Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stock Ace Computers Coburn Motor Company National Soap & Cosmetics Ronto Foods Wings Aircraft Today $62.08 37.42 90.18 65.12 83.31 1 Year Ago $64.87 33.62

image text in transcribed
image text in transcribed
Stock Ace Computers Coburn Motor Company National Soap & Cosmetics Ronto Foods Wings Aircraft Today $62.08 37.42 90.18 65.12 83.31 1 Year Ago $64.87 33.62 95.98 72.41 87.19 Imagine that the Mini-Dow Average (MDA) is calculated by adding up the closing prices of five stocks and dividing that sum by a divisor. The divisor used in the calculation of the MDA is currently 0.775. The closing prices for each of the five stocks in the MDA today and exactly 1 year ago, when the divisor was 0.815, are given in the following table: 3 a. Calculate the percentage change in each stock. Based on this is your sense that the market is bullish or bearish? b. Calculate the MDA today and that of a year ago and calculate the percentage of change in the MDA. Based on this does the market appear to be bullish or bearish? c. Compare your answers to parts (a) and (b) above. Did you reach the same conclusion about the direction of the overall market? What role did the divisor play in terms of the conclusion you reached in part b? a. The price change in Ace Computers is % (Enter as a percentage and round to one decimal place. Be sure to enter negative answers as negative.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance Governance And Business Cycles Theory And International Comparisons

Authors: Robert E. Krainer

1st Edition

0444510494, 9780444510495

More Books

Students also viewed these Finance questions