Question Five Mini Research on Stock and Return (Total 8 marks) Search online for The a2 Milk Company Limited (ATM NZ) daily stock price from March 18, 2020 to March 18, 2021 (twelve months) Download the above stocks daily closing price for the specified period Save the data in an Excel file to perform the following calculations Using Excel, calculate the daily rates of change (i e daily rates of return or daily holding period returns) of the downloaded stock prices express the rates as percentages In your Word answer file, present the formula for calculating the rate of change Clearly state the data source and weblink (2 marks) Note A daily rate of change refers to the rate of change in closing prices from one trading day to another For instance, the closing prices on March 18, 2020 and March 19, 2020 can be used to calculate one daily rate of change that is, the prices from two trading days will give you one daily rate of change If you have closing prices for n days, there will be (n 1) daily rates of change Suggested Excel table Set up your Excel table columns as specified below Show respective closing prices and rates below each column Date (Adjusted) Daily Closing Price Calculated daily rate of change ( ) Next, copy the dates and rate of change (paste special rate of change as values), then use Excels Data Sort function to sort the calculated daily rate of change from smallest to largest Identify the two biggest negative rates of change in percentages and the corresponding dates In your Word answer file, clearly state the two biggest negative percentages and dates (1 mark) Conduct an online search for documented news or announcements that are most likely to have influenced the stock price changes identified above In your own words, describe the major causes of the two negative rates of returns identified above State the sources and websites Include these references in your reference list The discussion must be in your own words Quoted text from another source is not acceptable Word limit 100 words answers beyond the word limit will not be marked (3 marks) If you bought the stock at the closing price on March 17, 2020 and sold it at the closing price on March 17, 2021, what was your holding period (rate of) return Clearly show your work Did the stock pay any dividend during this period Would you consider this particular trade a good investment Why or why not Word limit 50 words answers beyond the word limit will not be marked (2 marks)

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Question Five: Mini Research on Stock and Return (Total 8 marks) Search online for The a2 Milk Company Limited (ATM.NZ) daily stock price from March

Question Five: Mini Research on Stock and Return (Total 8 marks)

Search online for The a2 Milk Company Limited (ATM.NZ) daily stock price from March 18, 2020 to March 18, 2021 (twelve months).

Download the above stocks daily closing price for the specified period. Save the data in an Excel file to perform the following calculations. Using Excel, calculate the daily rates of change (i.e. daily rates of return or daily holding period returns) of the downloaded stock prices; express the rates as percentages. In your Word answer file, present the formula for calculating the rate of change. Clearly state the data source and weblink. (2 marks)

[Note: A daily rate of change refers to the rate of change in closing prices from one trading day to another. For instance, the closing prices on March 18, 2020 and March 19, 2020 can be used to calculate one daily rate of change; that is, the prices from two trading days will give you one daily rate of change. If you have closing prices for n days, there will be (n-1) daily rates of change.]

Suggested Excel table: Set up your Excel table columns as specified below. Show respective closing prices and rates below each column.

Date

(Adjusted) Daily Closing Price

Calculated daily rate of change (%)

Next, copy the dates and rate of change (paste special rate of change as values), then use Excels Data/Sort function to sort the calculated daily rate of change from smallest to largest. Identify the two biggest negative rates of change in percentages and the corresponding dates. In your Word answer file, clearly state the two biggest negative percentages and dates. (1 mark)

Conduct an online search for documented news or announcements that are most likely to have influenced the stock price changes identified above. In your own words, describe the major causes of the two negative rates of returns identified above. State the sources and websites. Include these references in your reference list. [The discussion must be in your own words. Quoted text from another source is not acceptable. Word limit: 100 words; answers beyond the word limit will not be marked]. (3 marks)

If you bought the stock at the closing price on March 17, 2020 and sold it at the closing price on March 17, 2021, what was your holding period (rate of) return? Clearly show your work. Did the stock pay any dividend during this period? Would you consider this particular trade a good investment? Why or why not? [Word limit: 50 words; answers beyond the word limit will not be marked] (2 marks)