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\begin{document}

\section*{Main Part 1 (Scala, 6 Marks)}

\IMPORTANT{This part is about Scala. It is due on \cwSIXa{} at 5pm and worth 6\%.}

\noindent
Also note that the running time of each part will be restricted to a
maximum of 30 seconds on my laptop.

\DISCLAIMER{}

\subsection*{Reference Implementation}

Like the C++ assignments, the Scala assignments will work like this: you
push your files to GitHub and receive (after sometimes a long delay) some
automated feedback. In the end we take a snapshot of the submitted files and
apply an automated marking script to them.\medskip

\noindent
In addition, the Scala coursework comes with a reference implementation
in form of \texttt{jar}-files. This allows you to run any test cases
on your own computer. For example you can call Scala on the command
line with the option \texttt{-cp drumb.jar} and then query any
function from the template file. Say you want to find out what
the function \code{get_january_data}
produces: for this you just need to prefix them with the object name
\texttt{M1} and call them with some arguments: 

\begin{lstlisting}[language={},numbers=none,basicstyle=\ttfamily\small]
$ scala -cp drumb.jar
  
scala> M1.get_january_data("FB", 2014)
val res2: List[String] = List(2014-01-02,54.709999,....)
\end{lstlisting}%$

\subsection*{Hints}

\noindent
\textbf{For Main Part 1:} useful string functions:
\texttt{.startsWith(...)} for checking whether a string has a given
prefix, \texttt{\_ ++ \_} for concatenating two strings; useful option
functions: \texttt{.flatten} flattens a list of options such that it
filters way all \texttt{None}'s, \texttt{Try(...).getOrElse ...} runs
some code that might raise an exception---if yes, then a default value
can be given; useful list functions: \texttt{.head} for obtaining the
first element in a non-empty list, \texttt{.length} for the length of
a list; \texttt{.filter(...)} for filtering out elements in a list;
\texttt{.getLines.toList} for obtaining a list of lines from a file;
\texttt{.split(",").toList} for splitting strings according to a
comma.\bigskip

\noindent\alert
\textbf{Note!} Fortunately Scala supports operator overloading. But
make sure you understand the difference between \texttt{100 / 3} and
\texttt{100.0 / 3}!

\newpage
\subsection*{Main Part 1 (6 Marks, file drumb.scala)}

A purely fictional character named Mr T.~Drumb inherited in 1978
approximately 200 Million Dollar from his father. Mr Drumb prides
himself to be a brilliant business man because nowadays it is
estimated he is 3 Billion Dollar worth (one is not sure, of course,
because Mr Drumb refuses to make his tax records public).

Since the question about Mr Drumb's business acumen remains open,
let's do a quick back-of-the-envelope calculation in Scala whether his
claim has any merit. Let's suppose we are given \$100 in 1978 and we
follow a really dumb investment strategy, namely:

\begin{itemize}
\item We blindly choose a portfolio of stocks, say some Blue-Chip stocks
  or some Real Estate stocks.
\item If some of the stocks in our portfolio are traded in January of
  a year, we invest our money in equal amounts in each of these
  stocks.  For example if we have \$100 and there are four stocks that
  are traded in our portfolio, we buy \$25 worth of stocks
  from each. (Be careful to also test cases where you trade with 3 stocks.) 
\item Next year in January, we look at how our stocks did, liquidate
  everything, and re-invest our (hopefully) increased money in again
  the stocks from our portfolio (there might be more stocks available,
  if companies from our portfolio got listed in that year, or less if
  some companies went bust or were de-listed).
\item We do this for 41 years until January 2019 and check what would
  have become out of our \$100.
\end{itemize}

\noindent
Until Yahoo was bought by Altaba a few years ago, historical stock market
data for such back-of-the-envelope calculations was freely available
online. Unfortunately nowadays this kind of data is more difficult to
obtain, unless you are prepared to pay extortionate prices or be
severely rate-limited.  Therefore this part comes with a number
of files containing CSV-lists with the historical stock prices for the
companies in our portfolios. Use these files for the following
tasks.\medskip

\noindent\alert
\textbf{Note:} Do not hardcode the path to the CSV-files. The testing
framework will assume that these files are in the same directory as the
drumb.scala file.
\bigskip

\newpage
\noindent
\textbf{Tasks}

\begin{itemize}
\item[(1)] Write a function \texttt{get\_january\_data} that takes a
  stock symbol and a year as arguments. The function reads the
  corresponding CSV-file and returns the list of strings that start
  with the given year (each line in the CSV-list is of the form
  \texttt{someyear-01-someday,someprice}).\hfill[0.5 Marks]

