Doubts

Assignment #1 - Analysis Period

Assignment #1 - Analysis Period

by Margarida Canoa C. Serralha Ferreira -
Number of replies: 3

We noticed that this question has already been addressed on the forum, however, we are still a bit confused and would appreciate to clarify to ensure we're on the right track.

Our team is analysing Ford, and we’ve noticed that its peer company, General Motors only has data available from 2010 to 2024. Should we analyse all companies (Ford, GM, and the third company) from 31-dec-2008 to 2024, or would it be more appropriate to focus on the period from 2010 to 2023, where data is available for all three companies? 

We’d appreciate your guidance on the specific timeframe we should use to know the best approach.

Thank you! 

In reply to Margarida Canoa C. Serralha Ferreira

Re: Assignment #1 - Analysis Period

by Sofia Maria de Carvalho Tomás -
Hello Margarida,

As a general rule, analyze the period from December 31, 2008, to 2023. However, for General Motors, since data is unavailable before 2010, start the analysis from 2010 onwards.


Thanks,
Sofia Tomás
In reply to Sofia Maria de Carvalho Tomás

Re: Assignment #1 - Analysis Period

by Guilherme de Oliveira Faneco e Viveiros -
Hello Sofia,

Sorry but I am still confused with your answer. Would that mean that Ford should be analysed like 2 different companies (Ford 2008-2023 and Ford 2010-2023) - with their respective average monthly returns, variances, standard deviations, etc...?

So, when analysing Ford and GM, should we use data for Ford (2008 - 2023) or Ford (2010 - 2023)?

Thanks in advance,
Guilherme
In reply to Guilherme de Oliveira Faneco e Viveiros

Re: Assignment #1 - Analysis Period

by Sofia Maria de Carvalho Tomás -
Hello Guilherme,


As an example, when plotting the companies on a graph (question 2a) , you might have Ford’s data from 2008 onwards, while the equally weighted portfolio of Ford and GM may only start in 2010, as that is when the data for GM becomes available (GM went bankrupt in 2009).


Thanks,
Sofia Tomás