A121- A125
A121
What is one example you see how behavioral finance impacts modern markets? Do you think that technical analysis can be used to earn excess returns?
Technical Analysis
This is the method for foretelling the direction of prices by studying the past market data, primary price, and volume. It identifies trading opportunities in price trends and patterns.
One example of how behavioral finance impacts modern markets is the process of making decisions by avoiding emotion-driven speculations that can cause or lead to losses in a given trade. The main concern of understanding behavioral finance is to depict or devise an appropriate wealth management strategy that can be successful in trading. The central aspect involves the use of psychological influences, which can impact on the outcomes of the market in different ways. Technical analysis is essential in financial markets, but it does earn excess return depending on the decision made by the trader.
A122
Who becomes a billionaire by only investing his own money?
Billionaire
A billionaire is a person who has assets, liabilities, or a net worth a billion currency units like dollars. Being a billionaire is possible but not as easy as many would think about in the real world.
Further, it requires an individual to invest in many different projects that add up to different portfolios that can generate returns in the long term or determined period by investors. In most cases, become a billionaire needs the combination of taking credit from financial institutions and combining with individual capital to meet the capital operations for the projects involved. Otherwise, it would take a very long time to become a billionaire when investing only individual money without borrowing.
A123
(1) What is Du Pont Analysis, and how is it used? (2) Please explain the Rule of 72 and how it is used. (3) Please list the three central points of Bagehot’s Dictum, as used in Former Chairman Bernanke’s lectures.
Du Pont Analysis
This is an expression for analyzing and breaking the return on investment. It is used to break the different drivers of return on equity.
Du Pont analysis is a significant model that provides a more accurate assessment to understand the changes in the ROE in a company mainly by focusing on multiple means that may lead to an increase in the targeted figures. The main concern is to evaluate the parts of the ROE by allowing investors to establish financial activities contributing to the changes in ROE. The Rule of 72 is a way used to determine the time investment will take to double a given fixed annual rate of interest. It involves dividing the annual rate of return by 72; the result will be roughly estimated depending on many years it will take to obtain the double figure of the rate. The three points of Bagehot dictate that when in crisis, the central bank should freely lend people, against good collateral and enhance a penalty rate.
A124
Should there be a live telecast of court proceedings in a case that involves money/corruption, especially if the allegation is on a politician?
Court Proceedings
It refers to proceeding conducted in court during prosecution of crime, trial, pretrial hearings, and other types of hearings. It involves several phases before making the last arraignment by a judge.
The court sessions system is essential in any established country to proceed accordingly. The main issue that needs to be put into consideration is primarily the level of transparency involved in managing such proceedings by the involved individuals in the court. Therefore, I believe that when the use of telecast is efficient and effective when the available detailed information is provided. Similarly, it is also critical since it saves money and time involved to make a judgment when such cases are presented.
A125
Is there a good and reputed financial and capital markets course in Mumbai right now?
Capital Markets
Capital markets are places where investments and savings are supplied between the suppliers who have the capital and those who need the capital. It is a financial market that involves selling and buying equity-backed securities.
There are many financial and capital market course in Mumbai that an individual may choose to take.
Some of the courses that are provided can be selected based on the preference of an individual. They consist of risk management and security settlement, securities market operations, Demat, and depositories under the category for international programs. Other programs entail banking and finance, business journalism, business analytics, among others. These programs are offered in different institutions in Mumbai and can be selected based on the tuition fees, location, among other choices that can be made. Some of the leading institutions consist of Sagar Asrani stock market academy, Bharti Share Market, Bombay stock exchange institute, among others.