�ݺ�ߣshows by User: RahmatullahPashtoon

�ݺ�ߣshows by User: RahmatullahPashtoon / http://www.slideshare.net/images/logo.gif �ݺ�ߣshows by User: RahmatullahPashtoon / Mon, 20 Jun 2016 08:22:50 GMT �ݺ�ߣShare feed for �ݺ�ߣshows by User: RahmatullahPashtoon Dissertation on behavioral finance and its impact on portfolio investment decisions /slideshow/dissertation-on-behavioral-finance-and-its-impact-on-portfolio-investment-decisions/63239470 dissertationonbehavioralfinanceanditsimpactonportfolioinvestmentdecisions-160620082250
Extreme volatility has plagued financial markets worldwide since the 2008 Global Crisis. Investor sentiment has been one of the key determinants of market movements. In this context, studying the role played by emotions like fear, greed and anticipation, in shaping up investment decisions seemed important. Behavioral Finance is an evolving field that studies how psychological factors affect decision making under uncertainty. This thesis seeks to find the influence of certain identified behavioral finance concepts (or biases), namely, Overconfidence, Representativeness, Herding, Anchoring, Cognitive Dissonance, Regret Aversion, Gamblers’ Fallacy, and Mental Accounting, on the decision making process of individual investors in the Indian Stock Market. Primary data for analysis was gathered by distributing a structured questionnaire among investors who were categorized as (i) young, and (ii) experienced. Results obtained by analyzing a sample of 74 respondents, out of which 12 admitted to having suffered a loss of at least 50% because of the crisis, revealed that the degree of exposure to the biases separated the behavioral pattern of young and experienced investors. Gamblers’ Fallacy, Anchoring and Representative and Herding bias were seen to affect the young investors significantly more than experienced investors. ]]>
Extreme volatility has plagued financial markets worldwide since the 2008 Global Crisis. Investor sentiment has been one of the key determinants of market movements. In this context, studying the role played by emotions like fear, greed and anticipation, in shaping up investment decisions seemed important. Behavioral Finance is an evolving field that studies how psychological factors affect decision making under uncertainty. This thesis seeks to find the influence of certain identified behavioral finance concepts (or biases), namely, Overconfidence, Representativeness, Herding, Anchoring, Cognitive Dissonance, Regret Aversion, Gamblers’ Fallacy, and Mental Accounting, on the decision making process of individual investors in the Indian Stock Market. Primary data for analysis was gathered by distributing a structured questionnaire among investors who were categorized as (i) young, and (ii) experienced. Results obtained by analyzing a sample of 74 respondents, out of which 12 admitted to having suffered a loss of at least 50% because of the crisis, revealed that the degree of exposure to the biases separated the behavioral pattern of young and experienced investors. Gamblers’ Fallacy, Anchoring and Representative and Herding bias were seen to affect the young investors significantly more than experienced investors. ]]> Mon, 20 Jun 2016 08:22:50 GMT /slideshow/dissertation-on-behavioral-finance-and-its-impact-on-portfolio-investment-decisions/63239470 RahmatullahPashtoon@slideshare.net(RahmatullahPashtoon) Dissertation on behavioral finance and its impact on portfolio investment decisions RahmatullahPashtoon Extreme volatility has plagued financial markets worldwide since the 2008 Global Crisis. Investor sentiment has been one of the key determinants of market movements. In this context, studying the role played by emotions like fear, greed and anticipation, in shaping up investment decisions seemed important. Behavioral Finance is an evolving field that studies how psychological factors affect decision making under uncertainty. This thesis seeks to find the influence of certain identified behavioral finance concepts (or biases), namely, Overconfidence, Representativeness, Herding, Anchoring, Cognitive Dissonance, Regret Aversion, Gamblers’ Fallacy, and Mental Accounting, on the decision making process of individual investors in the Indian Stock Market. Primary data for analysis was gathered by distributing a structured questionnaire among investors who were categorized as (i) young, and (ii) experienced. Results obtained by analyzing a sample of 74 respondents, out of which 12 admitted to having suffered a loss of at least 50% because of the crisis, revealed that the degree of exposure to the biases separated the behavioral pattern of young and