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Stock Analysis: In this section, you will select five stocks from the provided list and determine their values by applying an appropriate valuation model from
Stock Analysis: In this section, you will select five stocks from the provided list and determine their values by applying an appropriate valuation model from the following options: price to multiple model earning or sales or dividend valuation model.
Determine the value of each stock by using an appropriate model based on the characteristics provided for each stock.
Provide a rationale for the stock valuation method you chose for each stock. Cite specific information to support your decisions.
Using the calculated valuation, the current market price, and historical performance, determine the expected return for each stock.
Portfolio Development: In this section, you will develop a portfolio for a chosen client Destiny or the Garcia family based on the clients risk tolerance, return objectives, and liquidity objectives. You will select appropriate assets from the provided list.
For the chosen client, develop a portfolio from the provided list of assets that is informed by your analysis of the clients objectives and if applicable the stock valuation you determined.
Calculate the expected portfolio return using the CAPM beta model. Clearly note what riskfree rate you used. Accurately discuss the other clients risk tolerance and return objective. Would you design an investment portfolio that has a higher or lower expected portfolio return? Why?
Calculate the expected portfolio standard deviation. Clearly note what riskfree rate you used. Accurately discuss the other clients risk tolerance and return objective. Would you design an investment portfolio that has a higher or lower expected standard deviation? Why?
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