Research
Testing Market Efficiency in European Tech IPOs
Overview
What this challenge is about.
Your task is to collect daily stock prices for 30 European tech IPOs from the first 60 trading days post-listing. Compute cumulative abnormal returns (CAR) using a market model (e.g., using the STOXX Europe 600 as benchmark). Test whether the average CAR is significantly different from zero at various event windows (e.g., [0, +10], [0, +30]). Then, discuss whether your findings support weak-form efficiency. Success means a rigorous statistical analysis and a clear conclusion.
The Brief
What you'll do, and what you'll demonstrate.
Determine whether the European tech IPO market is weak-form efficient by testing for abnormal returns in the first 60 trading days after listing.
Earning criteria — what you'll demonstrate
- Design and conduct an event study to test market efficiency
- Calculate abnormal returns using the market model
- Apply statistical hypothesis testing to financial data
- Critically evaluate the Efficient Market Hypothesis in a real-world context
Program Fit
Where this fits in your program.
Sharpens the same skills your degree expects you to demonstrate.
Skills
Skills you'll demonstrate.
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Roles this prepares you for.
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