Effects of Commodity Prices on Stock Returns in the Firearm Industry
Abstract
A modified version of the CAPM (Capital Asset Pricing Model) is used to evaluate the potential relationship between commodity inputs and the stock returns of public firearm companies. The data analysis involved using the model to develop expected returns for each of the companies’ stock and then a regression was run between the returns provided by the model and historical returns. The p-values for each regression are statistically significant. This indicates that there is some sort of connection between metal commodity returns and stock returns.
This paper has been withdrawn.