to carry out the analysis that predicts shift of demand and supply in the market. Efforts that forecast…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER99% of users find it useful
Investment and Portfolios assignment
Read Text Preview

Extract of sample "Investment and Portfolios assignment"

Download file to see previous pages

When a trader can foresee these changes, it provides a clear picture of the market trends. For these reasons, traders would be in a better position to make entry when the chances of making profits are high and make an exit when the trends are not favorable. According to Murphy, (1999), there are three concepts that describe technical analysis. These were described as market action discounts everything, prices move in trends, and history repeats itself. Murphy (1999) defined market action discounts everything as source of information availed to traders.

Such information may include volumes of data or prices of commodities. The concept assumes that the market action discounts everything, which illustrates that everything that is likely to influence the prices like psychology, politics, and other fundamentals were integrated and therefore reflected in the volumes of data or the prices. Therefore, the price provides a direct measure that could be used to study trends in demands and supply. Rises in the price would signify that the demands ought to exceed the supply while ensuring that the fundamentals are kept positive.

Price trend denotes the directions taken by the stock’s price over a given period. Technical analysis dwells on prevailing patterns of price data to signal reversal or continuation of the trend. It offers the opportunity to recognize continual situations that guide continual ‘riding on the values’ to get optimal out of it. Although, most the basis of doing price move in trend is to recognize continual signals, it also offers the opportunity to identify any signals for reversal so that the owners can sell their stock before the trend goes bad.

Technical analysis examines data on the stock prices to establish price patterns that could assist in the prediction of the next direction for future prices. If existing data on pricing shows that past projections were

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Investment and Portfolios assignment Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Investment and Portfolios assignment Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from https://studentshare.org/finance-accounting/1679220-investment-and-portfolios-assignment
(Investment and Portfolios Assignment Essay Example | Topics and Well Written Essays - 1250 Words)
Investment and Portfolios Assignment Essay Example | Topics and Well Written Essays - 1250 Words. https://studentshare.org/finance-accounting/1679220-investment-and-portfolios-assignment.
“Investment and Portfolios Assignment Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/finance-accounting/1679220-investment-and-portfolios-assignment.
  • Cited: 0 times

CHECK THESE SAMPLES OF Investment and Portfolios assignment

Investment Analysis and Strategy

"investment Analysis and Strategy" paper states that investment in a project is done through the analysis of risk-return trade-off associated with the investment project.... Before calculating the rate of return that is expected on the investment in the shares of this company employing CAPM, it is required to briefly discuss this model for the betterment of the understanding.... Now portfolio theory suggests that instead of making an investment in one particular share, it would be wiser for an individual to invest in a diversified portfolio....
10 Pages (2500 words) Assignment

Analysis of investment and management of portfolio

Keppel Land Limited is a subsidiary of Keppel Corporation, one of the largest groups in Singapore with major business segments in offshore and marine, infrastructure, and property.... The group's history can be dated back to 1890.... The company is well known for its ‘sterling… The company keeps high corporate governance standards transparent operations....
5 Pages (1250 words) Assignment

W5HIA-Ranking/evaluating the portfolio and making portfolio decisions

BM established Project Management Center of Excellence (PM-COE) while Deloitte established Enterprise Project Management (EPM) to manage their portfolios.... Markets dynamics and rapidly changing global business environment influences how businesses make decisions as it is becoming more difficult to secure capital and investment.... In the same context, IBM had to restructure their organization to respond to such market Ranking Evaluating the Portfolio and Making Portfolio Decisions IBM and Deloitte Case Studies Markets dynamics and rapidly changing global business environment influences how businesses make decisions as it is becoming more difficult to secure capital and investment....
2 Pages (500 words) Assignment

Ensuring Maximum Returns from Investments Assets

Treynor Measure can be used to measure the success of the successful portfolios, by reviewing both risk and return together.... In addition, the project is key in helping the group members… erience a practical view of what really happens in the portfolio investment, including portfolio selection, asset allocation, and risk-return decisions. In order to ensure maximum returns from investments assets, investors not only consider the financial asset that has ty of giving maximum returns, but also include in the investment basket of less risky investment assets, with intent of minimizing the investment loss should one asset suffer poor performance (Daniel et al....
4 Pages (1000 words) Assignment

Developing and Evaluating an Investment Analysis

The goal of this assignment is to provide detailed investment analysis, investigating the financial potential and implications of developed hypothesis at the existing market.... Furthermore, the assignment provides a comparative examination of investment benchmarks.... In actively managed portfolios, fund managers do not believe that the market is always efficient and they are always eager to make use of such mismatch in pricing that does not discount the information completely....
9 Pages (2250 words) Assignment

Origin and Business of CBI and QNB

Moreover, the assignment also focuses on the mission and vision of the organizations of CBI and QNB… However, in order to improve the demand of their banking product and services, increase sales and market share, the types of strategies used by the CBI and QNB will also be analyzed in an effective way.... This study will also This assignment also highlights the implemented strategy that may increase its portfolio and reputation in their respective markets as compared to others....
6 Pages (1500 words) Assignment

Investment Portfolio Based Exclusively on Stocks

The objective of this paper is to build an investment portfolio based exclusively on stocks.... The best way to achieve a solid investment strategy is by building a diversified portfolio of various investments s which along with stocks includes other investments such as bonds, real estate and another type of business....
10 Pages (2500 words) Assignment

Distribution of Thai Rice in UK

This assignment is intended to develop the analysis of the competitive arena that exists for a Thai Rice supplier to enter the UK market.... This assignment aims at critically analyzing the strategy in the perspective of the UK markets and developing a conclusion on its possible success or otherwise....
10 Pages (2500 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us