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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
  1. Using the adjusted close, calculate the ex-post returns for stock A for each period. (6 marks) 14.0011%
  2. Calculated the arithmetic mean for stock A. 1.1668%
  3. Calculate the geometric mean for stock A. 0.714%
  4. Calculate the standard deviation or the risk associated with stock A. 1.053
  5. 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
  6. What form of market efficiency did you use to calculate the expected price? Explain. (2 marks)

  7. 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)

  8. What form of market efficiency did you incorporate in part g? Explain. (2 marks)

  9. 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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