Using the stocks in your initial portfolio, do a valuation of each stock and the initial portfolio using zero, constant or variable growth models with a market return at 8% and at 12%.

Stocks Portfolio

Price

Price

Stock

(Initial Investment)-9/9/2016

11/3/2016

Number of shares

Total Investment

Portfolio Allocation

Activision Blizzard

42.79

43.37

3,000

128,370

13%

Capital One

72.02

72.32

4,000

288,080

29%

Exxon Mobil

93.35

83.66

2,000

186,700

19%

Starbucks

54.00

53.00

3,000

162,000

16%

EBay

32.42

28.06

4,000

129,680

13%

Total Investment

894,830

90%

Cash Position

105,170

10%

Total Amount

1,000,000

*Note that the growth rate must be less than the required rate of return

*Make sure you list the date of the valuation and the closing share price of your firm's stock.

*Each firm's required rate of return will depend on its beta.

Is the stock of each of these companies over or undervalued?

What is the expected return using the CAPM Model?

do a time series ration analysis (Liquidity, Activity, Debt and Profitability Ratios) and identify any events during the past month that may have caused the stocks' prices to increase or decrease, and explain how events affect the stocks' prices?