Examination of Index Model and Prediction of Beta –A Case Study Examination in IT Sector

Kumar, B R and Fernandez, M (2019) Examination of Index Model and Prediction of Beta –A Case Study Examination in IT Sector. Accounting and Finance Research, 8 (2). pp. 226-231. ISSN 1927-5986

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This study examines the determinants of stock returns of IT companies based on index model. The study examines the index model using the case analysis of stock returns of three IT Companies-Apple, Google and Microsoft. The analysis was done using the latest five-year monthly data. The study reveals that market index returns is a powerful determinant of stock returns. In terms of sensitivity as measured by beta values, Apple was most sensitive to fluctuations in market returns followed by Google and Microsoft stock returns. The study also examines the predictive ability of current beta using five-year data series of 15 IT companies. The results were statistically insignificant.

Affiliation: Skyline University College
SUC Author(s): Fernandez, M ORCID: https://orcid.org/0000-0003-0458-8879
All Author(s): Kumar, B R and Fernandez, M
Item Type: Article
Uncontrolled Keywords: Beta, index model, stock returns, IT companies
Subjects: A Business and Management > AB Business and Management
A Business and Management > AH Finance
Divisions: Skyline University College > School of Business
Depositing User: Mr SUC Library
Date Deposited: 27 May 2022 14:11
Last Modified: 27 May 2022 14:12
URI: https://research.skylineuniversity.ac.ae/id/eprint/261
Publisher URL: https://doi.org/10.5430/afr.v8n2p226
Publisher OA policy: https://v2.sherpa.ac.uk/id/publication/27471
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