This paper evaluates the effect of exchange rate risk on the sum of bilateral trade. To distinguish the effect between different types of countries, two groups are defined: advanced and developing economies. Economic theory on exchange rate risk and trade proposes ambiguous effects of increased volatility. However, the ex ante hypothesis is that developing economies are more sensitive to volatility. Contrarily to the hypothesis, the empirical results suggest that advanced economies would benefit up to twice as much from a removal of exchange rate risk.

This thesis deals with the concept of how price affects demand for a good by estimating various price elasticities of demand for snu sold in Sweden. Information was gathered on price development for snus and cigarettes as well as sales data from Swedish Match, the largest supplier of snus in Sweden. Income-, price- and cross-price elasticities were estimated based on log-log regression. Results show that snus is an inelastic good since the coefficient for price of snus was -0.536. This proved that a 1% increase in price causes a 0.536% decrease in quantity demanded.

The grain market is facing substantial changes. Tradionally, cereal has been a supply-led market i.e. supply conditions have had a major impact on price level or indirectly, through market interventions implemented through the Common Agriculture Policy (CAP). Just a few years ago, Sweden and the EU were not affected so strongly by world market prices for cereals. EU was a surplus-area and to a substantial degree a local market.

This paper describes a study examining four different GARCH models AR(1)-GARCH(1,1), AR(1)-EGARCH(1,1), AR(1)-APGARCH(1,1) and AR(1)-GJR-GARCH(1,1), and their ability to predict future volatility and thereby providing more reliable estimates for Value-at-Risk. The study is based on daily observations for the return of the OMX Stockholm 30 Index, during the time period 31st December 1996 to 29th December 2006. The coefficients for these GARCH models have been estimated using a five-year rolling estimation window, with one-year lags, for five different in-sample-periods. These five in-sample-periods, and the coefficients given by them, have been used to generate five out-of-sample predictions for the volatility in each year. Using these volatility predictions, the daily Value-at-Risk has been calculated for confidence intervals of 90 percent, 95 percent, and 99 percent, respectively, during the time period between 1st January 2001 and 29th December 2006.

Purpose;the purpose of this study is to investigate whether a product ad observer's purchase intention, perception of product quality, brand image perception and price perception is affected depending on the size of the text that was used in the ad to communicate the product price.Methodology;the study was conducted using a quantitative method through a survey. The implementation of the study has been done by using three variants of the same suit ad where the three different variants have been manipulated on the text size on the price information, by reduced / increased the text size. The implementation has also been carried out using two different ad sender, with three ads for each sender.Result and conclusion;the text size on the price of a product ad mainly affects the observer's price and quality perception, where the small text will have a positive effect on quality perception and a negative effect on the quality perception. Even brand image changes depending on the text size where small text will have a positive effect..

It is easy to see that oil has a big part in our economy, by looking at the repeated news from the media and at the stock market, where they follow the oil price very closely. Behavioral finance is about investors making small or big mistakes in the stock market. Behavioral finance describes the importance of understanding your own faults, as well as others investor?s faults. Behavioral finance emphases the importance of not assuming that the financial market is a flawless environment, but to understand the psychology behind investment decisions.

This paper investigates the automatic stabilizer and the underlying factors behind its function. The paper includes both a literature review and an empirical analysis. The literature review discusses the IS-LM and Mundell-Fleming models and different ways to quantify the automatic stabilizer. Based on the theory, the relationship between volatility in GDP and the size of the automatic stabilizers is then analyzed with the help of regressions. Our main result shows a negative relation between these two variables.

The purpose of the thesis is to demonstrate how high frequency trading affects the stock market. The growing high frequency trading is affecting the game plan on the financial markets and concerns have grown about the high frequency users intentions with their business. It is difficult to receive an overall picture of the subject because the lack of previous research and even the research that exist do not show the entire picture. The thesis contributes to the research through a comprehensive picture of the present debate as well as the previous research through a literature study. Our results showed that high frequency trading provides liquidity to the market, there is a statistical connection between high frequency trading and volatility, no price manipulation is being used and there is a need for a supervision of the high frequency trading..

