FTSE 100 - London

1. Obtain monthly or quarterly data for as many as possible of the following macroeconomic variables:
   1. Real Gross Domestic Product.
   2. Inflation, using the Consumer Price Index or Equivalent.
   3. Unemployment.
   4. Interest Rate.
   5. Money Supply.
   6. Industrial Production.
   7. Exchange Rate.
   8. Net Exports.
   9. Foreign Direct Investment
   10. Crude Oil price (or any other major commodity price).
   11. Fiscal Deficit.
2. Time period: from 1970 to 2019, or as discussed in class.
3. Suggested Databases:
   1. World development Indicators (WDI).
   2. Datastream.
4. Compute Correlation Matrix among pairs of the variables.
5. Run a Simple Ordinary Least Squares (OLS) Regression, with Stock Index Returns as the Dependent (Y) Variable and each of the highlighted macroeconomic variables as the Independent (X) Variable.