Risk and Return From the e-Activity, determine whether stock prices are affected more by long-term or short-term performance. Provide one (1) example of the effect that supports your claim.

• From the scenario, value a share of TFCs stock using a growth model method and compare that value to the current trading price of a share of TFC. Determine whether the stock is undervalued or overvalued. Provide a rationale for your response.

ANSWER:

Risk and Return

Events that Affect the Stock Market

Stock price are affected by numbers of factors those are affected the long-term or short-term performance of the company. Long term performance is mainly affected the price or value of the stock as the long-term movements in exchange rates impacts on the market supply and demand and...