Jp Morgan

I want to establish if JPMs stock cause to be perceived 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 abide by 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 continual banks since it was started. I figured since BOFA is a competitor and belongs in the self self analogous(prenominal)(prenominal) sedulousness; it whitethorn have similar pattern of returns as JPM. selective information & ESTIMATED MODEL: I ran a simple regression victimisation 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 fruit of th e 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- foot race captious look on (.05, 116) is 1.98. 1. important 1 is accepted because T-test vital nurse (.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 intemperance returns. 2.Beta 2 is rejected because T test critical value of 1.98 < 6.56 (T-Stat).

This gist that Beta 2 is significantly different from 0. This means th at JPMs stock returns are searchent 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 same industry and may be affected by the same Macroeconomic events. Ramsey determine Test Restricted model= JPMRet= B1+B2(RM-RF)+B3(BOFA) all-weather= 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: OrderCustomPaper.com

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