understanding finance markets using the models that had agents who were rational. In the Scenario, rationality implied that when the companies received new information, they updated their agents believes as described by the Bayes law. Besides, with their beliefs, managers and agents made decisions that are acceptable because they are consistent with the Savage idea of Subjective Expected Utility. This traditional approach was viewed as successful if it received data backing. However, as markets became complicated
Words: 1541 - Pages: 7
Ch.7 Question 2, 4, 7 2.) In order for a derivatives market to function most efficiently, two types of economic agents are needed: hedgers and speculators. Explain. A speculator attempts to profit from a change in futures price. To do this, the speculator will take a long or short position in a futures contract depending upon his expectations of future price movement. A hedger, on the other hand, wants to avoid price variation by locking in a purchase price of the underlying asset through
Words: 415 - Pages: 2
Recent evidence confirms that in factor-model examinations of the crosssection of REIT returns, REIT momentum emerges as the dominant driver. Acknowledging the importance of momentum, the current study explores whether and how REIT return patterns are linked to the underlying characteristics of the REITs themselves, in the manner of Daniel and Titman’s (Journal of Finance 52(1):1–33, 1997, Journal of Portfolio Management 24(4):24–33, 1998) characteristics model. Over the period 1993 through 2009
Words: 3233 - Pages: 13
Citation: Creaby-Attwood, Nick (2010) Rewarding Relationships: A Study of the Interaction of Employment Relationships and Employee Rewards Systems in Two Unionised Private Sector Organisations. Doctoral thesis, Northumbria University. This version was downloaded from Northumbria Research Link: ht tp://nrl.northumbria.ac.uk/4415/ Northumbria University has developed Northumbria Research Link (NRL) to enable users to access the University’s research output. Copyright © and moral r ights for
Words: 103288 - Pages: 414
warehouse. Unlike OLAP, which reveal patterns that are known in advance, Data Mining uses the machine learning techniques to find hidden relationships within data. So Data Mining is to ▪ Analyse data, ▪ Use software techniques ▪ Finding hidden and unexpected patterns and relationships in sets of data. Examples of Data Mining Applications: ▪ Identifying potential credit card customer groups ▪ Identifying buying patterns of customers. ▪
Words: 1258 - Pages: 6
In accounting approach, this repost will choose quick ratio, asset turnover ratio, D/E ratio, D/A ratio, ROA and ROE. In stock market approach, abnormal return and cumulative abnormal return are used to the bank performance in pre-merger and post-merger. Firstly, Quick ratio is used by this report, because the quick ratio is used to measure the ability of the firm to pay back its short-term liability with its liquid assets (Linda, 2008). If quick ratio is higher, the better condition of the company
Words: 3169 - Pages: 13
An Empirical Study of Pricing Strategies in an Online Market with High-Frequency Price Information Sara Fisher Ellison M.I.T. Christopher M. Snyder Dartmouth College June 2010 Abstract: We study competition among a score of firms participating in an online market for a commodity-type memory module. Firms were able to adjust prices continuously and prices determined how the firms were ranked and listed (lowest price listed first), with better ranks contributing to firms' sales. Using a
Words: 12591 - Pages: 51
Assignment #2- Market Model and Patterns of Change Submitted by: Chivonne Casey Strayer University Instructor: Professor Young Dimpkah Course: ECO 550-Managerial Economics and Globalization Date: August 1, 2012 1. Describe the industry and explain the general pattern of change of the particular market model. I chose to talk about the music recording industry. The music industry is a complicated system of several different companies and firms that have gone through
Words: 926 - Pages: 4
year data and built ARIMA and GARCH models for each sub-period. We found that the models are considerably consistent before 2007-2008 sub-period, and there exists some minor seasonality in several subperiods, but no particular pattern can be identified for the whole period. We then tried to predict future return, volatility and VaR using the model we built for the last sub-period based on rolling forecast procedure. Though the fitted values of 10th sub-period model are very acceptable, the predicted
Words: 1146 - Pages: 5
Based on a review of Exhibit 3, discuss how one would use interest rate-sensitivity gap information to estimate the impact of rising interest rates on the earnings of Norwest Corporation. Interest sensitivity gap is used to measure how the interest change will affect the asset sensitivity and liability sensitivity. Asset sensitivity or positive gap occurs when the interest sensitive asset and interest sensitive liability is greater than zero. However, liability sensitivity incur when interest sensitive
Words: 2454 - Pages: 10
