Question 1 [Total: 15 Marks]

You are an equity analyst covering the tourism industry. To answer this question, pick an airline company which is currently listed on a stock exchange (e.g Alaska Air Group, Inc. (ALK) )

You will consider the time-period and daily share price of the company that you picked for the period 1st December 2019 to 1st of April 2020.

Carefully identify at least two major news stories, events or issues related to the company that impacted the share price by 5% or more on the day of release (this can be intra-day or close price) and why they impacted the share price in the way that they did. You should include a price chart of some sort, with annotation, which clearly shows each major news impact on the price. Marks are allocated for relevant news story, clearly annotated diagrams and discussion as to why the identified news impacted share price (5 Marks).

Consider the news items that you have picked. Evaluate the impact of each item on share price (in the context of market efficiency) and why it impacted the share price in the manner that it did. Are there other considerations (e.g. theoretical, market, behavioural) besides the identified news article that would impact the share price? (10 Marks).

The question is based on industry analysis