THE FORECASTING ABILITY OF A MARKET MODEL FOR SHARES ISSUED BY PETROM S.A.

IACOB (PIRSCOVEANU) Laura-Madalina, Bucharest Academy of Economic Studies

PIRSCOVEANU Cornelia-Cristina , Bucharest Academy of Economic Studies

Abstract:
The scope of this paper is to make an empirical analysis regarding the market model introduced by the American economist Wiliam Sharpe (1963), a research developed based on the idea of portfolio simplification.  In this paper, we tested the ability to predict a market model for shares issued by Petrom S.A. company. The result shows that the market model can be used to predict the profitability of a security, the forecast errors being insignificant. The results of this paper can help the investors to decide when to invest.

Keywords: market model, diversification, market profitability, share

JEL Classification: G10, G11, G12

Volume: 73, Issue: Special

Pages: 230 - 242

Publication date: December, 2021

DOI: 10.56043/reveco-2021-0057

Download the article: http://economice.ulbsibiu.ro/revista.economica/archive/73S16parscoveanu&parscoveanu.pdf

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