Examining the Relationship between Expected Market Returns and Political Variables Using Generalized Method of Moments Procedures

Authors

Ian Wright, Brigham Young University
Dr. Keith Vorkink, Brigham Young University

Keywords

market returns, political variables, 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 learn 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.

Recommended Citation

Wright, Ian and Vorkink, Dr. Keith (2013) "Examining the Relationship between Expected Market Returns and Political Variables Using Generalized Method of Moments Procedures," Journal of Undergraduate Research: Vol. 2013: Iss. 1, Article 2438.
Available at: https://scholarsarchive.byu.edu/jur/vol2013/iss1/2438