Financial markets: exact science or speculation

Identifier:  TFG:8573

Handle: https://hdl.handle.net/20.500.11797/TFG8573

Authors:  Llauradó Navarro, Joel

Abstract:
This work analyzes whether the stock market is speculative or reflects real information. A sample of companies has been studied according to their capitalization and volatility, applying technical analysis (moving averages) and fundamental analysis (ratios such as PER, ROE or Sharpe, and CAPM). The behavior in the face of crises such as COVID-19 or trade changes has also been observed. The results show that smaller and more volatile companies are more speculative, while larger ones are more stable. The work concludes that markets combine speculative and predictive elements, and reaffirms the value of a global approach to making better investment decisions.