Finance and Investment : PDF

Running Head: Finance and investment
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Project Report: Finance and investment

Finance and investment
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Contents
Introduction.......................................................................................................................3
Presentation of data...........................................................................................................3
Analysis and comments....................................................................................................4
Conclusion........................................................................................................................5
References.........................................................................................................................7
Appendix...........................................................................................................................8
Monthly stock price and index price and Average monthly return..............................8
Dividend table...............................................................................................................9
Standard deviation........................................................................................................9
Relationship among the company and market index..................................................10
Slope of the characteristics line..................................................................................11

Finance and investment
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Introduction:
Finance is a department which deals in the investments study. It contains the assets
and liabilities dynamics over the time under little condition of risks and uncertainties. It is
basically a part of science which manages the money of the investors. Finance study makes it
easier for an organization to evaluate the financial performance and the stock position of an
organization. This process makes it simple for the investors and the financial analyst to judge
the stock of an organization.
In the report, investment position of Apple Inc has been evaluated on the basis of
stock price of the company of last 2 years and the index price of last 2 years. The investment
position of the company has been evaluated through identifying the average monthly return
of the company, standard deviation of the company, dividends of the company, relationship
among the market index and company and lastly, the characteristics line of apple inc stock.
The main objective of this report is to identify that whether the stock price of the
company is competitive or not. Further, the report has been prepared to measure the safety of
the investor’s return and evaluate the total associated risk with the stock price of the
company. The report also explains that how much investment could be got by the company
against the investment into the equity stock of the company. The objective of the report is to
measure the total risk and return of the stock and make a decision that whether the investment
should be done by the company in particular company or not.
Apple Inc is a technology company which is mainly based in America. The company
is operating its business at international level and headquarter of the company is in
California, America. The company has been founded in 1976 by 3 founders which are Steve
Jobs, Steve Wozniak and Ronald Wayne. The main products of the company are iPod,
iphone, Macintosh, Apple watch, apple TV, iLife, iWork, iOS etc. the company is trading in
NASDAQ: AAPL, DJIA component, S&P 500 etc. (Home, 2018). The financial performance
and non financial performance of the company is quite stunning. Main services of the
company are Apple pay, iBook store, Apple store, Mac App store, apple music etc. this is the
parent company of various subsidiary companies such as Betas electronics, Apple sales
international, Anobit, Apple worldwide video etc. The report evaluated the stock price of
NASDAQ: AAPL to measure the stock performance of the company and the investment
position of the company.

Finance and investment
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Presentation of data:
Entire investment evaluation data of the company and the index has been given into
the appendix area. Please refer the appendix part.
Analysis and comments:
The above study on the market price of apple inc, movements into the stock price of
apple, movement in the stock price of market index, standard deviation of the stock etc
explains that whether the investors should invest into the company or not. Firstly, the
volatility in the stock price of the company has been evaluated in context with the market
index. And it has been found that the average monthly stock price return of Apple Inc is
2.53% in last 2 years whereas the stock price of IXIC is 1.52%. It explains that the stock
returns of Apple Inc are way better than IXIC.
Holding period return is the total return which is hold by an asset or the portfolio over
a period of time. It is one of the significant tools to measure the investment position and the
total return from an investment (Koller, Goedhart and Wessels, 2010). The holding period
return of both the securities explain that the changes into the stock price of Apple inc affects
the stock price of IXIC as the company is one of the top NASDAQ companies. It explains
that the stock price of Apple Inc is quite attractive as the return of the stock price of Apple
Inc is higher than the stock price of IXIC and it also explains that the performance of the
stock of Apple Inc is better (Madhura, 2011).
Further, the dividends of Apple Inc have also been recognized. Dividends are the total
amount which is paid by an organization to its shareholder against the total equity investment
(Higgins, 2012). On the basis of dividend evaluation, it has been found that the dividend
yield of the company express that the total dividend of the company has been enhanced by
9.52% in May 11, 2017 from last year. And currently the dividend amount of the company is
same from last 1 year. In addition, the risk of the stock of the company has been evaluated.
On the basis of the standard deviation calculations, it has been identified that the standards
deviation of Apple Inc is 5.183% and the standard deviation of IXIC is 2.51% (Yahoo
Finance, 2018).
Further, standard deviation is a measure to identify the dispersion of a particular data
on the basis of its mean. It is also calculated as the square root of variances through
evaluating and determining the variances among the each point of the mean (Kaplan and