--%>
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 Expenditure Expenditure : The

    Expenditure: The expenditures reported on a department’s annual financial reports and “past year” budget documents comprises of amounts paid and accruals (comprising encumbrances and payables) for obligations made for the fiscal year

    		•
  • Q : Explain Urgency Statute or Legislation

    Urgency Statute or Legislation: It is a measure which includes an “urgency clause” requiring it to take effect instantly on the signing of the measure by the Governor and the filing of the signed bill with the Secretary of State. The Urgen

    		•
  • Q : Surpluses drive prices up- shortages

    Normal 0 false false

  • Q : What is Capital Outlay Capital Outlay

    Capital Outlay (CO): A character of expenses of funds to obtain land, plan and build new buildings, expand or transform existing buildings, and/or purchase tools associated to such construction.

    		•
  • Q : Describe risks related with using

    Describe risks related with using a large amount of short-term financing for working capital? By using a large amount of short-term financing usually allows funds to be raised at a lower cost however raise the firm's risk.

    		•
  • Q : Difference among proforma financial

    Describe difference among pro forma financial statements and a cash budget? Depict why pro forma financial statements are not utilized to forecast cash needs. Pro forma income statements deal along with revenues and expenses which are not alway

    		•
  • Q : Why do financial managers compute the

    Why do financial managers compute the marginal tax rate?Financial managers utilize marginal tax rates to estimate the future after tax cash flows from investments.  Because they are interested in how much of the next dollar earned through n

    		•
  • Q : What is a Provision Provision : The

    Provision: The language in a bill or act which imposes necessities or constraints on actions or expenditures of the state. The provisions are frequently employed to constrain the expenditure of appropriations however it might also be employed to give

    		•
  • Q : Production possibilities curve based

    Given is a production possibilities table for consumer goods (automobiles) and capital goods (forklifts): Illustrates these data graphica

    		•
  • Q : Describe the sales forecasting procedure

    Describe the sales forecasting procedure.This is a group effort. Usually sales and marketing personnel provide assessments of demand and the competition. Usually, production personnel provide estimates of manufacturing capacity and other product

    		•