Compare its performance to appropriate index

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a. What is the current price of ordinary common shares BHP Billiton (use the Australian listed stock, ticker: BHP AU)? Using an appropriate chart sourced from Bloomberg/ yahoo finance, describe how this price has evolved over the past 5-years, and compare its performance to an appropriate index.

b. What has been the main driver(s) BHP’s share price movement? Using an appropriate ratio, evaluate whether BHP is currently over/under-valued.

c. Use the technical analysis tools introduced in lecture 4 to predict where the share price of BHP will be at the 31st December 2018.

d. What would your recommendation be with regards to buying or selling these shares right now? Justify your answer.

e. Based on your analysis of part c) and d), what does your recommendation mean for the concept of market efficiency?.

Reference no: EM132033970

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