+1-415-670-9189
info@expertsmind.com
Portfolio analysis
Course:- Portfolio Management
Reference No.:- EM13409




Assignment Help
Assignment Help >> Portfolio Management

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.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Portfolio Management) Materials
Describe the arbitrage transaction that Arshia should undertake to take advantage of these market conditions. Demonstrate the arbitrage profit that she will realize at the
1.Write a paper that discusses the impact of put-call parity on options trading. Discuss how this idea can be used to design specific strategies. Also discuss the limitations
Discuss your stock performance for your portfolio and how you allocated your cash within each position within the constraints above. Discuss your philosophy and process.
Calculate the Fama overall performance measure for both funds. What is the return to risk for both funds? For both funds, compute the measures of (1) selectivity, (2) diversif
Determine (i.) the arithmetic average tracking error return, (ii.) whether the strategy outperformed the benchmark based on this average, (iii.) the number of years it outpe
Compute the daily net advance-decline line for each of the five days. Compute the cumulative advance-decline  line for each day and the final value at the  end of the week.
Calculate the fees paid by both clients as a percentage of their assets under management. What is the economic rationale for a fee schedule that declines (in percentage t
How can you increase the Sharpe ratio of a portfolio? What type of stocks would you have to add to it in order to do so? Why is the hurdle rate in Section 13.2 lower for Ja