Homework: Forecasting Stock Price for XPO Logistics Company
You are an investment advisor, and your client is interested in buying the XPO Logistics company stock. To make the best financial decision for your client, you want to forecast the direction of the stock and determine whether your client should buy the stock based on forecasting and quantitative analysis. You start the process by gathering data and determining what forecasting technique to use. Complete the following steps.
A. Retrieve data on the closing price of the XPO stock (Symbol XPO) from January 1, 2020 to July 31, 2020. You can do this on multiple websites by using a search engine and inserting the name of the stock.
B. Using the time series forecasting method, moving average, compute the 10-, 30-, and 50-day continuous moving averages.
C. Show all data and computations for your moving averages.
a. Take each number computed for the 10-day moving average, and record it in a table. Do the same for the 30- and 50-day averages.
b. You can now either plot these data points in a graph or just compare them against each other to complete the next step.
D. Write your final analysis, and make a recommendation to your client:
a. What is the data telling you?
b. How do you explain it to your client?
c. How accurate is this forecast for XPO?
d. Can you develop a forecasting system or model that may be more reliable and accurate? Explain.
Your completed paper must be at least three pages in length, and you must use at least two academic sources.
Format your homework according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.