Analyse the five-year performance of the domestic economy

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Reference no: EM131514788

Question: Prompt: The CEO has asked you to produce an investment analysis report for the companies Apple Inc (AAPL), Caterpillar (CAT), Consolidated Edison (ED), Northern Trust (NTRS) and Macy's (M). Your analysis report should include compiled data spreadsheets, a complete portfolio, and a justification of your investment strategies in an executive summary.

Specifically, the following critical elementsmust be addressed:

I. Company and Market Analysis: In this section, you will analyse the company and its position in the financial markets.

A. Financial Markets:

i. Analyse the five-year performance of the domestic economy relative to the financial markets.

ii. Explain specific market performance data based on compiled asset valuation model inputssupported by database research of five-year sector and industry performance and current trends.

iii. Evaluate the impact of the five-year and current macroeconomic dataon asset prices.

B. Company Valuation:

i. Analyse the company's financial items and key ratiosto demonstrate a comparison to peers and industry.

ii. Determine the intrinsic valueof assets by inputting data into the various asset valuation models, and explain how each model was applied.

C. Industry Trends

i. Compile historic industry microeconomic datafrom database research for relative comparisons and inputs into asset valuation models.

ii. Analyse quantitative data across sectors and industries to measure absolute and relative performance.

D. Stakeholders

i. Identify five key stakeholdersand their needs in relation to the company's portfolio.

ii. Identify the common stockholders' primary objective and their required return on equity.

II. Portfolio: With your company and market analysis in mind, construct a complete portfolio that includes the following:

A. Assets

i. Explain the inclusion of specific asset classesfor the portfolio, considering the portfolio's risk/return trade-offs and the company's investment objectives.

ii. Apply the asset allocation weightingsacross asset classes, sectors, and industries.

B. Securities

i. Analyse the company's historicalrevenue and earnings growth in order to demonstrate a comparison to that of peers in the industry.

ii. Determine the intrinsic valueof assets utilizing the asset valuation models.

C. Rates of Return

i. Analyse the assets' historical risk and rates of return, utilizing a comparison of the assets' rates of return to similar securities or benchmarks for support.

ii. Calculate required rates of return, utilizing various asset valuation models (e.g. stock valuation models, bond valuation models, real estate valuation models, etc.).

D. Compare the risk/returntrade-off on the investments.

III. Executive Summary: Justify your investment strategies in a summary, utilizing your company and market analysis and portfolio for support. Include the following in your justification:

A. Describe how making these investments will position the company within its industry in the market. Support with examples.

B. Explain the benefitsof the investments to stakeholders.

C. Assess investment performanceutilizing specific performance measurements.

D. Assess investment performance based on risk/return metrics, citing specific examples.

E. Explain how the strategies implemented in the portfolio meet the company's investment objectives.

Reference no: EM131514788

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