ARCH/GARCH models in Finance

1. Explain the relevance of ARCH/GARCH models in Finance

2. Explain and illustrate with appropriate models and testt procedures the

following:

(i) the presence or absence of ARCH in stock return

(ii) potentially asymmetric effects of different types of shocks (news) on

conditional return volatility

1. https://web.b.ebscohost.com/ehost/search/advanced?…
2. Review the rubric to make sure you understand the criteria for earning your grade.
3. Familiarize yourself with the structure and requirements for the full, final project by studying the instructions and rubric for the 6.6 Assignment.
4. Select a large public corporation as the subject of your research.
5. Begin conducting research on your subject company, focusing initially on its management, its history, and its product lines.
   1. Sources of research information might consist of (but are not limited to) annual financial reports published by the company, news articles and analyst opinions, interviews with management, and reputable internet sources that provide comparable industry financial information.
   2. Recommended financial news and data sites include Yahoo Finance, Reuters, Morningstar, and MSN Money. Extensive data and analysis is also available through Off Campus Library Services.
      1. For instance, detailed company profiles can be found for most large companies in the Business Source Complete database.
      2. From the library homepage (OCLS), under “Article Databases,” select “Business.” On the next page, select “Business Source Complete.” You may be asked to login at this point, and you should then be in the Business Source Complete database.
      3. At the top-center of the screen, find the word “MORE.” Hover over the word, and you will get a drop-down menu where you can choose Company Profiles. Select and you will be taken to a screen where you can search for a company.
   3. A minimum of 12 unique research sources from reputable scholarly, news, or industry sources will be required for the final paper. Keep track of your resources so you can appropriately list them in the reference list of your paper. The sources should represent an appropriately well-balanced variety of perspectives.
6. Write a brief overview of the company, its management, its history, and its product lines, keeping in mind that this overview will provide a foundation for the rest of your paper. 

Go to the Federal Reserve Bank of San Francisco’s Website to read the article titled “What Moves the Interest Rate Term Structure?” Next, watch the YouTube video, “What Does the Federal Reserve Bank Do?”

• Create an argument on whether the yield rate or the forward interest rate has a greater impact on interest rates in the United States. Analyze the current economic forecasts by the Federal Reserve, economists, and financial experts.

https://www.frbsf.org/economic-research/publicatio…

1. Week 2 Homework

   Instructions

   Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link.

   1. Assume that as of today, the annualized interest rate on a three-year security is 8 percent, while the annualized interest rate on a two-year security is 6 percent. Use only this information to estimate the one-year forward rate two years from now.
   2. You need to choose between investing in a one-year municipal bond with a 6 percent yield and a one-year corporate bond with a 9 percent yield. If your marginal federal income tax rate is 20 percent and no other differences exist between these two securities, which one would you invest in?
   3. Assume that interest rates for one-year securities are expected to be 3 percent today, 6 percent one year from now, and 7 percent two years from now. Using only the pure expectations theory, what are the current interest rates on two-year and three-year securities?
   4. Identify some factors that influence the shape of the yield curve. Describe how financial market participants use the yield curve to make decisions.
   5. Assume there is a sudden expectation of increasing interest rates in the future. What would be the effect on the shape of the interest curve? Explain.
   6. Identify the primary objectives of the Federal Open Market Committee and the means by which it attempts to achieve these objectives.
   7. What is the Beige Book and why do market participants pay attention to it?
   8. Is it the role of the Fed or Congress to determine the fate of large financial institutions that are near bankruptcy?
   9. Does the Federal Reserve directly or indirectly influence equity security prices? Based on your response, do equity market participants focus on current Fed actions or the expected ones when it comes to pricing equity securities?
   10. Visit the Consumer Financial Protection Bureau’s website. Identify one policy objective and its effects on consumers and businesses.

Can you help me understand this Macro Economics question?

1. Suppose in an economy a typical consumer’s basket consists of 30 coffees and 12 pizza.

In 2019, the price of coffee was $3, and price of pizza was $10. In 2020, the price of coffee was $4, and price of pizza was $11.

Answer (a), (b), and (c) based on this information related to consumer price index or CPI.

a. Assuming 2019 as base year, calculate CPI in 2019 and CPI in 2020.

b. Calculate the inflation rate from 2019 to 2020.

c. Mention at least 2 differences between GDP deflator and CPI. Each one of these could be used to compute inflation rate

2. Suppose John earned a salary of $50,000 in 2000 and $70,000 in 2020.
The consumer price index was 170 in 2000 and 260 in 2020.

a.How much is
John’s 2000 salary expressed in 2020 dollars?

b.
What is the present value of a payment of $2,000 to be received 4 years
from today if the interest rate is 5% (that is, r = 0.05)?

c.
Suppose that in a small nation the adult population is 6 million, the
number of employed is 3.8 million, and the labor force participation
rate is 70%. What is the unemployment rate?

-What is the name of your business? Industry?

-How will you use cost of capital considerations in your business’s decision making? Who will make cost of capital decisions? How can cost of capital be managed throughout time? What accounts on your company financial statements will the cost of capital effect? If you were to do a weighted cost of capital analysis what would you look at and how would you perform the calculation?

-How will you use working capital management considerations in your business’s decision making? Who will make working capital management decisions (they can and often differ from who is making cost of capital decisions)? How can working capital mangement be managed throughout time? What accounts on your company financial statements will working capital management accounts effect?

-Explain how your company can be valued by the projects that make it up?

I’m working on a economics question and need an explanation and answer to help me learn.

• Suppose that you have a target of $1,000,000 in sales for your department this fiscal year, and you know that you can either hire cheap high-school graduates, or more expensive college graduates. You won’t be able to hire a college graduate for less than $60,000 per year, while you can find high-school graduates for $30,000. Suppose that you expect each high-school graduate to realize $50,000 in sales. What is the minimum amount of sales for college graduates that justifies hiring them?

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I’m working on a economics discussion question and need an explanation and answer to help me learn.

I need these five questions answered using the article I’ve attached.

1) What are the main organizational problems faced by pirate organizations?

2) Where do pirate crew’s organizational forms come from?

3) What are the primary organizational difference between pirates and merchant ships? Why do you think these differences came about?

4) Why would someone be a pirate?

5) How did pirate leaders induce group members to act in the interest of the pirate organization?

• Explain the concept of financial intermediation.
• Determine if financial intermediation increases the efficiency of the financial system.

Your initial post must be a minimum of 200 words.

Resource: https://ashford.instructure.com/courses/85359/exte… Maintaining Stability in a Changing Financial System: Some Lessons Relearned Again? article.

Another scholarly resource is also acceptable.