MONEY BANKNG FINANCE
boomshaka
RP1_F17_template.xlsxInflation
| 1. Research the difference between CPI and GDP deflator to calculate inflation. | 2. US vs Japan inflation rate | ||||||||||||||||||
| Year | US CPI | US inflation rate | Japan CPI | Japan inflation rate | |||||||||||||||
| T/F | Article | 2000 | 77.78 | 102.66 | |||||||||||||||
| CPI is a good measurement for representing change in price of household goods consumed | 2001 | 80.69 | 3.74% | 101.90 | |||||||||||||||
| GDP deflator only considers nominal GDP factor in calculation | 2002 | 83.73 | 100.96 | ||||||||||||||||
| IF GDP increases due to a surge of exporting cet par, CPI will increase as well | 2003 | 85.72 | 100.70 | ||||||||||||||||
| CPI can include goods and services purchased by business and governments | 2004 | 88.05 | 100.69 | ||||||||||||||||
| 2005 | 90.31 | 100.41 | |||||||||||||||||
| 2006 | 93.46 | 100.66 | |||||||||||||||||
| 2007 | 96.91 | 100.72 | |||||||||||||||||
| 2008 | 99.35 | 102.11 | |||||||||||||||||
| 2009 | 100.43 | 100.72 | |||||||||||||||||
| 2010 | 100.00 | 100.00 | |||||||||||||||||
| 2011 | 101.31 | 99.73 | |||||||||||||||||
| 2012 | 103.49 | 99.68 | |||||||||||||||||
| 2013 | 105.88 | 100.03 | |||||||||||||||||
| 2014 | 108.86 | 102.79 | |||||||||||||||||
| 2015 | 112.19 | 103.60 | |||||||||||||||||
| 2016 | 116.02 | 103.48 | |||||||||||||||||
| US/Japan | |||||||||||||||||||
| a | Which country's inflation rate has been lower for all years | ||||||||||||||||||
| b | From 2008 to 2009 which country inflation decreased | ||||||||||||||||||
| c | _____ inflation rate was lowest in 2010 | ||||||||||||||||||
| d | ______ inflation has been steadily increasing since 2012 |
Bonds
| Interactive Chart Link | |
| 1 Types of bonds | |
| a | During which year(s) post 1970 did interest rates(yields) on 3 month T bills increase higher than Moody's Baa bonds |
| b | For most years Corporate Baa bonds have higher interest rates(yields) than US government Tbills and Corporate Aaa bonds |
| c | Why do you think Corporate Baa bonds have higher interest rates(yields) than 3 month T bills |
| d | During which year(s) were 3 month T bills rates lowest |
| e | Corporate Aaa rates seem more volatile than 3 month Tbills rates |
| 2. Research the difference between the fed funds rate and 3 month T bills | |
| Answer the questionnaire | |
Risk-Return
| M= | 1 | SP500 return | FTSE 100 return | RDSA.L return | XOM return | Expected return | ||||||||||||||
| First day of the month | £ | $ | ||||||||||||||||||
| SP500 | FTSE 100 | RDSA.L | XOM | r SP500 | rFTSE 100 | rRDSA.L | rXOM | |||||||||||||
| Sep-16 | 2170.860107 | 6746 | 1820.5 | 86.84 | ||||||||||||||||
| Oct-16 | 6983.5 | 1952.5 | -1.0000 | Risk: Variance and volatility | ||||||||||||||||
| Nov-16 | 6917.100098 | σ2 SP500 | σ2 FTSE 100 | σ2 RDSA.L | σ2 XOM | |||||||||||||||
| Dec-16 | 6752.899902 | 87.239998 | σ SP500 | 0.00% | σFTSE 100 | σRDSA.L | σXOM | |||||||||||||
| Jan-17 | 7177.899902 | 90.889999 | ||||||||||||||||||
| Feb-17 | 2279.550049 | 7107.700195 | 82.940002 | Covariance | ||||||||||||||||
| Mar-17 | 2395.959961 | 83.019997 | σ (SP500,XOM) | |||||||||||||||||
| Apr-17 | 2358.840088 | 82.07 | σ (SP500,RDSA.L | |||||||||||||||||
| May-17 | 2388.330078 | σ (FTSE 100,RDSA.L | ||||||||||||||||||
| Jun-17 | 2430.060059 | σ (FTSE 100,XOM) | ||||||||||||||||||
| Jul-17 | 2429.01001 | 2071.5 | σ (FTSE 100,SP500) | |||||||||||||||||
| Aug-17 | 2476.350098 | 7423.700195 | 2134.5 | |||||||||||||||||
| Sep-17 | 2476.550049 | 7438.5 | 2122 | 76.57 | ||||||||||||||||
| Summary: | ||||||||||||||||||||
| Exchange | Sector | Dividend | What good/service does the firm produce | |||||||||||||||||
| SP500 | ||||||||||||||||||||
| FTSE 100 | ||||||||||||||||||||
| RDSA.L | ||||||||||||||||||||
| XOM | ||||||||||||||||||||
| Answer the questionnaire questions | ||||||||||||||||||||
