Please use this identifier to cite or link to this item: https://hdl.handle.net/10356/76813
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dc.contributor.authorHo, Jia Jun
dc.contributor.authorSoh, Isabelle Shi Min
dc.contributor.authorLim, Zhi Xun
dc.date.accessioned2019-04-17T13:00:07Z
dc.date.available2019-04-17T13:00:07Z
dc.date.issued2019
dc.identifier.urihttp://hdl.handle.net/10356/76813
dc.description.abstractAcross the past two decades, the world’s stock trading volume has increased nearly five-fold. In Singapore, stock trading volume has increased from US$74.137 billion to US$219.612 billion, amounting to an increment of 196% (World Bank, 2018). Given the increasing scale and pervasiveness of financial trading, it is important to understand market participants’ investment decisions. In the world of financial trading, participants are required to make investment decisions, often while facing ambiguous information regarding fundamental asset values. This paper seeks to investigate the relationship between signal extraction and ambiguity attitudes on financial asset pricing decisions. The analysis concluded that individuals are able to do signal extraction, but fail to do so under ambiguity. Using the Ordinary Least Squares (OLS) method, we also showed that Ambiguity-Averse subjects perceive significantly higher variances compared to Ambiguity-Seeking subjects when faced with identical ambiguous information. The results obtained highlight that ambiguity may be a source of market instability or cause deviation of market prices from rational expectations.en_US
dc.format.extent62 p.en_US
dc.language.isoenen_US
dc.subjectDRNTU::Social sciences::Economic developmenten_US
dc.titleSignal extraction, ambiguity and asset pricing : an experimental studyen_US
dc.typeFinal Year Project (FYP)en_US
dc.contributor.supervisorBao Teen_US
dc.contributor.schoolSchool of Social Sciencesen_US
dc.description.degreeBachelor of Arts in Economicsen_US
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Appears in Collections:SSS Student Reports (FYP/IA/PA/PI)
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