Simulating the Case against Stock Picking

  • Charles J. Higgins Dept. Finance/CIS Loyola Marymount Univ. 1 LMU Dr. Los Angeles, CA 90045-8385, USA

Abstract

In simulating a portfolio of 100 security prices the median terminal price was regularly below that of the average mean portfolio price. In that picking a single security would likely choose the median terminal price, a case can be made against stock picking.
Keywords: Stocks, Normal distribution, Skewed distribution, Security, Standard deviation, Investment, Stock market, Portfolio, Stock picking , Diversification.

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How to Cite
Higgins, C. J. (2018, September 4). Simulating the Case against Stock Picking. Journal of Accounting, Business and Finance Research, 4(1), 37-39. https://doi.org/https://doi.org/10.20448/2002.41.37.39
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