Stock market quiz
1. Generally speaking, stock prices increase and decrease depending on the expectations concerning the
risk of the stocks in the future. If the stock is expected to become riskier in the future, it is likely that the
interest rates will increase, which will lead to a decrease in the stock prices and vice versa. For both the
Euronext as well as the Yahoo index, the following particularly di%erent returns can be distinguished:
Euronext:
– Between 25/08/2015 and 24/08/2015 there was a di%erence of 0,0999204 between the returns.
The reason for this has been the slowing economic growth in China, which caused a boom in the
stock markets because many investors decided to sell investments to pay back debts. This was
necessary because these investors had bought shares with borrowed money.
– Between 03/06/2015 and 02/06/2015 there was a di%erence of 0,0754563 between the returns.
This di%erence can be explained by big American investors investing in Europe, because
European stocks are cheaper. These stocks are cheap for American investors because of the
favourable exchange rate of the dollar.
– Between 04/06/2015 and 03/06/2015 there was a di%erence of -0,067021between the returns.
The explanation for the di%erence on 3 September also applies for this di%erence.
– Between 28/02/2014 and 27/02/2014 there was a di%erence of -0,06234 between the returns.
There was no reason found for this di%erence in the returns.
– Between 22/09/2015 and 21/09/2015 there was a di%erence of -0,059913207 between the
