Explain (i) the relation between market returns and investor sentiment, and (ii) the relation between market returns and conditional volatility. Discuss potential limitations of your work. Explain the...

Explain (i) the relation between market returns and investor sentiment, and (ii) the relation between market returns and conditional volatility. Discuss potential limitations of your work.

• Explain the relation between market returns and investor sentiment.


• Explain the relation between market returns and conditional volatility.


• Discuss limitations of your analysis.