Steps to conduct the capital asset pricing model (CAPM)

Capital asset pricing model (CAPM) is a method of estimating the risks of investing in a particular stock. It is mainly used by financial analysts and investors to decide what price they should pay for a particular stock. It was first used and developed by Harry Markowitz in 1952. Harry described the relationship between an investor’s risk and the expected return in CAPM. According to Markowitz, (2008), “the expected return of a particular security or a portfolio is equal to the rate on a risk-free security plus a risk premium. If the security or portfolio does not meet or exceed the required return, then the investment should not be entered into” (pg. 91). It means that, if Stock A is riskier than Stock B, the price of Stock A should be lower to compensate investors for taking on the increased risk.

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Challenges of bibliometric mapping and scattering analysis and interpretations

The previous article speaks of challenges of selection of software and data analysis in a bibliometric study. Challenges of bibliometrics arise at every checkpoint of bibliometrics. Thus, the last section of the bibliometric analysis comprises of challenges with respect to mapping and scattering analysis. Moreover, the challenges also comprise of interpretation from data analyses of mapping and scattering. Read more »

Focus group interviews: qualitative or quantitative?

Focus Group Discussion (FGD) is a research method in the social sciences, with a particular emphasis and application in the developmental program evaluation sphere (Doody, Slevin, & Taggart, 2013). Thus, they comprise of predetermined semi-structured interviews whereby broad questions are asked on a theme or a topic generating transcripts of discussion and opinions. Read more »

Structural equation model (SEM)

Structural equation model is a statistical modeling technique. Structural equation model (SEM) tests estimate or establish relationships between variables. It is a multivariate statistical data analysis technique. SEM analyzes the structural relationships or to establish causal relationships between variables. Read more »

Advantages of using Advanced Excel for a large data set

In recent years, big data has become a buzz word for them who are relying on digital technologies as it allows storage and analysis  of massive data. Here, big data includes both structured and unstructured data sets which require processing capabilities of modern tools. One of the most popular tools to handle big data is Advanced Excel and its relevant add-ons (Rose, Spinks, & Canhoto, 2015).

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Determining the impact of an event on share prices using the event study

Event study helps to determine the effect of an event on a dependent variable. In most cases event study is used to determine the impact of an event on the stock prices of a company. The main motive of the event study is to find whether the event has abnormal returns on the prices of the stock. In other words whether the prices would have changed if the event has not taken place. To conduct the event study following steps can be followed: Read more »

Solutions to the problems faced during statistical analysis using panel data

In one of my recent projects I had to use panel data for analysis. During the data analysis I faced some problems which may be the most common problems in panel data analysis. So here are some of the problems with their possible solutions that helped me.

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Factor analysis using SPSS

Factor analysis is used to find factors among observed variables. In other words, if your data contains many variables, you can use factor analysis to reduce the number of variables. Read more »

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