Revise and correct the attached file according to the instructions. Use FTSE index and Dowjones index individually and together to predict future American and British share price levels. And explain ur advantages and limitations of ur preditction. And how u made adjustments for them. Because this is a group work, I do not need the completed article. I just need the article about the above content. Do not need introduction and conclusion! The prediction should be based on the mathmatical model.(such as ARMA-GARCH Model) This is very important! The specil needs: use tables and graphs as much as possible. use mathmaticl models to predict. no introduction and no conclusion. P.S. I also want the data(FTSE INDEX and DJ INDEX) come from www.uk.finance.yahoo.com source..
To effectively use FTSE and DJ respectively to predict the future share prices individually and together to predict future American and British share price levels. It will be important to examine the distributional properties of the daily stock price index change individually for FTSE and DJ. The descriptive statistics which will be calculated will include mean , variance, standard deviation, skewness, kurtosis and Jarque-Bera statistics for normality test.
GARCH model developed by Boller is one of the most common nonlinear time series models used to predict future share prices. The model actually involves the joint estimation of conditional mean and a conditional variance equation as shown in the equations below (Andersen, 2001).