FIN 640: Dynamics of Stock and Bond Markets In order to provide students with an introduction to investment analysis and have them critically evaluate alternatives, you are assigned a short project. You will work on this project daily for four weeks, starting in Module 2, with a final report due in the fifth week of the project (in Module 6). Using the spreadsheet provided, daily track the following three indicator values for 4 weeks: · Dow Jones Industrial Average (DJIA) · NASDAQ Index · 10-year Treasury Note Yield (10-Yr T-Note Yield) Also during that time you should look for causative factors that impact the value of each of these values. You will get the majority of your information on pages C1 and C2 of the Wall Street Journal (WSJ). NOTE: You may choose to get a daily subscription to the Wall Street Journal in order to make your research easier. You can order a student subscription at http://student.wsj.com/info or access it through the SNHU Online library. The SNHU Online library version does not include images, diagrams or graphs. You report will analyze the following: · The impact of the various causative factors on the three indicator values. List each of the causative factors in bulleted form (See the chart provided for this information). For each factor, briefly analyze the nature (positive or negative) and degree (severity) of the impact on each of the three indicators. You must analyze why stocks and bonds values increase or decrease. You may see the “Credit Markets” section of Section C of the WSJ for causative factors of the bond markets. Also see pages C1 and C2 of the WSJ for other causative factors for the DJIA and NASDAQ. · The relationship between the three values. Describe the relationship you find between each of the indicator values. Be sure to compare each with the other two. Calculate the correlation coefficient between: · The DJIA and NASDAQ index · DJIA and the 10-Yr T-Note Yield · NASDAQ and the 10-Yr T-Note Yield Present this information in the table provided. Finally, interpret the coefficients and provide an analysis of the coefficient values. · Your learnings from your observations. This data should also be presented in bulleted form in the data. Closing Data: DJIA NASDAQ and 10-Yr T-Note Price Date DJIA % Change NASDAQ % Change 10-Yr T-Note Yield % Change 9/8/14 17,111.42 -0.15% 43.28 +0.37% 2.48 9/9/14 17,013.87 -0.57% 42.95 -0.76% 2.50 9/10/14 17,068.71 +0.32% 43.35 +0.93% 2.54 9/11/14 17,049.00 -0.12% 43.32 -0.06% 2.54 9/12/14 16,987.51 -0.36% 43.86 +1.22% 2.62 9/13/14 9/14/14 9/15/14 17,031.14 +0.26% 43.66 -0.44% 2.60 9/16/14 17,131.97 +0.59% 43.97 +0.71% 2.60 9/17/14 17,156.85 +0.15% 43.86 -0.25% 2.62 9/18/14 17,265.99 +0.64% 43.72 -0.33% 2.63 9/19/14 17,279.74 +0.08% 43.90 +0.42% 2.59 9/20/14 9/21/14 9/22/14 17,172.68 -0.62% 43.25 -1.48% 2.57 9/23/14 17,055.87 -0.68% 42.57 -1.57% 2.54 9/24/14 17,210.06 +0.90% 42.79 +0. ...

1. FIN 640: Dynamics of Stock and Bond Markets
In order to provide students with an introduction to investment
analysis and have them critically evaluate alternatives, you are
assigned a short project. You will work on this project daily for
four weeks, starting in Module 2, with a final report due in the
fifth week of the project (in Module 6).
Using the spreadsheet provided, daily track the following three
indicator values for 4 weeks:
· Dow Jones Industrial Average (DJIA)
· NASDAQ Index
· 10-year Treasury Note Yield (10-Yr T-Note Yield)
Also during that time you should look for causative factors that
impact the value of each of these values. You will get the
majority of your information on pages C1 and C2 of the Wall
Street Journal (WSJ).
NOTE: You may choose to get a daily subscription to the Wall
Street Journal in order to make your research easier. You can
order a student subscription at http://student.wsj.com/info or
access it through the SNHU Online library. The SNHU Online
library version does not include images, diagrams or graphs.
You report will analyze the following:
· The impact of the various causative factors on the three
indicator values.
List each of the causative factors in bulleted form (See the chart
provided for this information). For each factor, briefly analyze
the nature (positive or negative) and degree (severity) of the
impact on each of the three indicators. You must analyze why

2. stocks and bonds values increase or decrease. You may see the
“Credit Markets” section of Section C of the WSJ for causative
factors of the bond markets. Also see pages C1 and C2 of the
WSJ for other causative factors for the DJIA and NASDAQ.
· The relationship between the three values.
Describe the relationship you find between each of the indicator
values. Be sure to compare each with the other two. Calculate
the correlation coefficient between:
· The DJIA and NASDAQ index
· DJIA and the 10-Yr T-Note Yield
· NASDAQ and the 10-Yr T-Note Yield
Present this information in the table provided. Finally, interpret
the coefficients and provide an analysis of the coefficient
values.
· Your learnings from your observations. This data should also
be presented in bulleted form in the data.
Closing Data: DJIA NASDAQ and 10-Yr T-Note Price
Date
DJIA
% Change
NASDAQ
% Change
10-Yr T-Note Yield
% Change
9/8/14
17,111.42
-0.15%
43.28
+0.37%
2.48
9/9/14

