FIN 0353 Financial Institutions
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ProjectGuidelinesPowerPointFIN3531.pptxProject Guidelines
FIN 353
Professor Feldman
Project Part I Instructions
Copy and paste the graphs into a word document.
Under each graph write 2-3 sentences. Each sentence must state the current growth rate and how the current growth rate compares to the historical or moving average. Then state whether this is positive or negative.
Part I
Annual growth rate in commercial and industrial loans – loans precede investment which precedes growth.
Household Service Debt – some debt promotes growth, while too much debt can trigger crises.
Real growth rate in money supply – more money typically more economic growth.
Fed’s monetary base – A fast declining monetary base could be a negative.
Baa-Aaa yield spread – Large spreads are negative, more credit risk.
Treasury Yield Curve – upward sloping or inverted?
Bid to Cover ratio – Anything greater then 1.8 means strong demand.
Conclusion – Net up the positives, neutral, and negatives. What is your forecast in regard to the US economy over the next 12 months?
Part I Guidelines: Positive, Negative, or Neutral for questions #1 to 4. Opposite for 5.
If current growth rate is > mean then that is positive.
If current growth rate < mean then that is negative.
If current growth is around the mean then that is neutral.
If current growth rate is trending up that is positive.
If current growth rate is trending down that is negative.
If current growth rate is flat that is neutral.
Part II
Three Tables
DDM
Comparables
Put-Call Parity Table
Just need two sentences. Is the stock under question over or under valued? Does the put-call parity hold or not?
