https://www.um.edu.mt/library/oar/handle/123456789/38157 2026-04-15T21:26:30Z https://www.um.edu.mt/library/oar/handle/123456789/38858 Title: Can forex algorithmic trading based on technical analysis generate abnormal returns? Abstract: Technical Analysis has long been common practice in financial markets. Logical statements built from mathematical formulas are the foundations of technical trading rules. Traditionally trading based on technical analysis used to be done by human beings. However, the rapid growth in the processing power of computers is making humans a less important part of the financial markets due to the fact that trading rules can be automated. The purpose of this study is to analyse whether algorithmic trading based on technical rules may be used generate returns which are higher than the risk-free rate, which is taken to be the 1 Month Daily Treasury Bill Rate. The rules were tested on currency pair, mainly four currency pairs, the EURUSD, EURGBP, EURJPY and EURCHF. A number of indicators managed to generate positive returns. The largest profit was generated on the EURUSD pair, while the largest loss was generated on the EURGBP. The most profitable trading rule was found to be the 50-100 day moving average crossover. However, the main finding in this study was the fact that no indicator generated returns which are statistically higher than the risk-free rate. Hence, this study concludes that algorithmic trading based on technical analysis is not enough to generate abnormal returns in the Forex market. Description: B.SC.(HONS)MATHS,BANK.&FIN. 2018-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/38857 Title: The links between stock prices and economic factors in European countries : a quantitative study Abstract: This study examines the relationship between stock prices and macroeconomic variables within Belgium, France, Germany, Netherlands and Portugal. These relationships were evaluated through the Ordinary Least Squares (OLS) method and the Granger-Causality test via the Unrestricted Vector Autoregressive (VAR) model. Preliminary OLS models were used to select the variables which are statistically significant in the variability in stock prices. VAR estimations were then used to model stock prices along with the most significant variable for the respective country. The selected macroeconomic variables are inflation, money supply, interest rates and industrial production index. The most significant macroeconomic factor explaining stock prices is interest rates in the case of Germany and Portugal and industrial production index for Belgium and France. None of the macroeconomic variables were statistically significant in explaining stock price movements in Netherlands. There is a unidirectional Granger-causality from stock prices to industrial production index for Belgium and France. In the case of Germany, there is a unidirectional Granger-causality from stock prices to interest rates, however, there is no such Granger-causality in case of Portugal. These results are in line with the prior strand of literature which suggests that stock prices are leading indicators. Description: B.SC.(HONS)MATHS,BANK.&FIN. 2018-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/38831 Title: Analysis of the third pillar pension : prospective graduates’ perspective Abstract: The aim of this research was to study University of Malta students’ attitudes towards retirement, focusing on the factors that affect their savings behaviour. Identifying such factors would help in developing better retirement plans, where individuals would be incentivised to start saving for their retirement at a young age. This would result in the enjoyment of a smooth pattern of consumption as it would be easier for the retiree to transition from the working years. In order to address the research question, a questionnaire was distributed to all university students via the Registrar to analyse the perspective of students regarding the third pillar pension. Participants of the questionnaire consisted of a sample of 207 students where several attributes that influence students’ behaviour were studied and assessed. Factors that were considered to be critical in the students’ behaviour were asked in the questionnaire, including their knowledge about pensions, their concerns about the future and their prospective financial management once they graduate. The study revealed that there is a link between the students’ lifestyle and their money management, as many would rather save and enjoy their life rather than think of their financial future. The students, especially those younger in age, were keener in living a YOLO lifestyle and saving for their life goals rather than start putting some money aside for future use in retirement. Living such lifestyle requires a lot of money, hence why students admitted that they would fear that they would not have enough financial resources to save for retirement. This study also revealed that younger university students had poor knowledge about the financial market, which further explains their disinterest and inability to invest in the long term. At the same time, a number of students seemed to be interested in learning more about financial products aimed towards saving for the future. Description: B.COM.(HONS)BANK.&FIN. 2018-01-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/38828 Title: Risk tolerance : a comparison between Maltese and foreign investors’ perceptions when investing in financial instruments Abstract: The purpose of this study is to evaluate and compare the financial risk tolerance of Maltese investors with foreign investors when investing in financial instruments. The study identifies ways of how Maltese investors react to certain financial situations and compares them to those of foreign investors. It explores any significant demographic characteristics that could potentially influence the level of financial risk tolerance of these two groups. The Literature Review discusses several topics, including types of investors, definition of financial risk tolerance, different categories of financial instruments, characteristics that affect decision-making. It also contains a section on past empirical studies. A broad overview of previous studies related to this area shows that this topic is highly important to potential and active investors. The literature indicates that financial risk tolerance does not depend only on wealth, but also on a wide range of characteristics like age, income, financial literacy, cultural background, and inner attitude towards change. Data on Maltese investors for this study was collected through questionnaires distributed on an online platform and face-to-face. Secondary data on foreign investor was obtained from a questionnaire conducted by Cooper, et al. (2014). Following this research study, one can conclude that foreign investors’ attitude towards financial risk is similar to that of Maltese investors. This outcome was evident in various responses by both population groups. Also, the majority of both groups of respondents attested that in the face of financial risk, they classified themselves as average risk takers. Description: B.COM.(HONS)BANK.&FIN. 2018-01-01T00:00:00Z