1.Stock and Market Risk and Return. Provide an introduction paragraph describing the price range of your stock during the last full 10 years available.
You may also want to include when your company went public and when it started paying dividends as well as any price splits during the period in question.
Calculate the company’s stock average return, standard deviation, and coefficient of variation for the last full 10 years available. Use the closing price for the last day of trading for each year (December 31st) and annualized dividend.
You may use finance.yahoo.com or marketwatch.com. If your stock has split, use the adjusted price.
To obtain the annual divided, just simply add the quarterly dividends. Similarly, provide
the same information for the S&P 500 market index.
The divided is annualized. The $2 represents the sum of the four dividend quarter’s.
2. Describe the distribution of your stock returns using the statistics above. Compare your stock distribution with that of the S&P 500. Did your company have a higher return than the S&P 500 index? Is your company’s stock riskier than the S&P 500 index?
3. Obtain a beta estimate for your company. What does it mean? Examine and compare the annual total returns and average return of your stock with that of the S8,500’s returns. Did it follow the Beta estimate? It would be helpful to illustrate the returns of the company’s stock and the market.
4. Assuming that you bought your stock at the beginning of the year to date, what is the Year-To-Date return on your stock (pick a recent trading day). How does it compare to the YTD for the S&P 500?
5. Conclusion: State your conclusion based on the research and analysis provided in both projects.
Answer the following question:
Would you invest in this company, Why or why not?
To guide your conclusion, use the following prompts:
How has the company performed in examining its financials (operations, investment, and financial activities)? Which areas (revenue, profits, liquidity, etc.) are strong or weak?
o How has the company’s stock performed in relation to its risk? What is the cornpany’s future?
Group Option: If done as group project, each team member should write individual conclusions.)
Use report format with headings and subheadings.
Cite and list all sources used in your research.
Use font size 12 and double-spaced lines.
Make sure that you have visuals exhibiting all formulas and calculations. Tables and graphs are highly encouraged.
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