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Excess Return Estimate And Risk Factors In Hospitality Firms, Genti Lagji
Excess Return Estimate And Risk Factors In Hospitality Firms, Genti Lagji
Masters Theses 1911 - February 2014
Calculating the expected return has been a longstanding issue in the finance. There is a positive correlation between the undertaken risk and excess return (or loss) but numerous variables need to be considered. This study builds on the Fama and French formula and adds factors unique to the hospitality industry such as labor cost and diversification in order to get results that are a tailored to the hospitality industry. Active hotel and restaurants companies (SIC 7011 and 5812 respectively) in the 2000-2009 period were analyzed in separate samples. The labor cost improves the explanatory on both samples and the diversification …