You have $100,000 to invest. Diversify your portfolio by choosing stocks in different sectors and by choosing companies of different sizes (capitalization). You must have at least ten different investments to get full credit on this assignment. Explain how and why you chose the stocks that you chose. Explain how you chose the dollar amount to invest in each company. Do you consider yourself to be risk averse, risk neutral, or risk seeking? Why? Do you think that your portfolio reflects your attitude about risk? Why or why not? How much of your portfolio is growth and how much is income? You may use any web site you choose for your research. I recommend www.fool.com. There is a box in the top right-hand corner of the opening page of www.fool.com. If you type any letter or letters in that box, you will get a list of companies with the letters you typed in their ticker symbol. This is one way to discover companies that might be good investments that you have never heard of. Other good sites are www.morningstar.com, www.bloomberg.com, and www.smartmoney.com. Investing sectors include consumer discretionary, consumer staples, energy, financial, health care, industrials, information technology, materials, telecommunication, and utilities. Once you choose a company, you can determine its sector on www.bloomberg.com. Capitalization groups are as follows: Nano Below $50 million Micro From $50 million to $250 million Small From $250 million to $2 billion Mid size From $2 billion to $10 billion Big From $10 billion to $200 billion Mega Over $200 billion For each stock investment tell the name of the company, ticker symbol, sector, main product(s), capitalization amount, price on the day you do your research, dividends paid in the past year, dividends paid in the past 5 years, number of shares you bought and the total cost of those shares, value (total cost) of those shares 1 year ago, value (total cost) of those shares 5 years ago, value (total cost) of those shares 10 years ago. Put this information in a table of your own design. This is due on Monday, November 5, at 5:00 p.m. It must be submitted on Blackboard in the usual manner. I will not accept late submissions or submissions by email. There is no minimum length for the paper but it should be no more than two full pages long. The written portion should be a narrative in paragraph form. Correct grammar and spelling are important. Use Times New Roman 12 font. All margins should be one inch.
