Problem: Portfolio of 5 to 8 Stocks
For this case study, you will create a portfolio of five to eight stocks that demonstrate diversified risk. List the stocks along with their current price and previous 1-year and 5-year rates of return. Below the list of stocks, address the issues described below. Explain the difference between portfolio risk and stand-alone risk. Briefly explain why you selected each stock and how this investment portfolio would have less risk than selecting just one stock. How does risk aversion affect a stock's required rate of return? Explain the distinction between a stock's price and its intrinsic value. Your case study should be at least two pages in length, not counting the title and reference pages.
The response must include a reference list. Using one-inch margins, double-space, Times New Roman 12 pnt font and APA style of writing and citations.