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

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: Why does the dilutive effect of stock options called the treasury stock method?

A: Treasury Stock Method: In this method, a company that receives exercised amount on the outstanding…

Q: Common stock has par value, and market value. Explain briefly these values. Which one is most…

A: Par value of common stock : Par value corresponds to the equity valuation specified in the corporate…

Q: How does higher expected growth affect a stock’s value?

A: Stock value is referred to as the shares of the corporation, which used to appear to trade at the…

Q: How do you calculate price earnings ratio, given the stocks historical prices?

A: Price earnings ratio is ratio of price per share and earning per share. PE ratio=Price per…

Q: What stock valuation models are available?

A: The stock valuation models as follows: Absolute valuation: This method mostly emphases on finding…

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: Why might the stock price changing make sense within the context of risk and return?

A: Stock price movement is dependent on various factors which would eventually impact the required rate…

Q: what would be the stock price?

A: Current stock price refers to the present value of the share based on the future expected payoffs.…

Q: Is stock price maximization good or bad forsociety?

A: Answer: Maximization of stock prices occurs because it benefits the society at large. The stock…

Q: Indicate factors influencing the market price of a stock. Explain how changes in the factors will…

A: There can be many factors affecting the stock price, for example, the growth rate, the required…

Q: What is a stock’s volatility?

A: Stock Volatility:   Volatility is defined as a statistical measure of the dispersion of the returns…

Q: explain penny stock Strategy?

A: A penny stock is often a tiny corporation's stock that exchanges for less than $5 per share.…

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: what is the stock market, and why is it important?

A: Stock Market: Stock markets are platforms where the sellers & buyers meet for the exchange of…

Q: Stock market analyst. Explain isnvesting style

A: Stock market Analyst:- A stock market analyst is an equity analyst whoes main work is to find good…

Q: Explain required rate of return on stock

A: The required rate of return is the minimum acceptable rate of return that an investor expects to…

Q: Explain realized rate of return on stock

A: Realized Rate of Return on stock gives you the percentage return on holding the stock for a certain…

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

A: Investors can choose from a variety of investment alternatives, with the goal of generating income…

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: Explain stock market index, provide example and what is the importance?

A: Stock market or share market is an aggregation of purchasers and sellers of stocks and helps…

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: how does the stock market work?

A: Stocks in the stock market represent ownership of equity in a public firm.

Q: Explain which has a stronger effect on stock prices, the change in the interest rate or the…

A: Stock is one of the major securities issued by the companies and an important financial indicator…

Q: How do stock repurchases affect the EPS and ROE ratios?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: What does it mean to say “stock prices are nonstationary”?

A: Stock prices will be discovered by continuous interaction of demand and supply. Stock prices are…

Q: Are stock prices affected more by long-term or short-termperformance? Explain.

A: Answer: The stock prices are influenced by results in both the long and the short term. The…

Q: Why are stocks categorized in terms of market capitalization

A: The total market worth of a firm expressed in dollars is its market capitalization, also referred to…

Q: What is the difference between a stock’s price and its intrinsic value? Why do investors and…

A:

Q: What is the Treasury stock? Give an example?

A: Stockholders’ Equity Section: It is referred to the section of the balance sheet that shows the…

Q: define equilibrium in financial markets in another words

A: The market where both buyer and seller interact in order to buying and selling of various financial…

Q: What is current stock price?

A: Stock means equity part of the company. Companies’ capital structure may contain debt, equity, and…

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: binomial model account of volatility

A: Volatility is simply referred to as the uncertainty or risk in the change in the value of a…

Q: What effect do increasing inflation expectations have on the required returns of investors in common…

A: Inflation: it is increase in the price of most of the goods and services.

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: Is the Stock Market Efficient?

A: Market efficiency can be defines as the extend up to which all the useful and important information…

Q: How will the change in required return influence the price of a stock? How will the dividend growth…

A: The Gordon growth model calculates the price of the stock by using the dividends, growth rate of…

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: . What effect does increasing inflation expectations have on the required returns of investors in…

A: Interest refers to the amount charged by the lender on the lent amount. The borrower of the loan is…

Q: Define required rate of return on Stock i

A: Stock refers to the security that represents the ownership of the stockholders in the company. The…

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: Divided discount model DDM how to the valuation of the aggregate stock market?

A: What is DDM (Dividend discount model)? The Dividend Discount Model (DDM) is a quantitative strategy…

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…