Homework: Investment Risk Management
Imagine that you are a potential investor researching a U.S. investment of your choice. Your choice can be any investment that is highly marketable, which means that you must be able to sell it at a market price very easily, and develop a strategic diversification plan for a great return. Publicly traded stock, corporate bonds, government bonds, real estate, mutual funds, and derivatives are all examples of highly marketable investments. However, for this homework, select the stock of a publicly traded U.S. corporation.
You will be required to collect financial statements, relevant financial information, or both that details the past three years (fiscal or calendar) of the chosen investment. (These statements can usually be located within the organization's website under "investor information" or something similar. Many times, these statements can also be found on Yahoo! Finance, Google Finance, or MSN Money. You may also visit the Strayer University Library)
You will also be required to research your chosen investment's price for the past five years, as well as a related market index for this investment for the past five years. An example of an applicable market index is the Standard and Poor's Stock Market Index, commonly called the S&P 500.
To complete this homework, write a 3 to 5 pages paper in which you do the following:
i. Select the stock of a publicly traded U.S. corporation that you wish to research for your portfolio diversification, with at least two supporting fundamental reasons such as price to earnings (P/E), price to book (P/B), price to cash flow from operation (P/CFO), and price to dividend (P/D). Provide at least one technical screen such as uptrend.
ii. Provide a brief (one-paragraph) explanation of the systematic risk and potential return associated with the investment you've selected.
iii. List five resources to demonstrate that there is enough information to support your decision regarding your selected investment.
Format your homework according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.