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Dynamics of Stock and Bond Markets




Dynamics of Stock and Bond Markets;In order to provide students with an introduction to investment analysis and have them critically evaluate alternatives, you are assigned a short;project. You will work on this project daily for four weeks, starting in Module 2, with a final report due in the fifth week of the project (in Module 6).;Using the spreadsheet provided, daily track the following three indicator values for 4 weeks;Dow Jones Industrial Average (DJIA);NASDAQ Index;10-year Treasury Note Yield (10-Yr T-Note Yield);Also during that time you should look for causative factors that impact the value of each of these values. You will get the majority of your information;on pages C1 and C2 of the Wall Street Journal (WSJ).;NOTE: You may choose to get a daily subscription to the Wall Street Journal in order to make your research easier. You can order a student subscription at or access it through the SNHU Online library. The SNHU Online library version does not include images, diagrams or graphs.;You report will analyze the following;The impact of the various causative factors on the three indicator values.;List each of the causative factors in bulleted form (See the chart provided for this information). For each factor, briefly analyze the nature;(positive or negative) and degree (severity) of the impact on each of the three indicators. You must analyze why stocks and bonds values increase or decrease. You may see the Credit Markets section of Section C of the WSJ for causative factors of the bond markets. Also see;pages C1 and C2 of the WSJ for other causative factors for the DJIA and NASDAQ.;The relationship between the three values.;Describe the relationship you find between each of the indicator values. Be sure to compare each with the other two. Calculate the correlation coefficient between;o The DJIA and NASDAQ index;o DJIA and the 10-Yr T-Note Yield;o NASDAQ and the 10-Yr T-Note Yield;Present this information in the table provided. Finally, interpret the coefficients and provide an analysis of the coefficient values.;Your learnings from your observations. This data should also be presented in bulleted form in the data.;Closing Data: DJIA NASDAQ and 10-Yr T-Note Price;Date;DJIA;%;Change;NASDAQ;%;Change;10-Yr TNote Yield;% Change;Causative Factors and Forces Impacting Stock and Bond Markets;Date;4/12/10;Causative Factors;1. Oil price reduces by $1.00 per barrel as OPEC is faces over-production.;2. The Fed reduces discount rate from 2.50% to 2% as inflation fear subsides.;3. Etc.;** Note: The above is provided as an example. Be specific and concrete about the causative factor;How much was the increase (or decrease)? From what level to what level?;Provide information about the magnitude of change makes the statement concrete;Bullet the information for each day;Correlation Matrix;DJIA;DJIA;NASDAQ;T-Note Y;NASDAQ;-;T-Note Y;-;What you learned;Below be specific about what you learned from this activity about the relationships between the markets and the causative events that affect the;markets.


Paper#30133 | Written in 18-Jul-2015

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