Drivers of technical trend-following rules' profitability in world stock markets

The study examines the antecedents of responsible financial management behavior among young adults in India and explores the role of financial risk tolerance as a moderating variable.,The sample includes young adults in the age group of 18–35. The analysis uses a two-step approach via standard partial least squares structural modeling (PLS-SEM) and ordinary least square (OLS) regression.,Structural modeling results show that financial attitude fully mediates the relationship between financial knowledge and responsible financial management behavior, and locus of control influences responsible financial management behavior. Financial risk tolerance moderates the relationship. Among demographic factors, age and occupation influence responsible financial management behavior.,The financial knowledge used in the survey are based on self-reported responses. The future study can include participants from both developed and emerging countries to assess similarities and differences.,Despite the growing focus on improving financial literacy, there are growing concerns regarding responsible financial behavior. Since financial services is related to fiduciary responsibility, managers and policymakers need to ensure that financial knowledge results in improving financial attitude, which further leads to responsible financial behavior.,The present study from an emerging country will add value to the literature.

Antecedents to responsible financial management behavior among young adults: moderating role of financial risk tolerance

Recent studies in financial markets suggest that technical analysis can be a very useful tool in predicting the trend. Trading systems are widely used for market assessment however parameter optimization of these systems has adopted little concern. In this paper, to explore the potential power of digital trading, we present a new MATLAB tool based on genetic algorithms, which specializes in parameter optimization of technical rules. It uses the power of genetic algorithms to generate fast and efficient solutions in real trading terms. Our tool was tested extensively on historical data of a UBS fund investing in Emerging stock markets through a specific technical system. Results show that our proposed GATradeTool outperforms commonly used, non-adaptive, software tools with respect to the stability of return and time saving over the whole sample period.

Improving technical trading systems by using a new MATLAB based genetic algorithm procedure

Improving technical trading systems by using a new MATLAB-based genetic algorithm procedure

The main purpose of this study is to provide evidence whether international portfolio diversification gain exists in equity investment from a Malaysian perspective. The study considers currency risk (based on selected countries) besides incorporating the effects of price volatility in the portfolio construction. Risk of foreign equity investments is represented by the standard deviation of returns and the currency exchange rate risk. The Markowitz Efficient Frontier Model as amended by Solnik (1973) is estimated by using standard procedures in forming efficient portfolios. A computer programme to plot the efficient frontier has been specially developed for the purpose of this study. Several divisions of studies have been done to gain a better understanding of the benefits of international portfolio diversification. Besides comparing the internationally diversified portfolio to a locally diversified portfolio, countries are also grouped into those of developed and emerging nations to evaluate the benefits of diversifying into a group of countries. A time series analysis of 20 countries stock market indices is broken into several series of pre-, duringand postcrisis periods where comparisons are made to evaluate the benefits of international portfolio diversification during these periods. This study also includes an analysis of the effects of international portfolio diversification if the allocation of asset for Malaysia is fixed at several minimum predetermined levels. The results from this study are expected to reveal evidence on gains from international portfolio diversification for Malaysian investors after considering currency risk and price volatility.

International Portfolio Diversification: A Malaysian Perspective

Reviews previous research on exchange rate forecasting, identifies some problems in building a predictive model and examines the profitability of using various technical rules (as used by traders) in the USD/DM and USD/BP foreign exchange markets. Takes 1989‐1996 data, divided into two sub‐periods with different macroeconomic features; and compares the results from the technical rules in detail and with a buy and hold strategy. Finds that no rules produced statistically significant profits for the whole period (although they did for the first sub‐period) and some evidence that buy and hold is superior, especially if risk is taken into account. Considers the implications of the findings and the underlying reasons for them.

Investigating the profitability of technical analysis systems on foreign exchange markets

Outlines previous research on international investment portfolios and presents a study of diversification and hedging on money market, bond and equity funds from UK, US and Japanese investors’ points of view. Explains the methodology, uses 1995‐1998 data to calculate returns and discusses the results. Suggests that foreign bonds and equities reduce exchange rate risk more effectively than money market instruments, although some of that risk is not diversifiable. Compares the benefits of diversification and hedging for investors in the three countries at different levels of risk and concludes that optimum asset allocation depends on the fund market characteristics, risk preferences and investor perspective.

Exoploring the benefits of international diversification and currency hedging for international fund portfolios

Economic crisis, during the past two years, has an impact on Greek students of 17 years old. Elements of the crisis have intruded on their everyday life. Economic and financial concepts constitute part of their attempt to understand the world they live in and as a result affect their educational level. This paper is an exploratory attempt to study the effects of economic crisis in the economics knowledge of Greek students using a sample of 62 Senior High School (lyceum) students. Data analyzed consists of a 30 question exam based on the Test of Economic Literacy (TEL) developed by the National Council on Economic Education (NCEE) and a questionnaire which was given at the end of the exam. The survey was conducted in two different periods in 2010-2011 & 2011-2012. Results indicate that students level of knowledge of economic and financial concepts, concerning the crisis, is considerably high compared with quantitative results from the U.S. national norming sample of the TEL.

/pdf/the-impact-of-economic-crises-on-the-perception-and-91j1frj51q.pdf

Stavros Tsopoglou

Papers

Investigating the profitability of technical analysis systems on foreign exchange markets

Exoploring the benefits of international diversification and currency hedging for international fund portfolios

The Impact of Economic Crises on the Perception and Knowledge Level of Students Regarding Economic and Financial Concepts