Irregular variation in time series analysis, Financial Management

Irregular Variation

As the name suggests, the movement of the variable is random in nature without consistency and therefore, highly unpredictable. Since this type of irregularity exists for very short durations, the period under consideration will be of days, weeks and at the most of months. An appropriate example would be, a sudden spurt in the price of the share of a company rumors of a takeover. The irregular variation is shown in the figure below. Irregular variation is so inconsistent, that there is not a suitable mathematical model which would explain the phenomena under consideration.


520_irregular variation.png

Till now we have expressed the variations in terms of only one variation throughout. In the real world, this is seldom true and more often we find time series exhibiting more than one type of variation. In this part, we look at an example and examine it for three components of variation leaving out irregular variation.

Posted Date: 9/17/2012 3:46:43 AM | Location : United States

Related Discussions:- Irregular variation in time series analysis, Assignment Help, Ask Question on Irregular variation in time series analysis, Get Answer, Expert's Help, Irregular variation in time series analysis Discussions

Write discussion on Irregular variation in time series analysis
Your posts are moderated
Related Questions
Other than zero coupon bonds, all fixed income securities make periodic payments in the form of coupon interest. This coupon interest can be rei

Turnover has increased 10% since 2009 even if this is at the expense of a drop in the gross margin earned which has fallen from 35.0% to 32.7% which has resulted in only a marginal

Average of Relatives Method We have seen the construction of an index number using the aggregates method. In this section, we shall see the construction of an index using the

Compare and contrast mutual and stockholder-owned savings and loan associations. A few savings and loan associations are owned by stockholders, just like commercial banks and ot

State about Investment decision Decisions relating to investment in both current and capital assets. Finance manager has to evaluate different capital investment proposalsan

Investment intermediaries An investment intermediary includes finance companies, mutual funds, investment banks and securities firms.

What are the Remedies for overtrading Short-term solutions Speeding up collection from customers. Slowing down payment to suppliers. Maintaining lower inventory

Question: (a) The key determinants of investment decisions in the public sector are:- legal, political and financial factors. Show the importance of each determinant when de

What are the assumptions of MM(Modigliani Miller) approach?

Question: (a) An efficient financial market is assumed to hold under the Capital Asset Pricing Model (CAPM). What is the main hypothesis of an efficient financial market? (