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A Random Walk Down Wall Street
''A Random Walk Down Wall Street'', written by Burton Gordon Malkiel, a Princeton University economist, is a book on the subject of stock markets which popularized the random walk hypothesis. Malkiel argues that asset prices typically exhibit signs of a random walk, and thus one cannot consistently outperform market averages. The book is frequently cited by those in favor of the efficient-market hypothesis. After the twelfth edition, over 1.5 million copies had been sold, with the thirteenth edition being released in 2023 to coincide with the fiftieth anniversary of the original release. A practical popularization is ''The Random Walk Guide to Investing: Ten Rules for Financial Success''.Hardback: , Paperback: Investing techniques Malkiel examines some popular investing techniques, including technical analysis and fundamental analysis, in light of academic research studies of these methods. Through detailed analysis, he notes significant flaws in both techniques, conclud ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Burton Malkiel
Burton Gordon Malkiel (born August 28, 1932) is an American economist, financial executive, and writer most noted for his classic finance book ''A Random Walk Down Wall Street'' (first published 1973, in its 13th edition as of 2023). Malkiel is the Chemical Bank chairman's professor of economics at Princeton University, and is a two-time chairman of the economics department there. He was a member of the Council of Economic Advisers (1975–1977), president of the American Finance Association (1978), and dean of the Yale School of Management (1981–1988). He also spent 28 years as a director of the Vanguard Group. He is Chief Investment Officer of software-based financial advisor, Wealthfront Inc. and as a member of the Investment Advisory Board for Rebalance. Malkiel was elected to the American Philosophical Society in 2001. He is a leading proponent of the efficient-market hypothesis, which contends that prices of publicly traded assets reflect all publicly available info ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Technical Analysis
In finance, technical analysis is an analysis methodology for analysing and forecasting the direction of prices through the study of past market data, primarily price and volume. As a type of active management, it stands in contradiction to much of modern portfolio theory. The efficacy of technical analysis is disputed by the efficient-market hypothesis, which states that stock market prices are essentially unpredictable, and research on whether technical analysis offers any benefit has produced mixed results.Osler, Karen (July 2000). "Support for Resistance: Technical Analysis and Intraday Exchange Rates," FRBNY Economic Policy Reviewabstract and paper here. It is distinguished from fundamental analysis, which considers a company's financial statements, health, and the overall state of the market and economy. History The principles of technical analysis are derived from hundreds of years of financial market data. Some aspects of technical analysis began to appear in Amste ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
1973 Non-fiction Books
Events January * January 1 – The United Kingdom, the Republic of Ireland and Denmark 1973 enlargement of the European Communities, enter the European Economic Community, which later becomes the European Union. * January 14 - The 16-0 1972 Miami Dolphins season, Miami Dolphins defeated the 1972 Washington Redskins season, Washington Redskins in Super Bowl VII, with the Dolphins ending the season a perfect 17-0. This marked the first and only time that an NFL team has had a perfect undefeated season, an achievement the team holds to this day. * January 15 – Vietnam War: Citing progress in peace negotiations, U.S. President Richard Nixon announces the suspension of offensive action in North Vietnam. * January 17 – Ferdinand Marcos becomes President for Life of the Philippines. * January 22 ** ''Joe Frazier vs. George Foreman, The Sunshine Showdown'': George Foreman defeats Joe Frazier to win the heavyweight world boxing championship in Kingston, Jamaica. ** A Royal Jorda ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
John C
John is a common English name and surname: * John (given name) * John (surname) John may also refer to: New Testament Works * Gospel of John, a title often shortened to John * First Epistle of John, often shortened to 1 John * Second Epistle of John, often shortened to 2 John * Third Epistle of John, often shortened to 3 John People * John the Baptist (died ), regarded as a prophet and the forerunner of Jesus Christ * John the Apostle (died ), one of the twelve apostles of Jesus Christ * John the Evangelist, assigned author of the Fourth Gospel, once identified with the Apostle * John of Patmos, also known as John the Divine or John the Revelator, the author of the Book of Revelation, once identified with the Apostle * John the Presbyter, a figure either identified with or distinguished from the Apostle, the Evangelist and John of Patmos Other people with the given name Religious figures * John, father of Andrew the Apostle and Saint Peter * Pope John ( ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Common Sense On Mutual Funds
''Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor'', written by John Bogle, is a book educating investors about mutual funds, with a focus on the praise of index funds and the importance of having a long-term strategy. On the dust jacket cover, Jim Cramer wrote, "After a lifetime of picking stocks, I have to admit that ( Vanguard Group founder John) Bogle's arguments in favor of the index fund have me thinking of joining him rather than trying to beat him." Since its release, it has received high accolades in the investment community. It has become a bestseller and is considered a "classic". ConsumerAffairs.com rated it on its "15 Business Books That Could Actually Help Make You Rich" list. Though it is aimed at American audiences, the British newspaper ''The Independent'' stated "there is nothing in it that does not apply in some measure to the UK fund industry." See also *Burton Malkiel's ''A Random Walk Down Wall Street ''A Random Walk Down Wa ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mutual Fund
