Mod 3 assist

Module 3, Questions 1 - 3

Trident University

FIN301: Principles of Finance

Module 3: SLP Template

FILL IN ALL CELLS THAT ARE HIGHLIGHTED IN YELLOW

Please remember to save this file with your last name in the file name. For example: FIN301 Module 3 SLP Template, Doe.doc

Name:

STOCK 1: PRICE/RETURNS SHOULD BE INVERSELY RELATED TO STOCK 2

Company Name:

Ticker Symbol:

Reason for Buying (Explain how you know this stock's price or returns are inversely or negatively related to stock 2's price or returns):

STOCK 2: PRICE/RETURNS SHOULD BE INVERSELY RELATED TO STOCK 1

Company Name:

Ticker Symbol:

STOCK 3: STOCK SHOULD BE INVERSELY RELATED TO THE ECONOMIC BUSINESS CYCLE

Company Name:

Ticker Symbol:

Reason for Buying (Explain how you know this stock's price or returns are inversely or negatively related to the economic business cycle. In other words, this stock does better when the economy is in a slowdown or recession; it does worse when the economy is in an upturn or expansion):

Directions for Question 4

DIRECTIONS FOR MODULE 3 - QUESTION 4
Copy and Paste the downloaded data for one stock here:
Date	Open	High	Low	Close	Adj Close	Volume
1/22/19	97.150002	98.43	96.779999	97.489998	97.489998	8063200		Mean (Average):		97.1061902857
1/23/19	98.870003	99.349998	97.529999	98.709999	98.709999	8345800		Standard Deviation:		1.9628098393
1/24/19	98.199997	98.459999	96.43	98.360001	98.360001	7609700
1/25/19	98.75	98.910004	96.75	96.940002	96.940002	7218200
1/28/19	96.529999	97.07	96.080002	97.059998	97.059998	5875800
1/29/19	96.769997	97.160004	96.510002	96.709999	96.709999	5253400
1/30/19	96.68	96.800003	94.260002	94.800003	94.800003	11849300
1/31/19	94.629997	96.870003	94.629997	95.830002	95.830002	14723000
2/1/19	95.919998	96	93.110001	93.860001	93.860001	12591900
2/4/19	93.860001	94.769997	93.349998	94.769997	94.769997	7268600
2/5/19	95.25	95.940002	95.019997	95.599998	95.599998	6099900
2/6/19	95.43	96.010002	95.220001	95.639999	95.639999	4264900
2/7/19	95.110001	96.82	95	96.730003	96.730003	7010100
2/8/19	96.339996	96.690002	95.139999	95.580002	95.580002	6169200
2/11/19	95.650002	96.349998	95.639999	96.199997	96.199997	5542800
2/12/19	96.82	97.169998	96.5	96.970001	96.970001	5881300
2/13/19	97.300003	98	97.089996	97.940002	97.940002	5458500
2/14/19	97.68	99.199997	97.019997	98.519997	98.519997	7200800
2/15/19	98.980003	100	98.860001	99.989998	99.989998	9481000
2/19/19	102.379997	104.18	102.07	102.199997	102.199997	20685100
2/20/19	101.809998	102.339897	98.650002	99.330002	99.330002	12292228

Question 4: Calculate the mean and standard deviation of the daily stock price for TWO of your required stock purchases for the last year. To do this, follow these steps: 1. Go to finance.yahoo.com. 2. Type in the ticker symbol for one of the stock that you purchased in the search bar at the top of the Yahoo! Finance page. Click the search button. For example, if you purchased Walmart stock, you would type in "WMT." 3. Once you have searched on the company, using the ticker symbol, you can select the “Historical Data” tab: 4. Then select the "Download Data" link: 5. A .csv file will start downloading. Open that file to view the data. You should copy and paste this data into the tab labeled "Module 3, Questions 4 - 6," in this workbook. An example of the data is included below. You will want to make sure you have a full year's worth of daily stock prices.

6. Calculate the mean and standard deviation for the Adj Close price. The formula for the mean is =AVERAGE() and the formula for the standard deviation is =STDEV.S() You should type these formulas into the appropriate cells and highlight the data for which you want to generate these statistics. The cells that you highlight will show between the parentheses. You can practice calculating these statistics using the sample data in this worksheet and the formulas that are in the yellow highlighted cells to the left. 7. Repeat these steps for the second stock you chose. Answer questions 5 and 6 in the worksheet titled "Module 3, Questions 4 - 6."

Module 3, Questions 4 - 6

FILL IN ALL CELLS THAT ARE HIGHLIGHTED IN YELLOW. SCROLL TO THE RIGHT TO ANSWER QUESTIONS 5 AND 6

Copy and Paste the downloaded data for one stock here:

Copy and Paste the downloaded data for the second stock here:

QUESTION 5: Based on the standard deviation alone, can you make any conclusions about the relative risk of the two stocks?

Date

Open

High

Low

Close

Adj Close

Volume

QUESTION 4 - STOCK 1:

Date

Open

High

Low

Close

Adj Close

Volume

QUESTION 4 - STOCK 2:

Mean (Average):

Mean (Average):

Standard Deviation:

Standard Deviation:

QUESTION 6: Given the risk, what can you say about the relative expected return of the two stocks?

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