Business Forecasting: Share price evaluation - Essay Example

Only on StudentShare

Extract of sample
Business Forecasting: Share price evaluation

For Skewness, ideally it should be zero indicating symmetry and normality. Positively skewed data are said to be right tailed and it is an indication that stocks carry on a likelihood of have a higher probability of earning positive returns. In this case, only FTSE MID 250 (1.690595) was seen to be positive and this is also because the company prides in having one of the leading share returns in the market over the recent period. On the other hand, negatively skewed data are referred to as left-tailed and this is reflected in the rest of the variable ranging from BRUSSELS ALL SHARE 0 (-0.25139) to MILAN COMIT GENERAL (-0.486624). It is however worth noting these values are relatively close to zero and they are therefore slightly left tailed. For Kurtosis, it is often used to estimate the clustering of scores and as such a value of zero reflects data that are clustered around the mean. On the other hand a value greater than 0 shows clustering around numbers other than the mean. On the other hand, a value less than 0 shows that the data is spread out and as such there is no clustering. ...
Download paper

Summary

Share price evaluation Name: Institution: Date: Generally, descriptive statistics tells a lot about the stock returns as well as the indices data used in the study. The main descriptive statistics that helped in description of data are the mean, data skewness, kurtosis, standard deviation, data ranges, as well as the minimum and maximum values…
Author : ginobode

Related Essays

Risks in the Oil Industry. A Price Forecasting Analysis.
The central importance of oil to modern society has necessitated considerable public and private resources are devoted to its procurement. In addition to procurement infrastructure, financial markets have emerged for the sale and speculation on future prices. Oil is a complex resource that must be understood from multi-dimensional perspectives.
...
44 pages (11044 words) Dissertation
Forecasting Crude Oil (Spot Price) Volatility
Daily prices for crude oils are effective in volatility forecasting. 17 It was also imperative to use the two cluster analysis in the paper. 17 In the case of GARCH to obtain the unknowns the formula was applied where the initial value Xk was taken to be 25.56 where a= 0.001 (fixed) 17 b= 0.00 18 c= 0.00 18 In using the same formula the values for a, b and c were P-GARCH established to be 18 a= 0.001(fixed) 18 b= 0.394 18 c= 0.050 18 Xk= 25.56 18 For GARCH GJR, the values were found to be 18 a=0.001 (fixed) 18 b= 0.488 18 c= 0.110 18 Xk= 25.56 18 for E GARCH a=0.001 (fixed) 18 b= 0.488 18 c=...
20 pages (5020 words) Dissertation
Share Price Prediction and Analysis
The following is a critical review of such literature. In addition, the discussion applies a synthesis of two approaches/models identified to predict the share prices for Tesco Plc from the publications of the firm’s financial statements for 2008 and 2009. Lastly, this discussion attempts to test the approach by comparing these two sets of predictions with actual share prices. A concluding remark, which comments on the results, winds up the paper. Approaches/Models for Predicting Share Prices In short-term or medium-term, different models or approaches are used in predicting the future...
6 pages (1506 words) Essay
Financial Forecasting
The report also explains further information that needs to be reviewed to make the findings more meaningful. This performance analysis can be used by the management, the shareholders or the potential investors to identify with the performance of the company and in particular assess its strengths and weaknesses. Assumptions The following information is available for preparation of the marginal costing cost statement ?/Unit Direct materials 0.04 Direct labour 0.15 0.19 Selling price 0.5 The fixed production overheads include depreciation amounts to ?3,000 per month. For the first month, the...
3 pages (753 words) Essay
Share Price Report
Therefore; this study will provide a sharp insight of Tesco plc and Morrison (Wm) Supermarkets PLC as discussed. 1. A plot of the share price of the project companies (Tesco plc and Morrison (Wm) Supermarkets PLC) over the study period relative to movements in the FTSE 100 index. Source: Author Source: Author 2. Assess major economic and other events that have affected these companies and their share price over the project period (1st October 2012 – 22nd March 2013). Tesco supermarket operates under the parent Tesco private limited company that operates supermarkets and 5 hypermarkets. The...
4 pages (1004 words) Essay
Dividend Policy and Share Price: Evidence from Hong Kong Listed Company
Conclusion: Dividends influence stock prices of listed firms on the Hong Kong Stock Exchange thus supporting the dividend relevance theories. Contribution: This paper contributes to the literature on dividend puzzle by providing a perspective from an emerging market on the debate and supporting the relevance of dividends. Recommendations: The study recommends use of larger sample size, longer period, panel data and panel analysis methodologies in future. Introduction This study seeks to examine the relationship between market ratio, dividend policy, earnings and share prices of the Listed...
19 pages (4769 words) Essay
Evaluation of Corporate Performance
Its Server and Tools division offers server software, training to developers, cloud-based services. Its Business division offers Microsoft Office and related products. The company markets its products and services across most part of the world. Income Statements (all figures in millions) Year ended June 30, 2011 2012 2013 2014 (projected) Revenue $ 69,943 73,723 77,849 85,634 Cost of Revenue $ 15,577 17,530 20,249 22,274 Gross Profit $ 54,366 56,193 57,600 63,360 Total operating expense $ 27,205 34,430 30,836 33,920 Income before income tax $ 28,071 22,267 27,052 29,940 Provision for income...
8 pages (2008 words) Research Paper
Got a tricky question? Receive an answer from students like you! Try us!