JOURNAL OF ACCOUNTING AND FINANCE
Tech Stock Returns and Empirical Analysis of CAPM
Author(s): Tibebe A. Assefa, Basirat F. Haroon, Staie H. Raphael
Citation: Tibebe A. Assefa, Basirat F. Haroon, Staie H. Raphael, (2020) "Tech Stock Returns and Empirical Analysis of CAPM," Journal of Accounting and Finance, Vol. 20, ss. 5, pp. 124-138
Article Type: Research paper
Publisher: North American Business Press
Abstract:
We empirically tested a modified version of Capital Asset Pricing Model (CAPM) using the past twenty one years of 30 largest companies of NASDQ traded at the NASDAQ exchange. We used quarterly data from 1998Q1 until 2018 Q4. The results show that Risk Premium, Real GDP growth, VIX and SMB are good predictors of overall stock returns. In general, our results indicate that risk premium, real GDP growth, and Treasury Yield are consistent predictors of stock returns – with positive coefficient. On the other hand SMB and the change in VIX are negatively significant and weak predictor of stock returns.