3. 17,013.87
-0.57%
42.95
-0.76%
2.50
9/10/14
17,068.71
+0.32%
43.35
+0.93%
2.54
9/11/14
17,049.00
-0.12%
43.32
-0.06%
2.54
9/12/14
16,987.51
-0.36%
43.86
+1.22%
2.62
9/13/14

4. 9/14/14
9/15/14
17,031.14
+0.26%
43.66
-0.44%
2.60
9/16/14
17,131.97
+0.59%
43.97
+0.71%
2.60
9/17/14

5. 17,156.85
+0.15%
43.86
-0.25%
2.62
9/18/14
17,265.99
+0.64%
43.72
-0.33%
2.63
9/19/14
17,279.74
+0.08%
43.90
+0.42%
2.59
9/20/14
9/21/14

6. 9/22/14
17,172.68
-0.62%
43.25
-1.48%
2.57
9/23/14
17,055.87
-0.68%
42.57
-1.57%
2.54
9/24/14
17,210.06
+0.90%
42.79
+0.52%
2.57
9/25/14

7. 16,945.80
-1.54%
42.00
-1.85%
2.52
9/26/14
17,113.15
+0.99%
42.39
+0.93%
2.54
9/27/14
9/28/14
9/29/14

8. 17,071.22
-0.25%
42.35
-0.09%
2.50
9/30/14
17,042.90
-0.17%
42.42
+0.17%
2.52
10/01/14
16,804.71
-1.40%
41.95
-1.11%
2.42
10/02/14
16,801.05
-0.02%
42.09
+0.33%
2.44
10/03/14

9. 2.45
Causative Factors and Forces Impacting Stock and Bond
Markets
Date
Causative Factors
4/12/10
1. Oil price reduces by $1.00 per barrel as OPEC is faces over-
production.
2. The Fed reduces discount rate from 2.50% to 2% as inflation

10. fear subsides.
3. Etc….
** Note: The above is provided as an example. Be specific and
concrete about the causative factor:
· How much was the increase (or decrease)? From what level to
what level?
· Provide information about the magnitude of change makes the
statement concrete
· Bullet the information for each day
Correlation Matrix
DJIA
NASDAQ
T-Note Y
DJIA
NASDAQ
-
T-Note Y
-

11. -
What you learned
Below be specific about what you learned from this activity
about the relationships between the markets and the causative
events that affect the markets.
Requirements of submission: In order to provide students with
an introduction to investment analysis and have them critically
evaluate alternatives, you are assigned a short project. You will
work on this project daily for four weeks, starting in Module 2,
with a final report due in the fifth week of the project (in
Module 6). Using the document provided (Dynamics of Stock
and Bond Markets.doc), daily track the following three
indicator values for 4 weeks: Dow Jones Industrial Average
(DJIA); NASDAQ Index; and the 10-year Treasury Note Yield
(10-Yr T-Note Yield). You report will analyze the impact of the
various causative factors on the three indicator values and the
relationship between the three values. Additionally, you will
interpret the coefficients and provide an analysis of the
coefficient values. Lastly, you will provide a brief on what you
have learned from your observations. This data should also be

12. presented in bulleted form in the data.
Rubric
Critical Elements
Exemplary
Proficient
Needs Improvement
Not Evident
Value
Inquiry and Analysis
Explores multiple issues through extensive collection and in-
depth analysis of evidence to make informed conclusions
(27-30)
Explores some issues through collection and in-depth analysis
of evidence to make informed conclusions
(24-26)
Explores minimal issues through collection and analysis of
evidence to make informed conclusions
(21-23)
Does not explore issues through collection and analysis of
evidence and does not make informed conclusions
(0-20)
30
Integrative Learning
Makes simple connections among ideas and experiences to
effectively synthesize and transfer learning to new, complex
situations
(27-30)
Makes simple connections among ideas and experiences to

13. synthesize and transfer learning to new, complex situations
(24-26)
Makes simple connections among ideas and experiences to
synthesize learning
(21-23)
Is not able to make simple connections among ideas and
experiences to synthesize learning
(0-20)
30
Problem Solving
Effectively designs, evaluates, and implements a strategy to
answer an open-ended question or achieve a desired goal
(27-30)
Designs, evaluates, and implements a strategy with moderate
effectiveness to answer an open-ended question or achieve a
desired goal
(24-26)
Designs and evaluates a strategy to answer an open-ended
question or achieve a desired goal
(21-23)
Is not able to design, evaluate, and implement a strategy to
answer an open-ended question or achieve a desired goal
(0-20)
30
Writing

14. (Mechanics/Citations)
No errors related to organization, grammar and style, and
citations
(9-10)
Minor errors related to organization, grammar and style, and
citations
(8)
Some errors related to organization, grammar and style, and
citations
(7)
Major errors related to organization, grammar and style, and
citations
(0-6)
10
Earned Total:
Comments:
100