This study analyzed the relationship between the Indian rupee-US dollar exchange rate and other macroeconomic variables like foreign institutional investments (FII), current account deficit (CAD), and trade balance over time. Graphical analysis showed CAD and trade balance moving together while FII and foreign exchange reserves moved in opposite directions of trade balance and CAD. Cointegration and vector autoregression tests confirmed a long-term cointegrating relationship. The error correction model found long-term causality from CAD to the rupee rate and from past FII, CAD, and other variables to trade balance. Granger causality tests indicated short-term uni-directional causality from FII to CAD and trade balance. In conclusion, the
This document provides an overview of insulated concrete form (ICF) building technology using Nudura products. It describes the key benefits of ICF construction including energy efficiency, structural stability, sound resistance, speed of construction, and labor savings. It provides details on Nudura's ICF blocks, installation process, code approvals, applications in multi-residential and commercial buildings, and case studies demonstrating cost and energy savings compared to traditional construction.
Insulated concrete forms (ICFs) are rigid foam forms that hold concrete during curing and remain in place as insulation for concrete walls. ICF walls have high thermal resistance and provide backing for interior and exterior finishes. ICF construction yields very strong, energy efficient, and quickly built walls that are ideal for resisting hurricanes, tornadoes, and wildfires. Different ICF systems create walls with varying concrete thickness patterns. While ICF material and installation costs more initially than traditional framing, the walls provide long-term energy savings and protection.
The Indian rupee has been rapidly losing value due to India's current account deficit, wherein imports have exceeded exports. This has increased demand for foreign currencies like the US dollar. Additionally, increased government spending stimulated the economy but the excess liquidity was used for consumption rather than investments, leading to inflation without corresponding economic growth. The rising current account deficit, low foreign investment inflows, and investors withdrawing funds to avoid currency losses have further contributed to the rupee's depreciation against the dollar.
This document appears to be an assignment for a Building Technology course that outlines proposed construction systems for a community library project. It includes sections on the facade system (types A and B), structural system (composite floor system), and roof system. For each system, it provides precedent studies that describe materials, construction methods, advantages, and disadvantages. It also includes proposed facade designs and a sectional perspective of the building. The objective of the assignment is for students to study complex construction systems and understand how to integrate practical considerations into the design process.
what green building technologies do green building consultants and designers need? Here is my top 5 list of needs...... (presented at cleantuesday Hong Kong)
Passive House Construction. Passive House Project Managment. Green and Eco Building Construction and Renovation. Passive House Off plan Development. Passive House and Green Hotel and Resort Development.
Green Building,
Eco Building,
Sustainable Building Cinstruction
Insulated concrete forms are highly energy efficient in nature and these will helps you a lot in saving your monthly utility bills. Some other benefits are these forms are wind resistant, Noise resistant, Fire resistant, and Insect resistant in nature. Buildings constructed with these forms always remain mold free and these forms also exhibits superior indoor air quality.
This document provides an overview of insulated concrete form (ICF) building technology using Nudura products. It describes the key benefits of ICF construction including energy efficiency, structural stability, sound resistance, speed of construction, and labor savings. It provides details on Nudura's ICF blocks, installation process, code approvals, applications in multi-residential and commercial buildings, and case studies demonstrating cost and energy savings compared to traditional construction.
Insulated concrete forms (ICFs) are rigid foam forms that hold concrete during curing and remain in place as insulation for concrete walls. ICF walls have high thermal resistance and provide backing for interior and exterior finishes. ICF construction yields very strong, energy efficient, and quickly built walls that are ideal for resisting hurricanes, tornadoes, and wildfires. Different ICF systems create walls with varying concrete thickness patterns. While ICF material and installation costs more initially than traditional framing, the walls provide long-term energy savings and protection.
The Indian rupee has been rapidly losing value due to India's current account deficit, wherein imports have exceeded exports. This has increased demand for foreign currencies like the US dollar. Additionally, increased government spending stimulated the economy but the excess liquidity was used for consumption rather than investments, leading to inflation without corresponding economic growth. The rising current account deficit, low foreign investment inflows, and investors withdrawing funds to avoid currency losses have further contributed to the rupee's depreciation against the dollar.
This document appears to be an assignment for a Building Technology course that outlines proposed construction systems for a community library project. It includes sections on the facade system (types A and B), structural system (composite floor system), and roof system. For each system, it provides precedent studies that describe materials, construction methods, advantages, and disadvantages. It also includes proposed facade designs and a sectional perspective of the building. The objective of the assignment is for students to study complex construction systems and understand how to integrate practical considerations into the design process.
what green building technologies do green building consultants and designers need? Here is my top 5 list of needs...... (presented at cleantuesday Hong Kong)
Passive House Construction. Passive House Project Managment. Green and Eco Building Construction and Renovation. Passive House Off plan Development. Passive House and Green Hotel and Resort Development.
