Bernoulli's Principle and Algorithmic Trading

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Questions and Answers

Which of the following best describes the role of research questions in a study?

  • To provide a broad overview of the research area.
  • To guide the researcher about what data to collect and from whom, as well as provide a clear sense of what the research is about and what it wishes to achieve. (correct)
  • To present the researcher's personal opinions and beliefs.
  • To summarize existing literature on the research topic.

Why is it important for research questions to be specific and focused?

  • To encourage broad and exploratory research endeavors.
  • To allow flexibility for the researcher to change direction mid-study.
  • To guide the literature search and research design effectively. (correct)
  • Specificity adds complexity, making the research more impressive

Which of the following is NOT a characteristic of good research questions?

  • They are the core of your study.
  • They give the reader a good idea of the research.
  • They are broad and open-ended to allow for exploration. (correct)
  • They guide the literature search.

A researcher is developing research questions for a new study. Which of the following should they prioritize?

<p>Ensuring the questions guide the researcher about what data to collect and from whom. (B)</p> Signup and view all the answers

In what way does the formulation of research questions impact the literature review process?

<p>Well-defined research questions guide the literature search, helping researchers identify relevant sources. (B)</p> Signup and view all the answers

Which of the following is a key consideration when developing research questions to align with the research design?

<p>Ensuring the questions guide the researcher on which research design to use (e.g., qualitative vs. quantitative). (A)</p> Signup and view all the answers

A student wants to conduct research on the effects of social media on teenage mental health. Which of the following is the most appropriate research question?

<p>To what extent does excessive social media use correlate with increased anxiety and depression in teenagers aged 15-19? (B)</p> Signup and view all the answers

How do research questions contribute to analyzing and presenting data?

<p>Research questions help researchers determine what data to collect and analyze, as well as provide structure for presenting findings. (B)</p> Signup and view all the answers

What is the relationship between research questions and the scope of a study?

<p>Research questions help to define and limit the scope of the study, preventing the research from going off in different directions. (A)</p> Signup and view all the answers

When is it most appropriate to finalize the research title?

<p>After checking if there is enough information available on the topic. (D)</p> Signup and view all the answers

Flashcards

Research Question

A specific inquiry that gives the reader a good idea of what your research is about, guides the literature search and the research design.

Research Topic

One of the first and vital steps in the research process that sets the direction of a research project and becomes the basis for formulating research questions.

Research Topic (Creswell, 2014)

The issue or problem leading to the need for the research.

The Problem and its Background

Chapter 1 introduces the research problem and provides background information.

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Parts of Chapter 1

The rationale, problem statement, significance, assumptions, and scope/limitations are described.

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Finding a Good Research Topic

Background research, brainstorming, relevant information, keywords and audience.

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Good Research Topic

The research topic must be specific, solid, unique, important, relevant and trending.

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Writing a Research Title

Think of any subject that really interests you, choose the one where you are most confident and check how much information is available before finalizing.

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Study Notes

Bernoulli's Principle

  • An increase in a fluid's speed happens at the same time as pressure or potential energy decreases.
  • P = Static pressure of the fluid.
  • ρ = Density of the fluid.
  • v = Velocity of the fluid.

Equation

  • Equation is : $P + \frac{1}{2} \rho v^2 =$ constant

Example

  • When a pipe narrows, the flow rate remains constant, causing velocity to increase in the narrow section.
  • Pressure subsequently decreases in the portion where fluid speed increases.

Algorithmic Trading

  • In algorithmic trading, a computer program uses a defined set of instructions known as an algorithm to place a trade.
  • Algorithms use timing, price, quantity, or any mathematical model
  • Investment banks, pension funds, mutual funds, and hedge funds widely use algo-trading.

Advantages of Algorithmic Trading

  • Trading happens at best possible price.
  • Transaction costs are reduced.
  • Order checks are automated and simultaneous
  • Risk of manual errors is lower.
  • Backtesting helps to evaluate a trading strategy.
  • Emotional influence on trading is reduced.

Algorithmic Trading Strategies

  • Trend Following Strategies include Moving averages, Channel Breakouts, and Bollinger Bands.
  • Arbitrage Strategies include Index Arbitrage, Triangular Arbitrage, and Statistical Arbitrage.
  • Mathematical Model Strategies include Machine Learning, Regression Model, and Time Series Analysis.

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