Trumping Market Efficiency: Evaluating the Efficient Market Hypothesis and Market Volatility in Response to Donald Trump's Twitter
Open Access
Author:
Moyer, Emily
Area of Honors:
Economics
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
James R. Tybout, Thesis Supervisor Russell Paul Chuderewicz, Thesis Honors Advisor
Keywords:
Efficient Market Hypothesis Capital Asset Pricing Model
Abstract:
In this paper, I discuss the growing importance of social media on the financial markets. Specifically, I look to how Donald Trump’s use of Twitter has impacted the financial press, and as a result the financial markets as well. This paper looks for potential profitable opportunities by understanding if/how Donald Trump’s tweets are violating important financial models. Statistical and econometric tests are performed to better understand the impact of President Trump’s Twitter on the stock market.
