Advanced applied quantitative methods in finance Essay

Advanced applied quantitative methods in finance - Essay Example Financial time series have features that are represented well by models with dynamic variances. In this part, we focus at modeling the financial time series of the Italian Stock market index as well as the Spanish stock market index. We thus intend to examine the volatility in the Italian Spanish markets by understanding the change in commodity prices over a period of time. Finally we aim to present the various processes through which financial decisions are taken by aid of volatility modeling. Uses regression to provide possible estimates of the disturbance variances at each sample point and the original relation is then re-estimated by the weighted least squares procedure that corrects for the heteroskedasticity. The data is a time series data that includes 4255 daily market index prices for the Italian stock market spanning over the period 12/31/1997-22/01/2014 we also have the Spanish stock market data that includes 7122 daily market index prices spanning from 1/5/1987 to 4/22/2014 The series are characterized by random, rapid changes and are said to be volatile. The volatility seems to change over time as well. There has been upward and downward effects in volatility for the Italian market while the time series plot for Spanish market shows somehow an upward increase with slight variations (decreases) in between the years. The variations in volatility could be as a result among other factors, political factors or the international market changes. The histograms of the empirical distribution of the series are given below. For both the two market indexes, we observe that the series are leptokurtic. That is, they have lots of observations around the average and a relatively large number of observations that are far from average; for the Italian market index, the centre of the histogram has a high peak and the tails

Latin American Countries Essay Example | Topics and Well Written Essays - 1750 words

Latin American Countries - Essay Example Native inhabitants were powerless against the superior firearm and the onslaught of foreign disease leading to their colonization. The previously free spirited populace was organized into communities and were made as labourers in gold mines and plantations. Their rights were limited and their life left to the whims of the captors. There were many excesses on the part of the victors and many sacrifices on the part of the conquered. Nevertheless, they would continue to bear this yolk as their beliefs and grudges were tempered by religious missions which instilled superstitious beliefs and damned all those who tried to break free from the system. Yet, even that could not prevent the inevitable. With the weakening of Spain and Portugal in the face of its French adversary and the rise of nationalistic sentiments, it was not long before the populace rebelled against those who have wronged them. This paper aims at investigating the fight for independence of three South American countries namely Mexico, Brazil and Chile. I am to discuss their colonial background and then highlight the similarities and difference in their fight for independence. I will also be discussing the possible reasons behind these so as to provide a more critical perspective regarding the history of the three nations. Brazil became a Portuguese colony by the early... The region soon became a major sugar, gold and diamond exporter. Brazil's road to independence started in September 1821 when Don Pedro, a Portuguese himself, defied the ruling of the Cortes in Portugal which placed the Kingdom of Brazil under direct control of Lisbon. The first confrontation involved the loyal- to-Lisbon troops and thousands of armed Brazilians. There was no bloodshed as Dom Pedro ordered the Portuguese commanding general and his soldiers to go back to Portugal. Bloodshed occurred in uprisings in other regions. Fuelled by being branded as traitors by Lisbon, Don Pedro finally declared independence in September 7, 1822 when he swore:"By my blood, by my honour, and by God: I will make Brazil free." Britain and Portugal recognized Brazilian independence by signing a treaty on August 29, 1825. (Cavaliero, 1993) Mexico's path to independence was much more violent than that of Brazil. Mexico experienced a decade long war starting with an armed conflict between the people of Mexico and Spanish colonial authorities on September 16, 1810. The Mexican War of Independence movement was led by Mexican-born Spaniards, Afro-mexicans and mestizos who sought independence from Spain. It started as an idealistic peasants' rebellion against their colonial masters, but finally ended as an unlikely alliance between conservative Spaniards not wanting to recognize the new head in their motherland and the Creoles (Spaniards born in Mexico) who instigated the cry for independence. Representatives of the Spanish crown and the head of the Mexican alliance signed on August 24, 1821 the Treaty of Crdoba which recognized Mexican independence. (Ruiz, 1992) Chile's move for independence came about when news of Napoleon's advance into Spain and the deposing of the