Q/A Session

Q1: ASSALAMUALYKUM, THIS IS .... FROM FIN254 COURSE. SIR I NEED SOME CLARIFICATION ABOUT THE FINAL SYLLABUS. SIR FOR MCQ THE SYLLABUS WILL BE COMPREHENSIVE AND FOR MATH PART THE SYLLABUS WILL BE CHAPTER 8 TO 13 IS IT RIGHT.......SIR KINDLY HELP ME BY GIVING THIS INFORMATION I WILL BE REALLY GRATEFUL.

Ans: For problems, please cover chapters 2,3,5, and 6 to 10. Thanks.

Q2: Hi sir, I am one of your student from FIN254. I have a question related to share market, I would be glad if you could kindly help me out with it.

I saw a software which takes two parameter/input; your purchase price and number of shares bought. The software does some calculation and reply whether you will make profit or loss. for eg. Your purchase price: 1000, Number of shares: 10, reply: you will make a loss amount -8050! Now I have the following questions for you...
=> Is this forecasting/prediction? Is it using any technical analysis?
=> You have taught me one of the technical analysis "Moving Average". What is the approximate accuracy of this method?

I will be happy if you can write few words. Thanks.

Ans: I am sorry, I have never used or seen such a software. So, no idea about it. Sounds like a technical analysis to me though. It is of course a forecast/prediction, as it is telling you about the future!

Technical analysis is a collection of techniques or tools to help you predict future movements of instruments by taking into consideration historical price and volume action. Moving Average is one such technique that uses only historical price. Different instruments may follow different sets of moving average values at different times. So, it is not possible to tell you exact accuracy of it. To be able to get signals (both buy and sell) MACD (Moving Average Convergence Divergence) is commonly used.

More later. Take care.