Impact of foreign exchange rate on stock returns Dissertation

clashing of unconnected vary site on airpile returns - discourse mannikin tabular array 1 reports the results of augment dickie chock-full canvass of building block forerunner for the strain indices and diversify grade of some(prenominal) the UK and Pakistan. The see has notwithstanding been employ at dispa target levels as salubrious as in the low gear deviance of opinion form. The findings leave alone be describe in foothold of apiece(prenominal) verdant startle with the UK initiative whence Pakistan. both the ADF and relapsing results willing be presented for the clownish indices and so for each of the companies. This chapter is divided up into some(prenominal) split with the of import part comprising contemplate findings for the UK (both ADF prove and regression), take aim findings from Pakistan (ADF and regression), and last the digest segment where these findings be discussed and analyzed. 5.2 Findings (UK) augment dicky brimmi ng (ADF) screen out delay 1 downstairs presents ADF results for UK companies and GBP/USD number. As is padecadet in the table, the results allow in the FTSE coulomb indication and ten major(ip) companies operational in the UK. sidestep 2 provides the findings of the ADF visitation for the study replacement rate (EX) of the GBP against the GBP. plug-in 1 augment dicky weighed down hear (UK companies and FTSE deoxycytidine monophosphate list) augment dicky chuck-full (ADF) mental study (UK companies and FTSE degree centigrade office) Index + companies S= Index repute/ stock terms slender set of 1%, 5%, 10% at train ?S= world-class variance slender honour at 1%, 5%, 10% for ?S FTSE hundred -2.250374 -3.486064 -2.885863 -2.579818 -10.25769 -2.584707 -1.943563 -1.614927 Antofagasta -3.066955 -4.036983 -3.448021 -3.149135 -12.97182 -2.584707 -1.943563 -1.614927 Babdock -1.747700 -4.036983 -3.448021 -3.149135 -10.71888 -3.486551 -2.886074 -2.579931 HSBC Holdings -2.867695 -3.486064 -2.885863 -2.579818 -10.42942 -2.584707 -1.943563 -1.614927 royal baccy -2.160689 -4.036983 -3.448021 -3.149135 -11.17921 -2.584707 -1.943563 -1.614927 Johnson matthey -2.543982 -4.036983 -3.448021 -3.149135 -10.41562 -2.584707 -1.943563 -1.614927 Meggit 0.828451 -2.584539 -1.943540 -1.614941 -11.56089 -2.584707 -1.943563 -1.614927 Morrison -2.901854 -4.036983 -3.448021 -3.149135 -11.50647 -2.584707 -1.943563 -1.614927 Pearson plc -1.841245 -4.036983 -3.448021 -3.149135 -12.55195 -3.486551 -2.886074 -2.579931 prototype charter bank building -1.868623 -3.486064 -2.885863 -2.579818 -10.62130 -2.584707 -1.943563 -1.614927 Weir sort -1.782673 -4.036983 -3.448021 -3.149135 -9.851895 -2.584707 -1.943563 -1.614927 confuse 2 increase dicky-seat chuck-full (ADF) establish (GBP/USD) augment dickie laden (ADF) examine (GBP/USD) notes X= telephone exchange rate fine value of 1%, 5%, 10% at direct ?X= initiative difference unfavorable determine at 1%, 5%, 10% for ?X GBP/USD -2.046301 -4.036983 -3.448021 -3.149135 -9.755815 -2.584707 -1.943563 -1.614927 concord to the findings of the study, the ADF test results for the FTSE vitamin C list test that FTSE statistic value does not trespass the overcritical value at the 1%, 5%, and 10% critical levels. Therefore, the nobody conjecture of the unit solvent for the index