a. To find the change in stock price from day to day for each company, we subtract the closing price of the previous day from the closing price of the current day.
For HooYa!:
Tuesday: $30.80 - $29.50 = $1.30 (positive change)
Wednesday: $28.90 - $30.80 = -$1.90 (negative change)
Thursday: $27.10 - $28.90 = -$1.80 (negative change)
Friday: $27.50 - $27.10 = $0.40 (positive change)
For FacePage:
Tuesday: $28.90 - $26.30 = $2.60 (positive change)
Wednesday: $25.10 - $28.90 = -$3.80 (negative change)
Thursday: $21.60 - $25.10 = -$3.50 (negative change)
Friday: $24.00 - $21.60 = $2.40 (positive change)
b. To find the mean daily change in price for each company for this 5-day period, we sum up the daily changes and divide by the number of days.
For HooYa!: Mean daily change = (1.30 - 1.90 - 1.80 + 0.40) / 4 = -1.00 / 4 = -0.25
For FacePage: Mean daily change = (2.60 - 3.80 - 3.50 + 2.40) / 4 = -2.30 / 4 = -0.575
c. Based on the mean daily change in price, we can decide which stock to choose. In this case, HooYa! has a mean daily change of -0.25, while FacePage has a mean daily change of -0.575. Since the mean daily change for HooYa! is closer to zero, it indicates a relatively stable stock price compared to FacePage.
Therefore, for stability purposes, I would choose HooYa! stock.
If your uncle buys the stock at the closing price on Friday, he would pay the closing price per share on Friday multiplied by the number of shares (100 shares). For HooYa!: $27.50 x 100 = $2750.
So, your uncle would pay $2750 for the 100 shares of HooYa! stock.
I laughed so hard at HooYa!....
can i have crown ple?!