Nobody downloaded yet

Quantitative Analysis for Finance - Coursework Example

Comments (0) Cite this document
Summary
The main focus of these three exercises include calculation of the return on the stock, bond and total portfolio of the investors during the year; Determination of the capital market line equation(CML) and calculation of the standard deviation and the expected return of the…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.6% of users find it useful
Quantitative Analysis for Finance
Read TextPreview

Extract of sample
"Quantitative Analysis for Finance"

Download file to see previous pages Basing on the calculated percentages, the return of each portfolio was calculated. Therefore, based on the results, the plan consists of the losses and the highest drawdown which could help investors prepare for what they could face in future. In relation to this, even if the financial plan is considered to be the simplest, it needs assumptions about the way the investment could perform. It is known that such assumptions might not be accurate, but they are required to be reasonable as well as thoughtful. The projections won’t be that useful in case you assume a balanced portfolio with a return of 7 percent every day. It was found that the returns of the total portfolio of investors during the year are negative and this indicates that the portfolio is not good enough to invest. Such resulted from the drop in value of the initial investment of the common bond which was from 30 000 pounds to 23 000 pounds. There was rise in value of the stock investment from 20 000 pounds to 25 000 pounds and this implies that the stock portfolio is good for investment. In regard to the determination of the capital market line equation (CML), we considered the fact that there was a correlation coefficient between the stock returns of 30 percent and the risk free rate of 5 percent .The risk profile could be altered easily when the asset risk is adjusted with the use of the risk –free rate. Based on the capital market line, the market portfolio has a combination of all risky-free asset and risky assets, with the use of the asset‘s market value to calculate the weights. The capital market line was derived by capital market model (CAPM) where the expected return at different risk levels was solved. For exercise 2, the capital market line was determined and in this case, it indicated that the diversified portfolio returns on the capital ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Quantitative Analysis for Finance Coursework Example | Topics and Well Written Essays - 2000 words”, n.d.)
Retrieved from https://studentshare.org/finance-accounting/1689276-quantitative-analysis-for-finance
(Quantitative Analysis for Finance Coursework Example | Topics and Well Written Essays - 2000 Words)
https://studentshare.org/finance-accounting/1689276-quantitative-analysis-for-finance.
“Quantitative Analysis for Finance Coursework Example | Topics and Well Written Essays - 2000 Words”, n.d. https://studentshare.org/finance-accounting/1689276-quantitative-analysis-for-finance.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Quantitative analysis
...?Time Series Analysis There are two types of analysis schemes, ly the qualitative analysis technique and the quantitative mode of analysis technique. Each of them has its own strengths and weaknesses, and they have a vast field under them. Time series analysis is an element of the same process and belongs to the quantitative mode of analysis. In the time series analysis, various other tools and techniques are available that make it a powerful tool in itself for the analytical processes that are quantitative in nature. As the name implies, this form of observation is based...
9 Pages(2250 words)Essay
Quantitative Finance Analysis
...of regression and correlation are analyzed and discussed in order to find out the patterns and behaviors of the past performance of various returns and other specified variables. References Baker, H. Kent . and Martin, Gerald S., 2011.Capital Structure and Corporate Financing Decisions: Theory, Evidence, and Practice. New York: John Wiley & Sons. Berk, Jonathan B. and DeMarzo. Peter M., 2010. Corporate finance. 2nd ed. New York: Prentice Hall. Bierman, Harold., 2003. The capital structure decision. New York: Springer. Brigham, Eugene F. and Ehrhardt, Michael C., 2010. Financial management: theory and practice. 12th ed. New York: Cengage Learning. DeFucoe, R., McLeavy, D., Pinto, J., & Runkle, D. (2007)....
16 Pages(4000 words)Term Paper
Quantitative Methods for Finance
..., J (2003) "Sources of Bias and Solutions to Bias in the Consumer Price Index"Journal of Economic Perspectives, 17(1): pp. 23–44 ONS (2010) “Finding RPI data” http://www.statistics.gov.uk/CCI/nugget.asp?ID=21 Retrieved 2011-12-03. ONS 2010 “Implications of the differences between the Consumer Prices Index and Retail Prices Index”, available at: www.ons.gov.uk/ons/rel/cpi/consumer-price-indices/july-2011/implications-of-the-differenced-between-the-cpi-and-rpi.pdf OECD (2011) “main economic indicators” http://stats.oecd.org/mei/default.asp?lang=e&subject=8&country=gbr Publicwhip.org (2000) “Finance Bill — Rates of duty, etc.: reference to Retail Price Index” 18th Jul 2000...
4 Pages(1000 words)Essay
Quantitative analysis
