Date of Last Revision

2023-05-02 14:17:09


Statistics - Actuarial Science

Degree Name

Bachelor of Science

Date of Expected Graduation

Spring 2015


By using previous stock market data, investors can get a good sense of how to invest for the future. A common way to determine what stocks are riskier than others is by using the beta coefficient. This paper investigates the relationship between the overall S&P 500 market and certain individual stocks to see if we can use past stock return data to predict the future riskiness of certain stocks. Correlation between the individual stocks and the S&P 500 will allow us to determine the relationship between the two. Finding the beta coefficients for the individual stock market will allow investors to see the sensitivity of a share price to movement in the overall market. When we have a correlation and beta coefficient from the previous year, we will use this information to determine if they are a likely predictor for future prices and their overall trend for the years to come. Knowing the different beta coefficients for multiple stocks will allow investors to diversify their portfolios to allow for maximum profit.

Research Sponsor

Dr. Nao Mimoto

First Reader

Dr. Desale Habtzghi

Second Reader

Dr. Richard Einsporn



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