Graduation Year
2020
Date of Submission
12-2019
Document Type
Campus Only Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
Eric Hughson
Abstract
This paper applies a short run event study methodology and a long run buy and hold methodology to test the performance of stock recommendations made on the CNBC show Fast Money. For both tests, I compare realized returns of sample recommendations to a benchmark meant to estimate expected returns. The results suggest that buy recommendations generate significant abnormal returns the day following the show, but holding a portfolio of these buy recommendations over the duration of a year does not provide significant abnormal returns. Clear winners and losers emerge when the recommendations of individual panelists are put to the test.
Recommended Citation
Hull, Justin, "Strategies for the Modern Investor: Evaluating Stock Recommendations from CNBC’s Fast Money" (2020). CMC Senior Theses. 2290.
https://scholarship.claremont.edu/cmc_theses/2290
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.
