Question
You have been following the prices of Stock A and recording the following information: * Remember to show all of your work * Date Open
You have been following the prices of Stock A and recording the following information:
* Remember to show all of your work *
Date | Open | High | Low | Close | Adj Close | Dividend | Volume |
1-Jul-20 | 62.5 | 62.5 | 61.35 | 61.75 | 61.75 | 0.625 | 27,454,900 |
1-Jun-20 | 62.9 | 64.35 | 61.32 | 61.9 | 61.28 | 35,919,800 | |
1-May-20 | 63.37 | 64.69 | 61.33 | 62.71 | 62.09 | 31,563,300 | |
1-Apr-20 | 61.61 | 64.4 | 60.78 | 63.38 | 62.75 | 0.625 | 28,179,500 |
1-Mar-20 | 61.41 | 62.8 | 60.54 | 61.37 | 60.15 | 43,585,500 | |
1-Feb-20 | 61.55 | 62.88 | 60.35 | 61.06 | 59.85 | 34,410,600 | |
1-Jan-20 | 60.83 | 65.24 | 60.28 | 61.39 | 60.17 | 1.13 | 30,801,200 |
1-Dec-19 | 61 | 62.84 | 58.12 | 60.54 | 58.25 | 35,638,500 | |
1-Nov-19 | 60.91 | 61.73 | 57.36 | 60.33 | 58.05 | 58,022,600 | |
1-Oct-19 | 62.52 | 63 | 60.11 | 60.72 | 58.42 | 0.565 | 21,743,700 |
1-Sep-19 | 59.51 | 63.41 | 58.98 | 62.31 | 59.41 | 0.565 | 30,764,200 |
1-Aug-19 | 60.09 | 62.44 | 58.76 | 59.47 | 56.17 | 30,263,900 | |
1-Jul-19 | 59.06 | 61.44 | 58.15 | 60.54 | 57.18 | 43,506,900 |
- Using the adjusted close, calculate the ex-post returns for stock A for each period. (6 marks) 14.0011%
- Calculated the arithmetic mean for stock A. 1.1668%
- Calculate the geometric mean for stock A. 0.714%
- Calculate the standard deviation or the risk associated with stock A. 1.053
- Based upon your calculations, what do you think the expected price will be on August 1 and what assumptions did you make to arrive at this expected price
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What form of market efficiency did you use to calculate the expected price? Explain. (2 marks)
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You were listening to the news at supper time and you heard a report of a pending new product that company A will introduce to the market next week that will change the companys product offering. Will this information have a potential of changing your estimate that you provided in part e? Explain. (3 marks)
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What form of market efficiency did you incorporate in part g? Explain. (2 marks)
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If the market is strong form efficient, would your expected price estimate change? Explain (2 marks)
You just need to answer the question e to i
I gave the answers for a to d to you ( Use the rate of the return rather than monetary return)
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