Question
Can you give me some recommendations this question The following model can be used to estimate systematic risk or the sensitivity of the stock return
Can you give me some recommendations this question The following model can be used to estimate systematic risk or the sensitivity of the stock return to the market return: ??,t = 0 + 1??,? + ??,? (1) where Ri,t is stock return on the ith institutions; Rm,t is return on the S&P/ASX all Ordinaries Index (^AORD.AX); and ??,? is the random error term at day t. You are required to estimate the market model (equation 1) for the following companies: Bega Cheese Ltd ASX: BGA Amcor Limited ASX:AMC Oilsearch Limited ASX:OSH Telstra Corporation Ltd ASX:TLS Data sources Daily adjusted closing stock prices for companies and the All Ordinaries Index: http://au.finance.yahoo.com Estimation period January 1, 2010-December 31, 2018 Required Write a (a) (b) (c) (d) (e) research report based on the market model as given in Equation 1 with the following parts: Introduction: Summarise the intuition of the model and discuss how each company may be sensitive to market return. Methodology: Discuss the model, sources of data and the steps you have taken in your analysis. Findings: Discuss the results from the model. Reflect your expectations from a). Were your expectations met? Conclusion: Discuss the implications & shortcomings of the model. References.
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