...?Quantitative analysis Quantitative research involves collection and analysis of quantitative data. The type of data that the research method involves is objective, contrary to subjective data that researchers encounter in qualitative research. Like qualitative research, quantitative faces a number of challenges in its implementation and this paper evaluates some of the challenges of conducting quantitative research and analyzes the issues associated with sampling, validity, reliability, and bias. Quantitative research confounds exist that influences research results against independent variables’ forces and therefore challenges implementation of quantitative research. History confound, maturation confound, and testing confound... are...
4 Pages(1000 words)Research Paper
Quantitative Analysis for Finance
...Quantitative Analysis for Finance Table of Contents  Quantitative Analysis for Finance Table of Contents 2 Part C 3 Part D 4 Part C 7 References 10 Bordens, K. S. & Abbot, B. B. (2006) Research Design And Method (6th edition). New York: McGraw-Hill. 10 Doanne, D. P. (2006) Applied Statistics In Business And Economics. New York: McGraw-Hill. 10 Fan, J. & Yao, Q. (2005) Nonlinear time series: nonparametric and parametric methods. London: Springer. 10 Frohne, P. T. (2007) Quantitative measurements for logistics. New York: McGraw-Hill. 10 Hamilton, J. D. (1994) Time series analysis. Princeton University...
4 Pages(1000 words)Essay
Quantitative method for finance
...1. Since Xt and Yt ­ are two random walk series, regressing Yt on Xt using a simple linear regression should yield a insignificant coefficient of Xtand a very low R-squared reflecting very bad fit. But if the regression is carried out, it will be found that the coefficient is highly significant and the R-squared value is high. This is known as a spurious regression since it implies dependence although the variables are independent of one another. The problem will go away if the regression is run in first differences, or a lagged value of Y is included in the regression. 2. Probability models are models that become relevant when the outcome of interest is not continuous (such as wages per week or stock prices) but rather binary... Since Xt...
4 Pages(1000 words)Essay
Quantitative finance
...Analysis With Microsoft Excel: Updated for Office 2007. Chicago, IL: Cengage Learning. Fleischer, P., 2003. Volatility and information linkages across markets and countries. Australian Journal of Management, 28(3), pp. 251-272 Jobson J.D. and Korkie, B., 1981. Performance hypothesis testing with the Sharpe and Treynor measures. The Journal of Finance 36 (4): pp. 888-908. JSTOR 2327554. New features of the stock market surge. , 2005. Businessline, , 1-1. (Online) Available from: http://search.proquest.com/docview/221960493?accountid=145382> (Accessed 17 December 2013). Sharpe, W.F., 1994. The Sharpe Ratio. The Journal of Portfolio Management, 21 (1): pp. 49–58. doi:10.3905/jpm.1994.409501 Tara,...
10 Pages(2500 words)Essay
Quantitative Applications in Finance
... Notes. (n.d.). CFA Exam Study Notes and Practice Questions. Discretely and Continuously Compounded Rates of Return. Web. Coate C. J., Frey K. J., Sakuvich S. N. (2009), Environmental Accounting and Reporting 101 Dunn, C., Cherrington, J. O, Hollander, A. (2005). Enterprise Information Systems. A Pattern Based Approach. Finance Formulas. (n.d.). Geometric Mean Return: Use of Geometric Mean Return Formula. Web. Keitel, Becerra et-al (2011). How to Calculate Environmental Costs, Case Company; Grafica Cienfuegos Lamb, R. (2013). Got Beta? A Professional Application of Interpreting Systematic Risk. Journal of Financial Planning... Q1 (a)ROI = ___Gain__________ T Year 6% = 0.06 and 5.75% = 0.0575 Let y = gain or growth stock and X be amount...
9 Pages(2250 words)Essay
Quantitative analysis
...Article Critique of Quantitative Article Amarachi Akpuka July 28, Article Critique of Quantitative Article The paper critiques Hjaltadóttir et al.’s (2012) article, “Quality of Care in Icelandic Nursing Homes Measured with Minimum Data Set Quality Indicators.” Their research goal is to determine if Icelandic nursing homes provide quality care through the Minimum Data Set (MDS) quality indicators. Results showed high prevalence for declining quality of care. Background and Significance The researchers explained the background of the study well because it mentioned international and national initiatives for measuring health care quality. In addition, they did not directly present the research question in the introduction... as a quality of...
5 Pages(1250 words)Article
Quantitative Finance 203
...QUANTITATIVE FINANCE 203 Plot the exchange and bill rates separately against time on EXCEL. What do you observe on the movement of these assets during the Global Financial Crisis (late 2008)? 2. Calculate the returns of each asset using the following: Where is the rate at time . Plot the returns for each rate 3. Create a histogram for each of the returns series and report their descriptive statistics including mean, median, mode, variance, standard deviation, skewness and kurtosis. What conclusion can you draw by examining the kurtosis in each case? 4. SOLUTION Descriptive statistics Mean -0.00103 Standard Error 0.006297 Median 0 Mode 0 Standard Deviation 0.454891 Sample...
5 Pages(1250 words)Speech or Presentation
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Coursework on topic Quantitative Analysis for Finance for FREE!
Contact Us