--%>
Assignment Help - homework help

Analysis On Financial Indices

On a weekly basis, starting from week ending on 18/1, you need to produce a weekly performance report of the major indices around the world following this structure: 

Currencies
a. USD vs Yen, vs GBP(GBP/USD), vs. Swiss Franc (USD/CHF)
b. Euro vs USD, Yen, GBP, Swiss Franc
c. US Dollar Index

DELIVERABLES

Analyze US Dollar Index, the concept of cost of carry, future contract specifications for WTI, Gold via CME Group site.

1. For each index, calculate weekly, Year-to-Date, 12-month(rolling) returns, 3Y CAGR & 5Y CAGR (in case you cannot find the data from the web or Datastream just skip the respective index)

2. Calculate the average annual returns, standard deviation and the cross-correlations for as much from the above indices/asset classes for the following periods:
a. JAN 2007- DEC 2009
b. JAN 2010- DEC 2012
c. JAN 2002- DEC 2012
using i) daily or weekly and ii)monthly data

3. Plot the average returns (y-axis) and standard deviations (x-axis) for the period JAN 2002 - DEC 2012

4. Given the above results, which of these indices/asset classes would you be most / least interested investing in?

5. How do you explain the differences in the correlation figures?

6. Describe briefly each index / asset class from the ones in the list above.

  • Add the definitions of all indices, # of companies/countries included 
  • Weighting method: price weighted, value-weighted, equal-weighted 
  • top 5 of companies/countries in the basket/index - whenever you have access to constituents/members. 
  • Briefly analyze the structure and potential advantages for each index/asset class 
  • List at least one (1) Exchange Traded Fund (ETF) that you could invest in so that to track each one of these indices. 

7. Monitor major headlines and be ready to discuss the direction of the markets from week to week. The 2013 Outlook reports provided you with the key factors / themes that will be influencing the markets this year.

 

 

 

 

   Related Questions in Finance Basics

  • Q : Describe the status of cyclically

    Assume the full-employment, non-inflationary level of real output is GDP3 (not GDP2). If the economy is operating at GDP2 instead of GDP3, describe the status of its cyclically adjusted budget? The status of its present fiscal polic

    		•
  • Q : Decision rule using net present value

    Describe the decision rule for accepting or rejecting proposed projects while using net present value? While using the net present value decision rule any project along with a net present value greater than or equal to zero would be acceptable.

    		•
  • Q : Value $100 is received at the beginning

    $100 is received at the beginning of year 1, $200 is received at the beginning of year 2, and $300 is received at the beginning of year 3. If these cash flows are deposited at 12 percent, their combined future value at the end of year 3 is

    		•
  • Q : What is Carryover Carryover : The

    Carryover: The unencumbered equilibrium of an appropriation which continues to be obtainable for expenditure in years following to the year of enactment. For illustration, when a three-year appropriation is not completely encumbered in the first year,

    		•
  • Q : Portfolio Analysis And Management My

    My Assignment is writing a Three page paper including executive Summary and investing 1million Dollars in Stocks, Bonds and Mutual Funds and Other Assets and Recording Each Investments made Every Friday of the week, Beginning On September 7th to October 30 on An excel spreadsheet which has been crea

    		•
  • Q : What is Legislative Analysts Office

    Legislative Analyst’s Office (LAO): A non-partisan organization which gives advice to the Legislature on the fiscal and policy matters. For illustration, the LAO annually publishes a full analysis of the Governor's Budget and this document becom

    		•
  • Q : How do mergers influence consumers How

    How do mergers influence consumers?The effects mergers have on consumers differ widely. There may be some inconvenience and anxiety while a customer's bank or branch is obtained. The issuance of new account numbers and new checks is a familiar h

    		•
  • Q : Example-implicitly-weighed marginal

    Cite three example of recent decisions which you made in which you, at least implicitly, weighed marginal costs & marginal benefits.

    		•
  • Q : Describe the risk-return relationship

    Describe the risk-return relationship.The relationship among risk and required rate of return is term as the risk–return relationship.  This is a positive relationship since the more risk assumed, the higher the required rate of retur

    		•
  • Q : Distinguish among refinancing debt and

    Normal 0 false false