i. Interpret the AROC you found. j. Would the AROC from part d or the AROC...
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i. Interpret the AROC you found. j. Would the AROC from part d or the AROC form part h be a better approximation of the IROC at the first date? Explain. 3. (20 points) Choose a company and do a web search to find their stock prices over the past several years. (I have found that a search via bing.com often shows a graph of the prices over time right away, but you can find this info via other search engines too.) a. Name of the company you chose: b. Pick two dates that are two years apart and record the date and the stock price on that date. First date and stock price Second date and stock price c. Translate these dates and prices into ordered pairs (t, p). Let January 2015 be t=0 and p be the stock price. Ordered pairs: d. Find the AROC over the two-year period (rounded to two decimal places). d. Find the AROC over the two-year period (rounded to two decimal places). e. Interpret the AROC you found. f. For the company you chose, use the first date you used in part b and another date that is about 1 week later. Record the date and the stock price. First date and stock price (same as part b) Second date and stock price g. Translate these dates and prices into ordered pairs (t, p). Let January 2015 be t=0 and p be the stock price. (It might be helpful to remember that 1 week is 1/52 of a year.) Ordered pairs: h. Approximate the AROC over this one-week interval (rounded to two decimal places). i. Interpret the AROC you found. j. Would the AROC from part d or the AROC form part h be a better approximation of the IROC at the first date? Explain. 3. (20 points) Choose a company and do a web search to find their stock prices over the past several years. (I have found that a search via bing.com often shows a graph of the prices over time right away, but you can find this info via other search engines too.) a. Name of the company you chose: b. Pick two dates that are two years apart and record the date and the stock price on that date. First date and stock price Second date and stock price c. Translate these dates and prices into ordered pairs (t, p). Let January 2015 be t=0 and p be the stock price. Ordered pairs: d. Find the AROC over the two-year period (rounded to two decimal places). d. Find the AROC over the two-year period (rounded to two decimal places). e. Interpret the AROC you found. f. For the company you chose, use the first date you used in part b and another date that is about 1 week later. Record the date and the stock price. First date and stock price (same as part b) Second date and stock price g. Translate these dates and prices into ordered pairs (t, p). Let January 2015 be t=0 and p be the stock price. (It might be helpful to remember that 1 week is 1/52 of a year.) Ordered pairs: h. Approximate the AROC over this one-week interval (rounded to two decimal places).
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ANSWER i Interpret the AROC you found The AROC annualized rate of change is a measure of the rate of change of a stock price over a certain period of time It is calculated by taking the logarithmic di... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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