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Stock Caluclation PDF
Stock Caluclation PDF
Similarly, looking at the CAR for the Index return during the event time, the p-value is
found to be 0.02895 which indicates the impact of prime ministers sworn in on the stock market
as a whole is significant. Due to the event, the market return has declined by 0.71%. Therefore this
means that there is a significant Abnormal returns in stock market when the prime minster KP Olis
sworn in is made. Looking at the findings on Induvial stocks and NEPSE index, the presence of
abnormal returns is found indicating the reaction of investors to the political events like Prime
ministers sworn in.
Mean Difference of Returns (-10, +10 days)
Table 2: Difference of Average daily return before and after the event
Stock Average Return Average Return After Mean Difference
before Event Event
Nabil Bank 0.15% -0.29% 0.44%
2.45%
2.18%
1.78%
1.51% 1.36%
2.00% 1.15%
RETUNR
-2.00%
EVENT DATE FEB 15
Figure 2: Abnormal Returns of KBL before and after Prime ministers sworn in
1.69% 1.74%
1.33%
2.00% 0.56% 0.73% 0.55%
0.40% 0.44% 0.29% 0.32%
-0.21%0.06% -0.04%0.09%
-0.65%
0.00% -1.01% -1.00% -1.18%
-1.96%
-2.52%
-2.00%
-4.00%
EVENT DATE, FEB 15
Figure 3: Abnormal Returns of PCBL before and after Prime ministers sworn in
0.61% 0.76%
1.00% 0.27% 0.41%
0.48%
0.23%
0.47%
-0.11% -0.22%
-0.36% -0.32%
0.00% -0.48%
-0.72% -0.66%
-1.00%
EVENT DATE
Figure 4: Abnormal Returns of PCBL before and after Prime ministers sworn in
Figure 5: Abnormal Returns of PCBL before and after Prime ministers sworn in
GIBL abnormal returns
1.49%
2.00% 1.35%
ABNORMAL RETURN
0.81%
1.00% 0.49% 0.47%0.58%0.65% 0.36% 0.29% 0.47%0.59%0.67%
0.05% 0.05% 0.24%
-0.11% -0.13% -0.20%
-0.46% -0.34%
0.00% -0.89%
-1.00%
-2.00%
Figure 6: Abnormal Returns of PCBL before and after Prime ministers sworn in
1.52% 1.58%
0.94%
2.00% 0.43% 0.34% 0.31% 0.14% 0.53% 0.69%
-0.57%-0.67% -0.43% -0.44% -0.27%
-1.11% -0.88%
0.00% -1.82%-1.75%
-2.00% -3.34%
-4.00%
EVENT DATE FEB 15