Comparing the Effects of the Nasdaq and Hang Seng on the Stock Performance of New Oriental

Abstract

By the end of 2021, New Oriental declared that it would discontinue offering K-9 curricu-lum tutoring available at all its learning centers nationally. It will refocus its efforts and al-locate its resources to academic marketing strategies unrelated to K9 subject education. The goal of this article's research is to evaluate, using regression and CAPM models, the effects of the Nasdaq and Hang Seng on the returns on New Oriental stock. To determine their beta values and intercept terms, regression analysis of New Oriental stock returns, Nasdaq index returns, and Hang Seng index returns were performed. The CAPM model, which mainly investigates the correlation between projected returns and risky assets in the stock market, acts as the asset pricing model. Beta is a crucial variable. The beta coeffi-cient is a risk indicator that measures how volatile an individual stock or stock fund's price is in comparison to the overall stock market. The result is Nasdaq has a higher risk-free rate of interest and lower Beta value. Hang Seng has a lower risk-free rate of interest and higher Beta value.