Recognize from the graph the period

Assignment Help Business Economics

Reference no: EM137849

Q. 1. Get all of the monthly data for the TSX composite index (CANSIM series V122620).

a. Present a time series plot of this series and comment on its long run movement.

b. Calculate the mean and standard deviation as well as the maximum and minimum values of the index. What is the standard deviation attempting to measure in this case?

c. Which were the worst and best years in terms of the stock market?

d. Calculate monthly changes and plot the new series. Does the magnitude of the changes in the index increase or decrease towards the end of the sample period?

2. Get the CANSIM monthly data from the earliest possible period (this may differ by series) to 2012 (latest available month) for the following: CAN-US x-rate (V37426), Can-UK x-rate (V37430), the Can-Japan x-rate (V37456), and the Can-Euro x-rate
(V21570998).

a. Present a time series plot of these series and comment on its long run movement. Note that the dollar value of a Yen is quite low and may not show up in this first attempt at
drawing the chart. The remedy in this case, is to draw a secondary y-axis for that series only.

b. Calculate the mean and standard deviation as well as the maximum and minimum values for each series over the sample period. What is the standard deviation attempting to measure in this case?

c. Which were the best and worst decades in terms of x-rate volatility? To answer this question, calculate the standard deviations for each available decade (e.g., the 50s, the
60s, etc.) and present your results in a table.

d. Can you recognize from the graph the period for which Canada was on affixed x-rate regime with the US dollar and the UK pound? What was this period?

3. If the price level recently fell by 5% in Canada while increasing by 20% in Europe, how much must the x-rate change if PPP holds? Assume that the current exchange rate is 0.60 euros per $.

Reference no: EM137849

Questions Cloud

Evaluate the slope of the least-squares regression line : If we fit the least-squares line to the 12 data points (one for each month) we obtain the following results from a software package. Notice that temperature is taken as the explanatory variable and crawling age as the response.

Find parametric equations for the shell''s trajectory : A shell, fired from a cannon, has a muzzle speed (the speed as it leaves the barrel) of 800 ft/s. The barrel makes an angle of 45o with the horizontal and, for ease; the barrel opening is assumed to be at ground level.

What factors influence under amours ability : What factors influence Under Amour's ability to make an economic profit in the cross-training shoe market.

What is the car''s speed at the bottom of dip : A battery having an emf of 11.10 V delivers 102 mA when connected to a 61.0 load. Find out the internal resistance of the battery.

Recognize from the graph the period : Can you recognize from the graph the period for which Canada was on affixed x-rate regime with the US dollar and the UK pound? What was this period.

Establish the charge density of the plane : An astronaut travels to an alternate universe that contains infinite charged plane and no other charged objects. The astronaut observes that the electric field in this universe has a magnitude of 1.20 N/C everywhere and points directly away from the ..

Impacts on currency markets : Impacts on currency markets and on economic conditions within the country and globally.

Determine an initial volume of the gas : A spring with spring constant 12.5 hangs from the ceiling. A 400 ball is attached to spring and allowed to come to rest. It is after that pulled down 6.80 and released. What is the time constant if the ball's amplitude has decreased to 3.90 after 57...

Requirement in secondary market for gasoline falls : Illustrate that there are any extra costs or benefits due to this shift.

User Account

All Pages