The main objective of this project was to check out profitability of the momentum strategy in the stock markets. The momentum strategy is a smart investment strategy wherein earlier winners are bought and past losers are shorted. In this project we’ve additionally presented that momentum can’t be explained by the systematic risk of the individual stocks. The evidence in support of a momentum effect supplied in this report too suggests that expected price patterns could be utilized
Derivatives are a type of financial instrument that few of us understand and fewer still fully appreciate, although many of us have invested indirectly in derivatives by purchasing mutual funds or participating in a pension plan whose underlying assets include derivative products.