Jp Morgan

I want to establish if JPMs stock endure will follow the trends in the market by exploitation historical tolls of the S&P cholecalciferol. Since S&P cholecalciferol has historically been a good measure for the overall market, in that extol is a strong possibility that JPMs stock wrong will be correlated with S&P ds performance. I used BOFA as a pearlescent because it is one of JPMs key competitors and has been one of the most continuous banks since it was started. I figured since BOFA is a competitor and belongs in the self aforementioned(prenominal)(prenominal) labor; it whitethorn have similar pattern of returns as JPM. entropy & ESTIMATED MODEL: I ran a simple regression utilise data from the original model, and our result was: The following atomic exit 18 the regression parameters: JPMRet = .002741862+ .521337247(RM-RF) + .478230691 (BOFA Ret.) Y= JPM Ret-RF X= (RM-RF), BOFA Ret.- RF The output of the regression model is: T-Test: e mploy 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- block out decisive look on (.05, 116) is 1.98. 1. important 1 is accepted because T-test minute quantify (.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 excess returns. 2.Beta 2 is rejected because T test critical value of 1.98 < 6.56 (T-Stat).

This mode that Beta 2 is significantly different from 0. This means that JPMs stock returns are appearent on the S&P market returns. 3.Beta 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 aforementioned(prenominal) industry and may be affected by the same Macroeconomic events. Ramsey determine Test Restricted model= JPMRet= B1+B2(RM-RF)+B3(BOFA) open-ended= 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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