Question: 1. In class, we learned that we could access the impact of a macro indicator by running a regression of the appropriate measure of stock

1. In class, we learned that we could access the impact of a macro indicator by running a regression of the appropriate measure of stock market returns on the appropriate measure of the surprise contained in the announcement of the macro indicator.

Using the posted spreadsheet (HW5_macroanalysis_template), how exactly would you measure a surprise in nonfarm payrolls? Please highlight the corresponding cells in your spreadsheet. What kind of indicator is nonfarm payrolls? (0.5)

Date Period DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Time (UTC-04:00) 1/8/16 8:30 AM 2/5/16 8:30 AM 3/4/16 8:30 AM 4/1/16 8:30 AM 5/6/16 8:30 AM 6/3/16 8:30 AM 7/8/16 8:30 AM 8/5/16 8:30 AM 9/2/16 8:30 AM 10/7/16 8:30 AM 11/4/16 8:30 AM 12/2/16 8:30 AM 1/6/17 8:30 AM 2/3/17 8:30 AM 3/10/17 8:30 AM 4/7/17 8:30 AM 5/5/17 8:30 AM 6/2/17 8:30 AM 7/7/17 8:30 AM 8/4/17 8:30 AM 9/1/17 8:30 AM 1016/17 8:30 AM 11/3/17 8:30 AM 12/8/17 8:30 AM 1/5/18 8:30 AM 2/2/18 8:30 AM 3/9/18 8:30 AM 4/6/18 8:30 AM 5/4/18 8:30 AM 6/1/18 8:30 AM 7/6/18 8:30 AM 8/3/18 8:30 AM 9/7/18 8:30 AM 10/5/18 8:30 AM 11/2/18 8:30 AM 12/7/18 8:30 AM 1/4/19 8:30 AM 2/1/19 8:30 AM 3/8/19 8:30 AM 4/5/19 8:30 AM 5/3/19 8:30 AM 6/7/19 8:30 AM 7/5/19 8:30 AM 8/2/19 8:30 AM 9/6/19 8:30 AM 10/4/19 8:30 AM 11/1/19 8:30 AM 12/6/19 8:30 AM Country United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States Event Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Importance High High High High High High High High High High High High High High High High High High High High High High High High High High High High High High JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN Actual 292.OK 151.OK 242.0K 215.OK 160.OK 38.OK 287.OK 255.OK 151.OK 156.OK 161.OK 178.OK 156.OK 227.OK 235.OK 98.OK 211.OK 138.0K 222.OK 209.OK 156.OK 33.OK 261.OK 228.OK 149.0K 200.OK 313.OK 103.OK 164.OK 223.OK 213.0K 157.OK 201.OK 134.OK 250.OK 155.OK 312.0K 304.OK 20.OK 196.OK 263.OK 75.OK 224.OK 164.OK 130.0K 136.OK 128.0K 268.0K Consensus 200.OK 190.OK 195.OK 200.OK 200.OK 160.OK 180.OK 175.0K 182.5K 175.OK 174.OK 173.5K 175.OK 175.OK 188.OK 180.OK 185.OK 180.OK 177.OK 180.OK 180.OK 85.OK 310.OK 192.5K 189.0K 175.OK 200.OK 185.0K 191.OK 190.OK 195.OK 192.OK 189.OK 185.OK 193.OK 195.OK 180.OK 165.OK 180.OK 175.OK 181.OK 180.OK 161.5K 164.OK 160.0K 140.OK 90.OK 184.OK Surprise 92.OK 39.0K 47.OK 15.OK -40.OK -122.OK 107.OK 80.OK -31.5K -19.OK -13.OK 4.5K - 19.0K 52.OK 47.OK -82.OK 26.OK -42.OK 45.OK 29.OK -24.OK - 118.DK -49.OK 35.5K -41.OK 25.OK 113.OK -82.OK -27.OK 33.OK 18.OK -35.OK 12.OK -51.OK 57.OK -40.OK 132.OK 139.OK - 160.OK 21.OK 82.OK -105.OK 62.5K 0.OK 30.OK -4.OK 38.0K 82.OK Prior 252.OK 262.OK 172.0K 245.0K 208.OK 123.OK 11.OK 292.OK 275.OK 167.OK 191.OK 142.OK 204.OK 157.OK 238.OK 219.0K 79.OK 174.OK 152.OK 231.OK 189.OK 169.0K 18.OK 244.OK 252.OK 160.OK 239.0K 326.0K 135.OK 159.OK 244.OK 248.OK 147.OK 270.OK 118.DK 237.OK 176.OK 222.OK 311.OK 33.OK 189.OK 224.OK 72.OK 193.OK 159.OK 168.OK 180.OK 156.OK FEB High High High High High High MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL High High High High High High High High High High High High AUG SEP OCT NOV Date Period DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Time (UTC-04:00) 1/8/16 8:30 AM 2/5/16 8:30 AM 3/4/16 8:30 AM 4/1/16 8:30 AM 5/6/16 8:30 AM 6/3/16 8:30 AM 7/8/16 8:30 AM 8/5/16 8:30 AM 9/2/16 8:30 AM 10/7/16 8:30 AM 11/4/16 8:30 AM 12/2/16 8:30 AM 1/6/17 8:30 AM 2/3/17 8:30 AM 3/10/17 8:30 AM 4/7/17 8:30 AM 5/5/17 8:30 AM 6/2/17 8:30 AM 7/7/17 8:30 AM 8/4/17 8:30 AM 9/1/17 8:30 AM 1016/17 8:30 AM 11/3/17 8:30 AM 12/8/17 8:30 AM 1/5/18 8:30 AM 2/2/18 8:30 AM 3/9/18 8:30 AM 4/6/18 8:30 AM 5/4/18 8:30 AM 6/1/18 8:30 AM 7/6/18 8:30 AM 8/3/18 8:30 AM 9/7/18 8:30 AM 10/5/18 8:30 AM 11/2/18 8:30 AM 12/7/18 8:30 AM 1/4/19 8:30 AM 2/1/19 8:30 AM 3/8/19 8:30 AM 4/5/19 8:30 AM 5/3/19 8:30 AM 6/7/19 8:30 AM 7/5/19 8:30 AM 8/2/19 8:30 AM 9/6/19 8:30 AM 10/4/19 8:30 AM 11/1/19 8:30 AM 12/6/19 8:30 AM Country United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States Event Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Nonfarm Payrolls SA Importance High High High High High High High High High High High High High High High High High High High High High High High High High High High High High High JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN Actual 292.OK 151.OK 242.0K 215.OK 160.OK 38.OK 287.OK 255.OK 151.OK 156.OK 161.OK 178.OK 156.OK 227.OK 235.OK 98.OK 211.OK 138.0K 222.OK 209.OK 156.OK 33.OK 261.OK 228.OK 149.0K 200.OK 313.OK 103.OK 164.OK 223.OK 213.0K 157.OK 201.OK 134.OK 250.OK 155.OK 312.0K 304.OK 20.OK 196.OK 263.OK 75.OK 224.OK 164.OK 130.0K 136.OK 128.0K 268.0K Consensus 200.OK 190.OK 195.OK 200.OK 200.OK 160.OK 180.OK 175.0K 182.5K 175.OK 174.OK 173.5K 175.OK 175.OK 188.OK 180.OK 185.OK 180.OK 177.OK 180.OK 180.OK 85.OK 310.OK 192.5K 189.0K 175.OK 200.OK 185.0K 191.OK 190.OK 195.OK 192.OK 189.OK 185.OK 193.OK 195.OK 180.OK 165.OK 180.OK 175.OK 181.OK 180.OK 161.5K 164.OK 160.0K 140.OK 90.OK 184.OK Surprise 92.OK 39.0K 47.OK 15.OK -40.OK -122.OK 107.OK 80.OK -31.5K -19.OK -13.OK 4.5K - 19.0K 52.OK 47.OK -82.OK 26.OK -42.OK 45.OK 29.OK -24.OK - 118.DK -49.OK 35.5K -41.OK 25.OK 113.OK -82.OK -27.OK 33.OK 18.OK -35.OK 12.OK -51.OK 57.OK -40.OK 132.OK 139.OK - 160.OK 21.OK 82.OK -105.OK 62.5K 0.OK 30.OK -4.OK 38.0K 82.OK Prior 252.OK 262.OK 172.0K 245.0K 208.OK 123.OK 11.OK 292.OK 275.OK 167.OK 191.OK 142.OK 204.OK 157.OK 238.OK 219.0K 79.OK 174.OK 152.OK 231.OK 189.OK 169.0K 18.OK 244.OK 252.OK 160.OK 239.0K 326.0K 135.OK 159.OK 244.OK 248.OK 147.OK 270.OK 118.DK 237.OK 176.OK 222.OK 311.OK 33.OK 189.OK 224.OK 72.OK 193.OK 159.OK 168.OK 180.OK 156.OK FEB High High High High High High MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL High High High High High High High High High High High High AUG SEP OCT NOV

