In your paper,
- Create a table and list the 10 stocks you chose to purchase for the Stock-Trak investment. (attached)
- Identify the name, ticker symbol, price per share and total amount of the trade.
- Explain the order type you used for each stock (market, limit, stop) and describe the conditions of the trades.
- Identify any unfilled orders.
- Calculate the 1-year return of your 10 stocks, using Stock-Trak to look up the stock price from one year ago through Friday of Week 1. Be sure to include dividends, if applicable. Within Stock-Trak, click on the ticker symbol for each stock you purchased. Then, select Charts from the menu on the left. Adjust this chart to 1Y to see the stock price movement for a year. You can hover over the points on the chart at each end of the line graph to see the stock price per share on that date.
- Within Stock-Trak, on the Chart of stock price movement, you can add dividends to the chart. To do this, hover over the arrow next to Events to see the menu. Click on the button on Dividends so that it is green. You will then see Dividend dates on the graph represented by a D in a circle. You can hover over the D to see the dividends paid.
- Choose one comparable index for each of the 10 stocks. If applicable, you may use the same comparable index for several of your 10 chosen stocks.
- Justify your choice of comparable index for each of the 10 chosen stocks.
- Compare the historical return of each stock to the comparable returns of the S&P 500 and the one identified comparable index over the last year or a one-year period.
- Explain the short sale and identify the impact on your margin account.
- Calculate the short interest ratio for the stock you sold short. Explain the significance of the ratio.
- Choose one of your 10 chosen stocks and calculate the arithmetic mean, geometric mean, standard deviation, and variance of returns over a time period of no less than 20 years. Feel free to use Microsoft Excel to run these calculations. Explain the important assumption about cash flows when using the geometric mean.
- Explain the difference between the geometric mean and the arithmetic mean.
- Compare these results to Table 6-6 and explain any differences.
- Create a table to list the standard deviation of each of your chosen 10 stocks, as reported in Stock-Trak.
- Interpret the standard deviation for each of your 10 chosen stocks.
Requirements:
- Must be no less than three to five single-spaced pages in length including data tables (not including references pages).
- Must have all in-text citations formatted according to APA standards
- At least 3 credible sources
0 comments