financial analysis project with ratio analysis

FIN 626 HOMEWORK ASSIGNMENT NUMBER 1

The Efficient Market Hypothesis (EMH) suggests that industry analysts cannot predict the future stock prices of the companies they cover merely by analyzing events already known by “the market”, i.e. all market participants.

Instead, analysts need to try to anticipate the occurrence of a future “state of affairs” with which the market is not yet aware.

I noted the prospect of President Trump’s trade war policies, and further hacks of private information as two examples of future “states of affairs” that could have been projected with some degree of confidence by an analyst trying to anticipate a future consensus.

Briefly describe a future state of affairs that you believe may influence the prices of a company or group of companies a year from now, i.e. identify a potential stock-price-influencing consensus that will be important tomorrow but is not apparent today - as well as the direction in which those prices could move.

· Limit your response to one page of double-spaced text.