Finance

You Will Write A Stock Market Trading Algorithm. You, Will, Use Historical Stock Market Data And Decide When And How Much To Buy Or Sell A Stock. For more information on Stock Market read this: https://en.wikipedia.org/wiki/Stock_market

Excel Project (Efficient portfolios and Efficient frontier) You are assigned with five stocks and you are expected to build the investment portfolios using those five stocks. Note that I showed you an example of a three-stock portfolio in the excel file. You are expected to apply the same concepts to the five-stock portfolios.  Please collect the monthly stock price for the five companies that you are assigned from FINANCE.YAHOO.COM and employ the data time range from Jan 1, 2015, to Oct 30, 2020. Then using the risk-free rate of 0.33%, you are expected to develop the complete portfolio and develop the efficient frontier of these six securities (T-bill and five stocks). Following are the procedure in detail: 1) Collect monthly stock price data from Finance.YAHOO.COM. The time range for the date should be from Jan 1, 2015, to Oct 30, 2020.  2) Compute monthly stock returns for each stock ( monthly rate of return = (P1 – P0) /P0; P is monthly adjusted close price). Then compute mean and standard deviation of stock returns for each company (See my excel example with the sheet entitled ‘Data’)3) Develop Table of Covariance of these five stocks (See my excel example with the sheet entitled ‘Data’)4) Develop Efficient Frontier for all risky portfolios constructed with 5 assigned stocks (See my excel example with the sheet entitled ‘EF’ and ‘Graph’)5) Find the Minimum-Variance risky portfolio (See my excel example with the sheet entitled ‘MVP’)6) Find the Efficient portfolios including a risk-free asset with the risk-free rate of 0.33% (See my excel example with the sheet entitled ‘Sharpe Ratio for CML’ )7) Draw the capital market line (CML) (See my example with the sheet entitled ‘Sharpe Ratio for CML’ and ‘Graph’) Video Clip for Excel project https://drive.google.com/file/d/1y2tPEeOieVBJdBmNjPbs0i-gEyLlCNZq/view For more information on Stock Price read this: https://en.wikipedia.org/wiki/Share_price

Discussion on cryptocurrency

Part 1: Importance of Cash Generating cash is the ultimate responsibility for managers today. Cash and cash flow are considered the “lifeblood” of a business. How important has cash generation been for your current company or a prior employer? How is cash generation different from the concept of profit and loss (P&L) in accounting? Provide an example of how a company manages cash flow. Part 2: Application of Concepts/Financial Analysis Review the materials in the link below. Based on the materials presented in this link, discuss why financial analysis is important in the overall understanding of the financial performance of a firm. Be specific and give examples based on your experience or research. 1. 300+ words minimum for both topics together2. No plagiarism3. Always cite your sources using APA format4. Always use in-text citations5. References must For more information read this:https://en.wikipedia.org/wiki/Cash_flow

Keeping abreast of the financial measures and metrics employed by a company allows employees to better understand its health and position at any given time. Using Campbellsville University library link or other libraries and the Internet: Review at least three (3) articles on financial acuity. Summarize the articles in 300 words. Use APA formatting throughout including in-text citations and references. Discuss the benefits of establishing solid financial acumen in a company? Discuss your personal experiences in a situation where financial acumen was either not supported as an organizational hallmark or, conversely, was built into the company’s culture.

Income Statement Analysis: In this section, answer the following for the trend analysis: What is the total revenue, total costs of revenue and net income for each year? How have these numbers changed over the three years and what could be some reasons why these numbers have changed the way they have? In addition, pick at least one appropriate (for this statement) ratio or financial in addition to what is provided and calculate that and explain it.  See the section on ratio analysis below for ideas. (1 page ) •Balance Sheet Analysis: In this section, answer the following for the trend analysis: What are the total assets, liabilities and shareholder equity for each year? How have these numbers changed over the three years and what could be some reasons why these numbers have changed the way they have? In addition, pick at least one appropriate (for this statement) ratio or financial in addition to what is provided and calculate that and explain it.  See the section on ratio analysis below for ideas. (1 page) •Cash Flow Analysis: In this section, answer the following for the trend analysis: What are the total cash flows from operating, investing and financing activities as well as the change in cash and cash equivalents for each year? How have these numbers changed over the three years and what could be some reasons why these numbers have changed the way they have? In addition, pick at least one appropriate (for this statement) ratio or financial in addition to what is provided and calculate that and explain it.  See the section on ratio analysis below for ideas. (1 page) •Conclusion: In this section, answer the following: What are the most important things you have discovered in your analysis?  What are some conclusions you reached? What are the highlights of your paper? 1-page Ratio Analysis: In addition to the trend analysis above, it is customary to also analyze ratios.  Some commonly used ratios are •Beta: A measure of risk that is usually published and not calculated by you (A beta greater than 1 suggests that the company is more volatile/risky than the market) •Current ratio = Current Assets/Current Liabilities (A current ratio greater than 1 means the company has enough assets to cover all current liabilities should the need arise) •Quick ratio = (Current Assets – Inventory)/Current Liabilities (When you are dealing with a company that carries a lot of inventory, a quick ratio is a better indicator than a current ratio because it acknowledges that inventory is not typically liquid). •Profit Margin = Net Income/Sales (Represents how much of each dollar in sales remains after all costs are covered) •Return on Equity = Net income/Total equity (Represents the return for all holders of equity in that company) •EBIT Return on Assets = EBIT/Total assets (Represents the pre-tax return on the total net investment in the firm from operations or alternatively, how efficiently management has used assets) •Debt-equity ratio = Total debt/Total equity (Represents the long term solvency or financial leverage in that company)

