Thursday, 15 July 2010

To What Extent Is The Stock Market Behaviour Rational?

Many studies have been made by economists to understand the exact behaviour of financial markets through macro-economic variables. This study would try to reveal the extent to which the behaviour of stock market can be predicted. It would aim to provide the reader with a solid grounding in the dynamic environment of the stock market and would discuss the different strategies and tactics used by analysts to predict stock market for stock purchases and sales. It also covers the fundamental, technical, stock picking and investment theories and different practices in predicting the performance of stocks

The main objective of the study is to reveal the extent to which the behaviour of stock market can be predicted. It will also compare the theories and different practices used in predicting the performance of stocks. This research would not try to device a new theory as lot of researches have already been made on the topic. The research would discuss how the financial market behaves and the influence of the different factors on the market.

Chapter 1: INTRODUCTION
Background of Subject Matter
Statement of the Problem / Research Issue
Scope and Limitations
Aims and Objectives
Research Structure

Chapter 2: THEORETICAL REVIEW AND RELATED LITERATURE
Market Behaviour
Rational Expectations
Market Volatility
Company Valuation Methods
Asset Based Valuation
Revised Asset Based Valuation
Price / Earnings (P/E) Basis
Cash Flow Method
Discounted Cash Flow
Profit Based Valuation
Berliner Method
Dividend Valuation Method
Capital Asset Pricing Model (CAPM)
Share Holder Value
Predicting Corporate Health and Measuring Corporate Failure
Z Scoring Model
Taffler Model
Robertson Financial Change Model
Argenti’s Model
Investment Theories
Efficient Market Hypothesis
Modern Portfolio theory
Random Walk Theory
The Capital-Asset pricing model
The Kondratiev Wave
Neural Networks
Corporate Ratios
Earnings per Share (EPS)
Price / Earnings Ratio
Return on Total Assets
Asset Turnover / Sales Generation
Gross Profit Margin
Return on Equity
Current Ratio
Acid Test / Liquid Ratio
Gearing Ratio
Key Technical Indicators
Moving Average
Bollinger Bands
Relative Strength Index (RSI)
Moving Average Convergence Divergence (MACD)
Volume Oscillator
Money Flow Index (MFI)
Support and Resistance
Predictive Models
Fundamental Analysis Approach
Technical Analysis Approach
Stock Charts
Pivot Point Analysis
Cup and Handle
Head and Shoulders
Rounding Tops and Bottoms
Double Tops and Bottoms
Elliot Wave Theory
Stock Picking Strategies
CANSLIM
Value Investing
Growth Investing
Momentum Investing
Income Investing
GARP Investing

Chapter 3: RESEARCH METHODOLOGY
Research Philosophy
Positivism
Realism
Interpretivism
Research Approaches
Deductive Approach
Inductive Approach
Research Strategies
Interview Design
Questionnaire Design
Case Studies
Time Horizons
Cross-sectional
Longitudinal
Data Collection Methods
Collection of Secondary Data
Collection of Primary Data
Data Analysis Method
Sample of Case Study Companies
easyJet (EZY.L)
Centurion Energy International (CUX.L)
Marks and Spencer (MKS.L)

Chapter 4: RESEARCH FINDINGS AND DISCUSSION
Case Studies of Companies
easyJet (EZY.L)
Discussion on easyJet(EZY.L)
Centurion Energy International (CUX.L)
Discussion on Centurion Energy International (CUX.L)
Marks & Spencer (MKS.L)
Discussion on Marks and Spencer (MKS.L)
Interview and Questionnaire Findings

Chapter 5: CONCLUSION
Inference
Recommendation

Appendix: Questionnaire Used for Primary Research

Bibliography:
Books
Journals and Magazines
Websites & Articles

Download Here: Download Dissertation