Question
9. Explaining stock price movements a. Determine the return on the stock market over September 2023 through November 2023, based on the percentage change in
9. Explaining stock price movements
a. Determine the return on the stock market over September 2023 through November 2023, based on the percentage change in the S&P 500 index level over the term. Annualize this return by multiplying the return times (12/m), where m is the number of months for September, October, and November 2023. Explain why the market return was high or low over the given timeframe.
b. Repeat the previous question for smaller stocks by using the Nasdaq Composite instead of the S&P 500 index. What was the annualized return on the Nasdaq Composite over the given timeframe.
c. Explain why the return on the Nasdaq Composite was high or low over the given timeframe.
d. Determine the return over September 2023 through November 2023 on Apple stock. The return is (Pt Pt1 + D)/Pt1, where Pt is the stock price as of the end of November 2023, Pt1 is the stock price at the beginning of September 2023, and D is the dividend paid over September, October, and November 2023. In most cases, one quarterly dividend is paid over the given timeframe, which is one-fourth of the annual dividend amount per share shown in stock quotation tables.
e. What was your return over September 2023 through November 2023 of Apple stock from the New York Stock Exchange? What was your return over the given timeframe on Apple stock from the Nasdaq market? Explain why you think these three stocks experienced different returns over the given timeframe.
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