Green Building,
Eco Building,
Sustainable Building Cinstruction
Insulated concrete forms are highly energy efficient in nature and these will helps you a lot in saving your monthly utility bills. Some other benefits are these forms are wind resistant, Noise resistant, Fire resistant, and Insect resistant in nature. Buildings constructed with these forms always remain mold free and these forms also exhibits superior indoor air quality.
Structural insulated panels (SIPs) are an energy efficient building system consisting of rigid foam insulation sandwiched between two structural facings. SIPs were conceptualized in the 1930s but came into widespread use in the 1960s. SIPs provide a tighter, more energy efficient structure that reduces energy bills by 40-60% compared to traditional stick-built construction. Enercept Building Systems is a manufacturer of SIPs that provides customized panels, on-site assistance, and a lifetime warranty on their materials.
BuildBlock Insulating Concrete Form (ICF) Construction in 22 StepsBrian Corder
See how to build an insulating concrete forms home in 22 steps. From excavation to the final pouring of the walls see how energy-efficient construction is done.
Build ICF are looking for partners for interesting projects in the UK - renewable energy & energy performance buildings - commercial, industrial, agricultural, residential
The document discusses building facades and aluminum composite panels for facades. It provides examples of architectural projects from around the world that use aluminum composite facade panels for their unique appearance, durability, and formability. These projects include offices, concert halls, airports, and more. The document also discusses the technical specifications and benefits of the aluminum composite panels, including their flatness, variety of colors and surfaces, and longevity.
This lesson plan involves two activities for students to experiment with different materials as insulators and design their own experiment to test the effectiveness of insulation installation. The objectives are for students to understand how physical properties influence a material's insulating ability and to identify variables in scientific experiments. Materials listed include containers, water, insulation samples, and thermometers for measuring heat transfer.
Mohamed Nasreldin - Insulated Concrete Forming Systems AIAkuwaitinsulation
This document discusses insulated concrete form (ICF) systems for construction. ICF systems combine the insulating properties of expanded polystyrene (EPS) with the structural strength of concrete. AFM Corporation licenses EPS products like Foam-Control and R-Control SIPs for use in ICF construction. ICF systems offer benefits like high insulation values, fire resistance, sound control, and ease of installation. They can be used for both commercial and residential projects, above or below grade. The document provides information on different ICF product variations, code requirements, installation steps, and applications.
This document discusses energy efficient building envelopes from the perspective of the Energy Conservation Building Code (ECBC) in India. It covers factors like opaque walls, insulation materials, vision glass, fenestration, shading, air leakage, and building envelope sealing. It then discusses the advantages of using glass and glazing systems, including faster construction, increased floor area, and predictable behavior. Key performance factors for glass like heat gain, U-value, and light transmission are explained. The document also covers daylighting strategies and their effect, as well as strategies to control heat gain like coatings, fritting, and louvers. ECBC compliance requirements for glass and window-to-wall ratios in different climate zones are summarized
Indian foreign exchange market & rupee exchange rateNikita Bhinde
The document discusses the Indian foreign exchange market and the rupee exchange rate. It provides an overview of the key components of the forex market including instruments like currency futures, forwards, options and swaps. It also discusses determinants that impact exchange rates like inflation, interest rates, current account deficits. The document outlines how the value of the rupee can appreciate or depreciate versus other currencies and some of the factors that have led to depreciation of the Indian rupee recently. Lastly, it provides the exchange rates of the rupee versus the US dollar, British pound, euro and Japanese yen over the last 5 days.
Green Building Envelopes 101 was given as a 2 hour presentation at the National Building Envelope Council Conference in Winnipeg, Manitoba in May 2011.
This document discusses the falling Indian rupee against the US dollar. It provides several reasons for the rupee's decline, including the ongoing Eurozone debt crisis, India's high interest rates, and a worsening trade deficit. The fall of the rupee could positively impact export sectors but negatively affect companies with foreign debt. Additional pressure on the rupee comes from a higher current account deficit, reliance on foreign capital flows, and a slowing growth rate. The dollar is in demand while commodity prices are falling, increasing demand for dollars from importers. In conclusion, the rupee may stabilize after correcting for domestic inflation, at around 51-52 rupees to the dollar.
This document summarizes a seminar on sandwich composite materials. Sandwich composites consist of two thin, stiff skins bonded to a lightweight, thick core material. Common core materials include foams, wood, and honeycomb structures. The core provides bending stiffness while the skins provide strength, resulting in an overall lightweight, strong material. Some key applications mentioned include construction, vehicles, aerospace, and insulation panels. The document provides details on different types of sandwich panels used in various industries.
The document discusses building envelope design strategies for different climate types. It explains that the building envelope includes walls, floors, roofs, windows, and doors, and provides protection from external elements. The key components of building envelopes are described for arid, tropical, cold, and mixed cold/hot climates. Specific strategies include using thermal mass in arid climates, maximizing shading and ventilation in tropical areas, emphasizing insulation in cold climates, and incorporating features like overhangs and thermal mass in temperate zones. The document also covers topics like insulation materials and properties, reducing thermal bridging, and designing high-performance fenestration.
