Search results
Results from the WOW.Com Content Network
Over this period the average return was 13.9% of 30-stock Magic Formula portfolio versus 9.3% for the BSE Sensex. [9] An analysis of the Hong Kong stock market from 2001 to 2014 found Greenblatt's formula was associated with long-term outperformance of market averages by 6-15% depending on company size and other variables. [10]
The Benjamin Graham formula is a formula for the valuation of growth stocks. It was proposed by investor and professor of Columbia University , Benjamin Graham - often referred to as the "father of value investing".
Shutterstock While achieving success in the stock market is never effortless, at least one renowned investor believes that racking up appreciable long-term gains is easier than commonly believed.
Random walk: The instantaneous log return of the stock price is an infinitesimal random walk with drift; more precisely, the stock price follows a geometric Brownian motion, and it is assumed that the drift and volatility of the motion are constant. If drift and volatility are time-varying, a suitably modified Black–Scholes formula can be ...
A money market fund is a mutual fund that invests in short-term securities while a money market account is a product that banks or credit unions offer to customers that typically earns a higher ...
The efficient market hypothesis posits that stock prices are a function of information and rational expectations, and that newly revealed information about a company's prospects is almost immediately reflected in the current stock price. This would imply that all publicly known information about a company, which obviously includes its price ...
A stock is an ownership share in a business, and literally thousands of them trade on a stock exchange, allowing anyone – even beginners – to become a part owner in the company.
The Brownian motion models for financial markets are based on the work of Robert C. Merton and Paul A. Samuelson, as extensions to the one-period market models of Harold Markowitz and William F. Sharpe, and are concerned with defining the concepts of financial assets and markets, portfolios, gains and wealth in terms of continuous-time stochastic processes.