--%>
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 : Seasonal variations and secular trends

    Normal 0 false false

    		•
  • Q : Underwriting a new security issue for

    What does an investment banker do while underwriting a new security issue for any corporation? While underwriting a new security issue an investment banker purchase it and after that resells it to investors.

    		•
  • Q : Describe most conservative capital

    Describe most conservative type of working capital financing plan a company could implement? clarify. An all equity capital structure would be the most conservative kind of working capital financing plan approach. The more long-term financing

    		•
  • Q : Define Appropriations Limit

    Appropriations Limit, State (SAL): The constitutional limit on the expansion of some appropriations from tax proceeds usually set to the level of the previous year's appropriation limit as adjusted for modifications in cost of living

    		•
  • Q : Question based on multiplier Normal 0

    Normal 0 false false

  • Q : Explain Category Transfer Category

    Category Transfer: It is a permitted transfer between categories or functions within the similar schedule of an appropriation. These transfers are currently authorized by Control Section 26.00 of the Budget Act (and proceeding to 1996-97, by Section 6

    		•
  • Q : Surpluses drive prices up- shortages

    Normal 0 false false

  • Q : Define Assembly Assembly : The

    Assembly: The California's lower house of Legislature included of 80 members. As an outcome of Proposition 140 (that is, passed in 1990) and Proposition 28 (that is, passed in 2012), members elected in or after 2012 might serve 12-years in the Legisla

    		•
  • Q : What is Reverted Appropriation Reverted

    Reverted Appropriation: An appropriation which is reverted to its fund source after the date its liquidation period has terminated.

    		•
  • Q : Describe the P-E valuation method

    Describe the P/E valuation method. Under what conditions a stock should be valued by using this method?The P/E ratio denotes how much investors are keen to pay for each dollar of a stock's earnings. A high P/E ratio denotes that investors belie

    		•