Recently (March 2022) stock prices have been falling in the UK. Use analytical reasoning to identify two factors that may have been the cause of this.
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Recently (March 2022) stock prices have been falling in the UK. Use analytical reasoning to identify two factors that may have been the cause of this.
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- based on the current variables that may impact stock demand, such as inflation, budget deficit, monetary policies, political situations, and investor's sentiment generally. Do you believe that stock prices will grow or drop this year's end based on these conditions? Justify your response using logic. Which of the following factors do you believe will have the greatest influence on stock prices?Assess the impact(s) of the COVID-19 pandemic on the stock market in the United States.What are some comments that can be made on this? The stock market crash of 2020 is the largest index point plunge in U.S history. Starting March 9 2020, the Dow Jones Industrial Average index suffered one of three point drops. This is sufficient because stock market indexes are a measure of market sentiment. The most common stock indexes are the Dow Jones industrial average, S and P 500, and the Nasdaq stock market composite. The Dow Jones index is price averages while the s and p 500 and the nasdaq stock market composite are market capitalization weighted. When the Dow Jones drops 20.3% in a matter of days, this meant that there were negative market sentiment factors at play. At the time before this occurrence, the threat of the corona virus had investors worried. There would soon be a shutdown which would cause record unemployment and would significantly decrease purchasing power. This caused investors to move their capital into safer investments. In this case it was the bond…
- In recent years the global economy has experienced recession levelsunprecedented since the Great Depression and the instability of the Euro continuesto cause volatility in stock and bond markets. Why might it be important for you toconsider current economic events as part of planning an audit?Why Meta stock soared recently despite earnings miss? Is it normal to observe that stock price immediately reflect any information about a stock? What does it tell you about how efficient the US equity market is?Name the econometric term used for estimating the correlation between today’s stock price and the price of previous days (lag prices).
- How did the COVID-19 pandemic affect stock market volatility? Explain in detailsYou’ve just stumbled on a new dataset that enables you to compute historical rates of return on U.S. stocks all the way back to 1880. What are the advantages and disadvantages in using these data to help estimate the expected rate of return on U.S. stocks over the coming year?which of the following statements regarding correlated risk is correct? Natural disasters like hurricanes are positively correlated to prices in the stock markets Terrorist attacts seem to be positively correlated with the price of stocks. Stock prices tend to be positively correlated to marketwide economic events. All of the above
- Q3) Consider the following two companies and their forecasted returns for the upcoming year: (picture) A. What is the standard deviation of the returns on each company's stock (Company A, and B) (write all formulas). B. Of these two stocks, which is riskier? Justify your answerExplains how the value of the peso affects stock valuation. Assume that the expected inflation rate has just been revised upward by the market. Would the required return by investors who invest in stocks be affected? Explain.How has the stock market been effected since the closure of Silicon calls bank ? What is the stock market's performance and the volatility it has been going through recently, DJIA, S&P 500 or NASDAQ, or any other index.