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Conduct some market research to find out what has been happening to your stock for the last 5 years. Based on what we learnt, there
- Conduct some market research to find out what has been happening to your stock for the last 5 years. Based on what we learnt, there must be two primary sources which cause the prices of your stock to plunge (i.e. decline) at certain times; Unsystematic risk and Systematic risk. Highlight two specific down periods where one is caused by unsystematic risk and the other by systematic risk.
- For each, discuss the real-event in detail and how it affected the company performance on the day (or over the days) by referring to price changes (You can have a look at daily price changes in Yahoo by following 1.e. in Part I and changing the option to 'Daily'). Clearly discuss through what channels company performance would have been affected.
- For each, discuss how S&P/ASX200 responded on the same day (or over the days) by referring to value changes.
- Discuss your findings with reference to the impact of unsystematic and systematic risks.
- If your answer contains plagiarised materials, no marks will be given.
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