Overview This journal activity is private between you and the instructor. This assignment will allow you to assess the impact of news on stocks and bonds. News can affect stock and bond prices in significant ways. News spreads in the market at different speeds and levels of importance. As investors, you need to think about how information moves from market participants to securities. Unexpected news can cause the market to go up or down. Prices tend to go up or down at a steadier rate when events happen as people expect them to. Additionally, market participants might create inaccurate expectations. This can cause prices to act differently than anticipated if the news is not what people expected. An investor should consider all of these dynamic factors when making portfolio decisions. Prompt Complete both of the following scenarios: 1. Choose one stock from the list below: International Business Machines Corporation (IBM) The Coca-Cola Company (KO) Bristol-Myers Squibb Company (BMY) Oracle Corporation (ORCL) 3M Company (MMM) Baxter International, Inc. (BAX) Big Lots, Inc. (BIG) Netflix, Inc. (NFLX) 'Akamai Technologies, Inc. (AKAM) General Electric Company (GE) 2.Then go to Google Finance (linked in the module resources) or another website and find a news article that you believe would impact the company's stock price. 3. Calculate the return of the chosen stock for the following timelines: o The two weeks prior to the news o The day of the news o The two weeks after the news 4. Explain how the actual impact of the news on the stock price aligned with your initial expectation after reading the news article. 5. Choose a significant economic report (unemployment, GDP, etc.) or Federal Reserve Open Market Committee announcement. 6. Then use Google Finance to research the historical pricing of the Chicago Board Options Exchange (CBOE) 10-year treasury price (symbol: TNX). Calculate the percentage change for: o The day of the news o The two weeks after the news 7. Explain if the impact of the news on the bond price matched your expectations after reading the news article. Show your work to get full credit for these calculations. Specifically the following critical elements must be addressed: I. Calculate the return of the chosen stock for the two weeks prior to the news, the day of the news, and the two weeks after the news. Show your work to support your response. 11. Explain whether the news article had the impact on the stock price that you expected. 11l Calculate the percentage change of the CBOE 10-year treasury price for the day of the news, and the two weeks after the news. Show your work to support your response. IV. Explain how the actual impact of the news on the bond pricealigned with your initial expectation after reading the news article. What to Submit Your journal assignment should be 2-3 paragraphs in length and address all of the critical elements. It should also cite at least two sources using APA format. Consider using the required readings as well as recent news articles. Submit the journal assignment as a Word document. 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