# FMIA Assignment Completed

2382 words 10 pages
FINANCIAL MARKET INVETMENT ANALYSIS
(MBA-S3, June 2014)

Teacherâ€™s Name: Dr. Vijay Shenai

Submitted by: SOHAIL BAJWA
Student ID: C0395KKKK1013
Company Allocated for the Assignment:
Experian PLC

Total Words: 2,211
(Excluding Reference List &Appendixes)

INTRODUCTION: 3
A- Market Model and Its Implications 4
Interpretations of Experian PLC Regressions Results 5
Sector Regression Analysis 6
Interpretations of Sector Regressions Results 6
B- Equity Market Risk Premium 7
Calculation of Market Risk Premium 8
Yield Curve 9
Importance of Yield Curve 9
C- Computation of Return of Company and Sector by CAPM 10
D- Comparison of Actual Return with CAPM Results 10
Critical Analysis of Efficient Markets,

R^2
It is the extent to which model explains the data. It should be over 30%, here it is 76%, which means that 76% movement in Sector (NMX2790) is due to FTAS.
Significance of Coefficients
Under the Null Hypothesis each coefficient is 0. Here two Coefficients have p value less than 0.05, so Null Hypothesis is rejected for those two coefficients. It means the coefficient of FTAS Weekly Return (beta) and the Intercept (alpha) are significant while the other coefficients are not different from 0.
Sector.R (alpha)
0.0021
FTAS.R (Beta)
0.9490
P Value
0.10
P Value
0.0000
R^2
0.76172
F Significance
0.0000