1 is your nbspportfolio balancednbsp justify your answer2

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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

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