Intro to R Software
Getting started with R
Download and install R
Install and load packages
Quantmod package
Quantmod commands
getSymbols
chartSeries
Access data from Yahoo, Google, FRED
1-1
Using R - chartSeries
> library(quantmod)
Loading requir
MGE 602
Professor Isaac Ehrlich
Global Economy and the Business Firm
Problem Set 2
1. The following is information from the national income account for a hypothetical
country:
GDP
$8,500
Gross Investment
1,000
Net Investment
400
Consumption
5,000
Governme
Multiple Regression Applications
Factor Models and Returns-Based Style Analysis
Single factor odel: CAPM
Using R to estimate CAPM
Multi-factor models
Fama-French 3 (and 5) Factor Model
Chen, Roll, Ross APT Model
Multiple regression Issues
Omitted v
Factor Models So Far
Single-factor model: Market Model
Fundamental (multi)factor model: Fama-French 3-Factor Model
1-1
Asset Class Factor Models
Sharpe (Journal of Portfolio Management, 1992) creates factor model to model co-movement
of mutual funds with
Factor Models So Far
Single-factor model: Market Model
Fundamental (multi)factor model: Fama-French 3-Factor Model
1-1
Principal Component Analysis
Principal Components Analysis: statistical basis to create a
factor model
Reduces dimensionality
Identifi
CHAPTER 12
MONETARY AND FISCAL POLICY IN THE VERY SHORT RUN
Chapter Outline
Monetary Policy
Is There a Situation Where Monetary Policy Cannot Lower Interest Rates?
The Case of the Liquidity Trap
Can the LM Curve Be Vertical? Classical Economics Again
Fisc
NEW YORK UNIVERSITY STERN SCHOOL OF BUSINESS
Debt Instruments and Markets
Professor Carpenter
Solutions to Practice Problems
1) a) What is $100 invested today worth at the end of 3 years at an annualized rate of 5%
if compounded
(i) annually?
$100 x (1+0.