FINA501: Your group is interested to learn more about one of the NZX10 stock prices and returns: Finance Assignment, AUT, NZ

Question Two: Mini Research - Stock price and rate of return

Excel is required for this question.  

⦁ Your group is interested to learn more about one of the NZX10 stock prices and returns.  As a group, all team members shall discuss and decide which one of the NZX10 company to study. State the name of this company and provide the reason(s) for choosing this company.  [Note: the reason(s) must be related to finance and/or business concepts or theory.  Word limit: 80 words; answers beyond the word limit will not be marked.]

Company name:  

Reason(s): 

⦁ Conduct an online search for this company’s daily stock price from March 19, 2019, to March 19, 2024. Download the daily closing price (use ‘adjusted close’ price if available) for this period. Save the data in an Excel file to calculate the daily rates of return (daily holding period rates of return); express the calculated rates as percentages, in two decimal places.  

In the space below, clearly present the rate of return formula, the first and last calculated rates of return for the period and the data source (name and link).  Briefly interpret or comment on each rate of return.   [Note: these rates and dates must be the same as those in your Excel worksheet.]

A ‘daily’ rate of return (rate of change) refers to the rate of change in closing prices from one trading day to another.  For instance, the closing prices for March 19th and March 20th can be used to calculate one daily rate of change for March 20th; that is, the prices from two trading days will give you one daily rate of change.  If you have closing prices for n days, there will be (n-1) daily rates of return.]  

⦁ Identify the biggest (or one of the biggest) negative rate of change (in percentage) and the corresponding date.  In the space below, clearly present the (biggest) negative percentage and the date. Briefly comment.