This study attempts to examine the existence and development of price differences in the car sector in Europe. The time period is between 1995, the year of the Swedish entrance in the European Union, and 2003. The study is based on data supplied by the European commission, on a bi-annual basis. Both price differences in general in the EU, and price differences between Sweden and other countries in the EU are examined. The theoretical law of one price is related to the economic integration of the EU and the car sector.

During the last few years, there has been a lot of debate regarding the price ofelectricity on the Swedish market. According to a recent survey from Sifo, anon-bias governmental institute for consumer research and testing, the priceof electricity is what worries Swedish households the most. An investigationof the eciency of the Nordic power grids inuence on the Swedish spotprice is therefore both relevant and valuable. Three quarters of all electricityproduced in the Nordic region is traded at the Nord Pool Spot power market.This survey examines how much of the variation of the swedish spot pricecan be descried by the variation of the nordic system price and how much iscaused because of ineciencies in the power grid. Primarily, linear regressionwith adjustments for endogeneity and heteroskedasticity has been used in orderto analyze data obtained mainly from Nord Pool Spot and Vattenfall AB.The results show that the variation of the system price can account for all butabout 40% of the variation in the Swedish spot price.

This thesis examines the emissions costs of Swedish aviation and their degree of internalisation under current economic instruments. The results show that the degree of internalisation spans from practically zero for a long-haul flight to 6 per cent for a typical domestic flight, where the climate cost, including high-altitude impact, makes up the main part of the cost. To inform evaluation of the consequences of this underinternalisation, or attempts to correct for it using price instruments, the price and income elasticities of international leisure air travel from Sweden are estimated using household expenditure data and two different price measures. The resulting elasticities are very high ? 2.03 or 2.04 for the income elasticity and -2.53 or -1.88 for the price elasticity ? and should be interpreted cautiously due to data limitations, especially for the price elasticities.

Investors? use borrowing as a way to profit from leverage advantages in their portfolios.When investors borrow with their securities as safety for the loan and the value of thesecurities decrease the investor can get a portfolio with more credit than what is covered bythe value of the securities and risk huge losses. To what extent an investor is allowed toborrow with his portfolio as safety depends on the bank or broker and varies between theproviders. By studying available material and in addition to that making an empirical study Iattempt to find out the reason for the varying degrees of leverage possibilities between thebrokers and how the degree of maximum borrowing on the securities are decided. Thefindings show that decision of leverage degree on a security is made after first making aquantitative analysis of the stocks volatility and liquidity and thereafter make a qualitativeanalysis of the company.

 A villas price depends on several important factors. By statistical data, a mathematical multiple regression model was modeled. The model has important explanatory variables such as living space, renovation year and standard points has been taken into consideration, in order to assess their impact on the final price for private homes.By using a statistical program,Minitab 16, the final model was selected with eight explanatory variables. The regression for this model explains up to 67.3 % of the variation on the final price.The results showed percentage wise that the standard points had the greatest impact on the price, there after renovation year and then living space..

The purpose of this master thesis is to evaluate how the current share price and market consensus affect security analysts target price and if an investor should pay any attention to it. Empirical data is primarily collected from qualitative interviews with ten security analysts but also from a quantitative e-mail survey. Our main finding is that security analysts are indeed affected by each others earnings forecasts as well as the current share price. This is not strange, it is in several aspects rational. Security analysts has often nothing to gain by standing out too much and not either by spending too much time trying to create their own opinions due to lack of time or the complexity of what is analyzed.

ABSTRACT TITLE: Oil price shocks impact on the British and the Swedish stock markets SEMINAR DATE: 2007-06-07 COURSE: Bachelor thesis in Business Administration and Economics, 10 Swedish credits (15 ECTS) AUTHORS: Carl Hersaeus, Sven Piehl Trygg ADVISORS: Hossein Asgharian, Göran Andersson KEY WORDS: Dummy Variables, United Kingdom, Oil Price, OLS, Regressions, Stock Markets, and Sweden PURPOSE: The purpose of this paper is to study whether, and how, oil price shocks have an impact on British and Swedish stock markets. METHODOLOGY: Our paper is based on secondary data, focused on historical spot prices on Brent oil and stock indices from Sweden and UK. We construct dummy variables to register positive and negative disturbances in the oil price. Furthermore we try to find a relation between the price disturbances and the different stock indices. THEORY: We take off from earlier studies, which prove that there is a relation between oil prices and stock markets.