Category: Free Reading

What is Time Series Analysis? Time series analysis is a technique used to study a sequence of data points collected or recorded over time. These data points are gathered at successive, equally spaced points in time (like daily, monthly, or yearly), capturing how something changes over a period. By analyzing these patterns, we can gain…

Introduction Econometric methods are a set of statistical tools used in economics to analyze data and uncover relationships between different economic variables. One of the most popular and fundamental econometric methods is linear regression. Linear regression helps us understand and predict how one variable (known as the dependent or response variable) changes in response to…

Introduction Econometric methods using Panel Data Analysis involve techniques to analyze datasets that combine both cross-sectional and time-series data. This approach is incredibly useful in economics, social sciences, and finance, where we often want to understand how certain variables behave over time across multiple entities like individuals, firms, or countries. What is Panel Data? Panel…

Introduction Arbitrage Pricing Theory, commonly known as APT, is an influential financial theory developed by economist Stephen Ross in the 1970s. It serves as a framework for understanding and predicting asset returns in financial markets by connecting them to various economic factors. Unlike the Capital Asset Pricing Model (CAPM), which only considers one factor (market…

Introduction Financial Econometrics is a branch of economics that uses statistical techniques to analyze and interpret financial data, helping us understand how financial markets work and how to make predictions about them. One of the core ideas often explored in financial econometrics is the Efficient Market Hypothesis (EMH), a concept that describes how information is…

Introduction Financial markets play a critical role in the economy by providing a structured environment where financial instruments are bought and sold. They allow businesses, governments, and individuals to raise capital, manage risk, and invest in future growth. Let’s dive deeper into the types of financial markets, the main participants, and an overview of market…