Review and study the stock market information and stock valuation and selection techniques found in Chapters 5 and 6. Using this information as a foundation:
1. Create three different methods for selecting stocks for investment.
Each method should be based on sound financial criteria using fundamental analysis and have between one and three criteria items. The information needed to use the methods to select stocks must be readily available on yahoo finance or some other public source.
2. Describe each of the three methods. Explain how each of the criteria is financially sound and why the stocks selected using the criteria are expected to beat the market.
3. Select five stocks using each method and create three portfolios. Assume that each portfolio purchases 1 share of each stock.
4. Starting with the closing price as of Friday, February 3, 2012 create a spreadsheet that can be used to track the three portfolios for the remainder of the semester.