1. In April 2019, a market view on the FTSE100 index from an analyst was given...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. In April 2019, a market view on the FTSE100 index from an analyst was given as below: Probability FTSE100 Return 20% 0.7 0.2 5% 0.1 -30% Scenario Bull Neutral Bear Discuss your market view on the FTSE100 for the coming year. Make clear what your subjective probability for each of the possible market scenarios is and their corresponding returns for the index. Although it is your subjective market view, you need to defence it by using most recent macro-economic news, references and/or your history data analysis. History data is available from internet sources (for example, https://finance.yahoo.com/quote/ %5EFTSE%3FP%3DFTSE/history? period1=1428969600&period2=1586822400&interval=1d&filter=history&frequency=1d). Based on your market view, calculate the expected rate of return for the FTSE100 index and its standard deviation for the coming year. 1. In April 2019, a market view on the FTSE100 index from an analyst was given as below: Probability FTSE100 Return 20% 0.7 0.2 5% 0.1 -30% Scenario Bull Neutral Bear Discuss your market view on the FTSE100 for the coming year. Make clear what your subjective probability for each of the possible market scenarios is and their corresponding returns for the index. Although it is your subjective market view, you need to defence it by using most recent macro-economic news, references and/or your history data analysis. History data is available from internet sources (for example, https://finance.yahoo.com/quote/ %5EFTSE%3FP%3DFTSE/history? period1=1428969600&period2=1586822400&interval=1d&filter=history&frequency=1d). Based on your market view, calculate the expected rate of return for the FTSE100 index and its standard deviation for the coming year.
Expert Answer:
Answer rating: 100% (QA)
In order to calculate the expected rate of return for the FTSE100 index based on the given market vi... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these finance questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
According to the Mortgage Bankers Association, 10% of all home mortgage loans in California were in foreclosure in the fourth quarter of 2011. Assuming this rate holds, if you randomly pick 30...
-
What is the difference between accounting controls and administrative controls?
-
Arthur Lybrand, LLP is a large law firm with the following balance sheets at September 30: On September 30, Ernest Cooper retired from the firm. Prior to his retirement, he owned a twenty percent...
-
The Drucker Institute ranks corporations for managerial effectiveness based on a composite score derived from the following five factors: customer satisfaction, employee engagement and development,...
-
What are the strength and direction of the electric field at the position indicated by the dot in FIGURE P23.37? Give your answer (a) In component form. (b) As a magnitude and angle measured cw or...
-
Define the various forms of employee empowerment and analyse the benefits of empowered employees in the service sector. Question 2 Identify the key components of the servicescape and critically...
-
Bell Corporation purchases all of the outstanding stock of Stockdon Corporation for $220,000 in cash on January 1, 2017. On the purchase date, Stockdon Corporation has the following condensed balance...
-
Imagine the country is made up of 100 households. The federal government needs to collect $1,200,000 in income taxes to be able to function. The population consists of six (6) groups: Group A: 19...
-
x4 dx. Consider the indefinite integral5+4x The most appropriate substitution to simplify this integral is u = Then du = x). and so x dxc du, for the constant c = . dx (fill in the blank with a...
-
January 2018. The GM has asked you to prepare a CVP analysis to aid in discussing next year's financial expectations at the upcoming Area Managers' Meeting. The meeting brings together 45 hotel...
-
b) Find the errors in the following two functions. Briefly explain how each may be remedied. void max (a, b) { int a,b; if (a>b) else return a; return b; void test (int) { int i; for(i=1; i
-
The company name is iTechskills. Website : https://itechskills.ca/ Please elaborate or explain : Company highlights: watershed event, summarized history, or any description of the company's reason...
-
I need help finding articles. Can you please link them? Anything related to school counseling or counseling with kids. Anything in the last seven years These are the topics a. Importanceof Openness...
-
IBM has a 5-year, 4% coupon, annual interest bonds that are currently priced at $950 that have a face of $1000. Use these bonds for the questions below. 7. Calculate the Macaulay Duration and...
-
Where are the olfactory sensory neurons, and why is that site poorly suited for their job?
-
In the 2012 tax year, Michelle paid the following amounts relating to her 2010 tax return: Tax deficiency..........................................$5,000 Negligence...
-
In 2012, Lou has a salary of $54,000 from her job. She also has interest income of $1,700. Lou is single and has no dependents. During the year, Lou sold silver coins held as an investment for a...
-
Joan is a self-employed attorney in New York City. Joan took a trip to San Diego, CA, primarily for business, to consult with a client and take a short vacation. On the trip, Joan incurred the...
-
In Figure 30.10, in which regions of space surrounding the accelerating particle does a magnetic field occur? Figure 30.10 Electric force exerted on a stationary charged test particle by the electric...
-
(a) At the origin of the graphs in Figure 30.15, the electric field is zero, but there is a current due to the motion of the charged particles that constitute the dipole. Is this current upward,...
-
The parallel-plate capacitor in Figure 30.24 is discharging so that the electric field between the plates decreases. What is the direction of the magnetic field \((a)\) at point \(\mathrm{P}\) above...
Study smarter with the SolutionInn App