Minimum – 5 pages, Maximum – 10 pages

Description:

Research and analyze an individual investor’s ability to beat the Stock Market. The Stock Market can be defined with any index such as the S&P 500 Index or Dow Jones Industrial Index. Beating the market means that the stocks in your portfolio outperformed the stock market, as defined above, on a risk-adjusted basis.

Suggested Research topics:

You may use these references below, but put it in your own words. These are not required topics, but may give you a good base to start your research.

Does security analysis lead to outperforming the stock market? (Active mutual funds will sell their funds using this concept.)

• • Efficient Market Hypothesis (Pros and Cons)
• • Transaction costs of trading vs. buy and hold
• • Random Walk Theory
• • Active vs Passive Investment Management

Answer the following questions:

• • Can an individual investor beat the stock market? If so, how? If not, why? Many practitioners and academics are divided on this issue
• • If so, what must this individual do in order to beat, or outperform, the stock market?
• • If not, what should an investor do?

Research Paper Guidelines

1. Stick to your topic. Don’t stray into too many examples or irrelevant facts.

2. Minimum 5 pages, double spaced, Maximum 10 pages. You may use graphs and charts but make sure the content is covered in the writing.

3. Source: You can use any sourcing including the internet to research, but you need to source. Use footnotes so I know exactly where you got the information. No sources and you will get a 0.