Question
1.) Choose a publicly traded company that has been listed o a major exchange or in the over-the-counter market for at least five years. Use
1.) Choose a publicly traded company that has been listed o a major exchange or in the over-the-counter market for at least five years. Use any data source of your choice to find the annual cash dividend, if any, paid by the company in each of the past five calendar years. Also find the closing price of the stock at the end of each of the preceding six years. a.) Calculate the return for each of the five one-year periods. b.) Create a graph that shows the return that the investment earned on the y-axis and the year in which the return was earn on the x-axis. c.) On the basis of the graph in part b, estimate the return for the coming year, and explain your answer.
2.) Choose three NYSE-listed stocks and maintain a record of their dividend payments, if any, and closing prices each week over the next six weeks. a.) At the end of the six-week period, calculate the one-week HPRs for each stock for each of the six weeks. b.) For each stock, average the six weekly HPRs calculated in part a and compare them. c.) Use the averages you computed in part b and compute the standard deviation of the six HPRs for each stock. Discuss the stocks relative risk and return behavior. Did the stocks with the highest risk earn the greatest return?
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