Numerical Problems: Stock A $18.00 4,000 0.173 Stock B $12.00 12,000 0.866 Share price Shares Outstanding (millions) Boo

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Numerical Problems Stock A 18 00 4 000 0 173 Stock B 12 00 12 000 0 866 Share Price Shares Outstanding Millions Boo 1 (44.9 KiB) Viewed 45 times

Numerical Problems: Stock A $18.00 4,000 0.173 Stock B $12.00 12,000 0.866 Share price Shares Outstanding (millions) Book/Price Monthly returns: February 2018 March 2018 April 2018 May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 January 2019 -14% 20% -26% -8% -15% 11% 26% 10% -14% 28% -3% 6% -16% -16% 4% 9% 9% -24% 0% -7% 27% 10% 12% 8% Today is February 1, 2019. Use the information in the above table to answer the following questions: 1. Calculate the 6-month momentum for both stocks. On the basis of this calculation, would these stocks be good candidates as winners, losers, or neither? 2. Calculate the 12-month momentum for both stocks. On the basis of this calculation, would these stocks be good candidates as winners, losers, or neither? 3. On the basis of 6-month momentum and market cap, which stock is a better candidate for a momen- tum strategy? 4. On the basis of 6-month momentum and B/P, which stock is a better candidate for a momentum strategy?