Presentation about Structural insulated panels sips description from www.large-span.com
contact us by info@large-span.com largespangroup@gmail.com
LARGE SPAN GROUP
TEL: 0086-13333016262, 18731151165
FAX: 0086-18032909635, 18032909637
EMAIL: largespangroup@gmail.com, info@large-span.com
Large-Span group is big stated owned corporation established over 30 years and has certificated by BV, TUV, SGS inspection. As one of the most famous manufacturers in China, we have committed ourselves to developing and producing high quality products, professional suggestions and good services for customers all over the world.
1. The document outlines the history of currency exchange rate systems from the gold standard in the 1800s to the present day.
2. It describes the three main categories of exchange rate regimes: flexible exchange rates, managed floating, and fixed exchange rates.
3. Flexible exchange rates are determined by market forces, while managed floating involves some government intervention and fixed rates keep currencies at constant values against other currencies or currency baskets.
This document summarizes the results of fitting vector time series regression models to economic indicator data using SAS and R software. It estimates VARX(0,0), VARX(1,0), and VARX(1,2) models and compares the parameter estimates between the two programs. The VARX(0,0) model estimates showed good agreement between SAS and R. The VARX(1,0) model was also estimated using both programs, with SAS using least squares and R using the vars package. Parameter estimates were provided for the VARX(1,0) model.
A Study on the Short Run Relationship b/w Major Economic Indicators of US Eco...aurkoiitk
The objective of this study
was to develop an economic indicator system for the US
economy that will help to forecast the turning points in the
aggregate level of economic activity. Our primary concern
is to study the short run relationship between the major
economic indicators of US economy (eg: GDP, Money
Supply, Unemployment Rate, Inflation rate, Federal Fund
Rate, Exchange Rate, Government Expenditure &
Receipt, Crude Oil Price, Net Import & Export).
risk and return. Defining Return, Return Example, Defining Risk,Determining Expected Return , How to Determine the Expected Return and Standard Deviation, Determining Standard Deviation (Risk Measure), Portfolio Risk and Expected Return Example, Determining Portfolio Expected Return, Determining Portfolio Standard Deviation, Summary of the Portfolio Return and Risk Calculation, Total Risk = Systematic Risk + Unsystematic Risk,
This document discusses the concepts of risk and return as they relate to investment portfolio diversification. It provides an example to illustrate how combining investments with imperfect correlations can reduce overall portfolio risk compared to holding individual assets. Specifically:
- It analyzes potential returns and risks of investing in bus and taxi companies under different economic scenarios.
- It then shows how a 50% allocation to each lowers total risk compared to the individual investments, from 10.68% portfolio standard deviation versus 26.42% and 34.13% for each individually.
- This demonstrates how diversification across imperfectly correlated assets reduces risk for the same expected return compared to holding single assets.
This document summarizes and compares several quantitative models for estimating discounts for lack of marketability (DLOM) and liquidity. It defines key concepts like marketability, liquidity, and degrees of marketability. It then describes several DLOM models including the QMDM, Silber, Bajaj, Abbott, Tabak, Meulbroek, and option-based models like Black-Scholes put, average price Asian put, and lookback put. The document estimates potential DLOM discounts under different volatility and time assumptions using these models for comparative analysis.
This document provides an overview of risk and return concepts in investments. It discusses that return is the primary motivation for investing, while risk refers to the possibility that the actual return deviates from the expected return. Risk is divided into unsystematic and systematic risk. Portfolio risk can be reduced through diversification even though the risk of individual securities is not reduced. The Security Market Line models the relationship between risk and return, where the expected return of an asset is equal to the risk-free rate plus its beta multiplied by the expected market return above the risk-free rate.
This document discusses risk and return concepts including stand-alone risk, portfolio risk, and the capital asset pricing model (CAPM). It defines investment returns, risk, and probability distributions. It shows how diversification reduces risk and calculates portfolio returns and risk. The security market line (SML) from CAPM is used to calculate required returns based on betas and determine if securities are over or undervalued. Calculating betas using regression analysis on historical returns is also demonstrated.
This document discusses concepts and techniques for time series analysis. It defines a time series as any series of data that varies over time, and provides examples like GDP and stock prices. It outlines precautions for using time series data in econometric models, such as checking for stationarity and guarding against spurious regressions. Stationary and non-stationary time series are defined, and unit root tests like the Dickey-Fuller test are introduced. The concepts of cointegration and error correction models are also covered, along with the Granger causality test.
Structural insulated panels (SIPs) are an energy efficient building system consisting of rigid foam insulation sandwiched between two structural facings. SIPs were conceptualized in the 1930s but came into widespread use in the 1960s. SIPs provide a tighter, more energy efficient structure that reduces energy bills by 40-60% compared to traditional stick-built construction. Enercept Building Systems is a manufacturer of SIPs that provides customized panels, on-site assistance, and a lifetime warranty on their materials.
