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TEMPLATE

-The module for which the applicant has registered
-The title of the research proposal
-The name of the applicant
- The degree obtained by the applicant, including dates of completion
-The postal address, telephone number and e-mail address of the applicant
-The following signed declaration:
I have studied the guidelines of the Department of Economics for the MPEMS92
research proposal module and my proposal conforms to these guidelines.
Signed: ................................................................
Date: ...................................................................


















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Problem Statement ................................................................................................... 2
The problem statement should highlight why you are writing this paper. The question
we often ask is So what so based on what you have under the introduction you can
tell us if there is a problem or not and the study has to show us that problem that will
be addressed later on. One example could be on economic growth, unemployment
(economic growth fell from 10 percent in 2013 while unemployment increased from
30 percent to 50 percent). With this you show how this is a problem and why we
should be concerned.
Research Purpose .................................................................................................... 2
Look at an example of the research purpose
The purpose of this paper is to establish the relationship that exists (if any)
between inflation and stock prices in South Africa. The study will therefore
inform financial economists and managers as to which variable causes the
other. This will be guided by the causality test, proposed by Granger (1980:
424
Try to formulate yours similar to this.
Ai ms and Objecti ves .................................................. 2Error! Bookmark not defined.
Ai ms
This study broadly aims at investigating the impact of
macroeconomic variables, particularly the inflation on the stock
prices in South Africa and hence provide some policy objectives
based on the findings. These macroeconomic variables are interest
rate, Gross Domestic Product (GDP), exchange rate, inflation,
interest rate and money supply covering the period 1980-2010.

Research Objectives
The objectives of this study are:
1. To investigate the causal link between the exchange rate and
the stock prices, GDP and stock prices, and stock prices in
South Africa.
2. To determine whether exchange rate volatility has any effect on
stock prices in South Africa,
3. To determine if other macroeconomic variables affect stock
prices volatility in South Africa.

Research Hypothesis ................................................. Error! Bookmark not defined.2
The hypotheses to be tested are stated as follows:
There exists a functional relationship between stock prices on one
hand and a set of variables on the other: inflation, exchange rate,
interest rate, GDP and the growth of money supply in South Africa.
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These, simply put or stated as the null and alternative hypotheses
can be written as follows:

H
0
: Inflation has no effect on stock prices.
H
1
: Inflation has an effect on stock prices.

H
0
: Macroeconomic variables have no effect on stock market
1
.
H
1
: Macroeconomic variables have an effect on stock market.



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Note that a separate hypothesis is done for each variable and.