- Testing whether financial markets are informational efficient.
- Testing whether the CAPM or APT represent superior models for the determination of returns on risky assets.
- Measuring and forecasting the volatility of stock returns.
- Modelling long-term relationships between prices and exchange rates
- Testing technical trading to determine which makes the most money.
- Testing the hypothesis that earnings or dividend announcements have any effect on stock prices.
- Testing whether markets react to news.
- Forecasting the correlation between the returns to the stock indices.
- Positive Autocorrelation
- Negative Autocorrelation
- No pattern in residuals – No autocorrelation
Presented by Dr. Babar Zaheer Butt to the MS/PhD Students at Iqra University Islamabad