Homework 4 Finance

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Seton Hall University *

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2201

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Finance

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Jan 9, 2024

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docx

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4

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Apple Stock 1. What is the current price of the stock? The current price of the stock is $176.65. 2. Did the stock pay a dividend since the last assignment? If so, how much was the dividend per share? The stock did pay a dividend of $0.24 per stock. 3. Considering both capital gains/losses and dividends, what is the current value of your investment? What was your percent return on this investment? The current value of my investment in Apple is -$118.20, as my initial investment of $34,965.53 decreased to $34,800.05 but had a dividend of $47.28. The percent return on this investment was -0.34%. Current- Original Invest.: 34800.05-34965.53= -165.48 Dividend: 197 shares * 0.24= $47.28 Percent Return: (-165.48+47.28)/34965.53= -0.00338= -0.34% 4. What factors do you think caused the stock to go up or down in value? I think a factor that caused the stock to go down in value was due to the drop in sales of iPhone and Mac products. Even though the drop of the new iPhone 15 should increase stock prices, the increase in price of the new phones has steadily been deterring customers from upgrading their phones each year. 5. Using one-year of daily returns calculate the volatility and beta of the stock. What does this information tell you about the stock’s risk profile? (Note: Please submit your calculations. I want to see how you calculated your results, not just the final answer.)
6. If you knew the stock’s volatility and beta prior to the previous assignment, would you still have invested in this stock? Why or why not? If I knew this prior to the previous assignment, I would not have invested in Apple as their volatility is 20.15. This makes it more risky to invest in as it is known for fluctuating. Disney Stock 1. What is the current price of the stock? The current price of the stock is $85.07. 2. Did the stock pay a dividend since the last assignment? If so, how much was the dividend per share? The stock did not pay a dividend since the last assignment. 3. Considering both capital gains/losses and dividends, what is the current value of your investment? What was your percent return on this investment? The current value of my investment in Disney is $1,026.66, as my initial investment of $39,977.08 increased to $41,003.74. The percent return on this investment was 2.57%. Current- Original Invest.: 41003.74-39977.08= 1026.66 Dividend: No dividend Percent Return: (1026.66+0)/39977.08= 0.02568= 2.57% 4. What factors do you think caused the stock to go up or down in value? I believe the factor that caused the stock for Disney to go up is that it is Disney’s 100- year anniversary. During this anniversary Disney has constantly been pushing new merch and promotions in relation to this celebration. This causes more customer attraction and in-turn more reasons for investments. 5. Using one-year of daily returns calculate the volatility and beta of the stock. What does this information tell you about the stock’s risk profile? (Note: Please submit your calculations. I want to see how you calculated your results, not just the final answer.)
6. If you knew the stock’s volatility and beta prior to the previous assignment, would you still have invested in this stock? Why or why not? I would invest in Disney stock if I knew this previously, because their volatility is only 8.79. Compared to my other stock investments, this is fairly low meaning its less riskier to invest in. Google Stock 1. What is the current price of the stock? The current price of the stock is $129.10 2. Did the stock pay a dividend since the last assignment? If so, how much was the dividend per share? The stock did not pay a dividend since the last assignment. 3. Considering both capital gains/losses and dividends, what is the current value of your investment? What was your percent return on this investment? The current value of my investment in Google is -$1,543.36, as my initial investment of $25,039.56 decreased to $23,496.20. The percent return on this investment was -6.16%. Current- Original Invest.: 23496.2-25039.56= -1543.36 Dividend: No dividend Percent Return: (-1543.36+0)/25039.56= -0.06163= -6.16% 4. What factors do you think caused the stock to go up or down in value? The factor that I believe caused the stock to go down for Google is because Google’s cloud computing units have been largely under what analysts believe their revenue to be. The company also lost market share to Microsoft. 5. Using one-year of daily returns calculate the volatility and beta of the stock. What does this information tell you about the stock’s risk profile? (Note: Please submit your calculations. I want to see how you calculated your results, not just the final answer.)
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6. If you knew the stock’s volatility and beta prior to the previous assignment, would you still have invested in this stock? Why or why not? If I knew this prior to the previous assignment, I would not have invested in Google as their volatility is 18.43. This makes it riskier to invest in as it is known for fluctuating. 7. What did you learn from these assignments? After these assignments I learned that investing in stocks is very tricky. Being able to understand a company’s volatility is important as it can cause you to make or lose thousands of dollars.