Witht the given stock, conduct the Bollinger Bands analysis by answering the questions below.

Q1 Calculate 20-day moving averages and 20-day running standard deviation. Save the result under stock and print it.

Hint: Take stock, pipe it to tidyquant::tq_mutate to calculate 20-day moving averages, pipe it to tidyquant::tq_mutate to calculate 20-day running standard deviation, pipe it to rename() to rename value to SD, and assign the result to stock. To calculate the running standard deviation, use runSD in place of SMA. You can see all the available functions in tidyquant::tq_mutate using tq_mutate_fun_options().

Q2 Calculate the Bollinger Bands. Save the result under stock and print it.

Hint: Take stock, pipe it to mutate(sd2up = SMA + 2 * SD, sd2down = SMA - 2 * SD), and assign the result to stock.

Q3 Select variables to build the Bollinger Bands. Save the result under stock_selected and print it.

Hint: Take stock, pipe it to dplyr::select to keep date, close, SMA, sd2up, and sd2down, and assign the result to stock_selected.

Q4 Transform data to long form from wide form for graphing.Save the result under stock_long and print it.

Hint: Take stock_selected, pipe it to gather(key = type, value = price, close:sd2down), and assign the result to stock_long.

Q5 Visualize data.

Hint: Take stock_selected and pipe it to ggplot(). Map date to the x-axis, price to the y-axis, and type to color in the line chart.

Q6 If you had invested $1 million on the day of the first buying point and sold all the shares on the following selling point, how much would you have won or lost?

2020-02-27 158.18

2020-06-08 188.36

I would have bought 6321.91 shares with a million dollars at a price of $158.18. I would have made $190,795.30 by selling all the shares at a price of $188.36

Q7 An analyst may tinker with the width of the Bollinger Bands depending the volatility of the stock. Which of the following scenarios would have yield the largest profit? Elaborate your answer.

Hint: A correct answer must show the per-share profit each scenario, the difference between the buying price and the selling price.

  1. the upper band being 2 sd up from the average and the lower band 2 sd below (standard)

upper 171.1634, 240.4095 = $404,561.37 shares 5842.37 I would have 5842.37 shares of the upper 2 sd with a million dollars at the price of $171.16. I would have made $404,561.37 by selling all the shares at a price of 240.41.

lower 156.2116, 226.3835 = $449,210.56 shares 6401.57 I would have 6401.57 shares of the lower 2 sd with a million dollars at the price of $156.21. I would have made $449,210.56 by selling all the shares at a price of 226.38.

This means that the lower 2 sd would have made more of a profit by $44,649.19.

  1. the upper band being 2.5 sd up from the average and the lower band 2 sd below

upper 173.0323,242.1628 = $399,523.67 shares 5779.27

I would have 5779.27 shares of the upper 2 sd with a million dollars at the price of $173.03. I would have made $399,523.67 by selling all the shares at a price of 242.16.

lower 156.2116, 226.3835 = $449,210.56 shares 6401.57 I would have 6401.57 shares of the lower 2 sd with a million dollars at the price of $156.21. I would have made $404,561.37 by selling all the shares at a price of 226.38.

This means that the lower 2 sd would have made more of a profit by $49,686.89.

Q8 Hide the messages, the code, and its results on the webpage.

Hint: Use message, echo and results in the chunk options. Refer to the RMarkdown Reference Guide.

Q9 Display the title and your name correctly at the top of the webpage.

Q10 Use the correct slug.