Essays on Stock Market Index

In this case, we use the monthly returns of the two indexes for the seven-year period between 6th May, 2009 and 5th May, 2016. The monthly return are determined by comparing the current price with the previous month’s price. The monthly returns are then used to determine the average monthly return and the monthly standard deviation.

S&P MID CAP 400 INDEX

Average monthly return = 1.2047% or 0.012047 Monthly standard deviation = 4.4024% or 0.044024 Annual return = (1 + monthly return)12 – 1 = 1.01204712 – 1 = 1.1545 - 1 = 15.45% Annualised standard deviation = Monthly standard deviation × √12 = 0.044024 × √12 = 0.044024 × 3.4641 = 0.1525 = 15.25%

NASDAQ 100 INDEX

Average monthly return = 1.4196% ...

PERSONAL FINANCE INVESTMENT IN QATAR: INVESTING QR 1000000

Abstract This article describes a personal finance project which entails the investment of QR 1000000 in a short time frame, from 1 March to 27 May 2016. We first define personal finance and establish the five steps of a personal financial planning process, which entails: (1) assessment of the individual’s financial situation; (2) determination of the individual’s financial goals; (3) creation and details of the financial plan, based upon the determined goals; (4) execution of the aforementioned plan; (5) monitoring and reassessment of the plan. For each one of the five stages, we carry out the required ...

Reasons for the severe decline in Chinese Stock market in 2015

Between June 2014 and June 2015, the CSI 300 Index rose by 150%, reaching the peak at 5,166.3 on 12th June 2015. What follows was a severe decline in the stock index. Within just one month, the CSI 300 index had lost 30% to 3,507 on July 8. Several factors caused the fall.

Short selling

In the run-up to the stock market decline, investors were aggressively involved in short selling and margin trading. Short-selling and margin trading allowed investors to purchase shares using borrowed money thereby increasing the demand for stocks. Investors engaged in short-selling sell stocks borrowed from ...

Investment Goal:

The overall objective of this portfolio is to earn a sustainable return by assuming average level risk over the period of 10 years. The eventual objective of this portfolio is to fund my post –retirement life, however, I am keeping the time horizon here up to 10 years for now as with me still being in a young age, I opt to assume average risk. However, in order to avoid payment of taxes on my cash inflows, I will solely be investing in mutual funds suitable for IRA investment

Investment Style:

Considering my average risk tolerance and investment period of 10 ...