Date of Graduation
5-2021
Document Type
Thesis
Degree Name
Bachelor of Science in Business Administration
Degree Level
Undergraduate
Department
Finance
Advisor/Mentor
Santamaria, Sergio
Abstract
The Capital Asset Pricing Model (CAPM) is a method of predicting future stock prices based on past returns. Specific areas of CAPM analysis utilize regression analysis to accomplish this goal. Historic prices and returns for a specific stock in a company, or even whole sectors of the economy, are compared with the corresponding returns for the market. There have been several historical recessions in United States history, as well as a current, ongoing recession. These recessions, along with their causes and effects, will be discussed extensively in this paper. This paper utilizes an analysis of the Capital Asset Pricing Model to determine which sectors of the economy are most drastically impacted by certain economic downturns, and in some cases dramatically outperformed the market. In addition to baseline analysis, this paper explores the reasoning behind some of the more noteworthy trends during the time period January 1990 through February 2021.
Keywords
Capital Asset Pricing Model, S&P 500, S&P 500 Sectors, Recession
Citation
Sizemore, W. (2021). An Exploration of the Impact of Economic Recessions on the S&P 500 and its Sectors. Finance Undergraduate Honors Theses Retrieved from https://scholarworks.uark.edu/finnuht/63
Included in
Business Administration, Management, and Operations Commons, Corporate Finance Commons, Finance Commons, Finance and Financial Management Commons, Growth and Development Commons, Macroeconomics Commons, Public Economics Commons