Author: chris

Ex Ante Carry trade strategies
Use currently available economic and financial information as well as the past history of the carry trade opportunities and the carry trade relating to the two currencies being analyzed in order to design a carry trade strategy for a future period starting now. Provide a detailed justification for your chosen strategy.

My own idea:
In the part 1, my teammate has calculated the Carry trade profit in past 10 years, in my part, I found the past 10-year annual growth rate of Australia and United Kingdom, then I make a chart of the difference of GDP growth rate between AUS and UK. It is very similar between GDP growth difference and carry trade profit chart. (all the charts will be uploaded as attachment part_4_draft.docx).

Structure (800 words in total):
1.Find the similar point of GDP growth difference and carry trade profit, then make assumption: the 2-country macroeconomic performance can influence the carry trade profit
2.Try to explain the reason: my own thinking is, Australias GDP growth is higher, then the interest rate will be relatively high comparing to UK, and the reserved bank will try to make exchange rate stable to keep the economic growth, then there is carry trade opportunity etc (you can use any other evidence to explain the similar chart mentioned before, please make some reference about market condition or macroeconomic analysis for UK and AUS )
3.Make a forecast and explain why carry trade strategy is available: the future GDP growth rate is provided in part_4_draft.docx, forecasted by world bank. AUS GDP growth is higher than UK, so carry trade has profit.

Appendix: What is a \’Currency Carry Trade\’, the trading strategy
A currency carry trade is a strategy in which an investor sells a certain currency with a relatively low interest rate and uses the funds to purchase a different currency yielding a higher interest rate. A trader using this strategy attempts to capture the difference between the rates, which can often be substantial, depending on the amount of leverage used.

The book to write about is: Night By. Elie Wiesel

Consider the Smith family:

John and Jane Smith are both 25 years old. They have a three year old daughter, and don\’t plan on having any more children. Their combined after-tax income is currently $70,000/year.

They recently purchased a 2,800 square-foot, five bedroom house for $350,000. The annual cost of the mortgage payments, homeowners insurance, property taxes, expected maintenance, utilities for a large house, and expected updating and furnishing over time is an average of $31,000/year.

They have two brand new cars, a Honda Accord EX and a Honda Odyssey EX minivan. The new cars, plus required full-coverage insurance on them, costs $13,000/year.

They have $14,000 in credit card debt at high interest, 14%.

On the assets side, they have $15,000 invested in Pep Boys stock, because John was always impressed with the service and well-run stores.

John has $17,000 in his company\’s 401k, all invested in his company\’s stock. Jane has $13,000 in her company\’s 401k, all invested in her company\’s stock.

John can get into a well-respected master\’s degree program in an in-demand and lucrative profession, and he\’s researched this and found that it will likely double his lifetime earnings. Perhaps more importantly, it will increase his job security greatly, as well as his job enjoyment. But, for the two years it will take to complete the program the family\’s income will be cut in half. The tuition for the masters program can be paid for with federal government student loans that have income-based repayment.

What are the reasons of poverty? How can this issue be addressed?

Project description
Write about what art means to you, personally. Some of you may not have considered the place that art occupies in your life, and it may have been years since you encountered an art class. Whether you create art on a daily basis, or haven\’t given it much thought since middle school, please give an honest assessment about the role of art in your life.

The principles of Unity and Variety apply to all music, regardless of composition style or historical period.

Now that you are familiar with the concepts in the first section of the course (Basic Musical Concepts), and you have seen how they work on different pieces of music, try your hand, mouse, and ears, at finding how they operate in a piece you haven\’t heard yet in this course (although you may have elsewhere).

Write a memo to the Santa Clara County District 1 Supervisor explaining sustainability practices for transportation in Santa Clara County. Persuade the supervisor about the need for improvement in fuel efficiency, moving transportation from fossil-based energy to renewable energy and improved infrastructure (more transport options). Make a recommendation as to how County of Santa Clara Co can provide to ensure clean, sustainable transport for the residents of Santa Clara County.

An equity fund manager holds a portfolio comprising the largest UK stocks and benchmarks the FTSE 100 index.
They are concerned about the possibility of a sharp correction in UK equities within the next three months and would like you to evaluate their hedging choices.

Only paraphrase the results and discussion part with adding a couple of new resources and reproduce the graphs

1.All of you have to set up your portfolio and make sure it will not exceed QR30000.
2.Discuss your strategies of asset allocation carefully, your analysis should consider the following points
a.What would be your preferred portfolio mix? Why? Explain briefly./ just explain how we chose this portfolio?
b.Calculate the correlation and co-variance matrix for the selected securities / you already done
c.Use Markowitz model to calculate the return and risk for alternative weights of the portfolio / as explained in class using EXCEL
d.Develop your optimal portfolio with different target risk and return
e.You can create the efficient frontier and select your choice and weights
f. When you find the weights allocate these 30000 on the securities sent to you, based on the weights you found.
g.What is your plan next? Clearly state what is your re-balancing strategy

– All the figures and tables should be numbered and sourced.