Momentum Effect: A case study of Baltic States Stock Market

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2017-08-28

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en

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This thesis aims to investigate the existence of momentum effect in the Baltic States stock market. Following the methodology developed by Jegadeesh and Titman (1993) momentum portfolios were formed based on a sample period from 2000 to 2016. Also, this study examines whether the obtained returns could be explained as a compensation for risk exposures through Fama and French (1993) three factors model. The results indicate that returns of momentum portfolios are mainly positive, although statistically insignificant for most of the momentum trading strategies. Furthermore, the risk-based approach could not explain observed momentum returns.

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Faculteit der Managementwetenschappen

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