The Academic study of Investments Theoretical research involves 7de building mathematical models and 6 proposing pricing relationships rather than studying actual market data E.g. arbitrage relationships, impact of stock splits and cash dividends on investors Theoretical models are frequently tested by conducting empirical research Strong Cl-The Concept of Investing 171 - 7 Strong C1 – The Concept of Investing Theoretical research involves building mathematical models and proposing pricing relationships rather than studying actual market data. E.g. arbitrage relationships, impact of stock splits and cash dividends on investors Theoretical models are frequently tested by conducting empirical research. The Academic Study of Investments