According to the traditional financial theory, the discounted cash flow model (or NPV) functions as the fundamental framework for the majority of analyses. In performing valuation analysis, the traditional view is that the net present value (NPV) of a project is the
The main objective of this project was to check out profitability of the momentum strategy in the stock markets. The momentum strategy is a smart investment strategy wherein earlier winners are bought and past losers are shorted. In this project we’ve additionally presented that momentum can’t be explained by the systematic risk of the individual stocks. The evidence in support of a momentum effect supplied in this report too suggests that expected price patterns could be utilized
A well-known study, much like ours, was made in 1985 in the united states, demonstrating that “loser” portfolios outperformed the market while “winner” portfolios generated less return than the market. This finding isn’t according to the theory of efficient markets. If a
The value of an asset is the present value of its expected returns. The most frequently used valuation method for traded firms is the Discounted Cash Flow Analysis. The required rate of return used to discount the cash flows for traded firms
Mathematical knowledge has been developed trough time; and in our time, we still use this knowledge like the number pi π discovered by the Egyptians. Basic mathematic analysis of how financial markets work and different valuation models such as the Stochastic Market
This thesis has the intention to investigate the risk situation for small investors in the domestic residential property market in Sweden, and discuss some alternatives for reducing that risk. Focus will be on risk reduction by diversification. Residential property is considered to