Finance Research Paper #1

Section 1: Theory

In section 1 of your document, you should examine where, when, and by who your particular research topic was conceived and what it ‘looked’ like at that time. Your research should include the seminal work that laid the foundation for your topic.

Section 2: Present

In section 2 of your document, you should examine how the theoretical base of your topic has evolved over time. The objective here is to bring your topic to the present and engage in research related to recent articles published on this topic.

Section 3: Application

In section 3 of your document, you should find some way to apply this theoretical base to a business case / scenario. How does this topic affect us, influence us? How can we leverage our knowledge of this topic to make better business decisions? Is your topic ‘empirical’, can you construct an analysis to test it?  

A firm wishes to assess the impact of changes in the market return on an asset that has a beta of 1.4