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

1 compare the assessment of face content and construct

1. Compare the assessment of face, content, and construct validity. Which of the three approaches is most objective, and why? Is it possible to have a measure that is construct valid but not face valid? 2. What is the im ...

What is the relation between a strategy and an objective

What is the relation between a strategy and an objective? How are comparative advantages different from competitive advantages? What is a strategic plan? What is a financial plan, and how does it relate to a company's st ...

You purchased a new car for 23000 to purchase the car you

You purchased a new car for $23,000. To purchase the car you have a loan with payments of $509.09 monthly for four years. What is the monthly interest rate on this loan? What is the nominal annual interest rate on this l ...

Explain how a swaption can be terminated at expiration by

Explain how a swaption can be terminated at expiration by either exercising it or settling it in cash. Why are these procedures financially equivalent? Explain how the two types of swaptions are like interest rate option ...

The mass m of drops formed by liquid discharging by gravity

The mass M of drops formed by liquid discharging by gravity from a vertical tube is a function of the tube diameter D, liquid density, surface tension, and the acceleration of gravity. Determine the independent dimension ...

1 consider three equally spaced sources of strength m

1. Consider three equally spaced sources of strength m placed at (x, y) = ( a, 0),(0, 0), and (a, 0). Sketch the resulting streamline pattern. Are there any stagnation points? 2. Sketch the streamlines and potential line ...

After reading concept four write a 2-4 page paper

After reading Concept Four, write a 2-4 page paper discussing the issues and outcomes of Alpha Health Systems (AHS), giving a brief overview of its initial implementation of a corporate finance-based capital allocation p ...

What is storage why is it risky what role does it play in

What is storage? Why is it risky? What role does it play in the economy? Why is delivery important if so few futures contracts end in delivery? What are the major functions of derivative markets in an economy? Why is spe ...

1 distinguish between a eurobond a foreign bond and a

1. Distinguish between a Eurobond, a foreign bond, and a Yankee bond. Which of these three represents the greatest volume of security issuance? 2. What do you think are the most important costs and benefits of becoming a ...

A company exports 37000 products to chile nbspunder an

A company exports 37,000 products to Chile  under an import license that expires in five years. In Chile, the products are sold for the Chile peso equivalent of $45. Direct shipping costs in the United States and indirec ...

  • 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