Document Type

Thesis - University Access Only

Award Date

2010

Degree Name

Master of Science (MS)

Department / School

Mathematics and Statistics

Abstract

This thesis studies the efficacy and reliability of certain probability distributions' abilities to estimate extreme market returns. The data sets analyzed are the S&P 500 from 2001 to 2009 and the Dow Jones Industrial Average from 1928 to 2009. The analysis creates a ratio between the observed proportion of absolute returns above a given amount and the estimated proportion based on the previous period's data. Finally, the distributions are compared based on the sum of the absolute differences of the observed and estimated proportions over a large time interval.

Library of Congress Subject Headings

Stocks

Rate of return -- Forecasting

Rate of return -- Econometric models

Format

application/pdf

Number of Pages

67

Publisher

South Dakota State University

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