Finance Assignment 3

Answer the following questions:

Using two companies you chose for your 1st assignment, you should answer the following questions. Please make sure that you should your work to earn credit. 

My company is Southwest Airlines

Competitor is United Airlines

 

1. Using annual stock price between 2011 and 2016, compute the following returns. For stock price      data, use the closing price of last trading day of the year: 

            1)    Arithmetic Average Return

            2)    Geometric Average Return

            3)    Holding Period Return

            4)    2-year forecast Return (Hint: Blume’s formula)

            5)    3-year forecast Return (Hint: Blume’s formula)

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