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Full-Text Articles in Finance and Financial Management
Market Volatility Asymmetries: The Effects Of Stock Market Returns On Realized And Implied Volatilities, Matthew M. Chestnut
Market Volatility Asymmetries: The Effects Of Stock Market Returns On Realized And Implied Volatilities, Matthew M. Chestnut
Inquiry: The University of Arkansas Undergraduate Research Journal
Volatility is an integral and inescapable variable of financial engineering, modeling, and finance theory itself Classical financial economics proxies volatility for risk itself, as it becomes difficult to predict future price realizations of a given asset when that asset exhibits significant price volatility over a given time. However, the nature of volatility as it is explained by classical financial economics has been extensively questioned in the previous three decades, since it is characterized as a function of uncertainty aggregate market psychology-that is, as a function of fear, greed, exuberance, and other fundamental human instincts and emotions. While previous research has …
Semi-Strong Form Market Hypothesis: Evidence From Cnbc's Jim Cramer's Mad Money Stock Recommendations, Elizabeth Dodson
Semi-Strong Form Market Hypothesis: Evidence From Cnbc's Jim Cramer's Mad Money Stock Recommendations, Elizabeth Dodson
Inquiry: The University of Arkansas Undergraduate Research Journal
Mad Money has become one of the most popular shows on CNBC. The host, Jim Cramer, has an outlandish style and personality that viewers find intoxicating. Cramer's goal for the show is to make people money. Does he succeed? This paper finds that investors can expect to gain above-average, risk adjusted returns by following Cramer's stock recommendations and trading accordingly. These findings challenge the semi-strong form market hypothesis. According to this hypothesis investors should not recognize gains trading on public information since it states that the market has already adjusted prices for that information. It also contributes to current literature …