FIN 502 Chapter 16: Chapter 16 -Mutual Funds and Behavioural Finance.docx

57 views9 pages

Document Summary

Equities the investor emotional cycle (investor"s sentiment) Time to buy, not sell act and sell late. Value investing in companies with low price to book or price to earnings ratios with expectation that eventually the stocks will trade near average market multiples. Growth identifying companies that are growing at a rapid pace. Valuation is based on projected future earnings (often as much as five years out) Dividend each stock must pay a minimum dividend rate. Often focused on stocks with a history of dividend growth as well. Large cap or small cap invest specifically in certain equities that meet a minimum total market capitalization minimum (large cap) or have a market capitalization below a certain threshold (small cap) Garp growth at a reasonable price. Identify companies with above average growth profiles: short sell small, buy large but trading near market average p/e. Each of the investors owns a fraction of all the investments in the mutual fund.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions