The purpose of this project is to determine whether there is a statistically significant relationship between political risk and stock market performance and returns during major political events. In order to study this, first a list of major political events of varying types was formed and the events were researched. Data including the values of indices which represent the political risk and performance of the United States stock market at the times of these events was then collected. Statistical methods including regression analysis were then used with this data in order to find if there are significant relationships between them. The results of these analyses were then studied in order to determine if this data could be used to form a successful market timing strategy.
Worcester Polytechnic Institute
Interactive Qualifying Project
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