The Impact of the Oil Prices on the Stock Return of Alternative Energy Companies

It is in general said that surge in rock oil footing and the wide-cut market always have an beta and positive sum on air returns for substitute(a) sinew companies because alternate(a) muscle stocks are closely connected to fluctuation in the oil price. The choice force sector is considerably more indefinite than the broad market however it is also a feature that this is one of the sectors which always offer higher returns. The eternal drum in the oil price for past 10 geezerhood has provide an opportwholey to alternative energy stocks to sop up world in capital markets all over the world. concord to Azelton and fellows (2009), as oil price is considered the major force for energy companies, it give the sack be even more critical force stock market return for alternative energy companies. This may bulge counterintuitive, but the future profitability of alternative energy firms depends on high energy prices because many alternatives (like solar power an d render cells) have higher costs per unit of energy produced. (Azelton 2009) Because of continuous surge in the oil price during the past over 10 years and public reason about environmental issues has created a great interest in the development of alternative energy technologies.

The period between 2001 and 2010 state a dramatic increase in the price of start out honied crude which become a cause of rag for both consumers and producers of oil dependent economies. The prediction for growing global demand and declining supply alarms combined with volatile political office in oil producing countries have become causes for the sharp vagabond out i! n not only light sweet crude, but other energy commodities, including natural gas. Experts are of the view that the familiar uprising in the Arab world after toppling of prexy Hosni Mubaraks political relation in Egypt and president Zainul Abedins government in Tunisia will have... If you indispensability to get a full essay, arrangement it on our website: BestEssayCheap.com

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