Stock Price Forecast

Problem # 1: Refer to the stock price forecast table provided and any other resource material you deem necessary to address the following:

• Summarize the forecast using 6-10 brief bullet points
• In 100-200 words explain how the forecasters might have utilized the historical data for the stock price to forecast future stock prices and the methodology for forecasting that the forecaster might have used.
• What assumptions did the forecaster use? What might be some of the rational for making the assumptions? How would different assumptions affect the forecast? (100-200 words)
• If you were advising investors regarding the organization's stocks, what would you tell them? Comment on when, and how much (if any) investment should be done, the return they can expect, time frames, and possible risks. (100-200 words)

$150 History Forecast Bubble Bubble $125 $100 $75 Bust $50 Bubble Bust S25 Bust 50 1970 1980 1990 2000 2010 2020 2030 Actual 5% growth Estimate Historical 3% growth NPV Calibration Point Bubble/Bust Calibration Point $150 History Forecast Bubble Bubble $125 $100 $75 Bust $50 Bubble Bust S25 Bust 50 1970 1980 1990 2000 2010 2020 2030 Actual 5% growth Estimate Historical 3% growth NPV Calibration Point Bubble/Bust Calibration Point