1 is your nbspportfolio balancednbsp justify your answer2

Assignment Help Portfolio Management
Reference no: EM13346521

1. Is your  portfolio balanced?  Justify your answer.

2. What changes would you make, if any?

A high portfolio beta points that securities in the portflolio tend to be volatile in price movements than market as a whole.

Date 7/12/2013       - - - - - -  Week 1 - - - - - - 
Stock
Symbol
Company
Name
Sector Beta Initial
Investment
Starting
Shares
Starting
Price
Total as
of Friday








AVNR Avenir Pharmaceuticals Biotech 0.84 $10,000.00 2,192.98 4.56 $9,999.99
GM General Motors Auto Industry 1.69 $10,000.00 274.73 36.4 $10,000.17
IAU iShares Gold Trust Financial 0.77 $10,000.00 801.92 12.47 $9,999.94
GE General Electric Industrial Goods 1.24 $10,000.00 420.88 23.76 $10,000.11
AAPL Apple Inc. Electronic 0.76 $10,000.00 23.45 426.51 $10,001.66
HD Home Depot Inc. Home Improvement 0.99 $10,000.00 124.16 80.54 $9,999.85
Facebook Facebook,Inc Technology 3.29 $10,000.00 385.95 25.91 $9,999.96
SBUX Starbucks Corporation Services 0.80 $10,000.00 143.43 69.72 $9,999.94
BAC Bank of America Corporation Financial 2.07 $10,000.00 725.69 13.78 $10,000.01
EBAY eBay Inc. Services 0.88 $10,000.00 175.32 57.04 $10,000.25
      Total $100,000.00 5,268.51   $100,001.88

hi

- - - - - -  Week 2 - - - - - - 
Total Number of Shares Closing
Price on
Friday
Total as of Friday 



2,192.98 4.81 $10,548.23
274.73 36.61 $10,057.87
801.92 12.57 $10,080.13
420.88 24.72 $10,404.15
23.45 424.95 $9,965.08
124.16 79.89 $9,919.14
385.95 25.881 $9,988.77
143.43 68.79 $9,866.55
725.69 14.75 $10,703.93
175.32 52.185 $9,149.07
    $100,682.93

Week 3 
Total Number of Shares Closing Price on Friday Total as of Friday



2,192.98 4.70  $     10,307.01
274.73 36.67  $     10,074.35
801.92 12.95  $     10,384.86
420.88 24.65  $     10,374.69
23.45 440.99  $     10,341.22
124.16 78.74  $        9,776.36
385.95 34.01  $     13,126.16
143.43 73.36  $     10,522.02
725.69 14.73  $     10,689.41
175.32 52.25  $        9,160.47
     $   104,756.55

Week 4
Total Number of Shares Closing Price on Friday Total as of Friday



2,192.98 4.89  $       10,723.67
274.73 36.95  $       10,151.27
801.92 12.70  $       10,184.38
420.88 24.70  $       10,395.74
23.45 462.54  $       10,846.56
124.16 80.23  $         9,961.36
385.95 38.05  $       14,685.40
143.43 74.23  $       10,646.81
725.69 14.84  $       10,769.24
175.32 52.54  $         9,211.31
     $     107,575.74

Week 5
Total Number of Shares Closing Price on Friday Total as of Friday
     
2,192.98 4.40  $       9,649.11
274.73 36.02  $       9,895.77
801.92 12.75  $     10,224.48
420.88 24.25  $     10,206.34
23.45 454.45  $     10,656.85
124.16 78.97  $       9,804.92
385.95 38.50  $     14,859.08
143.43 72.80  $     10,441.70
725.69 14.45  $     10,486.22
175.32 53.33  $       9,349.82
     $   105,574.29

The stock with the lowest beta (0.76) is Apple Inc. stock. The stock with the highest beta (3.29) is Facebook Inc. stock. Beta for Apple Inc. stock is less that 1, it tells us that stock price is less volatile and risky than market.

While beta for Facebook Inc. stock is more than 1, it indicate that stock price is more volatile and risky than overall market. Looking at the performance of these stock with my initial investment of $10,000 for each stock, I can tell that Facebook Inc. stock have higher earning than Apple Inc. stock. So, with more risky securities, such as Facebook Inc. in my case, investor can expect a higher return than for the Apple securities which are less risky.

Reference no: EM13346521

Questions Cloud

Schubert mahler and tull are resident australian seamen : schubert mahler and tull are resident australian seamen employed on the fishing trawler mv st cecilia. whilst on a
In this programming assignment you will implement an open : in this programming assignment you will implement an open hash table and compare the performance of four hash functions
The case for global accounting standards arguments and : the case for global accounting standards arguments and evidencethis paper outlines the arguments for a basic set of
Write the structures of the major product saytzeff : write the structures of the major product saytzeff elimination when the following alcohols are dehydrated with
1 is your nbspportfolio balancednbsp justify your answer2 : 1. is your nbspportfolio balanced?nbsp justify your answer.2. what changes would you make if any?a high portfolio beta
1 if a swot analysis reveals that an objective is : 1. if a swot analysis reveals that an objective is unattainable apart from changing the objective what other changes
Part aexplain why the payment to the taxpayer in fct v : part aexplain why the payment to the taxpayer in fct v dixon 1952 86 clr 540 was assessable income but the payment in
1- lets say you were tasked with designing a : 1- lets say you were tasked with designing a neuroprosthesis for the neurological disorders below. which brain
The desired functionality is for your programs to input : the desired functionality is for your programs to input pairs of natural numbers as theyre entered by the user until

Reviews

Write a Review

Portfolio Management Questions & Answers

  Portfolio analysis

The stock with the lowest beta (0.76) is Apple Inc. stock. The stock with the highest beta (3.29) is Facebook Inc. stock. Beta for Apple Inc. stock is less that 1, it tells us that stock price is less volatile and risky than mark..

  Provide investment portfolio advice

Provide investment portfolio advice and management to a client.

  Evaluate total number of shares

EBV proposes to structure the investment as 5m shares of CP with FV of $5m, one-to one conversion to common, and no dividends. Total Valuation Estimated from Newco.

  Role of the imf and world bank

Economic and territorial logic of empire are not always aligned. Explain his argument in light of the role of the IMF and World Bank as forms of neo imperialism.

  Prepare a portfolio of stocks

Prepare a portfolio of stocks

  Which critically examines the benefits and risks to company

Which critically examines the benefits and risks to a company, of incorporating corporate debt into a portfolio of equity and debt.

  Compute the variance-covariance matrix

Compute the sample mean, variance, and standard deviation of these shares and compute the variance-covariance matrix V and Plot the daily share prices and daily returns for each individual asset.

  Net nominal rate of interest and net real rate of interest

What bank portfolio can guarantee the rate of return 1 to all type 1 people and the rate of return 1.2 to all type 2 people? How many goods are placed in storage? In capital?

  Right issue to improve financial status

If you are the CEO of a British company that now faces the loss of a lucrative contract in Malaysia because of the dispute. What action should you take and How do you think British government should respond to the Malaysian action?

  Calculate the cost of reinvested profits

Calculate the cost of reinvested profits and the cost of new common shares using the constant-growth DVM - Cost of reinvested profits versus new common shares-DVM

  Calculate the after-tax cost of debt

Cost of debt For each of the following bonds, calculate the after-tax cost of debt. Assume the coupons are paid semi-annually, that the tax rate is 40 percent, and that we are dealing with $1,000 of par value.

  Calculate the overall cost of capital for cartwell products

Calculate the overall cost of capital for Cartwell Products. Which projects should the firm select? Does your answer differ from your answer topart d? If so, explain why.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd