Forecasting Stock Prices in International Markets

Running head: FORECASTING STOCK PRICES IN INTERNATIONAL MARKETS
Forecasting Stock Prices in International Markets
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1FORECASTING STOCK PRICES IN INTERNATIONAL MARKETS
Table of Contents
Research Questions:.........................................................................................................................2
Brief literature review:.....................................................................................................................2
Research methodology:...................................................................................................................3
Proposed data source:..................................................................................................................3
Proposed data sample:.................................................................................................................4
Timeframe of the research:..........................................................................................................5
References:......................................................................................................................................7

2FORECASTING STOCK PRICES IN INTERNATIONAL MARKETS
Research Questions:
The research questions those are to be answered through completing study on
“Forecasting Stock Prices in International Markets” are indicated below:
 To analyse how seasonal effects and price reversal impacts stock prices forecasting in the
international markets?
 To evaluate the impact of extreme values removal on stock prices forecasting within
global markets?
 What are the effects of disagreement, trading volume and price volatility on sock prices
forecasting of international markets?
Brief literature review:
An investor needs critical information regarding two prices, which include the existing
price of the investment and future selling price. Despite the same, the investors are involved in
constant review of the pricing history in the past. Moreover, researchers namely, Carlin
Longstaff and Matoba (2014) indicated that the equity premium is elaborated in terms of risk
premium for heterogeneous beliefs and opinion differences. For such reasons, it is deemed that
the investors must be compensated for dealing with the trading risk along with the risks because
of adverse selection at the time disagreement takes place. In contrast, Guerard Jr, Markowit zand
Xu (2015) indicated that production of stock market index is a vital task which has attained an
increased attention in the financial markets all over the world particularly in UK. Moreover,
Hribar and Yang (2016) research conducted by also signified that no stock should be purchased
in case the priced earnings ratio increased 1.5 times the P/E multiple of the market.