Question 3: We are tasked to analyze Netflix Inc. and Forward Industries Inc. a) (10 marks) For each company, take a look at the historical monthly returns from September 2016 to August 2021 and calculate the historical arithmetic average return, historical geometric average return, historical variance, and standard deviation of each stock. (download data from Yahoo Finance!) b) (5 marks) What indicators can you find where the two stocks are in the efficient market hypothesis's strong, semi-strong or weak? Chart one news event for each company and indicate what the market reaction was to this news. Discuss! c) (5 marks) Reading a report conducted on Netflix by a third party, you find the expected monthly average return and standard deviations are 4.3% and 8.8%, respectively. Assuming that the monthly returns are normally distributed, calculate the probabilities of the following events: 1. The return will be lower than -5%. 2. The return will be higher than 18%. 3. What range of return would you expect to see 68% of the time? Question 3: We are tasked to analyze Netflix Inc. and Forward Industries Inc. a) (10 marks) For each company, take a look at the historical monthly returns from September 2016 to August 2021 and calculate the historical arithmetic average return, historical geometric average return, historical variance, and standard deviation of each stock. (download data from Yahoo Finance!) b) (5 marks) What indicators can you find where the two stocks are in the efficient market hypothesis's strong, semi-strong or weak? Chart one news event for each company and indicate what the market reaction was to this news. Discuss! c) (5 marks) Reading a report conducted on Netflix by a third party, you find the expected monthly average return and standard deviations are 4.3% and 8.8%, respectively. Assuming that the monthly returns are normally distributed, calculate the probabilities of the following events: 1. The return will be lower than -5%. 2. The return will be higher than 18%. 3. What range of return would you expect to see 68% of the time