BuildBlock Insulating Concrete Form (ICF) Construction in 22 StepsBrian Corder
See how to build an insulating concrete forms home in 22 steps. From excavation to the final pouring of the walls see how energy-efficient construction is done.
Build ICF are looking for partners for interesting projects in the UK - renewable energy & energy performance buildings - commercial, industrial, agricultural, residential
The document discusses building facades and aluminum composite panels for facades. It provides examples of architectural projects from around the world that use aluminum composite facade panels for their unique appearance, durability, and formability. These projects include offices, concert halls, airports, and more. The document also discusses the technical specifications and benefits of the aluminum composite panels, including their flatness, variety of colors and surfaces, and longevity.
This lesson plan involves two activities for students to experiment with different materials as insulators and design their own experiment to test the effectiveness of insulation installation. The objectives are for students to understand how physical properties influence a material's insulating ability and to identify variables in scientific experiments. Materials listed include containers, water, insulation samples, and thermometers for measuring heat transfer.
Mohamed Nasreldin - Insulated Concrete Forming Systems AIAkuwaitinsulation
This document discusses insulated concrete form (ICF) systems for construction. ICF systems combine the insulating properties of expanded polystyrene (EPS) with the structural strength of concrete. AFM Corporation licenses EPS products like Foam-Control and R-Control SIPs for use in ICF construction. ICF systems offer benefits like high insulation values, fire resistance, sound control, and ease of installation. They can be used for both commercial and residential projects, above or below grade. The document provides information on different ICF product variations, code requirements, installation steps, and applications.
This document discusses energy efficient building envelopes from the perspective of the Energy Conservation Building Code (ECBC) in India. It covers factors like opaque walls, insulation materials, vision glass, fenestration, shading, air leakage, and building envelope sealing. It then discusses the advantages of using glass and glazing systems, including faster construction, increased floor area, and predictable behavior. Key performance factors for glass like heat gain, U-value, and light transmission are explained. The document also covers daylighting strategies and their effect, as well as strategies to control heat gain like coatings, fritting, and louvers. ECBC compliance requirements for glass and window-to-wall ratios in different climate zones are summarized
Indian foreign exchange market & rupee exchange rateNikita Bhinde
The document discusses the Indian foreign exchange market and the rupee exchange rate. It provides an overview of the key components of the forex market including instruments like currency futures, forwards, options and swaps. It also discusses determinants that impact exchange rates like inflation, interest rates, current account deficits. The document outlines how the value of the rupee can appreciate or depreciate versus other currencies and some of the factors that have led to depreciation of the Indian rupee recently. Lastly, it provides the exchange rates of the rupee versus the US dollar, British pound, euro and Japanese yen over the last 5 days.
Green Building Envelopes 101 was given as a 2 hour presentation at the National Building Envelope Council Conference in Winnipeg, Manitoba in May 2011.
This document discusses the falling Indian rupee against the US dollar. It provides several reasons for the rupee's decline, including the ongoing Eurozone debt crisis, India's high interest rates, and a worsening trade deficit. The fall of the rupee could positively impact export sectors but negatively affect companies with foreign debt. Additional pressure on the rupee comes from a higher current account deficit, reliance on foreign capital flows, and a slowing growth rate. The dollar is in demand while commodity prices are falling, increasing demand for dollars from importers. In conclusion, the rupee may stabilize after correcting for domestic inflation, at around 51-52 rupees to the dollar.
This document summarizes a seminar on sandwich composite materials. Sandwich composites consist of two thin, stiff skins bonded to a lightweight, thick core material. Common core materials include foams, wood, and honeycomb structures. The core provides bending stiffness while the skins provide strength, resulting in an overall lightweight, strong material. Some key applications mentioned include construction, vehicles, aerospace, and insulation panels. The document provides details on different types of sandwich panels used in various industries.
The document discusses building envelope design strategies for different climate types. It explains that the building envelope includes walls, floors, roofs, windows, and doors, and provides protection from external elements. The key components of building envelopes are described for arid, tropical, cold, and mixed cold/hot climates. Specific strategies include using thermal mass in arid climates, maximizing shading and ventilation in tropical areas, emphasizing insulation in cold climates, and incorporating features like overhangs and thermal mass in temperate zones. The document also covers topics like insulation materials and properties, reducing thermal bridging, and designing high-performance fenestration.
Presentation about Structural insulated panels sips description from www.large-span.com
contact us by info@large-span.com largespangroup@gmail.com
LARGE SPAN GROUP
TEL: 0086-13333016262, 18731151165
FAX: 0086-18032909635, 18032909637
EMAIL: largespangroup@gmail.com, info@large-span.com
Large-Span group is big stated owned corporation established over 30 years and has certificated by BV, TUV, SGS inspection. As one of the most famous manufacturers in China, we have committed ourselves to developing and producing high quality products, professional suggestions and good services for customers all over the world.
