near future analysis
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Analysis
Determine the buy-and-hold return of your company’s stock, its competitor & for the Dow Jones Industrial Average* in the same period (September 14 to November 23, 2018).
The computations for Microsoft and Adobe Systems returns compared to the Dow Jones Industrial Average were computed as follows for the period between 23rd November 2018 and 14ty September 2018. The formula for calculation was as follows:
Buy-and-Hold Return = (Price on Nov 23- Price on Sept 14)/ Price on Sept 14
Dates Stock price Returns
Microsoft 23/11/18 103.07 -9.08%
14/9/18 113.36 Adobe 23/11/18 225.56 -16.15%
14/9/18 269.00 DJIA 23/11/18 24285.95 -7.20%
14/9/18 26169.56 LINK Excel.Sheet.8 “C:\Users\user\Downloads\IS_Deliverable.xlsx” “Buy and hold returns!R1C1:R7C4” a f 5 h * MERGEFORMAT
Did the company outperform its competitor?
From the above computations and in the period under consideration, the firm performed better than Adobe systems. Although both firms yielded negative returns meaning that if a speculator invested on the period, they would have run at a loss to the tune of 9.08% in the Microsoft stocks and 16.15% loss in the Adobe Systems. However, the loss at Adobe Systems is more profound than the loss at Microsoft Corporation. Did it outperform the Dow Jones?
Microsoft did not, however, outperform the DJIA although the industrial average and Microsoft yielded losses for the period under consideration. Microsoft yielded a loss of 9.08% against DJIA’s loss of 7.
Wait! near future analysis paper is just an example!
2%. It shows that the firm performed poorly than the industrial average.
Short-term prediction
Although Microsoft’s stocks are on a rising trajectory, the benefits are realizable on a long-term basis. In the short-term, however, the shares are volatile. Historically, the shares have outperformed the market and performed better than the previous year for the last 60 months, and going by this trend; the stocks are set to improve in this year too. Although the stocks underperformed in the last 11 weeks, it is still a short period of time to determine the future compared to the 60 months historical data of better performance. In the short-term prediction, we expect this firm to perform better and thus form a viable investment.
Reference
Yahoo Finance. (2018). Adobe Inc. Historical prices. Retrieved from https://finance.yahoo.com/quote/ADBE/history?p=ADBE&.tsrc=fin-srch
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