no need to put it in turnitinjust explain the code and excell files thats allno need to reference anything
1 MATLAB for Finance Instructions Word limit: 1000 words (not including Tables, Appendix, and References section). Download daily data on the price of four US stocks for the period 31/12/97-31/12/08 and monthly data on the price of four US stocks for the period 1997:12-2007:12 from Yahoo! Finance (www.finance.yahoo.com). Note: your overall stock selection cannot be exactly the same as another student; i.e. you must not use the same four stocks (daily), or the same four stocks (monthly) as any other student, but you can have one or two stocks within each selection that are the same as another student. . Download monthly data on the end-of-month GBP/USD exchange rate (“start-date”- 2012:12) and the one-month forward exchange rate (“start-date”-2012:12) from the Bank of England Statistics database (http://www.bankofengland.co.uk/boeapps/iadb/). Download daily data on the GBP/USD exchange rate (“start-date”-31/12/2012). Start when you want, end in 31/12/2012. (that’s what start date-31/12/2012 means, e.g. 31/12/2002-31/12/2012 When you have downloaded your data, answer Q1, Q2(a), Q2(b), Q3(a) or Q3(b), Q4 and Q5. Include all of the MATLAB programmes used and any additional information in an appendix to your project (this is not included in the word count). You can use modified versions of the code from the main textbooks or you can write your own code, or you can use code from another reputable source (e.g. the MFE toolbox). Please reference the source of your code in the references section of your project. http://www.bankofengland.co.uk/boeapps/iadb/) 2 Q1. Using the daily stock market data, test the weak form of the efficient market hypothesis employing one of the tests discussed in this module. Tabulate and briefly discuss your results. 10% Q2(a). Using the monthly stock market data and assuming a one-year investment horizon, no borrowing and no short sales, compute the optimal risky portfolio weights and the optimal final portfolio weights for a portfolio of the four stocks and a single risk-free asset (use sensible values for the risk-free rate and coefficient of risk aversion). Tabulate, graph, and briefly discuss your results. 20% Q2(b). Investigate how your results change when you allow for borrowing at the risk- free rate, and short sales. 20% Q3(a). Using the monthly exchange rate data and appropriate regression-based tests, test the forward rate unbiasedness (FRU) hypothesis. Tabulate and briefly discuss your results. or, 25% Q3(b). Investigate the profitability of moving-average technical trading rules applied to the daily exchange rate data. Tabulate, graph, and briefly discuss your results. 25% Q4. Using the daily stock market data and employing any of the main approaches discussed in the lectures/classes, compute the one day ahead return-VaR for an equally weighted portfolio of the four stocks on every trading day over 2008. Tabulate, graph, and briefly discuss your results. 25% PLEASE LIST ALL CODE USED CLEARLY FOR EACH QUESTION .ON SEPARATE SHEETS PLEASE ALSO POST ALL EXCEL DATA FILES AND DESCRIBE HOW THE DATA WAS DOWNLOADED ON A SEPARATE SHEET PLEASE THERE IS NO NEED TO PUT THE RESULTS OR TEST THEM ON TURN IT IN