experienced investors. Gamblers’ Fallacy, Anchoring and Representative and Herding bias were seen to affect the young investors significantly more than experienced investors. <img style="border:1px solid #C3E6D8;float:right;" alt="" src="https://cdn.slidesharecdn.com/ss_thumbnails/dissertationonbehavioralfinanceanditsimpactonportfolioinvestmentdecisions-160620082250-thumbnail.jpg?width=120&height=120&fit=bounds" /><br> Extreme volatility has plagued financial markets worldwide since the 2008 Global Crisis. Investor sentiment has been one of the key determinants of market movements. In this context, studying the role played by emotions like fear, greed and anticipation, in shaping up investment decisions seemed important. Behavioral Finance is an evolving field that studies how psychological factors affect decision making under uncertainty. This thesis seeks to find the influence of certain identified behavioral finance concepts (or biases), namely, Overconfidence, Representativeness, Herding, Anchoring, Cognitive Dissonance, Regret Aversion, Gamblers’ Fallacy, and Mental Accounting, on the decision making process of individual investors in the Indian Stock Market. Primary data for analysis was gathered by distributing a structured questionnaire among investors who were categorized as (i) young, and (ii) experienced. Results obtained by analyzing a sample of 74 respondents, out of which 12 admitted to having suffered a loss of at least 50% because of the crisis, revealed that the degree of exposure to the biases separated the behavioral pattern of young and experienced investors. Gamblers’ Fallacy, Anchoring and Representative and Herding bias were seen to affect the young investors significantly more than experienced investors.

Dissertation on behavioral finance and its impact on portfolio investment decisions from Rahmatullah Pashtoon

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0 An Analytical Analysis on Weighted Average Cost of Capital /RahmatullahPashtoon/an-analytical-analysis-on-weighted-average-cost-of-capital sipprojectrp-160620081954
ABSTRACT PROJECT TITLE: - “AN ANALYTICAL STUDY ON WEIGHTED AVERAGE COST OF CAPITAL (WACC)” COMPANY: - YAAR CONSTRUCTION COMPANY The study is taken on the weighted average cost of capital of Yaar Construction Company. The company took the 40% loan out of total capital and the remaining 60% was its own contribution. In this study the various estimation other than the 40% loan for finding the WACC is undertaken. I took 20% of loan, then 60% and eventually, 80% loan. The main objectives are • To estimate the Weighted Average Cost of Capital of the Yaar Construction Company. • To understand how capital structure affects owner’s value • To study the changes in the weighted average cost of capital on the company’s financial status. The thesis is conducted on the basis of both primary and secondary data. The primary data is the financial statement presentations of the Yaar Construction Company. Secondary data is taken by the researcher from secondary source internal and external the researcher must thoroughly search secondary data sources before commissioning any effort for collecting primary data. The Profits in the year 2010 was 6,245,703/-, the most profitable year. The least was the year 2013 where only Rs. 1,807,115/- was the net profit. The company’s own 60% contribution and 40% loan was remarkable and the weighted average rate of return was 0.15024 (i.e. 15%). The internal rate of return was 0.645 (i.e. 64.5%) which is very much high and best for the company. NPV @15% was 9,739,653/-. In 20% loan the WACC was 16.5%, whereas, in 60% loan it was 13.5% and in 80% loan it was 12%. The total equity is Rs. 9,800,000/-. We took 20%, 60% and 80% loan estimation. No. of Share having face value 10 each: 784,000 = 9,800,000*(100%-20%)/10 392,000 = 9,800,000*(100%-60%)/10 WACC for 20%, 60% and 80% we found was 16.5%, 13.5% and 12%. We selected the minimum among them (i.e. 12%, which is for the 80% loan estimation). IRR for the 20%, 60% and 80% we found by applying the formula was 65.5%, 63.5% and 62.50%. In that we selected the maximum percentage due to having the rule of internal rate of return. (I.e. the highest IRR is to be considered). Now, the Value per share is derived by dividing the Net Present Value upon number of shares. The justification is that by taking 80% loan estimation the value per share for the owner increases more than taking the other estimations. In 20% it was 12.88 similarly, for 60% it was 25.29 and for 80% it was 48.85, which is the highest among them. Therefore, the 80% loan proposal is better for the company to accept. ]]>
