You are given the following information concerning the share price and returns for Cubic Technologies Ltd: Day Share...

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Finance

You are given the following information concerning the shareprice and returns for Cubic Technologies Ltd:
Day Share Price Return Day Share Price Return
1 230 7 233 -0.104
2 250 0.087 8 221 -0.052
3 232 -0.072 9 201 -0.090
4 241 0.039 10 218 0.085
5 247 0.025 11 219 0.005
6 260 0.053 12 227 0.037
1.1Determine and describe the trading behaviour of an investorwho follows the Dow Theory which recommends investing in securitieswhen the market begins to rise and selling securities when themarket begins to fall. What return would this strategy make overthe 12 day period above? (13 %)
1.2 Calculate the return earned by an investor who uses aBuy-and-Hold portfolio starting at the same time as the Dow Theoryinvestor above. (3 %)
1.3 Comment briefly on the performance of the Dow Theory againsta Buyand-Hold strategy in this particular case as well as ingeneral. Advise your client on the suitability of the twostrategies. (5 %)
1.4 Discuss the techniques of moving averages and filter rulesas they are used by technical analysts. Include in your answer adiscussion of technical analysis for an investor wishing to investin emerging markets.

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11 Trading behaviour of an investor following Dow theorya Buy at 250 b Sell at 232 c Buy at 241 d Sell at 233 e buy at 218ReturnBuy at 250 and Sell at 232 Return 8Buy at 241 and sell at 233 return8Buy at 218 and price on day 12price 227 Return9Net gainloss in 12 days712 Return for investor with buy and hold strategyBuy at See Answer

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You are given the following information concerning the shareprice and returns for Cubic Technologies Ltd:DayShare PriceReturnDayShare PriceReturn12307233-0.10422500.0878221-0.0523232-0.0729201-0.09042410.039102180.08552470.025112190.00562600.053122270.0371.1Determine and describe the trading behaviour of an investorwho follows the Dow Theory which recommends investing in securitieswhen the market begins to rise and selling securities when themarket begins to fall. What return would this strategy make overthe 12 day period above? (13 %)1.2 Calculate the return earned by an investor who uses aBuy-and-Hold portfolio starting at the same time as the Dow Theoryinvestor above. (3 %)1.3 Comment briefly on the performance of the Dow Theory againsta Buyand-Hold strategy in this particular case as well as ingeneral. Advise your client on the suitability of the twostrategies. (5 %)1.4 Discuss the techniques of moving averages and filter rulesas they are used by technical analysts. Include in your answer adiscussion of technical analysis for an investor wishing to investin emerging markets.

Day	Share Price	Return	Day	Share Price	Return
1	230		7	233	-0.104
2	250	0.087	8	221	-0.052
3	232	-0.072	9	201	-0.090
4	241	0.039	10	218	0.085
5	247	0.025	11	219	0.005
6	260	0.053	12	227	0.037