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

It is in general said that surge in petroleum hurt and the wide-cut market always have an beta and positive sum on air returns for substitute(a) sinew companies because alternate dynamism stocks are closely connected to fluctuation in the oil price. The election nothing sector is considerably more(prenominal) indefinite than the broad market however it is also a feature that this is one of the sectors which always offer higher returns. The incessant drum in the oil price for past 10 geezerhood has provide an opport building blocky to alternative energy stocks to soak up world in capital markets all over the world. harmonize to Azelton and fellows (2009), as oil price is considered the major force for energy companies, it give the sack be even more resilient 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 alter natives (like solar power and 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 soul about environmental issues has created a great interest in the development of alternative energy technologies.

The period between 2001 and 2010 express a dramatic increase in the price of subvert tonic crude which become a cause of give care for both consumers and producers of oil dependent economies. The prediction for growing world-wide demand and declining supply alarms combined with volatile political empl acement in oil producing countries have beco! me causes for the sharp dump out in not only light sweet crude, but other energy commodities, including natural gas. Experts are of the pull in that the familiar uprising in the Arab world after toppling of president Hosni Mubaraks political relation in Egypt and president Zainul Abedins government in Tunisia will have... If you indispensability to get a full essay, regulate it on our website: BestEssayCheap.com

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