2.1.

Research Statement:

“The effectiveness of style rotation strategy of behavioral finance”

2.2. Research Objective:

 To study the style rotation strategy.

 To know the weather it gives better result as a strategy or not.

2.3. Research Design:

Research Design is the plan, structure, and strategy of investigation conceives so as to obtain
answers to research questions and to control variances.

Research Design is the specification of method and procedures for acquiring the information
needed. It is the overall operational pattern or framework of the project that stipulates what
information is to be collected from which sources by what procedures.

Types of Research Design:

1. Exploratory Research
2. Conclusive Research
a) Descriptive Research
b) Causal Research

“This research design is Descriptive. Here the research describe that what changes in
return when we change the selection of the different stocks. Sometimes we select stock as
per the point of view and some time as per the fundamental factors.”

2.4. Data Collection:

Data collection is the process of gathering and measuring information on targeted

variables in an established systematic fashion, which then enables one to answer
relevant questions and evaluate outcomes. There are main two types of sources of data
collection primary data and secondary data.
Primary Data
Primary data is those data which are collected specifically for the purpose of
 current research project by researcher and his/her team.
Secondary Data
The data which already have been collected by someone else for their purpose
and the same data are used in current research then, that data would be known
as secondary data.

“This study is based on secondary data which have been collected from Bombay Stock
Exchange and Money Control websites.

2.5. Sampling Technique:

In this research there are two portfolios.

One portfolio made by the fundamental factors like NPM (Net Profit Margin), TAT
(Total Asset Turnover) and EPS (Earning per Share). Researcher takes top 20 companies from
each factor conveniently.

Second portfolio made by the lottery method of the selection. In which researcher used
technical calls, suggestions from friend, economic time’s technical recommendations.

2.6. Sample size

Total 118 companies, each portfolio contain 59 companies.

Here, researcher takes (September to February) 6 month daily data of companies closing price.

2.7. Statistical Tool:-

T – Test:

A t-test is a type of inferential statistic used to determine if there is a significant difference

between the means of two groups, which may be related in certain features.

2.8. Limitations of the Study:

There are following limitations of the study: