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This thesis is motivated by the possibility for individuals to diversify their saving methods to allow for more financial safety, by investing into company stocks. If chosen well, stock investments offer attractive returns and prospects, however this choice can be daunting, and assistance may be required. In the context of other options that assist in decision-making related to stock options, this research aims to design and implement a relational database, that offers a transparent overview of financial information of stocks, developed to assist individuals in making decisions for investments in the stock market. The database should also be maintainable. After the design, implementation, and enhancement of the database with data, the database was tested for functionality, maintainability, and transparency. Then, application examples were constructed to examine the usability of the concept to assist with decision-making, aiming to create consistent positive returns within the created portfolios. It was found that the database fulfilled all desired characteristics and produced positive returns in the application examples. However, the ability of creating consistent outcomes was not given. These results indicate that the database can be used to organize stock-related information, however, is not usable to assist with decision-making.
This thesis assesses whether a momentum strategy, which buys past winner and sells past loser stocks, implemented in the German stock market yields positive returns. Additionally, it provides an evaluation of potential sources and implications to stock market efficiency. The findings indicate that momentum profits are on average positive and significant in a time period between 1999 and 2018 and that these profits, in general, seem to contradict the efficient market theory. Hence, after a review of behavioral finance models, these profits seem to be due to inefficient price reactions to new firm-specific news. Despite their strong positive average returns, momentum strategies yield significant negative returns which occur in times of market reversal after panic states and crashes.