25705 Financial Modelling and Analysis

Autumn Session 2020

Case Study Solution

Company characteristics [5 marks]

Use "Datanalysis premium" at UTS library to summarize the characteristics of your company, including (but not limited to) industry, revenue, number of employees, profitability, market capitalization, stock return and volatility in 2020, and analyst forecast. [3 marks] Let pt be the closing price of week t, vt be the volume, and st be the volatility. Define liquidity as liqt = ptvt106st. It is the dollar volume associated with one unit of volatility. Plot liqt over the sample period. Identify a key feature of liquidity and explain why. [2 marks]