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Investment Problems for Portfolio

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1. Invest $200,000 in a portfolio consisting of 4 stocks.
2. Conduct an Internet search to find the return of each stock in the previous 52 weeks and its beta.
3. Calculate the return of the portfolio and its beta for the previous year.
4. Write about 300 words report on the formation of the portfolio and the rationale for the selection.

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My strategy is diversified growth. This means the following

-I am looking for solid growth rather than going for extreme return and bearing extreme risk
-I diversify my portfolio by selecting four stocks from different industries
-I rather gain small and lose small than gain big and lose big (I am risk averse)

I pick the following stocks

-in technology sector, I pick Apple (AAPL)
-in financial sector, I pick Bank of America (BAC)
-in fast food sector, I pick Mcdonalds (MCD)
-in retail sector, I pick Walmart (WMT)

I allocate $50,000 to each stock.

The annual return is calculated as (price now - price 1 year before)/(price 1 year ...

Solution Summary

Investment problems