Question
I did the spreadsheet and wrote the intro, I need help with the analysis and conclusion. Write a 1-2 page paper with: Introduction : Identify
I did the spreadsheet and wrote the intro, I need help with the analysis and conclusion.
Write a 1-2 page paper with:
- Introduction: Identify the client, their interests, and what portfolio you selected.
- Body/Analysis: Compare and contrast the investments from a risk / reward perspective over the last five years. What do you notice about the average of the volatilities with the individual stocks compared to the volatility of the equally weighted portfolio? What is the advantage of owning the portfolio?
- Conclusion: Summarize the findings from your portfolio analysis. Provide any insight about future investment.
Intro- The client, Brad Smith is in his early twenties, a recent college graduate who is just beginning his work his career. Since Mr. Smith is young, and would like to take advantage of his youth to set up a retirement account with high-risk stocks. Mr. Smith is looking ahead five years to see growth results. He is not concerned about risk as he has many years left in his career to invest. The portfolio selection is a combination of technology, energy and entertainment related stocks.
Technology is constantly changing and represents growth. Energy related industries need to regroup due the shutdown of the traditional coal and nuclear plants across the country (Hoium, 2016). The portfolio selections are Alibaba (BABA), Devon Energy Corp (DVN), GameStop (GME), Tencent (TCTZF) and Tesla (TSLA). Alibaba is a multinational technology company based in China, specializing in e-commerce, the Internet, technology, and retail. Devon Energy Corp. energy company, which is involved in research, development and oil and natural gas production. GameStop is an American company specializing in consumer electronics, and gaming merchandise retailing. Tencent is a multinational Chinese company, specializing in technology and entertainment. Tesla is an auto manufacturing stock. It is an American company that designs and manufactures electric vehicles, energy generation and storage systems.
1 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 DATE BABA AVERAGE MONTHLY RETURN AVERAGE ANNUAL RETURN MONTHLY STANDARD DEVIATION ANNUAL STANDARD DEVIATION DVN GME TCTZF TSLA 3/1/2020 194.48% 5.93% 3.50% 48.88% 104.80% 4/1/2020 202.67% 10.81% 5.73% 51.97% 156.38% 5/1/2020 207.39% 9.37% 4.06% 53.60% 167.00% 6/1/2020 215.70% 9.83% 4.34% 63.73% 215.96% 7/1/2020 251.02% 9.18% 4.01% 68.06% 286.15% 8/1/2020 287.03% 9.51% 6.68% 68.00% 498.32% 9/1/2020 293.98% 8.45% 10.20% 67.01% 429.01% 10/1/2020 388.04% 11/1/2020 567.60% 304.69% 8.08% 10.47% 75.69% 263.36% 12.66% 16.56% 72.84% 232.73% 14.30% 18.84% 70.79% 253.83% 14.99% 325.00% 12/1/2020 705.67% 1/1/2021 89.18% 793.53% 2/1/2021 19.62% 101.74% 86.41% 675.50% 3/1/2021 667.93% 4/1/2021 237.76% 226.73% 19.90% 189.82% 79.44% 230.95% 21.56% 173.59% 78.86% 213.96% 24.49% 222.00% 77.73% 625.22% 226.78% 26.92% 214.14% 74.86% 679.70% 709.44% 5/1/2021 6/1/2021 177.00% 24.35% 31.11% 47.62% 169.79% 2124.00% 292.23% 373.36% 571.49% 2037.49% 55.78% 9.75% 61.70% 17.61% 220.02% 193.24% 33.77% 213.75% 61.01% 762.16% PORTFOLIO 71.52% 85.51% 88.28% 101.91% 123.68% 173.91% 161.73% 157.39% 186.60% 208.47% 295.31% 224.21% 236.76% 242.88% 232.68% 244.48% 91.48% 1097.71% 63.01% 218.27% INVESTMENT 1 2 BABA 3 DVN 4 GME 5 TCTZF 6 TSLA 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 PORTFOLIO ANNUAL STANDARD DEVIATION ANNUAL RETURN 193.24% 2124.00% 33.77% 292.23% 213.75% 373.36% 61.01% 571.49% 762.16% 2037.49% 218.27% 1097.71% Annual Return ANNUAL RETURN 2500.00% 2000.00% 1500.00% 1000.00% 500.00% 0.00% 0.00% 100.00% 200.00% 300.00% 400.00% 500.00% 600.00% 700.00% 800.00% 900.00% Annual Standard Deviation 1 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 DATE BABA AVERAGE MONTHLY RETURN AVERAGE ANNUAL RETURN MONTHLY STANDARD DEVIATION ANNUAL STANDARD DEVIATION DVN GME TCTZF TSLA 3/1/2020 194.48% 5.93% 3.50% 48.88% 104.80% 4/1/2020 202.67% 10.81% 5.73% 51.97% 156.38% 5/1/2020 207.39% 9.37% 4.06% 53.60% 167.00% 6/1/2020 215.70% 9.83% 4.34% 63.73% 215.96% 7/1/2020 251.02% 9.18% 4.01% 68.06% 286.15% 8/1/2020 287.03% 9.51% 6.68% 68.00% 498.32% 9/1/2020 293.98% 8.45% 10.20% 67.01% 429.01% 10/1/2020 388.04% 11/1/2020 567.60% 304.69% 8.08% 10.47% 75.69% 263.36% 12.66% 16.56% 72.84% 232.73% 14.30% 18.84% 70.79% 253.83% 14.99% 325.00% 12/1/2020 705.67% 1/1/2021 89.18% 793.53% 2/1/2021 19.62% 101.74% 86.41% 675.50% 3/1/2021 667.93% 4/1/2021 237.76% 226.73% 19.90% 189.82% 79.44% 230.95% 21.56% 173.59% 78.86% 213.96% 24.49% 222.00% 77.73% 625.22% 226.78% 26.92% 214.14% 74.86% 679.70% 709.44% 5/1/2021 6/1/2021 177.00% 24.35% 31.11% 47.62% 169.79% 2124.00% 292.23% 373.36% 571.49% 2037.49% 55.78% 9.75% 61.70% 17.61% 220.02% 193.24% 33.77% 213.75% 61.01% 762.16% PORTFOLIO 71.52% 85.51% 88.28% 101.91% 123.68% 173.91% 161.73% 157.39% 186.60% 208.47% 295.31% 224.21% 236.76% 242.88% 232.68% 244.48% 91.48% 1097.71% 63.01% 218.27% INVESTMENT 1 2 BABA 3 DVN 4 GME 5 TCTZF 6 TSLA 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 PORTFOLIO ANNUAL STANDARD DEVIATION ANNUAL RETURN 193.24% 2124.00% 33.77% 292.23% 213.75% 373.36% 61.01% 571.49% 762.16% 2037.49% 218.27% 1097.71% Annual Return ANNUAL RETURN 2500.00% 2000.00% 1500.00% 1000.00% 500.00% 0.00% 0.00% 100.00% 200.00% 300.00% 400.00% 500.00% 600.00% 700.00% 800.00% 900.00% Annual Standard DeviationStep by Step Solution
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