Examination of Index Model and Prediction of Beta –A case study examination in IT Sector

Fernandez, M (2020) Examination of Index Model and Prediction of Beta –A case study examination in IT Sector. International Journal of Economics and Management Systems, 5. pp. 158-161. ISSN 2367-8925

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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): Fernandez, M
Item Type: Article
Uncontrolled Keywords: Beta, Index Model, Stock returns, IT companies, Apple, Google, Microsoft
Subjects: A Business and Management > AH Finance
A Business and Management > AN Information Technology and Economy
Divisions: Skyline University College > School of Business
Depositing User: Mr Veeramani Rasu
Date Deposited: 28 Nov 2021 13:36
Last Modified: 28 Nov 2021 13:36
URI: https://research.skylineuniversity.ac.ae/id/eprint/59
Publisher URL: https://www.iaras.org/iaras/filedownloads/ijems/20...
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