Lawrence B Henry
Dr. Grover FIN 301 Principles of Finance
Most people watch the news and see the stock market information presented during the course of the broadcast. To some, it means absolutely nothing as they do not have a clue what it all means. To others, it peaks their interest, they invest funds managed by investment firms and have a basic understanding of how stock fluctuation affect their investments. However, there are those watching that handle their own investments in the stock market, and they are interested in every detail of the market, have a solid understanding of how it works, and therefore can make educated decisions on investments. This last category of investors is where this paper of my Session Long Project (SLP) will cover. In this paper, I will review the stock performance of Harley Davidson Inc. (HDI). I will review the past five years worth of stock prices to determine what I am willing to pay for equity futures or "futures price of stock." I will determine what I believe is the current future's price for 100 shares of stock in HDI, which would be delivered to me in one year. Additionally, I will give an estimate of whether the HDI stock will be significantly higher, slightly higher, or lower in one year. Finally, I will look at how HDI stock has performed over the past five years. I will look at the risk associated with HDI stock and whether or not there are any indications of wild swings, either up or down, or has the stock price remained somewhat even during this reference point.
Harley Davidson is known around the world for its American made motorcycle. When people associate products that represent the American culture and its freedoms, Harley Davidson motorcycles is listed as one of, if not the top brand, and has been since its existence in 1903. It is for this reason that I chose this company when looking to purchase a motorcycle in...