WSJ SUmary 3

WSJ SUmary 3 - you need to add a ^ to the beginning of the...

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        Due Date:  9/10/07     Name:  FNCE 4030 FNCE 4030 Weekly Wall Street Journal Assignment Submission Form Article Title:  Investors' View Of Risk Returns To Normal Publication Date:  9/10/2007 page C1 1. What is VIX? VIX is an implied indexed that is based on the volatility of the options market of the  Chicago Board Options exchange. 2. Is VIX a looking-forward or looking-back measure?  In other words, is it  calculated from historical return data or from current security prices? VIX is affected by current security prices but it is a measure of historic volatility over  a period of time. VIX is affected by many market factors like the shortage of jobs or  the recent credit scare.  3. Go to Yahoo Finance and look up historical VIX levels.  Since VIX is an index, 
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Unformatted text preview: you need to add a ^ to the beginning of the name, so the symbol is entered as ^VIX. Use the beta charts and look at 3 months, 1 year, 2 years, 5 years and max (back to 1990). Do you agree with the author of the article regarding the current level of VIX? I agree with that the author is saying about the current level of VIX. IT has fluctuated a lot between the last 10 years and right now it seem to be in the middle of the chart. The chart is also backed by current situations with leverage and lending that exist today. 4. The 4.73 “spread” on high yield bonds could also be called the Risk Premium _________________________________...
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This note was uploaded on 02/27/2008 for the course FNCE 4030 taught by Professor Madigan,ge during the Fall '07 term at Colorado.

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WSJ SUmary 3 - you need to add a ^ to the beginning of the...

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