Team M: Statistics

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Team M Statistics Financial Markets

• Participants
• Vanay Joynes, Lankenau High School
• Fanta Love, Girard Academic Music Program
• Oshane OMeally, MLK Jr. High School
• Siaisha Sherman, William Penn High School

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Contents

• Objectives/Goals
• Background
• Procedure
• Results
• Conclusion

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Objectives/Goals

• We were aiming to
• Learn how to develop investment portfolios
• Learn how stock exchanges work
• Learn how successful investors think

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Background For your information

• The stock market is a place where stocks are
  bought and sold
• A portfolio is a collection of stocks one chooses
• Stock price Market price
• Intrinsic (or true) value
• Return on capital the profit a companys stores
  or factories earn relative to the cost to build
  them
• Earnings yield - the profit a company earns
  relative to the stock price

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Background (continued) What Started It All

• Stock markets trace back 600 years
• 1790, the first U.S. stock exchange was formed in
  Philadelphia
• 1792, the New York Stock and Exchange Board was
  formed by twenty four male merchants
• Stock markets today exist internationally
• The NYSE is located on Wall Street
• Prominent Wall Street investors Benjamin Graham,
  Warren Buffett, Hetty Greene, Shelby Davis, Laura
  Choate, and Martin Whitman

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Procedures

• Criteria applied to develop individual
  portfolios
• Large, nationally known companies
• Stock price has been almost unchanged for the
  past two to five years
• High return on capital
• High earnings yield
• High profits per employee
• Stock is being purchased by well-known investors

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Procedures (continued)

• After creating our portfolios we found the stock
  price of each company on June 19, 2007 and on
  July 18, 2007.
• From that information we obtained the percentage
  change in the prices.
• We then obtained the average percentage change in
  each portfolio in order to find the highest
  average percentage return.
• This finding determined the best performing
  investment portfolio during this period.

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Results
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Conclusion

• We created portfolios with four strong, well
  managed companies, and we analyzed graphs to
  follow the status of these companies.
• We simulated the Financial Trading System, a
  stock exchange game that gave us first-hand
  experience of real-time stock market trading.
• We calculated the average percentage change in
  the stock prices in each portfolio.
• We found that Fantas portfolio had the highest
  average percentage change, making her portfolio
  the one that performed best over that one-month
  period.

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Acknowledgments

• Dean Daniel Larson
• Prof. Donald Richards
• Prof. David Haushalter
• Ms. Skyra Blanchard
• Mr. Eric Speight
• Siaisha Sherman
• UBMS Faculty and Staff
• Our Parents

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• Questions?