\item[(2)] Write a function \texttt{get\_first\_price} that takes
  again a stock symbol and a year as arguments. It should return the
  first January price for the stock symbol in the given year. For this
  it uses the list of strings generated by
  \texttt{get\_january\_data}.  A problem is that normally a stock
  exchange is not open on 1st of January, but depending on the day of
  the week on a later day (maybe 3rd or 4th). The easiest way to solve
  this problem is to obtain the whole January data for a stock symbol
  and then select the earliest, or first, entry in this list. The
  stock price of this entry should be converted into a double.  Such a
  price might not exist, in case the company does not exist in the given
  year. For example, if you query for Google in January of 1980, then
  clearly Google did not exist yet.  Therefore you are asked to
  return a trade price with type \texttt{Option[Double]}\ldots\texttt{None}
  will be the value for when no price exists; \texttt{Some} if  there is a
  price.\hfill[1 Mark]

\item[(3)] Write a function \texttt{get\_prices} that takes a
  portfolio (a list of stock symbols), a years range and gets all the
  first trading prices for each year in the range. You should organise
  this as a list of lists of \texttt{Option[Double]}'s. The inner
  lists are for all stock symbols from the portfolio and the outer
  list for the years.  For example for Google and Apple in years 2010
  (first line), 2011 (second line) and 2012 (third line) you obtain:

\begin{verbatim}
  List(List(Some(312.204773), Some(26.782711)), 
       List(Some(301.0466),   Some(41.244694)), 
       List(Some(331.462585), Some(51.464207))))
\end{verbatim}\hfill[1 Mark]


%\end{itemize}

%\subsection*{Advanced Part 3 (4 Marks, continue in file drumb.scala)}
%
%\noindent
%\textbf{Tasks}

%\begin{itemize}  

\item[(4)] Write a function that calculates the \emph{change factor} (delta)
  for how a stock price has changed from one year to the next. This is
  only well-defined, if the corresponding company has been traded in both
  years. In this case you can calculate

  \[
  \frac{price_{new} - price_{old}}{price_{old}}
  \]

  If the change factor is defined, you should return it
  as \texttt{Some(change\_factor)}; if not, you should return
  \texttt{None}.\mbox{}\hfill\mbox{[1 Mark]}
  
\item[(5)] Write a function that calculates all change factors
  (deltas) for the prices we obtained in Task (2). For the running
  example of Google and Apple for the years 2010 to 2012 you should
  obtain 4 change factors:

\begin{verbatim}
  List(List(Some(-0.03573991804411003), Some(0.539974575389325)), 
       List(Some(0.10103414222249969), Some(0.24777764141006836)))
\end{verbatim}

  That means Google did a bit badly in 2010, while Apple did very well.
  Both did OK in 2011. Make sure you handle the cases where a company is
  not listed in a year. In such cases the change factor should be \texttt{None}
  (recall Task~(4)).
  \mbox{}\hfill\mbox{[1 Mark]}

\item[(6)] Write a function that calculates the ``yield'', or
  balance, for one year for our portfolio.  This function takes the
  change factors, the starting balance and the year as arguments. If
  no company from our portfolio existed in that year, the balance is
  unchanged. Otherwise we invest in each existing company an equal
  amount of our balance. Using the change factors computed under Task
  (2), calculate the new balance. Say we had \$100 in 2010, we would have
  received in our running example involving Google and Apple:

  \begin{verbatim}
  $50 * -0.03573991804411003 + $50 * 0.539974575389325
                                       = $25.21173286726075
  \end{verbatim}

  as profit for that year, and our new balance for 2011 is \$125 when
  converted to a \texttt{Long}.\mbox{}\hfill\mbox{[1 Mark]}
  
\item[(7)] Write a function that calculates the overall balance
  for a range of years where each year the yearly profit is compounded to
  the new balances and then re-invested into our portfolio.
  For this use the function and results generated under (6).\\
  \mbox{}\hfill\mbox{[0.5 Marks]}
\end{itemize}\medskip  



\noindent
\textbf{Test Data:} File \texttt{drumb.scala} contains two portfolios
collected from the S\&P 500, one for blue-chip companies, including
Facebook, Amazon and Baidu; and another for listed real-estate
companies, whose names I have never heard of. Following the dumb
investment strategy from 1978 until 2019 would have turned a starting
balance of \$100 into roughly \$39,162 for real estate and a whopping
\$462,199 for blue chips.  Note when comparing these results with your
own calculations: there might be some small rounding errors, which
when compounded lead to moderately different values.\bigskip


\noindent
\textbf{Moral:} Reflecting on our assumptions, we are over-estimating
our yield in many ways: first, who can know in 1978 about what will
turn out to be a blue chip company.  Also, since the portfolios are
chosen from the current S\&P 500, they do not include the myriad
of companies that went bust or were de-listed over the years.
So where does this leave our fictional character Mr T.~Drumb? Well, given
his inheritance, a really dumb investment strategy would have done
equally well, if not much better. And one would assume this guy is
by now locked up in prison and the key thrown away, but alas he
is still around annoying commonsense people.\medskip

\end{document}

