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Journal of Undergraduate Research

Keywords

market returns, political factors, GMM, stock market

College

Marriott School of Management

Department

Finance

Abstract

Investors, economists and financial analysts are constantly seeking to develop models that may help them anticipate what the stock market will do and how it functions. They do this so that they may take advantage of any market anomalies as soon as they appear and try to make “easy money.” Various pricing models (see Sharpe (1964), Litner (1965) and Fama and French (1993) for example1) have been and continue to be constructed that try to predict returns, and variables suspected to be correlated with returns have been included in these models in an attempt to determine specific predictors of returns.

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