Apc 313 Financial Markets- Assessment Answer

Task:

Answer all questions and all parts.

Question 1

Critically discuss and analyse a) factors suggesting that, over time, the US dollar may be at risk of surrendering its position as the world’s global reserve currency and b) whether Chinese Yuan can take on this role.

Question 2

The efficient market hypothesis (EMH) maintains that all stocks are perfectly priced according to their inherent investment properties, the knowledge of which all market participants possess equally.

You are required:

a) Discuss what are the characteristics of an efficient market

b) Collect the movements in daily share prices of top 50 (fifty) largest companies in term of capitalisation listed on S & P 500 (USA) over a 90 days’ period.

c) Based on the data collected in b), you are to analyse and discuss

i) whether all the selected stocks are perfectly priced according to their inherent investment properties, the knowledge of which all market participants possess equally.

ii) to review carefully key academic literature and relevant published empirical evidence on EMH relating to the chosen stock exchange market,own financial data analysis based on a relevant graphical analysis of the movements in daily share prices to arrive at a conclusion whether S & P 500 is an efficient market

Question 3

Analyse and discuss why there is a need for financial markets’ regulations.

Question 4

One decade after the global financial crisis, is global banking system stronger than before the global financial crisis? Discuss.