Financial economics Value of the house 500,000. You are using a 30-year mortgage. Also, you are putting down 20%. (show your work) You have two options: a. Mortgage rate of 4.5% with no points. b. Mortgage rate of 4.35% and 1.5 points. Which option should you choose? (calculate the present value of future savings)
Describe the purpose of a Vector Autoregression (VAR), and estimate and interpret a VAR model describing the dynamic relationship between returns on the market and returns on the industry portfolios.
Assignment Question 1 Download 20 years’ worth of monthly data for the period January 2002 to December 2021 on a company of your choice from the CRSP database via WRDS, and download the Fama-French 3 Factors from the Kenneth French Data Library or from WRDS. You can access the Kenneth French Data Library directly here: […]