Got a tricky question? Receive an answer from students like you! Try us!

Comparison of creation of wealth across different asset classes with pakistan stock market kse-100 - Dissertation Example

Only on StudentShare
Masters
Author : kundekeely
Dissertation
Finance & Accounting
Pages 10 (2510 words)

Summary

Introduction This paper gives an illustration of wealth creation in Pakistan through Karachi Stock Exchange 100 index (KSE 100) nominal and real returns in comparison to S&P 500 returns, gold and real estate over 20 years stock index and 10 years of holding premium rate (HPR)…

Extract of sample
Comparison of creation of wealth across different asset classes with pakistan stock market kse-100

The securities that are traded at stock exchange market are shares, unit trusts, derivatives and bonds. Stock market index on the other hand means the statistical gauge that is used to measure and report changes around the stocks or shares market value. Stock market index track the movement of market differently depending on the averaging method used to come with the index, coverage of index whether broad or narrow and the weight applied which depends on whether it is based on market capitalization or market prices (Puntaier 2010). A nominal rate of return in the stock exchange market represents the investment returns before adjusting for inflation rate during that period. A real rate of return on the hand is the rate of return on the investment after taking into consideration the inflation rate factor during that period. Literature review Pakistan stock exchange market (KSE 100) is the stock market index that tracks the share prices of 100 top listed companies on the Karachi Stock Exchange. The index was first launched in November 1991 with a stand of 1000 points which has generally grown to new heights in the past. The companies with the highest market capitalization are selected in determining the companies that are to be made use of in working out of the index. ...
Download paper
Not exactly what you need?

Related Essays

Stock market efficiency
profits over and above the profits made by the other players in the market by using this information. The hypothesis deals with two of the fundamental questions in finance. The first of them is why there is price change in the market for securities while the second considers how the change actually occurs. Investors involve themselves in identifying the securities that are expected to witness an increase in their value in the future. Moreover, they always try to identify those securities which will witness the maximum increase in their value. They are of the opinion that they have the…
13 pages (3263 words)
Monetary policy and Stock Market
Further, in reference to the goal of price stability, whether prices of assets should be within the purview of stabilization goals is a contended issue. As Alan Greenspan (1996) pointed out, it is unclear regarding which prices really matter. Prices of goods and services in current circulation which constitutes the current inflation figures are definitely critical for the long term stable growth of the economy, but do prices of goods or services to be produced in future, or rather prices of assets which are essentially claims on goods and services to be produced in the future also warrant such…
20 pages (5020 words)
Planning for Long Term Wealth Creation
Before borrowing to invest in the stock market, Albert and Nancy should first build an investment plan that clearly documents their retirement goals of savings and income. After identifying the level of income and savings that they require for their retirement goals, the couple can then develop several investment strategies that are potentially adequate in achieving these goals over time, using the principles of risk management to differentiate the advantages and disadvantages of each strategy. In summary, the couple should schedule meetings with a number of financial professionals and discuss…
4 pages (1004 words)
Stock Market Efficiency
One of the most famous and talked about theories in this regard is of Efficient Market Hypothesis. Because information is available to all the investors who are currently in the stock market therefore everyone would be able to predict the price of the stock and how these prices would vary in future as well. As everyone will be having information therefore there would be no advantage to any investor. An efficient financial market has been defined as the one where prices are able to completely reflect the available information . When it comes to efficiency of stock market or financial market,…
6 pages (1506 words)
Gambling in The Stock Market.
NYSE was used as a platform to trade bonds and stocks. Following the establishment of stock and bond trading platforms, most people view it as a money tree, which creates wealth easy and quick. As a result, many people used their savings to invest in stocks and bonds. However, it is important to note that investing in stock market requires hard work and adequate research because it is unforgiving for amateurs or gamblers. Gambling in the Stock Exchange There are clear distinctions between gambling and investing in the stock exchange as indicated below. Gambling refers to putting money or other…
10 pages (2510 words)
Stock Market
The essay covers how the investor should invest the above amount, what reasons the investor has for choosing the stocks and the manner of investment. Also included in this essay is the detailed but precise analysis of the stock selected by the investor. The essay present analysis of the company whose stock has been purchased by looking at the historic performance of the company based on stock prices and the risk rates to which any prospective investor must pay attention. The essay concludes by indicating with a clear support whether the investment made would be profitable or not, and if…
2 pages (502 words)
Evaluation of the Capital Asset Pricing Model (CAPM) Using Chinese Stock Market Data
23). It is worth noting that numerous empirical studies that have conducted in line with evaluating the model have proved to be in harmony with the CAPM principles; nonetheless, some of the similar evaluations have contradicted the model. Therefore, this paper aims at studying if the CAPM principles hold for the China Stock Exchange. Among other things to be included in the analysis, include: i. Whether higher beta results to higher expected returns ii. Whether the zero or average intercept is equal to risk free rate and the SML slope is equal to the average risk premium iii. Whether there is…
42 pages (10542 words)