fund
TRANSCRIPT
Do Crash-Escaped Stocks Have Investment Value?
“Hi, fund manger , it’s time to rethink your position!”
9.2%
You have to know ...
the most dangerous market !
Chinese capital market is defined as
U’ll experience a
7%big crash once a day !( )
What a F**king country!
What kind of stock should a fund manager choose?
So,
Pool of all Stocks
1#Divide into two groups
Fall?
yes
>8%?
yes
no
Over-sold
Crash-escaped
2#Expectations
1. The over-sold stocks will rebound, according to “Law of the Mean”.
2. The crash-escaped stocks have investment values, as they didn’t fall with the market.
3#Empirical Test
, , ,( )i t f i i m t f i tr r r rα β ε− = + − +
To kick out the high earnings caused by the high risk,We use α to evaluate the earnings
α stay, β get out
1. The over-sold stocks will rebound, according to “Law of the Mean”.
2. The crash-escaped stocks have investment values, as they didn’t fall with the market.
Remember?“ “
The empirical test shows
1 is correct, 2 is incorrect.
4#Turnover Comes
Divide crash-escaped stocks into three groups
High turnover rateMedium turnover rateLow turnover rate
Surprise!
5#Something about α
α is trustable
6#A real crash-escaped
stock with low turnover
7#Thank you for watching us , wasting your time
to look at our ppt is our pleasure!!!!
Have or not!!!!!