Literature Review
Why do equity prices change – what are the main drivers of equity prices and changes in their valuations?
(Ahmed, 2017) built up a connection between idiosyncratic risks and markets returns. They utilized CRSP securities exchange information for every one of the stocks with the legitimate return and market capitalization information. The time frame for examination was from period of July 1962 to period December 1999. They found that the market return was decidedly identified with the slacked normal stock difference. The variances of the market, then again, did not have prescient power for the market return. The normal stock variances were determined each month as the similarly weighted cross-sectional normal of the differences of the stocks exchanged …