Anderson School of Management Theses & Dissertations

Publication Date



All common stock investments are subject to market declines regardless of favorable prospects for growth of earnings, dividends, or other factors contributing to market performance. In times of significant market declines, even the highest quality stock with excellent appreciation potential may decline. A qualified security analyst may find that stock "XXX' is a high quality stock and recommend its purchase, but if the stock market falls, the competent investor will lose wealth, at least temporarily, in spite of his careful job of security analysis. If investors had an analytical tool to help predict these declines, they would be able to largely avoid this temporary loss of wealth. The objective of this study will be to investigate the possibility of establishing a model for forecasting price declines among high quality common stocks at the beginning of a significant market decline. The model would ideally enable an investor in high quality common stocks to dispose of his holdings before suffering any significant capital loss.



Document Type


Degree Name

Master of Business Administration (MBA)

Level of Degree


Department Name

Anderson School of Management

First Committee Member

Ralph Lemon Edgel

Second Committee Member

Jack H. Matthews

Third Committee Member

Lothar George Winter