Topic > Financial Analysis and Financial Statements - 1360
Attempted to integrate existing volatility forecasting techniques, using accounting information. Stock volatility provides a measure of the total risk in stock investing. The hypothesis was that future volatility could be predicted by accounting for volatility factors. Another hypothesis was that the options market does not fully capture accounting information predicting future volatility. The analysis determined that at least 30% of the volatility in stock returns could be explained by the volatility of accounting factors
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