Is the VIX volatility index (FRED code: VIXCSL) an indicator of broader financial market volatility? Using weekly
Question:
Is the VIX volatility index (FRED code: VIXCSL) an indicator of broader financial market volatility? Using weekly data ending on Fridays, plot from 1994 the VIX,with its scale on the left axis, and the St. Louis Federal Reserve Bank index of financial stress (FRED code: STLFSI), with its scale on the right axis. Describe the financial stress index and comment on how closely related it is to the VIX.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (7 reviews)
The St Louis Feds financial stress index is based on eighteen data series including seven interest r...View the full answer
Answered By
Ajeet Singh
Professional, Experienced, and Expert tutor who will provide speedy and to-the-point solutions.
I have been teaching students for 5 years now in different subjects and it's truly been one of the most rewarding experiences of my life.
I have also done one-to-one tutoring with 100+ students and help them achieve great subject knowledge.
I have expertise in computer subjects like C++, C, Java, and Python programming and other computer Science related fields.
Many of my student's parents message me that your lessons improved their children's grades and this is the best only thing you want as a teacher. I have done plenty of studying and lots of learning on many exciting and challenging topics. All these experiences have influenced my decision to take on the teaching role in various capacities. As a tutor, I am looking forward to getting to understand your needs and helping you achieve your academic goals. I'm highly flexible and contactable. I am available to work on short notice since I only prefer to work with very small and select groups of students.
4.90+
7+ Reviews
15+ Question Solved
Related Book For
Money Banking and Financial Markets
ISBN: 978-1259746741
5th edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
Question Posted:
Students also viewed these Business questions
-
Risk-averse investors care greatly about asset price volatility. Using the FRED Notes about the data series, briefly define the (VIX) Volatility Index (FRED code:VIXCLS) of the Chicago Board Options...
-
Risk-averse investors care greatly about asset price volatility. Using the FRED Notes about the data series, briefly define the (VIX) Volatility Index (FRED code:VIXCLS) of the Chicago Board Options...
-
The plot shows several spikes in the DJIA volatility index, usually in periods when the Wilshire 5000 index is falling. For example, the volatility index peaked at nearly 60% in the crisis of...
-
John Black is considering to purchasing a land from Real Estate Ltd for $1,000,000. The terms of the agreement are, 10% down payment, and the balance is to be repaid at 20% interest for duration of...
-
Refer to the IEEE International Conference on Web Intelligence and Intelligent Agent Technology (2010) study of how social media (e.g., Twitter.com) may influence the products consumers buy, Exercise...
-
Compute (a) The saturation magnetization and (b) The saturation flux density for cobalt, which has a net magnetic moment per atom of 1.72 Bohr magnetons and a density of 8.90 g/cm3.
-
We live in a global economy, and many different external activities have an impact on the business. On what basis would we narrow the scope of this book to de-emphasize tax law, currency exchange,...
-
Tim Markus, Vice President of Phone Lines, earned $92,000 in salary last year. In addition to his salary, he also received low-interest loans from his employer. Tim's interest rate on these loans is...
-
Members BC and ABC need a material that can withstand at least 1643 psi. (based on chart provided a. ???Will we be able to use 1018 steel for either members ABC, BD, or both? b. ???If not would cold...
-
One of the biggest purchases we make in our lifetimes is for a home. Questions that we all ask are these: How much should I spend for a particular home? How many bathrooms are there? How long...
-
You and a colleague both follow the movements of the VIX, an index based on options prices that reflects investors expectations for stock market volatility. Suppose, according to the VIX, implied...
-
You need to purchase Japanese yen and have called two brokers to get quotes. The first broker offered you a rate of 125 yen per dollar. The second broker, ignoring market convention, quoted a price...
-
Given a continuously compounded risk-free rate of 3% annually, at what lease rate will forward prices equal the current commodity price? (Recall the copper example in Section 6.3.) If the lease rate...
-
1. A train traveling at a constant speed of 26.8 m/s rounds a curve of radius 255 m. A chandelier suspended from the ceiling swings out an angle 0 from the vertical throughout the turn. a. Draw the...
-
As shown in the graph, Voltage versus distance from the negative cathode between two parallel conductors. What is the value of the electric field from a distance 20 to 60 cm. Voltage(volt) 120 100 80...
-
A balanced Wheatstone bridge is given in the figure, where the resistances are given as R E 5.0 2 and R, = 7.5 0. Between the points A and B, a 1.0 m-long wire with the cross-sectional area of 3.2 X...
-
The Geneva mechanism is used in a packaging system to convert constant angular motion into intermittent angular motion. The star wheel A makes one sixth of a revolution for each full revolution of...
-
If the system depicted in the figure is moving with constant velocity, find the sin (0) value of the angle denoted in the figure. m 20 g a. 0.5 b. 0.02 c. 0.05 d. 0.1 e. 0.2 M-400 g
-
You are a newly graduated astronaut preparing for your first trip into space. Plans call for your spacecraft to reach a velocity of 500 m/s after 2.4 min. If your mass is 75 kg, what force will be...
-
Q1) What is the a3 Value Q2) What is the a7 Value Q3) What is the a4 Value Q4) What is the b3 Value Q5) What is the b2 Value Q6) What is the sign of 2nd constraint? A pastry chef at a bakery wants to...
-
In a recent issue of the Wall Street Journal (or on www.wsj.com or an equivalent financial Website), locate the prices and yields on U.S. Treasury issues. For one bond selling above par and one...
-
In a recent issue of the Wall Street Journal (or on www.wsj.com or an equivalent financial Website), locate the prices and yields on U.S. Treasury issues. For one bond selling above par and one...
-
A 10-year zero-coupon bond has a yield of 6 percent. Through a series of unfortunate circumstances, expected inflation rises from 2 percent to 3 percent. a. Assuming the nominal yield rises in an...
-
You have a business worth $1,000,000 and other assets (including your home) worth an additional $750,000. What is the recommended automobile insurance policy that you should carry to be FULLY...
-
Republic Services and Waste Management company Compare the companies' long term Revenue, Gross Profit, Operating Profit) and Net Income and related growth trends. What is the average three year...
-
A young couple own a home in NJ. They would like to have Homeowner Insurance coverage for their home in NJ, in case of frozen plumping and damage form heavy snow or power surges. Which Homeowner's...
Study smarter with the SolutionInn App