The purpose of this project is to understand the features of a set of economic or financial variables and be able to measure how they are related. As a group, collect and analyse statistically a set of financial variables and relate them to a financial question. Use Excel to perform calculations.
As a team, find a relevant research question associated to the dataset. The statistical analysis will help you to find answers to that question. Submit a written report intended for a professional audience. Your report should contain : <\/p>\n
Abstract\u00a0\u2013\u00a0summarise objective, contents of the study and conclusions
Introduction (300 words) – present a relevant financial question and its motivation\/justification based on relevant references presented as a literature review. Methodology (400 words)- describe the methods and procedures used for this project Data description (600 words)- describe statistically the variables
Analysis and Findings (600 words) – analyse the covariance\/correlation structure of the data set taking into account the previous data description.
Conclusions and Recommendations (200 words)
References
There is
word document (.doc) by one group member on blackboard by\u00a015th July 2021 at 23.58. The Excel data file (input and output) related to the material presented on the assignment needs to be uploaded to a specific shared folder by deadline. Details of calculations or intermediate results should be supplied in the appendices at the end of your report. The name of your file must be\u00a0FIN5B1- Group number.
The following tasks will guide you through the statistical analysis:
1.\u00a0Find a data set:\u00a0Choose a stock index from the market that has been assigned to your
group (X variable). Then choose 3 stocks from that market for the purpose of the study (name them Y1, Y2, Y3 variables). Then download the daily historical prices from 1st of September 2016 to 1st of September 2020.
2.\u00a0Data description:
a. Discuss and describe your data as well as the reason(s) for your choice of data
and using\u00a0\u201cDescriptive Statistics\u201d\u00a0for each variable (Variables X, Y1,Y2 and Y3)
maximum word limit of\u00a02000 words. The assignment will be submitted as a\u00a0group work
2
Plot all variables and comment on graph(s). <\/p>\n
Transform your prices\/indices variables into returns. (Rename the variables: x, y1,
y2, y3) <\/p>\n
Describe statistically the transformed data set (plot it) and comment about your
results. <\/p>\n
Plot each Y (y) variable against the X (x) variable in a scatter plot and comment
about the relation between each pair of variables. <\/p>\n
3.\u00a0Covariance\/correlation analysis:
Calculate covariance and correlation coefficients of the different pair of variables. Comment about these results. <\/p>\n
Decompose your sample into 2 similar subsamples (2 years length) and calculate again the main descriptive statistics. Comment about these results. <\/p>\n
Compute again the covariance\/correlation analysis. Comment about these results. <\/p>\n
4.\u00a0Conclusions:\u00a0Using the main results of your analysis, conclude about all these results
trying to find ideas or models that could be used to improve the analysis. <\/p>\n","protected":false},"excerpt":{"rendered":"
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