ASSIGNMENT

FTSE All Shares and Lloyd's TSB Bank

FTSE All Shares and Lloyd's TSB Bank

Introduction

The index is used as a barometer of the UK economy and is the basis for many financial derivatives. The founders of the index are such famous institutions as the publication of Financial Times, Britain's leading stock exchanges - London Stock Exchange and the Department of Statistics Institute of FTSE International. Companies, whose shares are recognized in the FTSE 100 index, must satisfy the conditions put up FTSE Group:

must include a list of the London Stock Exchange

The cost shares of the FTSE 100 index is expressed in pounds or Euros

Be tested for membership in a particular state

Shares of the FTSE 100 should be in free circulation and to be liquid.

FTSE All-Share

FTSE All-Share Index, originally known as the FTSE Actuaries All Share Index, a capitalization-weighted index, which includes approximately just over 1,000 more, of the 2,000 companies traded on the London Stock Exchange (LSE). It seeks to represent at least 98% of the total capital value of UK companies that meet the criteria for inclusion in the index. Index FTSE Actuaries All Share was launched on the market April 10, 1962 with a basic level of 100. It represents a sample of all stocks, by analogy with other indices. Already mentioned, FTSE Group is an independent company since 1995, which was organized as a joint venture between Financial Times and the London Stock Exchange in 1962, hence the name of the index Financial Times Stock Exchange. FTSE Group ("Footsie" - Futsi) - provider of equity indices and associated data. FTSE Group is working with well-known FTSE 100 and FTSE 250, and another with 58000 other indicators, including 600 indexes, which are calculated in real time.

Lloyd TSB Bank

Lloyds Banking Group plc, a company listed in the FTSE index that was formerly Lloyds TSB Group plc is a United Kingdom-based financial services group that is providing a range of banking and financial services, primarily in the United Kingdom, to personal and corporate Customers. The Company operates in three divisions: UK Retail Banking, Insurance and Investments, and Wholesale and International Banking. Its main business activities are retail, commercial and corporate banking, general insurance, and life, pensions and investment provision. The Lloyds Banking Group (Lloyds TSB Group plc until 2009 (Lloyds TSB bank)) is a publicly traded British bank in September 2008 from a merger with the course of the global economic crisis battered HBOS emerged. Lloyds TSB in turn was created in 1995 through a merger of the TSB Group and Lloyds Bank. The bank is one of the 29 major banks, by the Financial Stability Board (FSB) as "systemically important financial institution" (systemically significant financial institution) were classified. It is therefore subject to special monitoring and more stringent demands on the equipment with equity.

Part A

The Capital Asset Pricing Model (CAPM)

The CAPM, derived by William Sharpe (1964), among others, can be viewed as the first formal model that quantifies the relationship between expected return and systematic risk for financial ...