These are projects posted by the students of Dr. Gove Allen at Brigham Young University. These students have taken one semester-long course on VBA and generally have had no prior programming experience

Wednesday, April 13, 2016

Abnormal Returns Tool - Haidyn Knuteson

Executive Summary: Abnormal Stock Returns

From time to time, there are market occurrences which swing cause market over-reactions. This tool helps to gauge how much of those swings are cause by actual market occurrences and what portion is attributable to over-reactions by the market.

A tool like this would be helpful in determining which stocks are overvalued and inflated. An examples when a tool like this would be helpful is illustrated by Google on January 31, 2008. Google planned to release their earnings that day at 4:01 PM but hit the submit button too soon and released earlier that afternoon. This act inherently wasn’t necessarily detrimental but the fact that they missed their earnings was. This sent the market into a frenzy and Google’s stock fell 9% in roughly 4 hours. Much of this swing was due to investors scrambling to protect themselves.

This tool helps to gauge how much of a stock swing is truly due to stock fluctuations and what part is abnormal. 


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