Solved by verified expert :Activity 04: Mini-Project: Stock
Analysis
[Due Wednesday, Lesson 08, at 11:59 PM
(MT)]
Instructions
Finance Mini-Project #2: Stock Analysis
Web Querying.wmv
(5.176 Mb)
Objectives:
Download data.
Practice Excel functions.
Create a chart in Excel.
Learn to evaluate stocks.
Make and defend recommendations.
Use
a spreadsheet to automatically collect real-time information from the
Internet.
Stock
Analysis Case
For 75 minutes, you listened to a unique
presentation delivered by a representative from Cheatem and Burnem
Associates. According to Cheatem and Burnem, investors should be
positioned in technology stocks in order to increase their wealth and expand
their financial security. Specifically, Cheatem and Burnem identified five
stocks you should purchase through their company sponsored brokers. Each
of these stocks is a Fortune 500 company that is expected to continue to grow
and expand in the future. Furthermore, according to outside sources, these
stocks are set up to handle the new wave of technology innovation that will
continue to take place over the next decade. The five companies Cheatem
and Burnem recommended are as follows:
International Business Machine
Hewlett-Packard
Apple
Google
A
publicly traded company of your choice
As you talked about this opportunity with your
home teacher, who was a recent BYU–I finance graduate, he expressed a few
reservations to you and asked that you do your homework before making a decision. In
a later discussion, he suggested you answer several questions to help you
determine if all, some, or none of these stocks would make good
investments. Based upon his suggestion, you agreed to conduct a more
in-depth analysis of the stocks and also agreed to work through the numbers
using Microsoft Excel. The questions you have been asked to answer are as
follows:
1.
What is the stock symbol
for each company?
2.
Download the weekly
stock price for at least 10 years or longer. Hint: Look under Yahoo! Finance
to obtain stock price information.
3.
Graph the historical
adjusted stock price of each stock for the data you downloaded into one
chart. Make the chart look professional.
4.
For question 3, why was
the adjusted stock price used rather than the closing stock price?
5.
What is the average
weekly rate of return for each stock?
6.
What is the weekly
variance for each stock? What is the weekly standard deviation?
7.
What is the “most
recent” 52 week high and 52 week low price? Hint: Use the close price—not
adjusted close.
8.
Indicate whether you
personally prefer high, medium, or low risk and describe why.
9.
Based upon your risk
preference and the measures calculated above, which stock would you recommend
the most? Why?
10.Create a dashboard sheet that allows you to select one of the five
stocks from a drop down list. When you select one of the stocks, the
dashboard should automatically pull the CURRENT stock information from the
Internet. Feel free to view the tutorial video linked above to get you
started on this portion. The dashboard should look good in appearance. Report
the following CURRENT information for the stock selected:
– Last trade price
–
Previous closing price
–
52 week minimum price
–
52 week maximum price
–
Volume
–
Market capitalization (in $)
–
Price to earnings ratio
–
Earnings per share
11.Please be sure that your dashboard and analysis are very clean,
very sharp, and very professional.
12.You must work on this mini-project on your own. You may seek
help from your online instructor, but that is all.
13.Submit your spreadsheet model and responses to the questions above
in the Mini-Project: Stock Analysis Drop Box in Lesson 08.1.