ABSTRACT PROJECT TITLE: - “AN ANALYTICAL STUDY ON WEIGHTED AVERAGE COST OF CAPITAL (WACC)” COMPANY: - YAAR CONSTRUCTION COMPANY The study is taken on the weighted average cost of capital of Yaar Construction Company. The company took the 40% loan out of total capital and the remaining 60% was its own contribution. In this study the various estimation other than the 40% loan for finding the WACC is undertaken. I took 20% of loan, then 60% and eventually, 80% loan. The main objectives are • To estimate the Weighted Average Cost of Capital of the Yaar Construction Company. • To understand how capital structure affects owner’s value • To study the changes in the weighted average cost of capital on the company’s financial status. The thesis is conducted on the basis of both primary and secondary data. The primary data is the financial statement presentations of the Yaar Construction Company. Secondary data is taken by the researcher from secondary source internal and external the researcher must thoroughly search secondary data sources before commissioning any effort for collecting primary data. The Profits in the year 2010 was 6,245,703/-, the most profitable year. The least was the year 2013 where only Rs. 1,807,115/- was the net profit. The company’s own 60% contribution and 40% loan was remarkable and the weighted average rate of return was 0.15024 (i.e. 15%). The internal rate of return was 0.645 (i.e. 64.5%) which is very much high and best for the company. NPV @15% was 9,739,653/-. In 20% loan the WACC was 16.5%, whereas, in 60% loan it was 13.5% and in 80% loan it was 12%. The total equity is Rs. 9,800,000/-. We took 20%, 60% and 80% loan estimation. No. of Share having face value 10 each: 784,000 = 9,800,000*(100%-20%)/10 392,000 = 9,800,000*(100%-60%)/10 WACC for 20%, 60% and 80% we found was 16.5%, 13.5% and 12%. We selected the minimum among them (i.e. 12%, which is for the 80% loan estimation). IRR for the 20%, 60% and 80% we found by applying the formula was 65.5%, 63.5% and 62.50%. In that we selected the maximum percentage due to having the rule of internal rate of return. (I.e. the highest IRR is to be considered). Now, the Value per share is derived by dividing the Net Present Value upon number of shares. The justification is that by taking 80% loan estimation the value per share for the owner increases more than taking the other estimations. In 20% it was 12.88 similarly, for 60% it was 25.29 and for 80% it was 48.85, which is the highest among them. Therefore, the 80% loan proposal is better for the company to accept. ]]> Mon, 20 Jun 2016 08:19:54 GMT /RahmatullahPashtoon/an-analytical-analysis-on-weighted-average-cost-of-capital RahmatullahPashtoon@slideshare.net(RahmatullahPashtoon) An Analytical Analysis on Weighted Average Cost of Capital RahmatullahPashtoon ABSTRACT PROJECT TITLE: - “AN ANALYTICAL STUDY ON WEIGHTED AVERAGE COST OF CAPITAL (WACC)” COMPANY: - YAAR CONSTRUCTION COMPANY The study is taken on the weighted average cost of capital of Yaar Construction Company. The company took the 40% loan out of total capital and the remaining 60% was its own contribution. In this study the various estimation other than the 40% loan for finding the WACC is undertaken. I took 20% of loan, then 60% and eventually, 80% loan. The main objectives are • To estimate the Weighted Average Cost of Capital of the Yaar Construction Company. • To understand how capital structure affects owner’s value • To study the changes in the weighted average cost of capital on the company’s financial status. The thesis is conducted on the basis of both primary and secondary data. The primary data is the financial statement presentations of the Yaar Construction Company. Secondary data is taken by the researcher from secondary source internal and external the researcher must thoroughly search secondary data sources before commissioning any effort for collecting primary data. The Profits in the year 2010 was 6,245,703/-, the most profitable year. The least was the year 2013 where only Rs. 1,807,115/- was the net profit. The company’s own 60% contribution and 40% loan was remarkable and the weighted average rate of return was 0.15024 (i.e. 15%). The internal rate of return was 0.645 (i.e. 64.5%) which is very much high and best for the company. NPV @15% was 9,739,653/-. In 20% loan the WACC was 16.5%, whereas, in 60% loan it was 13.5% and in 80% loan it was 12%. The total equity is Rs. 9,800,000/-. We took 20%, 60% and 80% loan estimation. No. of Share having face value 10 each: 784,000 = 9,800,000*(100%-20%)/10 392,000 = 9,800,000*(100%-60%)/10 WACC for 20%, 60% and 80% we found was 