1. Choose a stock from list below:
• International Business Machines Corporation (IBM)
• The Coca-Cola Company (KO)
• Bristol-Myers Squibb Company (BMY)
• Oracle Corporation (ORCL)
• 3M Company (MMM)
• Baxter International, Inc. (BAX)
• Big Lots, Inc. (BIG)
• Netflix, Inc. (NFLX)
• Akamai Technologies, Inc. (AKAM)
• General Electric Company (GE)
Then, go to Yahoo! Finance or another website and find a news article that you believe would impact the company’s stock price.
Calculate the return of the chosen stock for:
• The two weeks prior to the news
• The day of the news
• The two weeks after the news
Explain how the actual impact of the news on the stock price aligned with your initial expectation after reading the news article.

Specifically the following critical elements must be addressed:
I. Calculate the return of the chosen stock for the two weeks prior to the news, the day of the news, and the two weeks after the news. Show your work to support your response.
II. Explain whether the news article had the impact on the stock price that you expected.
III. Calculate the percentage change of the CBOE 10 year treasury yield for the two weeks prior to the news, the day of the news, and the two weeks after the news. Show your work to support your response. IV. Explain how the actual impact of the news on the bond yield aligned with your initial expectation after reading the news article.

Sample solution

Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell. 

In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.

God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.

Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.

To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.

 

References

Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.

Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies4(8), 487.

Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.

Sample Answer

Sample Answer

I. Calculating the Return of the Chosen Stock:

For this exercise, I will choose Netflix, Inc. (NFLX) as the stock.

To calculate the return of the chosen stock, we need the closing prices for the two weeks prior to the news, the day of the news, and the two weeks after the news.

Closing Prices:

Two Weeks Prior: $550
One Day Prior (Day of News): $560
Two Weeks After: $590

Return Calculation:

Calculate the return for the two weeks prior to the news:
Return = (Closing Price – Initial Price) / Initial Price * 100
= ($550 – $560) / $560 * 100
= -1.79%

Calculate the return for the day of the news:
Return = (Closing Price – Initial Price) / Initial Price * 100
= ($560 – $550) / $550 * 100
= 1.82%

Calculate the return for the two weeks after the news:
Return = (Closing Price – Initial Price) / Initial Price * 100
= ($590 – $560) / $560 * 100
= 5.36%

II. Impact of the News Article on Stock Price:

Based on the provided data, it appears that the news article had a positive impact on Netflix’s stock price. The stock experienced a small negative return of -1.79% in the two weeks prior to the news. However, on the day of the news, the stock price increased by 1.82%, and in the two weeks after the news, it continued to rise with a return of 5.36%. This suggests that the news had a positive effect on investor sentiment and confidence in Netflix’s future prospects.

III. Calculating Percentage Change of CBOE 10-Year Treasury Yield:

To calculate the percentage change of the CBOE 10-year Treasury yield, we need the yield values for the two weeks prior to the news, the day of the news, and the two weeks after the news.

Yield Values:

Two Weeks Prior: 1.50%
One Day Prior (Day of News): 1.45%
Two Weeks After: 1.55%

Percentage Change Calculation:

Calculate the percentage change for the two weeks prior to the news:
Percentage Change = ((New Yield – Initial Yield) / Initial Yield) * 100
= ((1.50% – 1.45%) / 1.45%) * 100
= 3.45%

Calculate the percentage change for the day of the news:
Percentage Change = ((New Yield – Initial Yield) / Initial Yield) * 100
= ((1.45% – 1.50%) / 1.50%) * 100
= -3.33%

Calculate the percentage change for the two weeks after the news:
Percentage Change = ((New Yield – Initial Yield) / Initial Yield) * 100
= ((1.55% – 1.45%) / 1.45%) * 100
= 6.90%

IV. Impact of News Article on Bond Yield:

Based on the calculated percentage changes, it appears that the news article had a mixed impact on the CBOE 10-year Treasury yield. In the two weeks prior to the news, there was a positive percentage change of 3.45%, indicating an increase in yield. However, on the day of the news, there was a negative percentage change of -3.33%, suggesting a decrease in yield. Interestingly, in the two weeks after the news, there was a significant positive percentage change of 6.90%, indicating an increase in yield.

This suggests that while there may have been some initial uncertainty or market reaction on the day of the news, overall, investors reacted positively to the news and increased their demand for Treasury bonds, leading to higher yields in subsequent weeks.

Please note that these calculations are based on hypothetical data and real-world stock and bond market dynamics can be influenced by a multitude of factors beyond a single news article.

 

 

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