Do CAPM anomaly variables provide real-time tradable opportunities on the JSE

Master Thesis

2005

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University of Cape Town

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Abstract
This study applies the recursive out-of-sample methodology of Cooper et al. (2005) to determine whether CAPM anomaly variables provide real-time tradable opportunities on the Johannesburg Stock Exchange (JSE). The three predictor variables selected on the basis of the South African literature (size, earnings yield and one-year lagged returns) fail to show any statistical evidence of predictability in realtime.
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Includes bibliographical references (leaves 32-34).

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