16.5%, 13.5% and 12%. We selected the minimum among them (i.e. 12%, which is for the 80% loan estimation). IRR for the 20%, 60% and 80% we found by applying the formula was 65.5%, 63.5% and 62.50%. In that we selected the maximum percentage due to having the rule of internal rate of return. (I.e. the highest IRR is to be considered). Now, the Value per share is derived by dividing the Net Present Value upon number of shares. The justification is that by taking 80% loan estimation the value per share for the owner increases more than taking the other estimations. In 20% it was 12.88 similarly, for 60% it was 25.29 and for 80% it was 48.85, which is the highest among them. Therefore, the 80% loan proposal is better for the company to accept. <img style="border:1px solid #C3E6D8;float:right;" alt="" src="https://cdn.slidesharecdn.com/ss_thumbnails/sipprojectrp-160620081954-thumbnail.jpg?width=120&height=120&fit=bounds" /><br> ABSTRACT PROJECT TITLE: - “AN ANALYTICAL STUDY ON WEIGHTED AVERAGE COST OF CAPITAL (WACC)” COMPANY: - YAAR CONSTRUCTION COMPANY The study is taken on the weighted average cost of capital of Yaar Construction Company. The company took the 40% loan out of total capital and the remaining 60% was its own contribution. In this study the various estimation other than the 40% loan for finding the WACC is undertaken. I took 20% of loan, then 60% and eventually, 80% loan. The main objectives are • To estimate the Weighted Average Cost of Capital of the Yaar Construction Company. • To understand how capital structure affects owner’s value • To study the changes in the weighted average cost of capital on the company’s financial status. The thesis is conducted on the basis of both primary and secondary data. The primary data is the financial statement presentations of the Yaar Construction Company. Secondary data is taken by the researcher from secondary source internal and external the researcher must thoroughly search secondary data sources before commissioning any effort for collecting primary data. The Profits in the year 2010 was 6,245,703/-, the most profitable year. The least was the year 2013 where only Rs. 1,807,115/- was the net profit. The company’s own 60% contribution and 40% loan was remarkable and the weighted average rate of return was 0.15024 (i.e. 15%). The internal rate of return was 0.645 (i.e. 64.5%) which is very much high and best for the company. NPV @15% was 9,739,653/-. In 20% loan the WACC was 16.5%, whereas, in 60% loan it was 13.5% and in 80% loan it was 12%. The total equity is Rs. 9,800,000/-. We took 20%, 60% and 80% loan estimation. No. of Share having face value 10 each: 784,000 = 9,800,000*(100%-20%)/10 392,000 = 9,800,000*(100%-60%)/10 WACC for 20%, 60% and 80% we found was 16.5%, 13.5% and 12%. We selected the minimum among them (i.e. 12%, which is for the 80% loan estimation). IRR for the 20%, 60% and 80% we found by applying the formula was 65.5%, 63.5% and 62.50%. In that we selected the maximum percentage due to having the rule of internal rate of return. (I.e. the highest IRR is to be considered). Now, the Value per share is derived by dividing the Net Present Value upon number of shares. The justification is that by taking 80% loan estimation the value per share for the owner increases more than taking the other estimations. In 20% it was 12.88 similarly, for 60% it was 25.29 and for 80% it was 48.85, which is the highest among them. Therefore, the 80% loan proposal is better for the company to accept.

An Analytical Analysis on Weighted Average Cost of Capital from Rahmatullah Pashtoon

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0 https://public.slidesharecdn.com/v2/images/profile-picture.png Detail-oriented bookkeeping professional with 1 year experience applying financial and managerial accounting practices. Worked for 1 year in training staffs and students in various academic institutes and NGOs. Notwithstanding, 1 year government administrative experience with reference to the field of law, vigilance and prosecution. Topped College in MBA – 2016 affiliated with Savithribai Phule Pune University https://cdn.slidesharecdn.com/ss_thumbnails/dissertationonbehavioralfinanceanditsimpactonportfolioinvestmentdecisions-160620082250-thumbnail.jpg?width=320&height=320&fit=bounds slideshow/dissertation-on-behavioral-finance-and-its-impact-on-portfolio-investment-decisions/63239470 Dissertation on behavi... https://cdn.slidesharecdn.com/ss_thumbnails/sipprojectrp-160620081954-thumbnail.jpg?width=320&height=320&fit=bounds RahmatullahPashtoon/an-analytical-analysis-on-weighted-average-cost-of-capital An Analytical Analysis...