Question 1

This diversified business model allows JNJ to generate strong and consistent cash flows. Over the past 10 years, JNJ has grown its revenue from $70.1 billion in 2010 to $82.2 billion in 2019 which is an increase of 17% (Yahoo Finance, 2022). Furthermore, JNJ has consistently increased its dividend payments over the same period, with a dividend of $3.60 in 2010 to $3.80 in 2019 (Yahoo Finance, 2022). This is a testament to the company’s ability to generate strong cash flows and maintain its dividend payments.

I believe that JNJ is a great choice for long-term investors looking for a reliable and stable stock for their portfolio. The company has a low beta, which means that its stock price is less volatile than the broader market, and its dividend yields are attractive (Damodaran, 2012). Additionally, the company is well-diversified, meaning that its stock portfolio is composed of different sectors, which helps to minimize risk. All of these factors make JNJ a great choice for my portfolio.

Overall, JNJ is a great company that has a long track record of success and a strong financials, but it is still facing some risks due to the COVID-19 pandemic and the shift in consumer demand towards wellness products and services. Investors should carefully consider these risks before investing in JNJ. Johnson & Johnson (JNJ) is taking steps to address the risks posed by the pandemic and the shift in consumer demand. For example, the company has been investing in new technologies, such as digital health platforms, to meet the changing needs of consumers. Additionally, JNJ has been expanding its range of products and services to focus more on wellness products, such as vitamins, supplements, and natural remedies.

JNJ is also continuing to invest in research and development to develop new products and treatments. The company has also been investing in partnerships with other healthcare companies to expand its reach and capabilities. Finally, JNJ is focusing on cost-efficiency and streamlining operations to optimize its financial performance. By taking these measures, JNJ is taking steps to address the market risks posed by the pandemic and the shift in consumer demand.

Question 2

library(quantmod)

# Get the historical data of Johnson & Johnson

Question 3

# Create a function to calculate the n-days moving average of the closing price

library(quantmod)

return(JNJ$n_ma)

}

Question 4

library(quantmod)

# Get the historical data of Johnson & Johnson

# Calculate the standard deviation

JNJ$std_dev <- sd(Cl(JNJ))

return(list(JNJ$upper_bollinger,JNJ$lower_bollinger))

}

Question 5

# Create a function to calculate the profit

buy_sell_strategy <- function(){

# Initialize the count

count <- 0

# If the price is greater than the upper band

if(last_720_days[i] > bollinger_bands[[1]][i]){

# If the price is less than the lower band

if(last_720_days[i] < bollinger_bands[[2]][i]){

}

# Calculate the probability of making a profit

# Calculate the profit and the probability of making a profit

buy_sell_strategy()

Question 6

bollinger_bands_slope <- function(){

# Calculate the slope of the upper band

if(all(upper_slope > 0) & all(lower_slope > 0)){

# Return TRUE

return(FALSE)

}

Question 7

# Get the data

getSymbols("JNJ")

# Calculate the dividends

dividends <- sum(Dividends(JNJ))

# Print the result

print(irr)

print(ten_year_rate)

# Calculate the Internal Rate of Return

# Calculate the cashflows (price + dividends)

cashflows <- c(Cl(JNJ)[1], diff(Cl(JNJ)) + dividends)

T_Bill <- getSymbols("^TNX", from = "2010-01-01")

# Calculate the return

} else{

print("It would be smarter to buy the US 10-year Treasury bill")

Question 8

install.packages("taskscheduleR")

# Load the taskscheduleR library

command <- paste(

"Rscript /path/to/script.R",

command = command,

rscript = TRUE,

References

Damodaran, A. (2012). Passive value investing: Screening for Bargains. Passive Value investing: Screening for bargains. Retrieved December 11, 2022, from https://aswathdamodaran.blogspot.com/2012/06/passive-value-investing-screening-for.html

JnJ. (2021). About Johnson & Johnson. Retrieved December 11, 2022, from https://www.jnj.com/about-jnj