You have been assigned to evaluate the stock market performance of firms who manufacture accounting software products. Your evaluation will be based on large- and medium-market firms. The firms are as follows:
Large-Market Stocks - Oracle Software (Oracle Corp: NASDAQ)SAP (SAP AG: NYSE)
Medium-Market Stocks - Microsoft Great Plains (Microsoft: NASDAQ)
Small-Market Stocks - QuickBooks (Intuit: NASDAQ)Peachtree (Sage Grp: LSE)
Part I: Excel Spreadsheet Assignment
1. Create one (1) Excel workbook that contains each of the four (4) scenarios (detailed below). Use the appropriate Excel formulas and functions to justify your derived results. Note: Follow the completion and submission instructions provided in the table below.
Scenario 1
You have been given $5,000,000 to invest the five (5) stocks. You must invest the $5,000,000 accordingly:
- No more than 35% of your investment will be in the Large-Market Stocks, with a minimum of 15% investment in any given stock
- No more than 30% of your investments will be in the Medium-Market Stock, with a minimum of 15% investment in the stock
- No more than 35% of your investment will be in the Small-Market Stocks, with a minimum of 15% investment in any given stock
The purchase date of the stock will be six (6) month ago. Track your stock's daily performance for the 120 trading days following the purchase date. During this time, you will note the gains and losses each day. At the end of the 120 days' tracking period, calculate your net gain (or loss) for each stock and your total investment at the end of the 120 days. Develop the appropriate charts that highlight your performance. You will create a minimum of two (2) charts.
Note: Your purchase must be in whole shares. For example, you cannot purchase 100.5 shares. You must purchase either 100 or 101 shares. For this reason, you may not total to exactly $5,000,000, but you will come close.
Scenario 2
You are now skeptical of the Medium-Market stock. With that, you will now invest your $5,000,000 accordingly:
- No more than 50% of your investment will be in the Large-Market Stocks, with a minimum of 20% investment in any given stock
- No more than 50% of your investment will be in the Small-Market Stocks, with a minimum of 20% investment in any given stock
The purchase date of the stock will be six (6) month ago. Track your stock's daily performance for the 120 trading days following the purchase date. During this time, you will note the gains and losses each day. At the end of the 120 days' tracking period, calculate your net gain (or loss) for each stock and your total investment at the end of the 120 days. Develop the appropriate charts that highlight your performance. You will create a minimum of two (2) charts.
Note: Your purchase must be in whole shares. For example, you cannot purchase 100.5 shares. You must purchase either 100 or 101 shares. For this reason, you may not total to exactly $5,000,000, but you will come close.
Scenario 3
Youare now skeptical of the Large-Market Stock. With that, you will now invest your $5,000,000 accordingly:
- No more than 50% of your investment will be in the Medium-Market Stock, with a minimum 20% investment here
- No more than 50% of your investment will be in the Small-Market Stocks, with a minimum 20% investment here
The purchase date of the stock will be six (6) months ago. Track your stock's daily performance for the 120 trading days following the purchase date. During this time, you will note the gains and losses each day. At the end of the 120 days' tracking period, calculate your net gain (or loss) for each stock and your total investment at the end of the 120 days. Develop the appropriate charts that highlight your performance. You will create a minimum of two (2) charts.
Note: Your purchase must be in whole shares. For example, you cannot purchase 100.5 shares. You must purchase either 100 or 101 shares. For this reason, you may not total to exactly $5,000,000, but you will come close
Scenario 4
You are now a believer of only the Medium Market Stock. With that, you will now invest your $5,000,000 into that stock. The purchase date of the stock will be six (6) months ago. Track your stock's daily performance for the 120 trading days following the purchase date. During this time, you will note the gains and losses each day. At the end of the 120 days' tracking period, calculate your net gain (or loss) for the stock and your total investment at the end of the 120 days. Develop the appropriate charts that highlight your performance. You will create a minimum of two (2) charts.
Note: Your purchase must be in whole shares. For example, you cannot purchase 100.5 shares. You must purchase either 100 or 101 shares. For this reason, you may not total to exactly $1,000,000, but you will come close.