Explain how forecasters might utilize historical data for a stock price to forecast future stock prices and the methodology for forecasting that a forecaster might use.

What assumptions did the forecaster use? What might be some of the rational for making the assumptions? How would different assumptions affect the forecast?

If you were advising investors regarding the organization's stocks, what would you tell them? Comment on when, and how much (if any) investment should be done, the return they can expect, time frames, and possible risks.

$150 History Forecast Bubble $125 Bubble $100 $75 Bust $50 Bubble Bust $25 Bust SO 1970 1980 1990 2000 2010 2020 2030 Actual Estimate Historical me: 3% growth me:5% growth O NPV Calibration Point O Bubble/Bust Calibration Point