Final Assignment

Chengyuan Gao
KCC105FinalProjectPaper.pdf

KCC 105 Final Project: Research Portion

Paper Guidelines:

 Your paper must be at least 5-6 pages in length. This does not include the

works cited page.

 You will need to cite the two sources mentioned in the project description.

 You will need to cite two additional sources that you find to support your

position.

 You will need to cite your quotations in APA format and include a

References pages on the last page of your paper.

Project Description: Can a business grow without limit? Many of you own

Apple products—MacBooks, IPhones, IPads, Watches, and etc. The stock price of

Apple has grown considerably since it first launched the original IPhone. Do you

think that Apple will eventually reach a point where it will no longer make such

large quarterly gains and its stock price flattens out?

Some have claimed that Apple will soon reach the limits of the Law of

Large Numbers. If this theory is true, Apple’s stock price will fluctuate around an

expected value and will not make any more large gains.

What you must Answer: Are stocks bound to follow the Law of Large

Numbers? If so, shouldn’t we avoid investing in well-developed companies like

Apple? If not, what possible advances (technological or otherwise) would help a

highly successful company defy such statistical rules?

Two Required Sources:

http://www.nytimes.com/2012/02/25/business/apple-confronts-the-law-of-large-

numbers-common-sense.html

http://www.businessinsider.com/law-of-large-numbers-tim-cook-2015-2