Anomalies in the Financial Markets: Reactions of Traders to Information

There is empirical evidence available that the trader impact the price of an asset, evidence is also available on the fact that the release of information affects the price of an asset. However, the literature lacks a chain of causation that can capture the role of traders in affecting the price in...

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Main Author: Jafri, Wafa
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2008
Online Access:https://eprints.nottingham.ac.uk/22450/
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author Jafri, Wafa
author_facet Jafri, Wafa
author_sort Jafri, Wafa
building Nottingham Research Data Repository
collection Online Access
description There is empirical evidence available that the trader impact the price of an asset, evidence is also available on the fact that the release of information affects the price of an asset. However, the literature lacks a chain of causation that can capture the role of traders in affecting the price in reference to the release of information in the markets. This paper adapts a causation model explained by Young and Young (2008) to model the role of traders after news has been released into the market. This model is then tested using Monte Carlo Simulations on randomly generated numbers. We find that the calculations of market expectations are redundant and that the number of traders can impact the prices after new information has been made public.
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format Dissertation (University of Nottingham only)
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spelling nottingham-224502021-06-09T12:30:08Z https://eprints.nottingham.ac.uk/22450/ Anomalies in the Financial Markets: Reactions of Traders to Information Jafri, Wafa There is empirical evidence available that the trader impact the price of an asset, evidence is also available on the fact that the release of information affects the price of an asset. However, the literature lacks a chain of causation that can capture the role of traders in affecting the price in reference to the release of information in the markets. This paper adapts a causation model explained by Young and Young (2008) to model the role of traders after news has been released into the market. This model is then tested using Monte Carlo Simulations on randomly generated numbers. We find that the calculations of market expectations are redundant and that the number of traders can impact the prices after new information has been made public. 2008 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/22450/1/DISSERTATION.doc Jafri, Wafa (2008) Anomalies in the Financial Markets: Reactions of Traders to Information. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Jafri, Wafa
Anomalies in the Financial Markets: Reactions of Traders to Information
title Anomalies in the Financial Markets: Reactions of Traders to Information
title_full Anomalies in the Financial Markets: Reactions of Traders to Information
title_fullStr Anomalies in the Financial Markets: Reactions of Traders to Information
title_full_unstemmed Anomalies in the Financial Markets: Reactions of Traders to Information
title_short Anomalies in the Financial Markets: Reactions of Traders to Information
title_sort anomalies in the financial markets: reactions of traders to information
url https://eprints.nottingham.ac.uk/22450/