1. The document outlines the history of currency exchange rate systems from the gold standard in the 1800s to the present day.
2. It describes the three main categories of exchange rate regimes: flexible exchange rates, managed floating, and fixed exchange rates.
3. Flexible exchange rates are determined by market forces, while managed floating involves some government intervention and fixed rates keep currencies at constant values against other currencies or currency baskets.
This document summarizes the results of fitting vector time series regression models to economic indicator data using SAS and R software. It estimates VARX(0,0), VARX(1,0), and VARX(1,2) models and compares the parameter estimates between the two programs. The VARX(0,0) model estimates showed good agreement between SAS and R. The VARX(1,0) model was also estimated using both programs, with SAS using least squares and R using the vars package. Parameter estimates were provided for the VARX(1,0) model.
A Study on the Short Run Relationship b/w Major Economic Indicators of US Eco...aurkoiitk
The objective of this study
was to develop an economic indicator system for the US
economy that will help to forecast the turning points in the
aggregate level of economic activity. Our primary concern
is to study the short run relationship between the major
economic indicators of US economy (eg: GDP, Money
Supply, Unemployment Rate, Inflation rate, Federal Fund
Rate, Exchange Rate, Government Expenditure &
Receipt, Crude Oil Price, Net Import & Export).
risk and return. Defining Return, Return Example, Defining Risk,Determining Expected Return , How to Determine the Expected Return and Standard Deviation, Determining Standard Deviation (Risk Measure), Portfolio Risk and Expected Return Example, Determining Portfolio Expected Return, Determining Portfolio Standard Deviation, Summary of the Portfolio Return and Risk Calculation, Total Risk = Systematic Risk + Unsystematic Risk,
This document discusses the concepts of risk and return as they relate to investment portfolio diversification. It provides an example to illustrate how combining investments with imperfect correlations can reduce overall portfolio risk compared to holding individual assets. Specifically:
- It analyzes potential returns and risks of investing in bus and taxi companies under different economic scenarios.
- It then shows how a 50% allocation to each lowers total risk compared to the individual investments, from 10.68% portfolio standard deviation versus 26.42% and 34.13% for each individually.
- This demonstrates how diversification across imperfectly correlated assets reduces risk for the same expected return compared to holding single assets.
This document summarizes and compares several quantitative models for estimating discounts for lack of marketability (DLOM) and liquidity. It defines key concepts like marketability, liquidity, and degrees of marketability. It then describes several DLOM models including the QMDM, Silber, Bajaj, Abbott, Tabak, Meulbroek, and option-based models like Black-Scholes put, average price Asian put, and lookback put. The document estimates potential DLOM discounts under different volatility and time assumptions using these models for comparative analysis.
This document provides an overview of risk and return concepts in investments. It discusses that return is the primary motivation for investing, while risk refers to the possibility that the actual return deviates from the expected return. Risk is divided into unsystematic and systematic risk. Portfolio risk can be reduced through diversification even though the risk of individual securities is not reduced. The Security Market Line models the relationship between risk and return, where the expected return of an asset is equal to the risk-free rate plus its beta multiplied by the expected market return above the risk-free rate.
This document discusses risk and return concepts including stand-alone risk, portfolio risk, and the capital asset pricing model (CAPM). It defines investment returns, risk, and probability distributions. It shows how diversification reduces risk and calculates portfolio returns and risk. The security market line (SML) from CAPM is used to calculate required returns based on betas and determine if securities are over or undervalued. Calculating betas using regression analysis on historical returns is also demonstrated.
This document discusses concepts and techniques for time series analysis. It defines a time series as any series of data that varies over time, and provides examples like GDP and stock prices. It outlines precautions for using time series data in econometric models, such as checking for stationarity and guarding against spurious regressions. Stationary and non-stationary time series are defined, and unit root tests like the Dickey-Fuller test are introduced. The concepts of cointegration and error correction models are also covered, along with the Granger causality test.
The document discusses using a vector autoregression (VAR) model to forecast two time series - leads and binds - that interact with each other. A 5-period VAR model is found to best capture the weekly periodicity between the series. The model is shown to accurately forecast leads 1-11 days in advance, within 2% error, and binds within 5% error over a two week period, indicating the interaction between the series can be used to predict each going forward. Some conclusions drawn are that the VAR model performs well but could be improved by trying other techniques or adding external variables.
This document discusses building regression and classification models in R, including linear regression, generalized linear models, and decision trees. It provides examples of building each type of model using various R packages and datasets. Linear regression is used to predict CPI data. Generalized linear models and decision trees are built to predict body fat percentage. Decision trees are also built on the iris dataset to classify flower species.
