Abstract
The motivation for this thesis is to grasp general theory and principles for modeling time series, for the application to financial data. By going through the
theory that makes up this field and bringing that perception to the implementation of modeling. To then evaluate the applicated models in their sense, and
further draw conclusions from the data. The basis for this thesis will be the
application of the ARMA model and the GARCH model to a transformation
of the stock price for each day. The data is gathered from the closing price of
Orkla AS, a company listed on the Oslo Stock Exchange (Oslo Børs).
