Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Obtain Consumer Price Index (CPI) from either Quandl or FRED. - By using pdfetch or quantmod packages, obtain monthly S&P 500 Price Index.

Obtain Consumer Price Index (CPI) from either Quandl or FRED. \ \ - By using pdfetch or quantmod packages, obtain "monthly" S&P 500 Price Index. (or transform the series to monthly by collapse() command)\ \ - Combine these two series together monthly, start and end dates should be the same. (You can use Excel file if it is easier, then import to R)\ \ - Calculate the real value of S &P 500 Price Index.\ \ - Compare the nominal value and real value of the index. Plot them together to see visually. Is there any significant difference you can see visually? Explain why.\ \ - Forecast the real value of S&P 500 Price Index for the next 6 months.\ \ - Would you prefer to invest in the index based on the forecasted value? \ \ - Calculate the return of nominal S&P 500 Price Index. Plot the return and command on what you see visually. Does it look stationary? Forecast for the next 6 month ahead by any model you would choose? Explain the data and forecasted values.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Asian Finance REITs Trading And Fund Performance

Authors: David Lee, Greg N. Gregoriou

1st Edition

0128009861, 978-0128009864

More Books

Students also viewed these Finance questions

Question

What is meant by planning or define planning?

Answered: 1 week ago

Question

Define span of management or define span of control ?

Answered: 1 week ago

Question

What is meant by formal organisation ?

Answered: 1 week ago

Question

What is meant by staff authority ?

Answered: 1 week ago