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Tag Archives: stock Investors

Capital Asset Pricing Model

Capital asset pricing model (CAPM) is a very popular and effective pricing model used to calculate most  suitable required rate of return of an investment.It was proposed by the Jack Trevnor in the year 1962.This model calculates the required rate of return keeping in mind the sensitivity of the investment with respect to the different types of ,market risks.These risks are represented by the beta …

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Modern Portfolio Theory

Modern portfolio theory (MPT) is a popular theory which is extensively used in the finance world.It was proposed by  Harry Markowitz in the year 1952.This theory states that risk in the portfolio can be minimized by selecting securities with minimum risk.This theory also states  that higher return is directly proportional to the higher risk.     According to this theory portfolio construction consists …

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Technical Analysis

Technical analysis is one of the most  effective methods used to analyse the stock market.This method also helps investors in predicting the future stock prices by analyzing their historical market performance. The basic principles of this method are formulated after decades of careful study of study of stock price and volume movements.     Technical analysis uses different  types of price …

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Financial Risk

Financial risk consist of different types of risks related to to various financial transactions.There are different types of financial risk such as market risk,credit risk,operational risk and liquidity risk etc.Financial risk represents the chance of loss to the investors while trading in  securities of a particular company.Successful investors always keep an aye on these types of risks,before jumping into the …

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Price Earning ratio

Price earning ratio or P/E ratio is one of the most important ratios for the stock investors.It is  a very useful technique used by the investors to compare different types of company stocks belonging to same sectors or industry.It can be used to evaluate the different types of stocks in a given market.A stock with high  PE ratio represents a high expected earning or growth …

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Mutual Fund

Mutual fund is a type of investment fund created through the money of different types of investors.By the help of  mutual fund,investors can invest in stocks,bonds and other types of different investment opportunities.There are different types of mutual funds available such as open end funds,closed end funds,exchange traded funds etc. For investors mutual funds are very beneficial ,as investors have to buy different types of securities to create …

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Dividend Growth Models

Dividend growth models are one of the most popular methods used for the stock valuation.They calculate the future value of the stock by considering its future growth and future dividend payments.They are used by  stock analysts and stock investors to select a best stock for  investment.If we talk about the dividend growth models,there are basically two types of dividend growth models i.e. …

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