Submitted by: Submitted by benchiu123
Views: 533
Words: 1998
Pages: 8
Category: Business and Industry
Date Submitted: 02/22/2012 10:46 PM
Cover Page
Contents
Cover Page…………………………………………………………………. P.1
Contents…………………………………………………………………….. P.2
List of Appendix………………………………………………………………. P.3
Task1 (word: 300)…………………………..…………………..………….. P.3
Task2 (word: 900)………..………………………………………………… P.6
Task3 (word: 600)………………………………………..………………… P.9
Task4 (word: 900)………………………………………..………………… P.11 Task5 (word: 300)………………………………………..………………… P.11
Appendix……………………………………………………………….P.15
Reference…………………………………………………………………… P.14
List of Appendix
Task 1- Investment Philosophy and Market View
Assumption with the Efficient Market
According to Fama (1965), Efficient Market Hypothesis (EMH) states that security prices fully reflect all available information. The main concept is that the security prices could be predictable and have a trend in the future. There are three basic assumptions of the EMH: (1) New information is independent and random to the market place, (2) The stock prices reflects all information of the relevant risk and return information immediately and (3) The stock prices is subject to change according to unexpected new information.
In this assignment, I will use the Weak-Form Efficient Market hypothesis. It focuses on the security market changing in the volumes and historical prices to reflect the current stock prices. The effectiveness of the technical analysis is lower in the weak-form. There is no opportunity to outperform the market and everyone receives the same return in the same period.
Investment Philosophy and Market View
My investment philosophy is followed by Warren E. Buffett of the value-investing which considers the intrinsic value of the company. In general, it will separate in four parts: the business, operation, financial and market. It brings two common questions of the long-term growth development of the industrial and the intrinsic value of the enterprise.
After the Financial Tsunami, the confidence of the security market was subject to challenge....