Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

For this project, you should pick an empirical finance topic, gather the required data, specify your methodology, perform quantitative analyses on the data and interpret the results of these analyses, and formulate a conclusion.

Project topics

You might select your own topic for the project, but you might also consider choosing a topic from the following list of topics:

1. Model and test weak-form information efficiency in one or more Canadian stock markets.

2. Test to find out which model—the Capital Asset Pricing Model (CAPM) or Arbitrage Pricing Theory (APT)—is superior for determining returns on risky assets in Canadian markets.

3. Measure, model, and forecast the volatility of bond returns in Canada.

4. Model and test the determinants of bond credit ratings used by ratings agencies such as Moody’s.

5. Model the long-term relationship between prices and Canada-US exchange rates.

6. Find out the optimal hedge ratio for a spot position in cattle or oil markets.

7. Test technical trading rules to find out which of them makes the most money.

8. Test hypothesis that earnings or dividend announcements have no effect on stock prices.

9. Test spot and futures markets to find out which reacts more rapidly to news.

10. Forecast the correlation between the TSX index and the NASDAQ index.

11. Model and test the effect of a firm’s capital structure decisions (i.e., debt-equity weight) on share returns.

Project tasks

1. Pick a project topic.

2. Conduct a literature review which examines at least two, and at most five, articles. For each article, prepare one-paragraph summary and one-paragraph critical review, then describe how the article relates to the topic you have selected for project.

3. Get data (contact Student Support Centre if you encounter problems accessing or obtaining data).

4. Analyze data, according to these guidelines:

• If your study involves structural analyses of cross-sectional, time-series, or panel data, do the following tasks:

a. Define null hypotheses.

b. Run the regression(s).

c. Discuss how well model fits by using goodness-of-fit measures.

d. Check for violations:

• heteroscedasticity

• iid residuals

• autocorrelation

• non-normality

• multicollinearity

• linear functional form

Test null hypotheses.

• If your study involves building time-series (ARIMA) models, perform the following tasks:

i) Test for non-stationarity in the time series.

ii) Use Box-Jenkins approach to build ARIMA models with an in-sample.

iii) Get forecasts from the ARIMA models.

iv) Select the best model based on information criteria.

v) prepare project report, that must include all of these elements:

• title page- List your name, student ID number, project title, and submission date.

• introduction- Give a broad overview of your project and what you hope to learn from it.

• literature review- Summarize and critically review selected articles.

• data descriptions- describe what, where, and how you have got data or transformed them, and the time periods involved.

• methodology- Outline whether you are using structural or time-series models, and specify models (equations) used.

• result- Discuss regression results obtained in EViews, and whether or not they are favourable to your original hypotheses.

• conclusion- Briefly describe (one to two paragraphs) what you have learned from your analyses.

• references- Provide full bibliographical information in APA format, including the articles in your literature review.

• appendices—Include discussions, tables, or graphs that do not contribute directly to the “meat” of your project prepare-up, but may nevertheless be of interest to your audience (i.e., your marker).

Use Microsoft Word or other compatible word-processing software to prepare your finished assignment. You would be using EViews extensively for the project, so your project prepare-up should include explanation of analyses performed using this software package, and your conclusions must refer to these results.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92063

Have any Question? 


Related Questions in Basic Finance

The scientific method can be described as a circle or a

The scientific method can be described as a circle or a spiral of steps that leads from an initial observation, to a hypothesis, to new observations, to a new hypothesis. For each of the following observations: a. State ...

1 name possible mortgageable interests in real estate and

1. Name possible mortgageable interests in real estate and comment on their risk as collateral to lenders. 2. What is meant by mortgage foreclosure, and what alternatives are there to such action? 3. Explain the differen ...

100 of the purchase price or it can lease the machinery

100% of the purchase price, or it can lease the machinery. Assume that the following facts apply: 1. The machinery falls into the MACRS 3-year class. 2. Under either the lease or purchase, Big Sky must pay for insurance, ...

A share of common stock is currently selling for 2773 the

A share of common stock is currently selling for $27.73. The last dividend paid was $1.60 per share. The marketrate of return is 10%. At what rate is the dividend growing?

1 why might a borrower be willing to pay a higher price for

1. Why might a borrower be willing to pay a higher price for a home with an assumable loan? 2. What is a buy down loan? What parties are usually involved in this kind of loan? 3. Why might a wraparound lender provide a w ...

A certain loop requires 5 loads 7 stores and 8 arithmetic

A certain loop requires 5 loads, 7 stores, and 8 arithmetic operations. What is the minimum initiation interval for a software pipelining of this loop on a machine that executes each operation in one clock tick, and has ...

1 at what point on the surface of the circular cylinder in

1. At what point on the surface of the circular cylinder in a potential flow does the pressure equal the free-stream pressure? 2. For the velocity potentials given below, find the stream function and sketch the streamlin ...

You need a kidney replacement and thus you will be paying

You need a kidney replacement and thus you will be paying for it. The doctor offers you two options to pay: $40,000 in 4 years or $65,000 in 10 years. The current discount rate is 8%. Which payment option would you prefe ...

1 what is the difference between moral hazard and adverse

1. What is the difference between moral hazard and adverse selection? How does each contribute to making information asymmetric? 2. Explain the "lemons problem." How does the lemons problem lead many firms to borrow from ...

The delta company has issued a total of 25000000 shares of

The Delta Company has issued a total of 25,000,000 shares of common stock at par(its value to the firm is $25, 000,000. The dividend yield is 6%. The company also has $15,000,000 of bonds(also sold at par) with a coupon ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen