Explain how the actual impact of the news on the stock price

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Reference no: EM133492805

Case Study: International Business Machines Corporation (IBM)

The Coca-Cola Company (KO)
Bristol-Myers Squibb Company (BMY)

  • Oracle Corporation (ORCL)
  • 3M Company (MMM)
  • Baxter International, Inc. (BAX)
  • Big Lots, Inc. (BIG)
  • Netflix, Inc. (NFLX)
  • Akamai Technologies, Inc. (AKAM)
  • General Electric Company (GE)
  • Then, go to Yahoo! Finance or another website and find a news article that you believe would impact the company's stock price.
  • Calculate the return of the chosen stock for:
  • The two weeks prior to the news

The day of the news

The two weeks after the news

Question 1: Explain how the actual impact of the news on the stock price aligned with your initial expectation after reading the news article.

Choose a significant economic report (unemployment, GDP, etc.) or Federal Reserve Open Market Committee announcement.

Then, use Yahoo! Finance to research the historical pricing of the CBOE 10 year treasury yield (symbol: ^TNX). Calculate the percentage change for:

  • The 2 weeks prior to the news
  • The day of the news
  • The 2 weeks after the news

Question 2: Explain how the actual impact of the news on the bond yield aligned with your initial expectation after reading the news article. Be sure to show your work to get full credit for these calculations.

Specifically the following critical elements must be addressed:

Question 3: Calculate the return of the chosen stock for the two weeks prior to the news, the day of the news, and the two weeks after the news. Show your work to support your response.
Explain whether the news article had the impact on the stock price that you expected.

Question 4: Calculate the percentage change of the CBOE 10 year treasury yield for the two weeks prior to the news, the day of the news, and the two weeks after the news. Show your work to support your response.

Question 1: Explain how the actual impact of the news on the bond yield aligned with your initial expectation after reading the news article.

Reference no: EM133492805

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