Use the High Closing Values of Statstar Inc

question 11

Essay

Use the high closing values of Statstar Inc. stock from the years 2005-2016 to construct a_
time-series graph. (Let x = 0 represent 2005 and so on.)Identify a trend. $$\begin{array} { c | c | c | c } \text { Year } & \text { High } & \text { Year } & \text { High } \\\hline 2005 & 48 & 2011 & 62 \\2006 & 53 & 2012 & 60 \\2007 & 47 & 2013 & 68 \\2008 & 55 & 2014 & 42 \\2009 & 58 & 2015 & 51 \\2010 & 61 & 2016 & 78\end{array}$$

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Definitions:

Beta

The measure of the systematic risk of a security. The tendency of a security’s returns to respond to swings in the broad market.

Market Risk

Risk factors common to the whole economy; also called systematic or nondiversifiable risk.

Diversified Portfolio

An investment strategy that spreads investments among various financial instruments, industries, and other categories to minimize risk.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.