The Dynamic Behavior Of Daily Returns Of Microsoft Stock Price

15 In testing the hypotheses: H0 β1 ’ 0: vs. H1: β 1 ≠ 0 , the following statistics are available: n = 10, b0 = 1.8, b1 = 2.45, and Sb1= 1.20. The value of the test statistic is:

The three-year SAIC stock price data and its corresponding SSE index are obtained from finance.yahoo.com, as it provides dividend-adjusted closing prices. The two data are ordered in time in Excel (Sort Ascending). It is found that 46 SAIC daily stock prices are missing due to suspension of trading, therefore; 46 corresponding SSE daily index are removed in order to match up dates on the two data series.

Microsoft is a highly diversified company. Its technologically-related products span from software to music players to game consoles to web browsers to search engines to phones. However, its flagship product, the product which has been the primary driver of its profits has been Microsoft Windows, the ubiquitous operating system that runs on virtually every computer in the world. Windows has been deemed so critical that even Microsoft's competitor Apple was effectively forced by market pressures to allow its Macs to run Windows, in an effort to boost sales. "As astounding as Apple's success has been, it hasn't put a dent in the Microsoft Office monopoly. [Current CEO] Ballmer and company still profit on every Macbook running Word, Excel and PowerPoint" (Greg 2012).But while Microsoft continues to make its highly profitable Windows products (despite industry criticism about its user features); it has struggled to diversify in its many critical areas, most notable in its music, phones, and Internet service.

Microsoft are situated within the top 20 largest companies functioning in the world, with turnover figures of 60-70 billion dollars a year (E-how, 2011).

3. Use the tables in the text to determine the critical value used to conduct the test. If there are two critical values, state only the upper value.

Considering the following regression model: BRi=β0++β1(Y)+β2(Z)+ui which connects the bank rate (BR) of Canada to foreign exchange rates(Y) and CPI(Z). In this model X1 and X2 are the corresponding independent variables exchange rates and CPI measured in decimals. There were three estimation methods that were used to estimate the model: The Durbin Watson test is used to test the presence of autocorrelation. The residual values from the regression analysis helps determine if there is a relationship between values that are lagged. The result of the Durbin Watson test lies between 0 and 4 and depending on the value it will show the presence or absence of autocorrelation. The value that is closer to 0 indicates that there is positive autocorrelation, 2 indicates that there is no autocorrelation and values approaching 4 indicate that there is negative autocorrelation. For the hypothesis testing I’ve used the F-Statistic testing, in the later section of the paper I will explain my findings and the results.

Overview Microsoft Corporation (Microsoft) is one of the leading providers of software and storage products and services. The company is engaged in developing, manufacturing, licensing, and supporting software products worldwide. Coupled with these activities Microsoft also offers Project Management consultancy services. As one of the largest technology firms in the world Microsoft is at the cutting edge of new technology development and innovation, and as such both existing and potential shareholders expect a return on their investment. It is therefore important for the firm to make efficient use of the resources at their disposal. The following financial analysis of the Fiscal Years 2008 and 2009 will show that over the period Microsoft

Gallant et.al (1992): Has pointed out the price volume co-movement using daily NYSE data from 1928 to 1987. The Non-parametric methods was used through out to avoid bias due to specification error. It examining the contemporaneous price - volume relationship. Movements are associated with usually high volume leading to increase in both the mean and variability of the

Five market anomalies that appeared in U.S. and Australian equity market are discussed. They are Book-to-market ratio, January effect, small firm effect, weekend and temperature effect. The small firm effect

The aim of this paper is to test the random walk hypothesis by applying the runs test on time series of several selected stocks. The random walk theory is the theory that stock prices changes have the same distribution and are independent of each other, so the past movement or trend of a stock price or market cannot be used to predict its future movement. Shortly said it is the idea that stocks take a random and unpredictable path.

Regression Analysis is numerical process of determining relationship within different variable. It helps to provide analyzing about outcome of independent variable on dependent variable. The data we use for prediction are dependent by the performance of Regression Analysis. This report is determined if the past data could be used to predict the future change in share price. In this report we used data of share prices of URBN Outfitters Inc. to figure out the future value of shares with Regression Analysis method. Future change will be used as dependent variable on Y axis and other values as independent variables on x axis. According to Regression Analysis we have figured out that the past values are useful to find out the future change in share prices.

It should be emphasized, however, that because of inability of the DF-GLS to capture the possibility of a structural break, the power of the test is likely to decrease with an undetected structural break in the series, thereby providing misleading results. For completeness, therefore, we investigate unit roots in the presence of a structural break using the Perron-Vogelsang (PV) test. The results of the PV test are summarized in Panel B of Table 1. As seen in the DF-GLS test, the null cannot (can) be rejected for all the levels (first differences) of the variables, confirming that all the three variables are I(1) series. Hence, it is certain that the underlying series are apparently all I(1) processes even after taking into account a structural break in the series,

In Microsoft’s five-year financial overview, profits have been steadily increasing. The stock price increase tells potential investors that the current shareholders are willing to buy Microsoft’s stocks than selling it. This shows that the shareholders believe that the company has a promising future, which will open doors to new innovations and

In the Table , d stands for 1st difference, such that d(ln_rgdp_noil_sa) is the result of the 1st difference ADF unit root test on seasonally adjusted real non-oil GDP and etc.

It is a well-known fact that most economic and particularly macroeconomic time series have been found to be nonstationary, requiring differencing to induce stationarity, this is reinforced by the fact that a study regarding the distribution of test statistics of a time series as early as the year 1942, (Anderson, 1942). Hence, several tests were composed most popularly the Phillips-Perron test (Phillips and Perron, 1988), KPSS test (Kwiatkowski, Phillips, Schmidt and Shin (1992)) and the augmented Dickey-Fuller test (Dickey and Fuller; 1979, 1981). Several drawbacks