Stock Portfolio Stocks Were Selected

Stock Portfolio Stocks were selected randomly without knowledge of finance and investments. How did portfolio perform? The portfolio did much better than the Dow Jones Industrial Average, which saw an increase of 20.89% since we started the exercise on September 13th. While our portfolio; realized a total return of 44.59%. This is double the return of what was seen on the Dow Jones Industrials during this time. Evidence of this can be seen by looking at the blow table that is illustrating how each of stocks we selected performed.

("Stock Portfolio," 2011) Stock Performance since September 13 Company Symbol Purchase Price Price of the Stock on 12 / 8 / 2011 Percentage Return EFX $32.30 $37.53 AXP $50.12 $48.73 -2.77% MCD $88.29 $97.93 TIF $75.00 $68.34 -8.88% AAPL $381.30 $394.24 MSFT $27.12 $25.64 -5.45% SBUX $39.20 $43.74 PETM $44.88 $49.27 JPM $33.43 $33.16 -.80% GRMN $33.73 $37.32 10.64% Total Return NA NA 44.54% ("Stock Portfolio," 2011) These different figures are important, because they are showing how our portfolio was able to outperform the Dow Jones Industrial Average during the same period of time. Who is the winner, who is the loser / compare to DJI index performance.

What approach and factors (beta, risk, return) would you consider if you had to choose stocks after completion of investments course? The best performer in our portfolio was EFX (which provided a 16.19% return). The worse performing stock was TIF with a negative -8.88% since September 13th. EFX is underperforming the Dow Jones Industrial Average by 4.7%. While TIF, is underperforming the Dow by 29.77%. These elements are important, because they are showing how this kind of balance allowed the portfolio to outperform the major market averages.

This is because we are using what is known as diversification to protect against adverse changes from one stock. ("Stock Portfolio," 2011) As a result, the different factors that should be considered when choosing any stock are the beta, risk and return. The reason why, is because these tools will allow investors to see for themselves if the stock can objectively meet their criteria for the kind of investment vehicle they are looking for.

When they are using them in conjunction with one another, this will reduce their risks, volatility and increase the profit margins. Over the course of time, this will help investors to find companies that can provide them with consistent growth. ("Stock Portfolio," 2011) What stocks performed the best and worst? The stocks that performed the best include: EFX, MCD, AAPL, SBUX, PETM and GMRN. The positions that were underperforming the others include: MSFT, AXP, TIF and JPM.

Stocks for given portfolio were selected randomly what would you've done differently? There would have been a focus on having firms that pay higher dividends and growth. This is when the total returns in the portfolio will be higher in comparison with other strategies. What factors and why are they important when choosing stocks? The factors that are most important when choosing stock are the earnings and dividends. The two elements will help everyone to quickly see the underlying strength of the company in comparison with other firms.

An Examination of the Companies in the Portfolio The different companies that were selected as a part of the portfolio strategy are involving diversification across numerous sectors. To include: financial services (i.e EFX / AXP / JPM), retail (i.e. MCD / TIF / SBUX / PETM) and technology (i.e. MSFT / AAPL / GMRN). These elements are important, because they are showing how this strategy is focused on building diversification based on balance, growth and dividends. As a result, we are focusing on four companies that are.