Jp Morgan

I want to establish if JPMs stock agony will follow the trends in the market by victimisation historical tolls of the S&P cholecalciferol. Since S&P cholecalciferol has historically been a good measure for the overall market, in that paying attention is a strong possibility that JPMs stock damage will be correlated with S&P calciferols performance. I used BOFA as a nacreous because it is one of JPMs key competitors and has been one of the most unalterable banks since it was started. I figured since BOFA is a competitor and belongs in the self aforementioned(prenominal)(prenominal) manufacture; it whitethorn have similar pattern of returns as JPM. information & ESTIMATED MODEL: I ran a simple regression using data from the original model, and our result was: The following atomic scrap 18 the regression parameters: JPMRet = .002741862+ .521337247(RM-RF) + .478230691 (BOFA Ret.) Y= JPM Ret-RF X= (RM-RF), BOFA Ret.- RF The create of the regression mo del 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- establish little look on (.05, 116) is 1.98. 1. important 1 is accepted because T-test slender honor (.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 surplus returns. 2.Beta 2 is rejected because T test critical value of 1.98 < 6.56 (T-Stat).

This center that Beta 2 is significantly different from 0. This means that JPMs s tock returns are searchent on the S&P marke! t 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 kindred industry and may be affected by the same Macroeconomic events. Ramsey determine Test Restricted model= JPMRet= B1+B2(RM-RF)+B3(BOFA) unrestricted= 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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