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

1. In class, we learned that we can assess the impact of a macro indicator by running a regression of the appropriate measure of stock market returns on the appropriate measure of the surprise...

Question/answer needed is bolded below 1. In class, we learned that we can assess the impact of a macro indicator by running a regression of the appropriate measure of stock market returns on the...

1. In class, we learned that we can assess the impact of a macro indicator by running a regression of the appropriate measure of stock market returns on the appropriate measure of the surprise...

In class, we learned that we can assess the impact of a macro indicator by running a regression of the appropriate measure of stock market returns on the appropriate measure of the surprise contained...

Compare Target to its competitors Sears and Walmart .Please evaluate all three companies on the most recent year of (1) profit margin on sales , (2) net income divided by average total assets , (3)...

summarize the main idea of each article, discuss issues being highlighted briefly, give opinion pertaining the coverage of each article and provide recommendations for each issue in the article....

1. Suppose you had $10,000 to invest in a taxable account with a long investment horizon (20 years or longer) and wanted your investment to mirror the performance of the S&P 500. Suppose you are...

Questions and resources are attached in the document. Assignment is regarding about Financial Accounting Theory. ACCT1080 Financial Accounting Theory Topic Allocations Topic of investigation...

Corporate Resilience and Response to COVID-19 by Alex Cheema-Fox, Bridget R. LaPerla, and Hul (Stacie) Wang, State Street Associates; and George Serafeim, Harvard Business School he coronavirus...

Horizon BP in Antelope Park, Alaska, has noticed that utility bills are substantially higher when the average monthly temperature is colder. The only thing in the shop that uses natural gas is the...

Consider a French portfolio manager who invests $10,000,000 in shares of a U.S. company. In order to hedge the stock market risk, he sells S&P 500 stock index futures that expire in three months. The...

Factors such as permitting or training new hires can affect _ _ _ _ _ _ . reasonableness testing all operating policies timing of cash flow investor funding

2 How can companies like Shell ensure that managers and key personnel are adequately prepared for international assignments?

2 Is there a relationship between country of origin of the expatriate and success or failure in an assignment (e.g. are Dutch managers more successful expatriates than British or Japanese managers)?...

3 In view of the experiences of Shell outlined above, is there really a problem with expatriate failure? How can this best be safeguarded against? How might this differ between companies such as...