M010LON Global Financial Markets- acquisition to arrive at appropriate

Free Academic Tools

Students Who Viewed This Also Studied

18 Pages

NN43 Accounting and Finance

Question: The assignment is based on the following documentsA case study: ‘Snap Inc.’s IPO’Snap Inc.’s IPO prospectusAn Excel file containing daily share price of Snap from it ...

Course

NN43

Type

Course Work

Subject

Finance

University

The University of Manchester

View Document

379 Pages

Herding Behaviour In Financial Market

He rding be haviour in financial marke t During COVID 19 Pe riod Across Asian M arke ts 1 ABSTRACT This research examines market -wide herding during the COVID -19 epidemic ...

Course

B805

Subject

Finance

University

The Open University

Season

Autumn

View Document

11 Pages

Not For Profit Organization

1 Course ID Stude nt Name 2 Answe r Not for Profit organiza tio n (NPO) is an organiza tio n that works for the welfare and betterme nt of a certain ...

Course

GOVT462

Subject

Finance

University

Liberty University

Season

Fall

View Document

0 Page

Accounting and Finance

...

Course

BUS101

Subject

Finance

University

Saylor Academy

Season

Spring

View Document

M010LON Global Financial Markets

Question

Answered

Task:

This assignment is in the form of an individual coursework report based on the same company used for your presentation, albeit with a different focus on the efficient market hypothesis, event analysis and trading strategies. The purpose is to develop relevant Excel templates to conduct event studies to test market efficiency. Based on the result of event studies, trading strategies and instruments are to be applied to exploit price efficiency/inefficiency during the process of acquisition to arrive at appropriate conclusions and recommendations for the deal.

• Critically analyse the Efficient market Hypothesis (EMH) and its relevance in a highly volatile setting such as a global pandemic especially as they relate to your firm.

1. Draw on a wide range of relevant, high quality, academic literature to give a critical overview of the EMH.

2. Apply the EMH and its counter arguments to your own unique circumstances. Conduct event analysis to test EMH and derive your trading profit from the event. An event analysis template is provided separately based on Chapter 14 contents of Simon Benninga’s textbook ‘Financial Modelling (4th edition)’.

3. Draw on a wide range of relevant, high quality, academic literature to give a critical overview of event study analysis.

4. Conduct regression with market and stock return series to obtain alpha, beta and standard error.

5. Calculate expected return, abnormal return, and cumulative abnormal return.

6. Calculate significance test using T and other relevant indicators, e.g. standard error, r square.

7. Interpret data to critically reflect on the insights from EMH.

8. In addition, you may use two factors models to enhance the regression used.

• You are required to demonstrate trading strategies and instruments that would be appropriate to exploit price efficiency/inefficiency during the process of acquisition. Your analysis should forecast possible trading profit going forward until the appropriate cut-off date. (30%)

1) Draw on the insights from previous section, describe the type of trading strategies and risk management tools intended for the event and your design principle for using these tools based on the result of event analysis.

2) Demonstrate and calculate total return, using relevant trading instruments for the type of strategy used (e.g. long / short strategy).

3) Illustrate how to avoid adverse price movement because of (a) unexpected downside movement for the long position; (b) unexpected upside movement for the short position; and the characteristics of the type of instrument used to hedge risks.

4) In retrospect, how to use (3) in combination with (2) to maximise profit.

M010LON Global Financial Markets

Answer in Detail

i Solved by qualified expert

Get Access to This Answer

Get Answer

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.

Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

Page 1 of 13

12 More Pages to Come in This Document. Get access to the complete answer.

Get Answer

Specially designed essay help services have made MyAssignmenthelp.com one of the most prolific proposal essay help providers. We have arrays of expert essay writers who successfully deliver essay help depending on broad ranges of subjects and topics. We provide nursing essay help, MBA essay help, English Essay writing help and law essay help to students from different fields of study. Broad ranges of essay writing services assist us to offer quality contents within a specific time limit.

More M010LON Global Financial Markets: Questions & Answers

Finance

NN43

The University of Manchester

NN43 Accounting and Finance

Question: The assignment is based on the following documentsA case study: ‘Snap Inc.’s IPO’Snap Inc.’s IPO prospectusAn Excel file containing daily share price of Snap from its IPO toMarch 2020 (Snap shareprice) Snap’s Annual Report 2020 Read the above documents and ...

View Answer

Finance

B805

The Open University

Herding Behaviour In Financial Market

He rding be haviour in financial marke t During COVID 19 Pe riod Across Asian M arke ts 1 ABSTRACT This research examines market -wide herding during the COVID -19 epidemic in Asia. During the time period covered by the sample, the research also analys es h ...

View Answer

Finance

GOVT462

Liberty University

Not For Profit Organization

1 Course ID Stude nt Name 2 Answe r Not for Profit organiza tio n (NPO) is an organiza tio n that works for the welfare and betterme nt of a certain class or the general public at large . It is established as a charitable associatio n, ...

View Answer

Finance

BUS101

Saylor Academy