Please use this identifier to cite or link to this item:
https://hdl.handle.net/1959.11/19332
Title: | Alternate Equity Indexation for Technology Stocks: An Application to the Nasdaq Index | Contributor(s): | Agarwal, Nipun (author); Farooque, Omar (author) | Publication Date: | 2016 | Handle Link: | https://hdl.handle.net/1959.11/19332 | Abstract: | Technology stocks can be quite volatile as innovation creates new opportunities, however many technology companies may not provide a dividends that makes them harder to value. Fund managers try to outperform technology indexes, but the majority are unable to outperform them. So, investors have started looking at passive indexation methods like fundamental, equal weight, risk based and riskweighted alpha indexation. This paper develops a new equity indexation method called the Alternate Equity indexation (AEI) method that intends to provide a higher return than the underlying index by reducing underlying index volatility. The NASDAQ index is taken as an example of a technology index in this paper. Results show that the index developed using AEI method outperformed the NASDAQ index by 5 times during the period from 2nd January 2003 to 31st December 2012. | Publication Type: | Journal Article | Source of Publication: | Economics, Management, and Financial Markets, 11(1), p. 41-51 | Publisher: | Addleton Academic Publishers | Place of Publication: | United States of America | ISSN: | 1938-212X 1842-3191 |
Fields of Research (FoR) 2008: | 150205 Investment and Risk Management 150201 Finance 160505 Economic Development Policy |
Fields of Research (FoR) 2020: | 350208 Investment and risk management 350202 Finance 440703 Economic development policy |
Socio-Economic Objective (SEO) 2008: | 910109 Savings and Investments 910103 Economic Growth 910402 Management |
Socio-Economic Objective (SEO) 2020: | 150209 Savings and investments 150203 Economic growth 150302 Management |
Peer Reviewed: | Yes | HERDC Category Description: | C1 Refereed Article in a Scholarly Journal | Publisher/associated links: | http://www.addletonacademicpublishers.com/contents-emfm/675-volume-11-1-2016/2685-alternate-equity-indexation-for-technology-stocks-an-application-to-the-nasdaq-index |
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Appears in Collections: | Journal Article UNE Business School |
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