Efficient Numerical PDE Methods to Solve Calibration and Pricing Problems in ...Volatility
This document discusses efficient numerical PDE methods to solve calibration and pricing problems in local stochastic volatility models. It begins with an overview of volatility modelling, including local stochastic volatility models that combine local volatility, jumps, and stochastic volatility. It then discusses calibrating both parametric and non-parametric local volatility models using PDE methods. The document provides examples of modelling stochastic volatility factors using implied volatility data and estimating jump parameters from historical returns. It also discusses calibrating local volatility models to vanilla option prices while including jumps and stochastic volatility.
Prepare Financial Statements from Adjusted Trial Balance Worksheet.docxChantellPantoja184
Prepare Financial Statements from Adjusted Trial Balance Worksheet (110 pts)
The 2012 year-end adjusted balances taken from the general ledger of Cooperstown Services, Inc. are listed below in general ledger order.
Coopertown Suppliers, Inc.
DR
CR
Cash
$12,950
Accounts receivable
28,150
Supplies
8,400
Prepaid insurance
9,500
Land
115,000
Buildings
360,000
Equipment
260,000
Accumulated depreciation
$239,900
Accounts payable
35,300
Salaries payable
7,300
Taxes payable
Common stock
5,200
31,500
Additional paid-in capital – Common
Retained earnings
15,400
427,600
Dividends
25,400
Service revenue
475,000
Salaries expense
335,600
Depreciation expense
25,100
Supplies expense
12,950
Insurance expense
8,200
Miscellaneous expense
30,850
Utilities expense
5,100
Total
$1,237,200
$1,237,200
Transfer these accounts and balances to a spreadsheet worksheet and prepare an Income statement, a Classified Balance Sheet, and a Statement of Retained Earnings all in good form using proper headings for each statement. Note that Cooperstown is a service company so there is no cost of goods sold in its chart of accounts. Also, assume that all the liabilities are current liabilities. Keep in mind that you should not report any accounts without balances in your statements.
Assignment 5
Text edition 7:
Chapter 12 - Questions and Problems - 5, 7, 8, 9, 12, 13.
5. Nominal versus Real Returns:
a. In nominal terms?
b. In real terms?
a) The nominal return is 10.23% from the table.
b) To find the real return, we use the fisher equation
(1 + R) = (1 + r) (1 + h)
(1 + 0.1023) = (1 + r) (1 + 0.0406)
1.1023 = (1 + r) (1.0406)
1 + r = 1.0593
r = 1.0593 – 1
r = 0.0593 or 5.93%
7. Calculating Returns and Variability:
Returns
Year
X
Y
1
6%
18%
2
24
39
3
13
-6
4
-14
-20
5
15
47
Return X
Arithmetic average returns, R = [R1 +R2 + R3 + R4 + R5]/N
= [0.06 + 0.24 + 0.13 - 0.14 + 0.15]/5
= 0.44/5
= 0.088 or 8.80%
Variance = 1/ (N – 1) [(R1 – R) 2 + (R2 – R) 2 + (R3 – R) 2 + (R4 – R) 2+ (R5 – R) 2]
= 1/ (5 – 1) [(0.06 – 0.088)2 + (0.24 – 0.088)2 + (0.13 – 0.088)2 + (-0.14 – 0.088)2+ (0.15 – 0.088)2]
= ¼ [0.08148]
= 0.02037
Standard deviation = √Variance
= √0.02037
= 0.1427 or 14.27%
Return Y
Arithmetic average returns, R = [R1 +R2 + R3 + R4 + R5]/N
= [0.18 + 0.39 + (-0.06) + (-0.20) + 0.47]/5
= 0.78/5
= 0.1560 or 15.60%
Variance = 1/ (N – 1) [(R1 – R) 2 + (R2 – R) 2 + (R3 – R) 2 + (R4 – R) 2+ (R5 – R) 2]
= 1/ (5 – 1) [(0.18 – 0.156)2 + (0.39 – 0.156)2 + (-0.06 – 0.156)2 + (-0.20 – 0.156)2+ (0.47 – 0.156)2]
.
This document discusses key concepts related to investment returns and risk. It defines return as the financial results of an investment expressed in dollar or percentage terms. Risk is defined as the probability of earning a return lower than expected. Diversification across many stocks can reduce risk, as stock returns are not perfectly correlated. A portfolio's risk is measured by its beta coefficient, which represents the portfolio's volatility relative to the market. The Security Market Line (SML) shows the relationship between risk and required return in the Capital Asset Pricing Model (CAPM).
The document discusses portfolio theory and diversification from a mathematical perspective. It introduces Harry Markowitz's efficient frontier and how diversifying investments reduces portfolio risk. The expected return of a portfolio is a weighted average of the component returns, while the variance is not a linear combination and depends on the covariance between components. Diversification is most effective at reducing risk when the component returns are negatively correlated. The mathematics of diversification for multiple assets uses a variance-covariance matrix to calculate portfolio risk.
The document contains multiple decision problems involving expected monetary value (EMV) calculations. The first problem involves determining the optimal act from among three acts (A1, A2, A3) based on their payoffs under three possible states of nature (S1, S2, S3) and the given probabilities. The optimal act determined using EMV is A1. Another problem involves determining whether a proposal should be accepted or rejected based on the EMV of each decision. The EMV calculation shows the decision should be to reject the proposal. A third problem involves calculating EMV under different criteria to determine the best investment from among stocks, bonds, and debentures.
