The effect of uncertainty on the UK stock market returns and volatility
Prepare a MS Word report with RMarkdown analysing the yearly excess returns from Yahoo finance for the components of the FTSE100 for the period 1st January 2000 to 31st December 2020. As part of the analysis, pre-process the data and identify the stocks that satisfy particular criteria (highest excess return, highest volatility, lowest volatility, highest volume, lowest volume). Finally, do an analysis and discuss whether the excess returns differ between (a) high-volatility and low-volatility groups of stocks, and (b) high-liquidity and low-liquidity (volume) groups of stocks.
Task 2: Prepare a MS Word report with RMarkdown analysing and discussing the effect of uncertainty on the UK stock market returns and volatility.