Prompt: This milestone involves creating a draft of the stock analysis and portfolio development sections of the final p roject. Use the provided

spreadsheet

to calculate your portfolio's standard deviation.

Specifically, the fol lowing critical elements must be addressed:

II. Stock Analysis: In this section, you will select five stocks from the provided list and determine their values by applying an appropriate val uation model from the following options: price to multiple model (earning or sales), dividend valuation model, or free cash flow model.

A. Determine the value of each stock by using an appropriate model based on the characteristics provided for each stock; use each model at least once.

B. Provide a rationale for the stock val uation method you chose for each stock. Cite specific information to support your decisions.

C. Using the calculated valuation, the current market price, and historical performance, determine the expected return for each stock.

III. Portfolio Development: In this section, you will develop a portfolio for both clients based on their risk tolerance, return objectives, and liquidit y objectives. You will select appropriate assets from the provided list.

A. For each client, develop a portfolio from the list of ass ets provided that is informed by your analysis of each client's objectives and (if applicable) the stock valuation you determined.

B. For each portfolio, calculate the expected portfolio return using the CAPM (beta) model.

C. For each portfolio, calculate the ex pected portfolio standard deviation .