EFFICIENT MARKET THEORY

 

• EFFICIENT MARKET THEORY
• SECURITY ANALYSIS AND PORTFOLIO MGMT/FUNDAMENTAL OF INVESTMENT
• DR. SHASHI AGGARWAL

 

• MEANING
• SHARE PRICES FLUCTUATIONS ARE RANDOM AND DO NOT FOLLOW ANY REGULAR PATTERN.
• DEVELOPED BY EUGENE FAMA IN 1960.
• BASIC CONCEPTS:-

FUNDAMENTAL ANALYSIS

 

•    FUNDAMENTAL ANALYSIS 
FUNDAMENTAL OF INVESTMENT
SAPM
DR. SHASHI AGGARWAL

•    MEANING OF FUNDAMENTAL ANALYSIS

1.       FUNDAMENTAL ANALSYIS ATTEMPT TO MEASURE A SECURITY ‘S INTRINSIC VALUE BY EXAMINING RELATED ECONOMIC AND FINANCIAL FACTORS WHICH CAN BE BOTH QUANLITATIVE AND QUANTITAITVE IN NATURE.

2.      

FUNDAMENTAL ANALYSIS IS PRIMARILY CONCERNED WITH DETERMINING THE INTRINSIC VALUE OR THE VALUE OF THE SECURITY. THE INTRINSIC VALUE IS THEN COMPARED WITH THE SECURITY’S CURRENT MARKET PRICE TO DTERMINE THE WHETHER THE STOCK IS UNDER PRICED OR OVER PRICES. A FUNDAMENTAL ANALYSTS CALCULATES A RANGE OF INTRINSIC VALUES RATHER THAN A SINGLE VALUE.

 

•    INTRINSIC VALUE

•    NARROW VIEW: INVESTMENT VALUE AND INVESTMENT VALUE OF SECURITY IS THE PRESENT VALUE OF ALL FUTURE CASH PAYMENTS TO BE MADE ON THE SECURITY. CASH PAYMENT MAY BE IN ANY FORM E.G DIVIDEND.INTEREST,REPAYMENT OF THE PRINCIPAL AMOUNT,LIQUIDATION PROCESS

TECHNICAL ANALYSIS PART 2 IN HINDI

RISK AND RETURN CONCEPTS AND ANALYSIS 1

FUNDAMENTAL ANALYSIS 2 ( INDUSTRY AND COMPANY ANALYSIS)

FUNDAMENTAL ANALYSIS --ECONOMIC ANALYSIS,INDUSTRY ANALYSIS AND COMPANY ANALYSIS

•    FUNDAMENTAL ANALYSIS
ECONOMIC ANALYSIS,INDUSTRY ANALYSIS AND COMPANY ANALYSIS
FUNDAMENTAL OF INVESTMENT
SAPM
MEANING

DIFFERENCE BETWEEN INVESTMENT AND SPECULATION AND GAMBLING

DIFFERENCE BETWEEN REAL AND FINANCIAL ASSETS FUNDAMENTAL OF INVESTMENT

QUICK REVISION OF SHORT QUESTIONS OF FUNDAMENTAL OF INVESTMENT

NATURE AND SCOPE OF INVESTMENT MANAGEMENT

• NATURE AND SCOPE OF INVESTMENT MANAGEMENT
  FUNDAMENTAL OF INVESTMENT
  SAPM
  MEANING OF INVESTMENT MANAGEMENT

REVISION OF SHORT QUESTIONS OF FUNDAMENTAL OF INVESTMENT

•    QUICK REVISION OF PREVIOUS PAPER

•    FUNDAMENTAL OF INVESTMENT/SAPM

•    PREVIOUS LONG QUESTION

1.       WRITE A NOTE ON NATURE AND SCOPE OF INVESTMENT MANAGEMENT. WHAT ARE THE OBJECTIVE OF INVESTMENT MANAGEMENT

2.       WHAT DO YOU MEAN BY RETURN. HOW WOULD YOU MEASURE THE RETURN IN DIFFERENT  TYPES OF SECURITIES

3.       WHAT ARE THE DIFFERENT INVESTMENT ALTERNATIVES FOR INDIVIDUAL AND EVALUTE THE RISK RETURN CHARACTERISTICS

4.       WHAT DO YOU MEAN BY VALUATION OF DEBENTURES? EXPLAIN THE DIFFERENT METHODS WHICH CAN BE USED FOR VALUATION OF DEBENTURES

5.       WHAT DO YOU MEAN BY INDUSTRY ANALYSIS. EXAMINE THE SIGNIFICANCE OF INDUSTRY ANALYSIS

6.       WHAT DO YOU MEAN BY CHART LIST TECHNIQUE. HOW DO YOU CHART LIST TECHNIQUE HELP

7.       WHAT DO YOU MEAN BY PORTFOLIO MANAGEMENT? EXAMINE THE DIFFERENT STEPS IN PORTFOLIO MGMT

INVESTMENT ALTERNATIVES 1

INVESTMENT ALTERNATIVES 1

• INVESTMENT ALTERNATIVES 1
  FUNDAMENTAL OF INVESTMENT
  SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
• MEANING
• INVESTMENT IS THE EMPLOYMENT OF FUND WITH THE AIM OF ACHIEVING ADDITIONAL INCOME OR GROWTH IN VALUE, INVESTMENT INVOLVE WAITING FOR REWARD,IT INVOLVES THE COMMITMENT OF RESOURCES WHICH HAVE BEEN SAVED OR PUT AWAY FROM CURRENT CONSUMPTION IN THE HOPE THAT SOME BENEFIT WILL ACCRUE.

1. INVESTOR INVEST THEIR SURPLUS MONEY INTO VARIOUS AVAILABLE ALTERNATIVES AS PER THEIR RISK APPETITE AND AVAILABLE FUNDS.
2. RISK AVERSE INVESTOR PREFER TO INVEST IN SAFE AVENUE FROM WHERE THEY GET REGULAR FIXED INCOME
3. RISK TAKING INVESTOR PREFER TO INVEST IN STOCKS,DEBENTURES AND OTHER EXCHANGE TRADED FUNDS TO EARN HIGHER RATE OF RETURN