Task: Evaluate stock price, and estimate the impact of an important announcement on its stock prices Please download the

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Task: Evaluate
stock price, and estimate the impact of an important announcement
on its stock prices
Please download the daily stock prices
from one month before to one month after the announcement date, and
compute the cumulative holding period
returns and plot them in a graph.
Cumulative Holding period returns =
[(1+r1)(1+r2) (1+r3)…(
1+rt)]-1
Note: The holding period return
is
NOT
the usual weekly return you
calculated
Discuss the following aspects: Does
the stock price react quickly or slowly to the news announcement?
How does it relate to the theory we learned in class?
(2 marks)
Choice of
Company
You can choose any company from ASX300 list that has been listed
on the stock exchange for at least 3 years, and with
positive earnings and
positive dividend for the
2019/2020 financial year.
My choice is Telstra My choice is Telstra My choice
is Telstra My choice is Telstra My choice is Telstra My choice is
Telstra My choice is Telstra My choice is Telstra My choice is
Telstra My choice is Telstra My choice is Telstra My choice is
Telstra My choice is Telstra