What is the random walk hypothesis, and how does it apply to stocks?

Q: what is the return of stock a what is the return of stockb what is the standard deviation on stock…

A: Given: tate Probability(P) Return A Return B Poor 40% -0.08 -0.15 Normal 35% 0.19 0.14 Good…

Q: Would you describe small cap stocks as a stable or volatile data set?  Why?

A: Small stock stocks  are more volatile than large cap stocks and also gives higher returns than large…

Q: Can an investor eliminate market risk from a common stock portfolio?

A: There are two types of Risk 1. Systematic  Risk:- These are risk pertains to Industry as a whole not…

Q: How do you calculate the Treynor ratio for the AMD stock?

A: Treynor ratio is referred to as the portfolio performance, which used to measure regarding the…

Q: How can you chart and predict falling or rising wedges for stocks?

A: Short-term, medium-term, and long-term trends: Stock Prices move either upwards, downwards, or…

Q: Explain 'Can efficient market hypothesis and behavioural finance co-exist to explain stock return…

A: Behavioral finance, a branch of behavioral economics, presupposes that psychological impacts and…

Q: what is the best type of chart to represent the variable Tesco Stock Price?

A: The stock price movements can represent with the help of different chart patterns. The different…

Q: Why are the returns of sustainable stocks and traditional stocks different?

A: Stock returns are the returns that are generated in the stock market for investing in a stock.

Q: What is the random walk hypothesis, and how does it apply to stocks? What is an efficient market?…

A: Investors have different options to make investments, and the motive behind investments is to…

Q: What is risk aversion, and how is risk aversion related to the expected return on a stock

A: In the world of investment, the risk appetite of the investor is an important consideration when…

Q: beta for a stock

A: Introduction: Beta can be defined as a metric which helps in measuring the volatility of a stock…

Q: Taking the Efficient Market Hypothesis into consideration, do you think we still need to study…

A: The efficient market hypothesis (EMH) explains the performance of the stock market as a reflection…

Q: What are the benefits of stocks

A: A stock means the small units of the company which is issued by the company to investors. A company…

Q: Do stocks have known and “provable” intrinsic values, or might different peoplereach different…

A: Introduction: Intrinsic value is nothing but the stock’s approximate market worth, extracted from…

Q: Why is beta the theoretically correct measure of a stock’s risk?

A: Introduction: Risk refers to the degree of volatility involved in the anticipated return on…

Q: How do you calculate the beta of stock?

A: Beta is the measure of stock's volatility to the overall market, and is calculated as-

Q: How GARCH (generalized ARCH model) model is applied to Stock Price Volatility?

A: GARCH model is one of the models that is usually used by the financial analysts. The financial…

Q: what are factors that can influence the price of a stock?

A: Stocks are the company’s securities issued by the companies to raise the funds. Prices of stock…

Q: What role does sentiment play to explain stock price volatility? Explain

A: The role of emotion in determining the price of a company is one of the most significant aspects to…

Q: What are the arithmetic and geometric returns for the stock?

A: Arithmetic and Geometric mean are used to calculate the expected mean of the stock Arithmetic Mean…

Q: Do you think we still need to study common stock valuation, given the Efficient Market Hypothesis?…

A: Efficient Market Hypothesis represents the stock prices after considering all the information…

Q: What is the difference between stock price indexes that are simple averages of prices and those that…

A: A stock index, often known as a stock market index, is a financial index that monitors a stock…

Q: How does the current price of a stock depend on its own past values, as well as the current and past…

A: Market index of stock gauges the stock market which assists investors to analyze the market…

Q: Is the market for all stocks equally efficient? Explain.

A: There is always a debate among investors that whether the Stocks are valued efficiently or not. An…

Q: What is the expected return for stock A?

A: Expected Return: It is computed by the sum of individual returns proportionately weighted by each…

Q: Based on the results from Fama and French, does it matter for the Efficient Markets Hypothesis if…

A: An efficient market is one in which when any new information is injected, it forthwith impacts the…

Q: How can the model be used to estimate the predicted return ona stock?

A: Predicted rate of return: Predicting a rate of return is the method of calculating future rate of…

Q: Describe precisely one way that you would test if a particular stock market is strong-form…

A: Efficient Market Hypothesis is defined as the hypothesis in the financial economics, which states…

Q: How do I calculate the weighted bias of stocks?

A: Weighted bias of stocks also known as the price-weighted stock index, where each and every stock of…

Q: What will be the current stock price?

A: The current price of a stock is the most recent selling price of a stock in the market. It is the…

Q: What is the Security Market Line (SML)? How isbeta related to a stock’s required rate of return?

A: Security market line (SML): It could be a line drawn on a graph that works as a graphical…

Q: Is treasury stock an asset? explain.

A: Treasury Stock: It refers to the shares that are reacquired by the corporation that are already…

Q: How do you calculate conditional volatility of a stock returns?

A: Volatility represents how large an asset's price swing around the mean price i.e the statistical…

Q: (d) Explain the difference between cumulative or noncumulative stocks.

A: preferred stock These are the shareholders who are given preference in respect of dividend as…

Q: What are some analyzes we can do to predict which stock will go up?

A: Stock price movement is primarily speculative in the short term (two to three months). The price…

Q: What does this implyabout detecting bubbles in the stock market?

A: Bubbles in stock market means when the prices of all the stocks exceed its fundamental value by a…

Q: Given the Efficient Market Hypothesis, do you think we still need to study common stock valuati

A: Introduction : In simple words, the efficient market hypothesis refers to the hypothesis refers to…

Q: Why Are Stock PricesSo Volatile?

A: The prices of stocks listed on stock exchanges are dynamic and change every minute. Volatility is…