In recent years, advance in technology have made it possible for the stock markets to trade in real time and also for large dataset to be available for statistical analysis. Thus, we examined the impact of macroeconomic variables on the stock returns of 114 companies listed on the Nigerian Stock Exchange Market. We have established the mathematical framework required to solve our model and perform various empir-ical analysis on the stock market data and macroeconomic variable. The formulated Macroeconomic Factor models are deployed to evaluate the effects of the macroeconomic variables on a volatile economy and Ordinary Least Square procedure are deployed to estimate the parameters of the model. We apply the model to the available data and discovered that the stock market return volatility is inuenced by the selected macroeconomic variables; Gross Domestic Product, Ination, Foreign Exchange Rate, Unemployment, Interest Rate, Price of Crude Oil and Money supply.
Copyright © 2023 Author(s) retain the copyright of this article.
This article is published under the terms of the Creative Commons Attribution License 4.0
If you like this article, see others like it:
- 11 Simple Pure and Applied Mathematics Project Topics and Ideas
- Dynamic Buckling of Imperfection-Sensitive Elastic Structures Under Slowly-Varying Time Dependent Loading
- Mathematical Modelling And Control Of Blood Glucose/Insulin Concentrations in An Insulin Dependent Diabetic Subject
- Iterative Approximation of Equilibrium Points of Evolution Equations
- Convergence in Norm of Modified Krasnoselskii-Mann Iteration for Fixed Points of Asymptotically Demicontractive Mappings