Provide a brief overview of your concept and its key features, including cost, time frame, and anticipated benefits.Company: The Company is Edward Jones – Product is the company is trying to introduce a new accounting and banking software that will revolutionize the accounting industry and transform banking services

Can America afford its twin deficits

Assignment Overview For this assignment, make sure to first carefully review all of the required readings about present value, future value, risk and return, and the CAPM. Once you are relatively comfortable with these concepts, try working through some of the examples in the background readings and try computing the answers on your own. Once you are confident you both understand the concepts and the computational steps, complete the assignment below. Case Assignment Present your answers to the problem below in a Word document, and also upload an Excel file with your computations. Excel is required for Questions 2 and 3. Excel is optional for Questions 1 and 4, but you are required to show your steps for all quantitative problems. Even if you get the answer wrong, you can still get partial credit if you show your work. Calculate the following: Suppose you wish to raise some money for your favorite local charity. This charity needs $50,000 a year to run its operation and you want to make sure that it is ensured an annual payment of this amount from now on for every year in the foreseeable future. Given an interest rate of 5%, how much would you have to fund this perpetuity to guarantee the charity a payment of $50,000 per year? You decide to put $1,000 in a new bank account and don’t plan to withdraw the money for 10 years. If your bank does continuous compounding and the interest rate is 1%, what will be the value of this bank account in 10 years? Suppose you won the lottery but not all of your winnings will come in one year. Instead, you will get a series of annual payments over the next five years. The table below tells you what your payment will be every year for the next five years. Use the information in the table to make the following computations: The present and future value of your lottery ticket if the interest rate is 8% The present and future value of your lottery ticket if the interest rate is 10% Year Payment 1 5000 2 6000 3 7000 4 8000 5 9000 The table below gives the probability of different returns for three different assets. Using this table, calculate the following: The expected return of each asset The standard deviation of returns of each asset The coefficient of variation of each asset Based on your answers to B) and C) above, which asset has the highest total risk and highest relative risk? Asset A Asset B Asset C Probability Return Probability Return Probability Return 0.3 5 0.1 25 0.1 4 0.4 8 0.3 20 0.8 5 0.3 9 0.5 15 0.1 6 0.1 14 Suppose the market return is 8%, the risk-free rate is 1% and the beta for a given stock is 1.2. Answer the following questions based on this information: What is the required return for this stock? If the beta increases by 50% (but risk-free rate remains 1%), what will be the new required return for the stock? What is the percentage-wise change in required return compared to your answer to A) above? If the market return increases by 50% (but beta remains at 1.2), what will be the new required return for the stock? What is the percentage-wise change in required return compared to your answer to A) above? Suppose there are three different companies. The first one, Trendy Tech Inc., has investors who are “fair-weather friends.” When the stock market is going up, everybody wants to invest in Trendy Tech, but as soon as the market goes down everyone jumps ships and sells their shares. The second company is Oily Oil Inc. Oily’s stock price seems to depend only on the price of oil and nothing else. Finally, there is Conglomerated Conglomerate Inc. Conglomerated is a giant company with holdings in almost every industry imaginable—from cell phones to grocery stores and even amusement parks. Based on this information, which company would you think has the highest beta? The lowest beta? Which one do you think has a beta closest to 1? Assignment Expectations Answer the assignment questions directly. Stay focused on the precise assignment questions. Do not go off on tangents or devote a lot of space to summarizing general background materials. For computational problems, make sure to show your work and explain your steps. For short answer/short essay questions, make sure to reference your sources of information with both a bibliography and in-text citations. See the Student Guide to Writing a High-Quality Academic Paper, including pages 11-14 on in-text citations. Another resource is the “Writing Style Guide,” which is found under “My Resources” in the TLC Portal.

There are two parts to the assignment. The first part is calculating the ratios. Refer to Chapter 4: Financial Statement Analysis and Investopedia. The second part is the Financial Performance Summary. The Summary should answer the following key questions: Is the organization profitable? Why or why not? How effective is the organization in collecting its receivables? Is the organization in a good position to pay its bills? How efficiently is the organization using its assets? Are the organization’s plant and equipment in need of replacement? Is the organization in a good position to take on additional debt? Why or why not?