Homework: Investment Analysis
Now that you have done the research and made a selection on the stock of a publicly traded U.S. corporation in your first homework, it's time to take a closer look at your choice with a detailed analysis. To complete this homework, refer to the scenario from your first homework, Investment Selection.
Write 4 to 6 pages paper in which you do the following:
1. Provide a detailed overview of the stock of the publicly traded U.S. corporation you selected in the homework of Week 4. Provide the rationale for your selection and plans for a diversified portfolio.
2. Select five financial ratios, then analyze the past three years of financial data for the investment (please obtain data from the financial statements or the equivalent).
3. Analyze the price of the investment to stock market beta for the past five years.
4. Create a trend line that depicts the price movement for the investment against the market index movement using elements of Microsoft Office, such as Excel, Visio, MS Project, or one of their equivalents (such as Open Project, Dia, and OpenOffice), as appropriate. Note: The graphically depicted solution is not included in the required page length.
5. Determine the type of investor who would be the best candidate for the chosen investment (e.g., a risk-averse investor, an aggressive investor, a broker, and a dealer in the market). Provide a rationale for why this investment is a solid choice. Support your assertion that someone with the investor profile you outlined should invest in this stock.
Format your homework according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.
The specific course learning outcome associated with this homework is:
1. Propose why an investment is solid and who should invest in it.