Assist the analyst to obtain the index value forecasts The following table provides the index value of the capped shareholder weighted top index on the Johannesburg StockExchange (JSE) on the first working day of the years 2002-2021:YearIndex20023754200338342004 51172005644820067908200792132008 115022009 107912010 10022201183422012 104532013107842014 107182015 124602016 13262201787722018 10431201911577202012392202113104An analyst is interested in predicting the opening index value for the years 2022, 2023 and 2024. The analyst is consideringusing trend analysis, as well as exponential smoothing (a = 0.65). However, a colleague suggested that the analyst mayconsider the interest rate as a potential independent variable in a causal regression approach. To this end the followinginformation is available:Year Interest rate (%)2002620036.520047.520057.520062007200892009920109.2520119.5201210201310201411.5201511.5201612201712201812201912.5202012202111.5Interest rate predictions obtained from the South African Reserve Bank are as follows:Year Interest rate (%)202211.0202310.5202410.0Assist the analyst to obtain the index value forecasts.88.5

In the given problem, it is suggested to use the interest rate as a potential independent variable…

The following table provides the index value of the capped shareholder weighted top index on the Johannesburg Stock Exchange (JSE) on the first working day of the years 2002 -2021: Year Index 2002 3754

The following table provides the index value of the capped shareholder weighted top index on the Johannesburg Stock Exchange (JSE) on the first working day of the years 2002 -2021: Year Index 2002 3754

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

See similar textbooks

Similar questions

The table below shows the year open and year closing price of the S&P 500 Stock Index from 2005 to 2020: Year Year Open Year Close Annual Percent Change 2005 $ 1,202.08 $ 1,248.29 2006 $ 1,268.08 $ 1,418.30 2007 $ 1,416.60 $ 1,468.36 2008 $ 1,447.16 $ 903.25 2009 $ 931.80 $ 1,115.10 2010 $ 1,132.99 $ 1,257.64 2011 $ 1,271.87 $ 1,257.60 2012 $ 1,277.06 $ 1,426.19 2013 $ 1,462.42 $ 1,848.36 2014 $ 1,831.98 $ 2,058.90 2015 $ 2,058.20 $ 2,043.94 2016 $ 2,012.66 $ 2,238.83 2017 $ 2,257.83 $ 2,673.61 2018 $ 2,695.81 $ 2,506.85 2019 $ 2,510.03 $ 3,230.78 2020 $ 3,257.85 $ 3,756.07 Find the annual percent change for the S&P 500 from 2005 to 2020; (Put those values in the table above) Compute the mean,…
Tasty Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the computation are as follows: Des Moines Cedar Rapids Total present value of net cash flow $325,420 $339,450 Amount to be invested (307,000) (365,000) Net present value $18,420 $(25,550) a. Determine the present value index for each proposal. Round your answers for the present value index to two decimal places. Des Moines Cedar Rapids Total present value of net cash flow $fill in the blank 1 $fill in the blank 2 Amount to be invested $fill in the blank 3 $fill in the blank 4 Present value index fill in the blank 5 fill in the blank 6 b. Which location does your analysis support? (If both present value indexes are the same, either location will grade as correct.), because the net present value index is 1.
A surfboard manufacturer lost $500,000 last year during a recession. Total revenue was $5,000,000 and total variable costs were 40% of sales. The production facility ran at 50% capacity. The production manager wants to know the following: a. What is the percent capacity required to break even? b. When the economy recovers this year, if the plant runs at 100% capacity what net income could the company realize? c. There is a possibility that sales could be so strong this year that the plant may be required to run at 120% capacity by offering a lot of overtime to its production workers. This would result in total variable costs rising by 35%. On a strictly financial basis, should the production manager plan to exceed capacity or should he advise top management to freeze production at 100% capacity? Justify your answer. Answer Solution- 9a. 58.3% 9b. $2,500,000 9c. $3,100,000
A certain company grants a six-month investment product that offers to pay its clients 8% the first month, 12% the second month, 11% the third month, 8% the fourth month, 14% the fifth month and 15% the sixth month. What would be the value of the average rate that the customer will receive? Write your answer to 2 decimal places.
Total spending on health care in a certain region rose from $253 billion in 1982 to $2.7 trillion in 2020. Compare this rise in health care spending to the overall rate of inflation as measured by the Consumer Price Index.
In the world of mathematical finance, an important skill for any quantitative analyst is to price derivatives. These usually come in the form of options as well as other more exotic financial instruments. For this project we will focus on something called European Call options. We will see how you can estimate the price of an underlying asset (usually a stock) at some time in future T and use this to find how much an option should cost today. First, lets take a look at what a European call option actually is. The idea behind the European call option is that you will enter into a contract with someone that grants you the right, but not the obligation, to purchase some number of shares of a stock at a pre-determined price, called the strike price. In this paper we will say that the payoff for a European call option can be given by: max {S(t) – K, 0}. The reason we do this is because, it would not make sense to exercise the option if the price of the underlying asset is below the strike…
Suppose that a firm's sales were $3,750,000 five years ago and are $5,250,000 today. What was the geometric mean growth rate in sales over the past five years?
2. Discuss the Price Index most commonly used in your country. How is it calculated?