Precautionary Savings and the Stock-Bond CovarianceEesti Pank
The document discusses the relationship between stock and bond returns and how their covariance varies over time. It presents several empirical findings, including that negative stock-bond covariance is associated with lower Treasury yields, wider corporate spreads, and negative subsequent returns on stocks and bonds. It then introduces a two-factor term structure model where the price of risk varies over time, which can generate time-varying stock-bond covariance as in the data. Simulation results from the model match several key empirical moments.
Concepts on Beta, Valuation and Diversification v6Lin Giralt
The document discusses limitations of using the beta coefficient to evaluate risk and discusses developing a "Total Beta" measure to better capture risk. It notes that beta values can vary significantly over time and have low correlation values (R2). It proposes that total beta considers both systematic risk (beta x R2) and idiosyncratic risk (standard deviation of asset/market x (1-R2)). For non-diversified investors or assets evaluated independently, total beta may better reflect risk rather than just beta. The concept is illustrated using hypothetical "fantasy assets" and analyzing their risks under total beta versus just beta.
The document discusses risk premia in credit markets and their implications. It finds that:
1) Credit spread components like expected losses and risk premia vary significantly over time and with credit quality.
2) Systematic risk, not just expected losses, influences the pricing of credit default swaps and stock options relative to their underlyings.
3) Ratings alone are insufficient for credit assessments - risk-adjusted ratings may be needed to account for varying risk premia.
2. Focus of Presentation
Rupee Dollar fluctuation- Graphical
Relationship of Rupee-Dollar rate with FII, CAD , Trade balance and Foreign
Reserves- Graphical Analysis/ Surface level
Performing Correlation on Rupee Dollar rate with FII, Trade balance and
Foreign reserves variables.Foreign reserves variables.
Understand & identifying Co-movement or long term relationship of Rupee
Dollar rate with FII, Trade balance
Indentifying the Short term casual relationship between Rupee Dollar rate , FII
, CAD and trade balance.
3. Framework & Tools Used
Data Source from Indianstat.com and RBI website
Graphical Comparison- Primary Analysis
Co-integration & VAR FrameworkCo-integration & VAR Framework
Regression/ Correlation
Eviews software.
4. Historical Movement of Rupee
Focus Area
Dynamic movement on Rupee post Global Financial Crisis affecting
Indian Economy
5. Rupee Dollar Rate & FII, CAD- Graphical Representation
2,00,000
1,50,000
1,00,000
50,000
0
50,000
1,00,000
1,50,000
61.00
61.50
62.00
62.50
63.00
63.50
64.00
Rupee Dollar rate - CAD , FII , Trade balance and Foreign Ex. Reserves
3,50,000
3,00,000
2,50,000
60.00
60.50
61.00
Jun-99
Nov-99
Apr-00
Sep-00
Feb-01
Jul-01
Dec-01
May-02
Oct-02
Mar-03
Aug-03
Jan-04
Jun-04
Nov-04
Apr-05
Sep-05
Feb-06
Jul-06
Dec-06
May-07
Oct-07
Mar-08
Aug-08
Jan-09
Jun-09
Nov-09
Apr-10
Sep-10
Feb-11
Jul-11
Dec-11
May-12
Oct-12
Mar-13
Aug-13
Jan-14
Jun-14
Nov-14
Rupee Dollar FII Trade Balance CAD Reserves
Primary Analysis:-
Trade balance and CAD are moving in tandem / parallel.
FII and Foreign Exchange reserves are moving in opposite direction not relationship with Trade
balance & CAD.
• Variation shows the increasing/widening trend from 2000 to 2014.
Source: Indiastat.com
6. Correlation of Indian Rupee Dollar – FII, CAD, Trade Balance
& Foreign Ex. Reserves
Analysis Results - Eviews
Ind. Variables t- stat prob. Acceptance prob. Co-efficient t- stat prob. Acceptance prob. Co-efficient
C 0.00 <=0.05 62.14 C 0.00 <=0.05 62.15
CAD 0.55 <=0.05 -1.85E-06 CAD 0.00 <=0.05 9.06E-06
Trade balance 0.02 <=0.05 8.42E-06 Trade balance 0.00 <=0.05 -3.40E-06
FII 0.02 <=0.05 -3.45E-06
Foreign Ex. Reserves 0.70 <=0.05 -8.36E-07
Dep. Variable ( Indian Rupee Dollar Rate)- Removing FII & Foreign Ex. ReservesDep. Variable ( Indian Rupee Dollar Rate)
Rupee Dollar Rate t = c + β1 FII + β2 CAD + β3 Trade balance + β4 Foreign ex. Reserves
where :-Probability of t-stat - x1, x2, x3, x4 <= 5%
There exist the Correlation of Indian Rupee dollar rate with CAD and Trade
balance.