A mutual fund is an investment fund that pools money from many investors to purchase Security (finance), securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV in Europe ('investment company with variable capital'), and the open-ended investment company (OEIC) in the UK. Mutual funds are often classified by their principal investments: money market funds, bond fund, bond or fixed income funds, stock fund, stock or equity funds, or hybrid funds. Funds may also be categorized as index funds, which are passively managed funds that track the performance of an index, such as a stock market index or bond market index, or actively managed funds, which seek to outperform stock market indices but generally charge higher fees. The primary structures of mutual funds are open-end funds, closed-end funds, and unit investment trusts. Over long durations, passively managed funds consistently outperform actively m ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Regression Toward The Mean
In statistics, regression toward the mean (also called regression to the mean, reversion to the mean, and reversion to mediocrity) is the phenomenon where if one sample of a random variable is extreme, the next sampling of the same random variable is likely to be closer to its mean. Furthermore, when many random variables are sampled and the most extreme results are intentionally picked out, it refers to the fact that (in many cases) a second sampling of these picked-out variables will result in "less extreme" results, closer to the initial mean of all of the variables. Mathematically, the strength of this "regression" effect is dependent on whether or not all of the random variables are drawn from the same distribution, or if there are genuine differences in the underlying distributions for each random variable. In the first case, the "regression" effect is statistically likely to occur, but in the second case, it may occur less strongly or not at all. Regression toward the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Fundamental Analysis
Fundamental analysis, in accounting and finance, is the analysis of a business's financial statements (usually to analyze the business's assets, Liability (financial accounting), liabilities, and earnings); health; Competition, competitors and Market (economics), markets. It also considers the overall state of the economy and factors including interest rates, production, earnings, employment, GDP, housing, manufacturing and management. There are two basic approaches that can be used: bottom up analysis and top down analysis. These terms are used to distinguish such analysis from other types of investment analysis, such as technical analysis. Fundamental analysis is performed on historical and present data, but with the goal of making financial forecasts. There are several possible objectives: * to conduct a company stock valuation and predict its probable price evolution; * to make a projection on its business performance; * to evaluate its management and make internal business d ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Efficient-market Hypothesis
The efficient-market hypothesis (EMH) is a hypothesis in financial economics that states that asset prices reflect all available information. A direct implication is that it is impossible to "beat the market" consistently on a risk-adjusted basis since market prices should only react to new information. Because the EMH is formulated in terms of risk adjustment, it only makes testable predictions when coupled with a particular model of risk. As a result, research in financial economics since at least the 1990s has focused on market anomalies, that is, deviations from specific models of risk. The idea that financial market returns are difficult to predict goes back to Bachelier, Mandelbrot, and Samuelson, but is closely associated with Eugene Fama, in part due to his influential 1970 review of the theoretical and empirical research. The EMH provides the basic logic for modern risk-based theories of asset prices, and frameworks such as consumption-based asset pricing and int ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Princeton University
Princeton University is a private university, private Ivy League research university in Princeton, New Jersey, United States. Founded in 1746 in Elizabeth, New Jersey, Elizabeth as the College of New Jersey, Princeton is the List of Colonial Colleges, fourth-oldest institution of higher education in the United States and one of the nine colonial colleges chartered before the American Revolution. The institution moved to Newark, New Jersey, Newark in 1747 and then to its Mercer County, New Jersey, Mercer County campus in Princeton nine years later. It officially became a university in 1896 and was subsequently renamed Princeton University. The university is governed by the Trustees of Princeton University and has an endowment of $37.7 billion, the largest List of colleges and universities in the United States by endowment, endowment per student in the United States. Princeton provides undergraduate education, undergraduate and graduate education, graduate instruction in the hu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Alpha (investment)
Alpha is a measure of the active return on an investment, the performance of that investment compared with a suitable stock market index, market index. An alpha of 1% means the investment's return on investment over a selected period of time was 1% better than the market during that same period; a negative alpha means the investment underperformed the market. Alpha, along with Beta (finance), beta, is one of two key coefficients in the capital asset pricing model used in modern portfolio theory and is closely related to other important quantities such as Standard deviation#Finance, standard deviation, R-squared and the Sharpe ratio#Use in finance, Sharpe ratio. In modern financial markets, where index funds are widely available for purchase, alpha is commonly used to judge the performance of mutual funds and similar investments. As these funds include various fees normally expressed in percent terms, the fund has to maintain an alpha greater than its fees in order to provide posi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Random Walk
In mathematics, a random walk, sometimes known as a drunkard's walk, is a stochastic process that describes a path that consists of a succession of random steps on some Space (mathematics), mathematical space. An elementary example of a random walk is the random walk on the integer number line \mathbb Z which starts at 0, and at each step moves +1 or −1 with equal probability. Other examples include the path traced by a molecule as it travels in a liquid or a gas (see Brownian motion), the search path of a foraging animal, or the price of a fluctuating random walk hypothesis, stock and the financial status of a gambler. Random walks have applications to engineering and many scientific fields including ecology, psychology, computer science, physics, chemistry, biology, economics, and sociology. The term ''random walk'' was first introduced by Karl Pearson in 1905. Realizations of random walks can be obtained by Monte Carlo Simulation, Monte Carlo simulation. Lattice random ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
