1. Suppose you had invested $10,000 in Facebook on 1/2/2020:

• Compute the holding period return if you sold the stock at the closing price on 7/31/ 2023. (Consider any dividends that might have been paid during that period.)
• Compute the period geometric mean return.
• Compute the total value of your investment, given your initial investment and the estimated mean return.

2. Sensitivity to business cycles: Is your Facebook "cyclical," "non-cyclical" or "defensive"?

3. In addition to COVID-19, research any other major event(s) that might have occurred between January 2, 2020, and July 31, 2023, which has had significant effects on Facebook and Facebook stock price. Briefly discuss the impact of these two events on the stock price and the implications for market efficiency. Attach a plot of aline graph of the stock closing price (monthly) for the period of January 2, 2020 and July 31, 2023 (copy and paste the plot at the end of this document, using the data you have downloaded into Excel from finance.yahoo).

4. What is your overall evaluation of Facebook? Would you recommend the purchase, hold or sale of the Facebook? Does your recommendation agree with that of the consensus of other stock analysts? Explain, briefly, your reasons and any disagreement with the other analysts' "consensus."

Answer rating: 100% (QA)

Analysis of Investment in Facebook Stock Investment Performance If you had invested 10000 in Facebook on 122020 and sold the stock at the closing pric... View the full answer