Social and Behavioral Sciences Commons^™

Economic Policy Uncertainty And Stock Portfolio Optimization: Cross Country Wavelet-Based Approach, Sara Iqbal, Waqar Ahmed Sethar, Suad Sindhiyao

CBER Conference

The purpose of this research is to assess the impact of Economic Policy Uncertainty (EPU) on the Sectoral returns of China, Pakistan, the USA, the UK, and India. The panel data consisting of EPU, and sectoral returns of Stock Market data of sample countries is from 2012 to 2022. To achieve the research objectives, the wavelet coherence method is used. By applying wavelet coherence analysis to the time series data of economic policy uncertainty and sector returns, researchers can explore how the coherence or correlation between these variables changes over different periods and frequency components which helps in assessing short-, …