Questions tagged [finance]

The science that describes the management, creation and study of money, banking, credit, investments, assets and liabilities.

Reference: Investopedia.com

"Finance consists of financial systems, which include the public, private and government spaces, and the study of finance and financial instruments, which can relate to countless assets and liabilities. Some prefer to divide finance into three distinct categories: public finance, corporate finance and personal finance. All three of which would contain many sub-categories.

The study of finance can also take many forms, depending on the field or area of finance which one wishes to study. For instance, economics is considered a pillar of financial science, where both macro and microeconomic factors affect virtually levels of financial decisions and outcomes at all levels. Additionally, the study of behavioral finance aims to study the more "human" side of a science considered by most to be highly mathematical. This illustrates that the study of finance can, at times, be more art than science."

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Which stocks fell first after some event?

I have a panel of daily stock prices $\{Y_{it}\}$, $t \in \{1,...,1000\}$ and some event that occurs at $t=700$ which causes the average stock price to decrease by about 10% over the next 15 days. How do I answer the question "which stocks fell…
user13253
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How to change financial year data into calendar year data

I have several variables, some calculated from 1 July to 30 June and the remainder calculated from 1 January to 31 December. Now how I can change one of them into financial or calendar year?
SAAN
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Can logarithmic returns cumulatively sum to less than -1?

I have a question regarding the time additive properties of logarithmic returns specifically regarding financial assets. My understanding of logarithmic returns is that they can be summed across time to return compound return rates. If this is true,…
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Software Financial Performance

Which software is the best to evaluate on company financial performance? Currently I'm working on financial analysis for my company performance. It was quite confusing to see a variety of software available.
Anne
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How to assign a value to an item with no fixed price that is sold alone or in combination?

Let's say we have a set of items with no fixed price, and a set of transactions in which these items are sold alone or in combination. How do I go about assigning a value to each of these items? Take the following example (made up on the…
Narwe
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Testing pricing errors on the SML for significance with R

I have been attempting to do a cross-sectional test of the CAPM. To do this, i have estimated the betas of 49 industry portfolios with time-series data. And then done a cross sectional regression, where i regressed the mean excess returns on the…
Lazy019
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Determining which stocks fall first in a stock market crash

Let $R_{it}$ and $R_{mt}$ be daily stock returns for some company $i$ and the daily market index returns (respectively), with $i \in \{1,...,N\}$ and $t \in \{1,...,200\}$. It is common to have $R_{it}$ as the response and $R_{mt}$ as the predictor.…
user13253
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Annualized Excess Return

I have been given the following formula to calculated Annualized excess return: Annualized excess return = (1+Monthly excess return)^12-1 The answer is provided (by the text) as AER = (1-.0036)^12-1 = 4.41% When I calculate this I get: …
SaminOz
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