INTELLECTUAL ECONOMICS 2008, Number 1(3)
Aleksandras Rutkauskas, Viktorija StasytytėSTRATIFICATION OF STOCKS PROFITABILITIES – THE FRAMEWORK FOR INVESTORS POSSIBILITIES RESEARCH IN THE MARKET
Mykolas Romeris University Publishing Centre. Vilnius. Lithuania 2008 Nr.1(3), p. 65–72
Abstract
The main objective of the paper is to analyse the model proposed by the author, which is adequate for stock prices and currency exchange rates markets stochasticity, as well as to discuss the possibilities of its application to investor‘s research in those markets. It is argued that constructive information about market opportunities for investors is derived from the market prices with the help of indicators describing investment efficiency – profitability, reliability and risk. The paper is grounded on the hypothesis of stratification of stock profitability ratios, traded on the market. In other words, the concept of stratification means concentration into certain groups on the plane of risk-profitability. If the hypothesis is proved, then a constructive scheme for investor‘s possibilities research in exchange and capital markets would appear, as well as efficient investment strategies would develop.
JEL Classification F490, K110.Keywords: investor’s possibilities, stratification, market portfolio, strata.