find the aroc and iroc of a company stock prices
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Choose a company and do a web search to find their stock prices over the past several years. (I have found that a search via bing.com often shows a graph of the prices over time right away, but you can find this info via other search engines too.)
Name of the company you chose: _________________________
a. Compute the average rate of change over a 2-year period. Let January 2015 be t=0 and p be the stock price.
First date and stock price ________________ _________________
Second date and stock price _________________ __________________
Ordered pairs: _____________ _________________
AROC (rounded to two decimal places):
Interpretation:
b. For the company you chose, estimate the instantaneous rate of change at the beginning of your 2-year period by choosing two points close together, for instance one week apart. Interpret your answer. (Hint: When calculating the IROC, it might be helpful to remember that 1 week is 1/52 of a year.)
First date and stock price ________________ _________________
Second date and stock price _________________ __________________
IROC (rounded to two decimal places):
Interpretation:
c. Compare your answer to the AROC. What kind of information do each of these values give you?