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Published byAbram Gilstrap Modified over 2 years ago

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Stock analysis British Telecommunications and British Petroleum

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Stock prices British Telecommunications and British Petroleum Dot-com bubble

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Return British Telecommunications and excess market return British Telecommunications Mean0, Kurtosis1, Skewness-0,69309 Var0, SD0,081157

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Return British Petroleum and excess market return British Petroleum Mean0, Kurtosis4, Skewness-0,99296 Var0, SD0,068808

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Return British Petroleum and excess market return 01/1997 – 12/1999 (bull market) whole sample regression R^20, standart error of the slope0, beta0, intercept0,005352

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Return British Telecommunications and excess market return 6/1999 – 12/2003 (bear market) whole sample regression R^20, standart error of the slope0, beta1, intercept0,002901

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Conclusion Both stocks have a negative skewness, i.e. greater-than- normal probability of big negative returns Both stocks have a beta close to 1, i.e. neither aggressive nor defensive stocks (but BT more aggressive than BP) Both regressions have a low R^2, i.e. bad fit of the OLS Regression

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