Aim
To examine the stock market volatility arising
from COVID-19 and the abnormal returns experienced by the markets during the
pandemic and to derive meaningful insights for investors and policymakers.
Analyze data and provide responses in line with the below objectives and hypotheses:
Objectives
I.
To assess the magnitude
and duration of the impact of the Covid-19 pandemic on the U.S. stock market by
analyzing stock market indices movements during key pandemic phases.
II.
To identify and analyze the
key factors that contributed to U.S. stock market volatility during the
Covid-19 pandemic, including macro economic indicators, pandemic related events
and market sentiment.
IV.
To provide
evidence-based recommendations for investors and policymakers on strategies to
manage and mitigate risks during similar crisis situations in the future.
Hypotheses
Hypothesis
1 (Ho): The Covid-19 pandemic has no significant impact on the U.S. stock
market indices during key pandemic phases.
Hypothesis
1 (Ha): The Covid-19 pandemic has a significant impact on the U.S. stock market
indices during key pandemic phases.
Hypothesis 2 (Ho): Macroeconomic indicators,
pandemic-related events, and market sentiment have no significant influence on
U.S. stock market volatility during the Covid-19 pandemic.
Hypothesis 2 (Ha): Macroeconomic indicators,
pandemic-related events, and market sentiment have a significant influence on
U.S. stock market volatility during the Covid-19 pandemic.
Hypothesis 3 (Ho): There are no evidence-based
strategies to manage and mitigate risks for investors and policymakers during
similar crisis situations in the future.
Hypothesis 3 (Ha): There are evidence-based
strategies to manage and mitigate risks for investors and policymakers during
similar crisis situations in the future.
Note Use SPSS statistical
analysis to analyze results
Additional guidance provided below:
Based on the survey questions provided (raw data and summary of responses in charts attached) and the research
objectives outlined, address the following hypotheses from data collected from
the survey:
Survey Questions:
1.
How did the COVID-19 pandemic impact your
investment decisions in the U.S. stock market?
2.
During the peak of the COVID-19 pandemic, how
concerned were you about your investments in the U.S. stock market?
3.
Did you experience any financial losses in your
U.S. stock market investments due to the COVID-19 pandemic?
4.
Which factors, in your opinion, contributed most
to the stock market volatility during the COVID-19 pandemic?
5.
How did you perceive the rebound of the U.S.
stock market after the initial COVID-19 shock?
6.
Did you take advantage of any investment
opportunities during the pandemic market downturn?
7.
How confident are you in the U.S. stock market’s
ability to withstand future crisis situations similar to the COVID-19 pandemic?
Objective I: To assess the magnitude and duration of
the impact of the Covid-19 pandemic on the U.S. stock market by analyzing stock
market indices movements during key pandemic phases.
Hypothesis 1 (Ho): The Covid-19 pandemic has no significant
impact on the U.S. stock market indices during key pandemic phases.
Hypothesis 1 (Ha): The Covid-19 pandemic has a significant
impact on the U.S. stock market indices during key pandemic phases.
Relevance to Survey Questions:
Survey Question 1 (impact on investment decisions)
indirectly addresses whether the pandemic had an impact on the U.S. stock
market and investors’ responses.
Survey Question 3 (financial losses) directly addresses the
impact of the pandemic on investors’ financial outcomes, which is indicative of
market impact.
Survey Question 5 (perception of market rebound) provides
insights into investors’ perception of market impact and recovery.
Objective II: To identify and analyze the key factors
that contributed to U.S. stock market volatility during the Covid-19 pandemic,
including macroeconomic indicators, pandemic-related events, and market
sentiment.
Hypothesis 2 (Ho): Macroeconomic indicators, pandemic-related
events, and market sentiment have no significant influence on U.S. stock market
volatility during the Covid-19 pandemic.
Hypothesis 2 (Ha): Macroeconomic indicators,
pandemic-related events, and market sentiment have a significant influence on
U.S. stock market volatility during the Covid-19 pandemic.
Relevance to Survey Questions:
Survey Question 4 (factors contributing to volatility)
directly addresses the factors contributing to stock market volatility during
the pandemic.
Survey Question 6 (investment opportunities during downturn)
indirectly addresses how market sentiment and events affected investors’
actions.
Objective III: To provide evidence-based
recommendations for investors and policymakers on strategies to manage and
mitigate risks during similar crisis situations in the future.
Hypothesis 3 (Ho): There are no evidence-based strategies to
manage and mitigate risks for investors and policymakers during similar crisis
situations in the future.
Hypothesis 3 (Ha): There are evidence-based strategies to
manage and mitigate risks for investors and policymakers during similar crisis
situations in the future.
Relevance to Survey Questions:
Survey Question 7 (confidence in the market’s resilience)
addresses investors’ perception of market resilience and potential strategies
to mitigate risks in the future.