Please do not post any old answers!! Please do not repost the data I have given
ID: 2741543 • Letter: P
Question
Please do not post any old answers!! Please do not repost the data I have given in the problem. I just need help filling the following chart.
Causative Factors and Forces Impacting Stock and Bond Markets
Date
Causative Factors
4/12/10
Oil price reduces by $1.00 per barrel as OPEC is faces over-production.
The Fed reduces discount rate from 2.50% to 2% as inflation fear subsides.
Etc….
** Note: The above is provided as an example. Be specific and concrete about the causative factor:
How much was the increase (or decrease)? From what level to what level?
Provide information about the magnitude of change makes the statement concrete
Bullet the information for each day
The chart need to be filled according to the fowllowing data,
Closing data for DJIA for the period 31st May to 1st July 2016
30-Jun-16
Closing data for NASDAQ for the period 31st May to 1st July 2016
4,948.05
Closing 10 yr T note yeild 31st may to 1st july 2016
0.01
The impact of the various causative factors on the three indicator values.
List each of the causative factors in bulleted form (See the chart provided for this information). For each factor, briefly analyze the nature (positive or negative) and degree (severity) of the impact on each of the three indicators. You must analyze why stocks and bonds values increase or decrease. You may see the “Credit Markets” section of Section C of the WSJ for causative factors of the bond markets. Also see pages C1 and C2 of the WSJ for other causative factors for the DJIA and NASDAQ.
The relationship between the three values.
Describe the relationship you find between each of the indicator values. Be sure to compare each with the other two. Calculate the correlation coefficient between:
The DJIA and NASDAQ index
DJIA and the 10-Yr T-Note Yield
NASDAQ and the 10-Yr T-Note Yield
Present this information in the table provided. Finally, interpret the coefficients and provide an analysis of the coefficient values.
Your learnings from your observations. This data should also be presented in bulleted form in the data.
Date
Causative Factors
4/12/10
Oil price reduces by $1.00 per barrel as OPEC is faces over-production.
The Fed reduces discount rate from 2.50% to 2% as inflation fear subsides.
Etc….
Explanation / Answer
1
Just go in analysis funcation in excel and go to data analysis, you will obtain the values for the date and time you asked as per the views you asked it tells us that, On the june 23 of 2016 all three nasdaq, Djia and 10 year old bond has been facing erratic movement this may be either due to window dressing or expectation of negative market at this point of time but such a case is not presented by the web and other sources there can be these two problems or there can be problems such as negative outlook towards the market. Which has shown us the effect as presented.Otherwise market has perfomed well, but as it can be seen that market work's together that is if one index falls or rises other index also rises or falls, one action or reaction effects the outlook of other related and unrelated market as well even though 10 year bond will provide fixed rate of return but they also are affected to an extent by such a movement. market is a dynamic Although, correlation between nasdaq and djia is high but change is the highest among the three in case of 10-year bond. Even a bad news in unrelated market such as nasdaq and djia who have different stocks at their index but are following similar trend as well, this shows that markets are full of uncertainities even though unrelated stocks are not risk free from overall market.Similar increase of 20 points is observed in the two idex so, it can be interpreted that 10 year-bond will also change to that extent.
Particulars DJIA NASDAQ 10 year Note Yeild DJIA 1 NASDAQ 0.874187 1 10 year Note Yeild 0.344908 0.5260787941