Financial Markets Accounting, Finance, SPSS Essay Paper (Essay Sample)
this was a financial markets task. i had to design a carry trade, test it using real market data, and report the outcome. that BASICALLY required me to buy high-interest rate instruments (mostly currencies) and sell low-interest rate ones .source..
A carry trade takes place when one buys high-interest rate instruments (mostly currencies) and sells low-interest rate ones in order to take advantage of the forward rate balance (Burnside, Eichenbaum, & Rebelo, 2011). The forward rate balance refers to the failure of the UIP hypothesis that it –it* = Δst+k + ɛt+k. A failure of the hypothesis means that low-interest rate currencies typically depreciate and high-interest rate currencies appreciate (Berge, Jordà, & Taylor, 2011). Numerous researchers have proposed ways in which one can make the best returns out of the carry trade. One proposal is an equally weighted average version where a trader invests equally in each currency and thus averages the returns. In another version of the trade, a trader first ranks the currencies by interest rate and then dividing the ranking in a defined number of portfolios. Then, the trader sells the portfolio of low-interest rate currencies and buys the portfolio of high-interest rate currencies. This second approach allows one to exploit the best yielding currencies.
- Financial Ratio Analysis Accounting, Finance, SPSS EssayDescription: These are mathematical comparisons that involve grouping together a business account, which has a distinct type of relationship. This information is useful since it helps those parties related to the company to understand how it is performing and will also be able to identify...2 pages/≈550 words| 3 Sources | APA | Accounting, Finance, SPSS | Essay |
- Use of Deadly Force by Law Enforcement. Accounting, Finance EssayDescription: Numerous reports circulating in the US media houses decry the use of deadly force by law enforcements on apparently unarmed and innocent victims. One of the most high profile incidences in the recent past was the shooting of a teenager from Ferguson, Missouri (Freivogel, 2014)....6 pages/≈1650 words| 6 Sources | APA | Accounting, Finance, SPSS | Essay |
- Porters 5 Forces ModelDescription: Porters 5 Forces Model Accounting, Finance, SPSS Essay...2 pages/≈550 words| 1 Source | APA | Accounting, Finance, SPSS | Essay |