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FIN3013. Lab #3. Reviewing Assignment #2. Which companies had ROE Less than 10%? Between 10% and 15%? Between 15% and 20%? Between 20% and 25% Greater than 25%? What were some of your observations?. Assignment #3 Goals. Calculate monthly returns for your stock and for the S&P500 - PowerPoint PPT Presentation
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FIN3013
Lab #3
UTSA College of Business
FIN3013Lab
Reviewing Assignment #2
Which companies had ROE Less than 10%? Between 10% and 15%? Between 15% and 20%? Between 20% and 25% Greater than 25%?
What were some of your observations?
UTSA College of Business
FIN3013Lab
Assignment #3Goals
Calculate monthly returns for your stock and for the S&P500
Plot a graph
Write a professional memo reporting results
UTSA College of Business
FIN3013Lab
Looking at Price Changes Can Be Deceiving
CCU
Jan 1--$56.98
Feb 1--$55.25
Loss $1.73
Hypothetical Company--Road Runner
Jan 1--$200
Feb 1--$195
Loss $5
UTSA College of Business
FIN3013Lab
Percentage Returns Allows Us To Compare Investments
CCU
(P2-P1)/P1 =
(55.25-56.98)/56.98=
-0.0304 or –3.04%
Roadrunner
(P2-P1)/P1 =
(195-200)/200=
-0.0205 or –2.5%
UTSA College of Business
FIN3013Lab
$10,00 Invested In Each Stock
CCU
(10,000)*(-.0304)=
Loss of $304
Roadrunner
(10,000)*(-.025)
Loss of $250
UTSA College of Business
FIN3013Lab
For Your Company
Calculate monthly returns Your Stock S&P500
Plot Graph Date on X axis Returns for your stock and S&P500 on Y axis
UTSA College of Business
FIN3013Lab
Memo
Brief description of your graph
One observation or insight from your graph
Use proper formatting
Content and presentation are important
UTSA College of Business
FIN3013Lab
Next Class (Lab #4)
Assignment #3 Due
Quiz #1 Calculating percentage returns Financial Statement Analysis
UTSA College of Business
FIN3013Lab
QUESTIONS?
