The portfolio manager at RBC Direct Investment is requesting your assistance to analyze and recommend a stock for their high value clients. These high value clients would only consider "Green Finance" companies. Green finance refers to financial investment that focuses on sustainable, environmentally friendly projects and products. The manager knows that you are taking BUQU1230 this semester and would like you to choose five Green Finance companies (stocks) listed in TSX, TSV or NYSE and to prepare a report for their clients. He requested that you incorporate the following questions in your reports:
a) Download the historical (at least 2 years) daily closing prices of 5 stocks/companies (these stocks have to be "Green Finance") and S&P 500 or TSX/TSV index values. (Please do NOT hand in the data)
b) Provide a brief outline of the companies including company history, industry characteristics and comparative advantages, and marketing strategies.
c) Discuss and present the historical performance of these stocks (ch.2-6)
d) What is the point estimate of the average closing price of these stocks in each month (Ch.7)? Is there any pattern in the point estimates of the monthly closing price? In your opinion, which month is the best time to purchase the stocks?
e) Calculate the daily returns of the stocks and S&P500 index and provide the point estimate and interval estimate (based on 5% confidence interval) of the daily returns.
f) Based on your findings in d and e, is there any stock that performs better than S&P500? If yes, recommend a stock to purchase. What are the main challenges of the stock/company?