Jan 2012 Jan 20 ns are shaded, the most rec: ndecided.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question

Transcribed Image Text:The following charts show the monthly S&P 500
index and the FTSE 100 index over approximately
the last ten years
FRED A
- S&P 500
4,000
3,600
3,200
2,800
2,400
2,000
1,600
1,200
800
Jan 2012
Jan 2013
Jan 2014
Jan 2015
Jan 2016
Jan 2017
Jan 2018
Jan 2019
Jan 2020
U.S. recessions are shaded, the most recent
end date is undecided.
Source: S&P Dow Jones Indices LLC
fred.stlouisfe
8,000.00
6,000.00
4,000.00
2,000.00
0.00
2012
2014
2016
2018
2020
The two indices relate to the USA and the UK,
respectively. Both indices are I(1)
a) Given that the two series are I(1), is it possible
for there to be a causal relationship between
them? If it is possible, how would you test for the
existence of such a relationship?
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