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




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
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
How much money did Jack gain or lose from his speculation with pound futures and what is the break-even price for the option and What is the minimum potential proceeds per AUD
You can acquire convertible bonds from a rapidly growing company or from a utility. Speculate on which convertible bond would have the lower yield and discuss the reason for
Given your analysis, would all of the various firms shown in the exhibit still qualify to be included in the same portfolio? In particular, should IBM now be classified as a
You believe that stock X is 25 percent undervalued, and that it will take 3.1 years for half of this misvaluation to disappear. What is your forecast for the alpha of stock
What is the weight of each asset held in your final portfolio? Based on these weights and reported betas, what is the beta of your portfolio? How did your equity ETF perform c
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
Analyze the relationship between risk and rate of return, and suggest how you would formulate a portfolio that will minimize risk and maximize rate of return - Formulate an
Suppose the investor had constructed his portfolio by taking a short position in Security H equal to 20% of his initial funds. Calculate the rate of return on the portfolio