Paper Topic:
Investment Analysis
br Investment Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Stock market Investment Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Name Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Institution Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Lecturer Stock Market Investment All investors are faced by decision making task before they make any investment . They make use of technical analysis , gut feel and fundamental analysis while performing an investment analysis before they make their decision . These decisions are greatly influenced by the extant portfolio theory . This theory tries to minimize the risk and maximize on the returns by careful selection of assets . This theory has been has been in use
in the financial industry and has yielded good results . However , it has been criticized in the recent years by behavioral economics due to its assumptions (Shriller 2005 . This theory advocates for diversification while investing . It aims at collecting investment assets whose value keeps fluctuating often Therefore , the theory can only be applicable theoretically but not practically . This is because the theory assumes the investors are always rational and the markets are constantly efficient . It is in this respect that individual investors make their investment decisions practically without considering the theoretical aspect of it . They consider the prospect of markets which are emerging and driven by a growth potential which must be very high to draw their attention . There are various factors that affect investment decisions and these should be taken into consideration before investing to minimize risk and to maximize the returns . Particularly while investing in a stock market investors ought to consider various aspects for instance , returns rate , inflation level liquidity and return frequency (Mandelbrot et...
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