1.What is capital market?

2. Name a few major stock indices in the U.S. Describe what they represent and what type of weights they use in estimation of the index. What are their ETF or index symbols?

3. Name major bond indices in the U.S. What are their ETFs or index symbols?

4. Name a few major sector stock indices and their ETF or index symbols.

5. Choose one stock index and one bond index. Go to yahoo/Finance and download 5 years of monthly data into your Excel for each bond and stock index. Calculate the monthly rate of return (P1-P0/P0) for bond and stock index in your Excel. Finally estimate the correlation of returns between bond return and stock return over the 5 years.

a. What does the above correlation tell you?