Midterm
经济期中essay代写 1.Week 5: Heterogeneous beliefs economy:In Week 5’s lecture slides there was a discussion on an economy when the agents have different beliefs,
Write a paper on ONE of the following topics:¹
1.Week 5: Heterogeneous beliefs economy: 经济期中essay代写
In Week 5’s lecture slides there was a discussion on an economy when the agents have different beliefs, see also the tutorial.
(a) Find literature on financial economics or lecture slides which is discussing this in details. (I suggest to consider a static economy with S < ∞ states and an example with S = 2 states)
(b) Elaborate on the emergence of speculative trade, induced by het-erogeneous beliefs.
(c) This part is optional: Try to link the paper by Brunnermeier et. al (2014) in Quaterly Journal of Economics “A welfare criterion for models with distorted beliefs”
In particular, explain the pillow example, therein.
2.Week 6: Python topic² 经济期中essay代写
(a) Get the daily price data for 5, 20, or 100 stocks and index data for S&P500 or ASX200 in 2020.
(b) Generate annualized return of stocks. Show statistics such as mean μ and standard deviation σ. Plot the empirical distribu- tion.
(c) Compare³ it with the normal distribution N(μ, σ²). The following is optional: Is there any evidence for fat-tail?
(d) Plot the diagram of the efficient frontier.
(e) Choose one stock you like and estimate β of it by OLS, taking the index as benchmark portfolio.
(f) Discuss β and compare it with 1.
(g) All content shall be presented with Diagrams with the 5 page paper.
(h) Attach the source code.
¹ You can also submit 2 papers, I will correct both and you get the average grade of the two papers.
² You can use any other software.
³ Compare in a econometric sense.
