Jp Morgan

I want to establish if JPMs stock put up will follow the trends in the market by victimization historical tolls of the S&P cholecalciferol. Since S&P cholecalciferol has historically been a good measure for the overall market, in that celebrate is a strong possibility that JPMs stock hurt will be correlated with S&P ergocalciferols performance. I used BOFA as a mutable because it is one of JPMs key competitors and has been one of the most ceaseless banks since it was started. I figured since BOFA is a competitor and belongs in the self kindred(prenominal) intentness; it whitethorn have similar pattern of returns as JPM. info & ESTIMATED MODEL: I ran a simple regression exploitation data from the original model, and our result was: The following atomic issue forth 18 the regression parameters: JPMRet = .002741862+ .521337247(RM-RF) + .478230691 (BOFA Ret.) Y= JPM Ret-RF X= (RM-RF), BOFA Ret.- RF The getup of the regression model is: T-Test: employ the data from the first regression, I did a hypothesis examination to determine the significance of our betas. Ho: B1=B2=B3=0 Ha: At least one of the betas =/= 0. T- evidence full of life look on (.05, 116) is 1.98. 1. important 1 is accepted because T-test particular cheer (.05, 116) 1.98> .9445 (T-stat). This gist that Beta 1 is not importantly from 0. This indicates that there are no vicarious or extra returns. 2.Beta 2 is rejected because T test critical value of 1.98 < 6.56 (T-Stat).

This marrow that Beta 2 is importantly different from 0. This means that JPMs stock returns are a ttendent on the S&P market returns. 3.Be! ta 3 is rejected because T test critical value 1.98 > 6.27. This means that Beta 3 is significantly different from 0. This means that JPMs returns do indeed depend on BOFAs returns. This was expected because both belong to the alike(p) industry and may be affected by the same Macroeconomic events. Ramsey determine Test Restricted model= JPMRet= B1+B2(RM-RF)+B3(BOFA) open= JPMRet= B1+B2(RM-RF)+B3(BOFA) +α2Y2 + α3Y3 + α4Y4 Ho: α2 = α3 = α4...If you want to get a full essay, order it on our website: BestEssayCheap.com

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