F-stat, DW shows model is relevant & okay.
There seems the problem of Multi-Collinearity in Trade Balance.
R-square is less due to less data points which can be overcome if time span is
increased.
Interpretation
Foreign Ex. Reserves 0.70 <=0.05 -8.36E-07
F -stat 0.047 <=0.05 F -stat 0.01 <=0.05
DW 0.361 <=2 DW 0.361 <=2
Model OK Model OK
7. Co-integration
Cointegration can be defined as a systemic co-movement among two or more
variables over the long run
The desire to evaluate models which combine both long tern as well as short
term properties and which at the same time, maintain stationary in all the
variables has prompted a consideration of the problem of regression using
variables measured in their levels
The focus of attention was data series which although non-stationary, can be
combined together through a linear combination into a single series which is
itself stationary
Series which exhibit such property called co-integrated series
9. CO-INTEGRATION MODEL..Cntd
T-stat T-critical T-stat T-critical
1 Rupee Dollar rate -1.67 -3.48 -6.79 -2.91
2 FII -4.54 -3.48 -7.32 -2.91
3 CAD -3.88 4.11 -9.062 -3.54
4 Trade balance -1.449 -3.48 -4.04 -2.91
RESULTS OF UNIT ROOT TEST - ADF
Level First difference
VariablesSr. No. Results
I(1) series
4 Trade balance -1.449 -3.48 -4.04 -2.91
All variable series is I(1) series – Stationary at 1st difference.
Co-integration Framework can be applied to analyse this variables
10. CO-INTEGRATION MODEL…Cntd
JOHANSEN CO-INTEGRATION TEST
1 Trace None 84.42 47.86
2 Trace at Most 1 43.33 29.79
3 Trace at Most 2 18.11 15.49
t-stat > t-critical.
Sr. No. Test Type
Hypotheised
no of CE(s)
Stat value Critical value (5%) Remarks
)1log( *
1max +−−= rT λλ )1log(
1
*
∑+=
−−=
n
ri
iTTrace λ
Max Eigenvalue Trace Statistics
Ho : Null Hypothesis = No Co-integration, if t-stat > t-critical then Ho is
rejected.
There exist long term Co-integration India – Rupee Dollar exchange rate
with FII , CAD and Trade balance.
Means there is co-movement of this variables.
3 Trace at Most 2 18.11 15.49
4 Trace at Most 3 6.11 3.84
5 Max-Eigen None 41.09 27.58
6 Max-Eigen at Most 1 25.22 21.13
7 Max-Eigen at Most 2 11.99 14.26
8 Max-Eigen at Most 3 6.11 3.84
t-stat > t-critical.
Co-integration
exists
11. Co-integration – Long Term Causality
If two variables are non-stationary, but they become stationary after first-
differencing, and co-integrated, the ECMs for the Granger-causality test
can be specified accordingly as follows:
13. Co-integration – Long Term Causality
Results & Interpretations
1st Eqn D( RD) – Long term causality flows from independent variable CAD(-1) to
Rupee Dollar Ex. RateRupee Dollar Ex. Rate
2nd Eqn D(FII) – Long term causality flows from or is dependent upon its own past
value FII (-1) and FII(-2)
3rd Eqn D(CAD)- Long term causality flows from or is dependent upon its own past
value CAD (-1) and FII(-2)
4th Eqn D(Trade Balance) – Long term causality flows from or is dependent upon its
own past value RD (-1), TB(-1), FII(-1), CAD(-1), FII(-2)
14. Co-integration – Granger Causality ( Short term)
d(RD) d(FII) d(CAD) d(TB)
d(RD) 0.94 0.15 0.82
d(FII) 0.59 0.03 0.00
d(CAD) 0.96 0.79 0.38
d(TB) 0.81 0.70 0.84
Note: - All are probability values, Accepted if it is <0.05
Independent
Variable
Dependent Variable
Granger Causality - CASUALITY DIRECTION
Note: - All are probability values, Accepted if it is <0.05
Uni-directional causal relationship flowing from FII ( Foreign
Institutional Investors ) to CAD ( Current Account Deficit)
Uni-directional casual relation flowing from FII (Foreign Institutional
Investors to TB ( Trade balance )
Analysis/ Interpretation
15. Conclusion & Recommendation
Co-integrating /Co-movement / Long term relationship exists between
Rupee Dollar rate, Current Account Deficit & Trade balance.
There exist the granger causality in short term flowing from FII to CAD and
Trade Balance.
Long term causality – 3 Co-integrating equations flowing from
FII depends upon its own past value of t-1 & t-2;
Uni-directional flow from CAD t-1 to Rupee Dollar Ex. Rate;
Causality flowing from CAD t-1 and FII t-2 to CAD; RD (t-1), TB(t-
1), FII(t-1), CAD(t-1), FII(t-2) flowing to Trade balance.