Stock Price Performance in the Covid-19 Era: A Five-Phase Analysis
The Covid-19 pandemic has made a significant impact on both the stock market and the<br/>global economy. The resulting volatility in stock prices has provided an opportunity to examine<br/>the Efficient Market Hypothesis. This study aims to gain insights into the efficiency of markets<br/>based on stock price performance in the Covid era. Specifically, it investigates the market’s<br/>ability to anticipate significant events during the Covid-19 timeline beginning November 1, 2019<br/><br/>and ending March 31, 2021. To examine the efficiency of markets, our team created a Stay-at-<br/>Home Portfolio, experiencing economic tailwinds from the Covid lockdowns, and a Pandemic<br/><br/>Loser Portfolio, experiencing economic headwinds from the Covid lockdowns. Cumulative<br/>returns of each portfolio are benchmarked to the cumulative returns of the S&P 500. The results<br/>showed that the Efficient Market Hypothesis is likely to be valid, although a definitive<br/>conclusion cannot be made based on the scope of the analysis. There are recommendations for<br/>further research surrounding key events that may be able to draw a more direct conclusion.
- Co-author: Brock, Matt Ian
- Co-author: Beneduce, Trevor
- Co-author: Craig, Nicko
- Thesis director: Hertzel, Michael
- Committee member: Mindlin, Jeff
- Contributor (ctb): Department of Finance
- Contributor (ctb): Economics Program in CLAS
- Contributor (ctb): WPC Graduate Programs
- Contributor (ctb): Barrett, The Honors College