Date of Award

5-2014

Degree Type

Report

Degree Name

Master of Science (MS)

Department

Economics and Finance

Committee Chair(s)

Tyler Brough

Committee

Tyler Brough

Committee

Alan Stephens

Committee

Jason Smith

Abstract

There are a few ways to examine excess market returns in financial literature. One common model used was the Capital Asset Pricing Model or the CAPM. In more recent years some researchers use the Fama French 3 Factor model (FF3F). Using this FF3F model researchers and investors alike have been searching for those excess returns, or the returns above what the market achieves, because everyone would like to “beat the market” as they say. In Boehmer, Huszar, and Jordan’s 2009 paper “The Good News in Short Interest”, the authors believe that they have found a way to get significant excess returns above the market using a simple strategy. When they back tested their strategy against historical markets their results were both statistically and economically significant.

Included in

Finance Commons

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