--%>
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 : Define the term Unencumbered Balance

    Define the term Unencumbered Balance: It is the balance of an appropriation not so far committed for particular purposes.

    		•
  • Q : How would the market price of a bond be

    All other things held constant, how would the market price of a bond be influenced if coupon interest payments were made semiannually rather than annually?Most of bonds issued in the United States pay interest semiannually (twice per year). Alo

    		•
  • Q : Would there be positive interest rates

    Normal 0 false false

    		•
  • Q : What is Expenditure Authority

    Expenditure Authority: The authorization to make expenditure (generally by a budget act appropriation, provisional language or some other legislation).

    		•
  • Q : Question related to MPC Normal 0 false

    Normal 0 false false

  • Q : Which ratios would long-term bond

    Which ratios would a potential long-term bond investor is most interested in? Describe. Current & potential lenders of long-term funds, such like banks & bondholders, are interested in debt ratios. While a business's debt ratios rise sig

    		•
  • Q : Describe Modigliani and Miller theory

    Describe Modigliani and Miller theory of dividends? Describe. The Modigliani-Miller theory of dividends says which dividend theory is irrelevant. They claim that it is the income generated by assets that is significant, not how funds are distr

    		•
  • Q : Near monies Normal 0 false false false

    Normal 0 false false

  • Q : Describe Section 28.00 Section 28.00 :

    Section 28.00: It is a Control Section of Budget Act which authorizes the Director of Finance to support the augmentation or diminution of items of expenditure for the receipt of un-anticipated federal funds or other non-state funds, and which identif

    		•
  • Q : Explain characteristics of an efficient

    Explain characteristics of an efficient market?Market efficiency refers to the speed, ease and cost of trading securities. Within an efficient market, securities can be traded quickly, easily and at low cost. Markets lacking these qualities are

    		•