FIN30016: Financial Accounting Report, SUT, Malaysia The size effect/premium in stock returns is the phenomenon that small-cap stocks on average outperform large-cap stocks over time
| University | Swinburne University of Technology (SUT) |
| Subject | FIN30016: Financial Accounting |
The size effect/premium in stock returns is the phenomenon that small-cap stocks on average outperform large-cap stocks over time. Therefore, the size premium can be inferred by the portfolio return difference between a small-sized and a large-sized portfolio (i.e. small minus big).
In this assignment, you will evaluate the performance of the size premium across the globe. Professor Kenneth French is one of the authors of Fama and French’s (1993) three-factor model that incorporates a size premium.
In his data library, he has shared historical returns for various asset classes and portfolios, including the size premiums. In the Excel file titled ‘Size premiums across regions’ attached to this assignment on Canvas, you can download the monthly size premiums across six regions/countries:
1) Developed
2) Emerging
3) Europe
4) Japan
5) Asia-Pacific Excluding Japan
6) North America
Are You Searching Answer of this Question? Request Malaysian Writers to Write a plagiarism Free Copy for You.
That is, the number in each cell indicates the monthly size premium for that particular country/region. You are also given the global market monthly premium named ‘Global Market’. Based on the Excel spreadsheet indicated above, perform the following tasks.
1) Calculate the time-series average returns and standard deviations to the size premiums across the six regions/countries. You should also consider the reward to risk ratios calculated as premiums divided by standard deviation. Over the sample period and regions/countries considered, do you think that size matters in investment strategy?
2) Compare the performance of these size premiums with the global market premium over the same period. Do they outperform or underperform the market?
3) Examine the time-series return pattern of these size premiums. Are there any specific periods in which the size premiums outperform or underperform? Based on the time-series return pattern, do you think market condition (e.g. boom or recession) plays a role in explaining the
return variation for the size premiums?
Get Solution of this Assessment. Hire Experts to solve this assignment for you Before Deadline.
Get Help By Expert
At AssignmentHelper.my, we provide professional assignment help for FIN30016 Financial Accounting Report students at SUT, Malaysia. Our team of qualified writers has a wealth of experience in writing Financial Accounting Reports and will be able to provide you with the best assignment writing help. We can assist you in preparing an A+ quality report that meets all academic requirements. We understand the importance of delivering an accurate and well-crafted financial accounting report, so we strive to provide you with comprehensive "do my assignment" services that cover every aspect of your project. Our writers are knowledgeable about the latest research in financial accounting and can easily provide the most up-to-date information on the topic. Check our FIN358 assessment answer, FIN657 assessment answer and many other assignment help.Â
Recent Solved Questions
- MAF201: Cost and management accounting Assignment, UITM, Malaysia In December 2016, ADAWI Constructions Bhd was awarded a contract to construct a sports complex near Bukit Meranek
- Python Programming For Beginners Assignment, MU, Malaysia You are required to develop OPMS which will be used by “OCEAN Sdn Bhd” a Malaysian leading company
- Mass Transfer Assignment, MUM, Malaysia Sulfur dioxide (SOâ‚‚) is a harmful gas primarily emitted from fossil fuel combustion at the TAPCO power plant
- Business Ethics Assignment, CU, Malaysia Offering a bribe is wrong because it is an inducement to act dishonestly, disregard one’s duties, and betray a trust
- TBE101/03: Building Materials Report, WOU, Malaysia Metals are commonly employed in the building and construction industry due to their inherent qualities
- LIN30105: Critical and Creative Thinking Skills Assignment, TU, Malaysia Looking at cities can give a special pleasure; however commonplace the sight may be. Like a piece of architecture
- Co-curricular Activity Assignment, TARC, Malaysia Critically evaluate how co-curricular activities for intellectual development are implemented in schools
- BUSN6120: Managerial Economics Course Work, UNM, Malaysia Based on the concept of Porter’s five forces Model existing level of competitive rivalry in the industry
- Grand Goals Bhd., is in the business of manufacturing steel utensils: Financial Management, Case Study, UTM, Malaysia
- JUS101: Teras Keusahawanan Assignment, USM, Malaysia Kursus keusahawanan bertujuan memberi pendedahan kepada pelajar mengenai bidang keusahawan dan
