Index portfolio of what is invested

Part 2. Portfolio Assignment: Fall 2019

(trading history provided)

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Part 2 should include written justification about the trades you made and any rationale behind those trades. Part 2 should also provide insight about what you learned about investing in securities and portfolios this semester.

β Please include the Beta of your stocks when applicable.

Assignment Requirements:

***Part 2 should include a 2-to-3 page explanation of what you learned.
**In addition, please submit the pdf of your Sockfuse trades.
*Part 2 is also a pro-active measure ‘check-up’ on your portfolio to make sure you have been actively trading. Believe it or not, students in the past have waited until the last week to do Part 3 and quickly discovered that they did not have a portfolio to discuss.

Relevant Topics about Portfolio Composition: The Write-up should consist of an analysis of each security and how each fit into the entire portfolio.

What did you learn?

Did you short sell?
What is your Strategy? Did it work?
Did you use ETFs to gain access to international markets?


Relevant Topics about Investing:

· Asset Allocation & Diversification

· Short-Selling: Did you take a short position

· Limit Orders vs. Market Orders: Advantages and Disadvantages of using each

· Exchange Traded Funds: Leveraged and Inverse ETFs

· One big concept is the susceptibility of individual securities to market swings. When the market dropped recently, everyone’s portfolio in the class dropped.


Security Characteristics:

Why did you Choose Certain Stocks?
The Security Selection involves identifying a publicly traded stock and some key characteristics. You could include characteristics of each security that make them attractive investment decisions.

Quantitative characteristics particular to stocks include but are not limited to: P/E Ratio, market price, beta, the current ratio and Net Income. Other metrics introduced in class discussion are dividends per share and the Market-to-Book Ratio.

Qualitative characteristics such as changes in Management (e.g. new CEO) or new product development. Students should also provide some insight into firm specific qualitative characteristics such as industry, competitors, exchange listing, and major products. You could also indicate if it is part of a major index.

*As all companies are different, you are not required to analyze the stock using the same exact characteristics and figures that I provide below.
Please include beta.

Nike Inc. (NKE)

Quantitative Data (5 figures):

· Market Price: $71.90

· Market Cap = $63.67 Billion

· Beta = 0.62

· EPS (Earnings per Share) = $3.13

· P/E Ratio = 22.93

· Dividend per Share = $0.96

· Market/Book (Price/Book) = 7.75

Qualitative Data:

· Sector: Consumer Goods

· Industry: Apparel Footwear & Accessories

· Listed on the NYSE.

· Nike is a part of the Dow Jones Industrial Average.

· Founded in 1964 and Headquartered in Beaverton, Oregon.


Other Examples:

Exxon Mobil Corp. (XOM)

· Industry: Major Integrated Oil & Gas

· P/E Ratio = 9.63

· Dividend per Share = 2.28

· Maybe stock is overvalued because Insiders are selling it.

· Energy major ExxonMobil Corporation (XOM) is expanding its Baton Rouge chemical and lubricants plants in Louisiana for an estimated cost of about $200 million. (Wall Street Journal)

AT&T, Inc. (T)

· Dow Jones Component

· Low Beta = 0.44 (according to

· Profit Margin = 3.48%

· Return on Equity = 4.30%

· BVPS = 17.7


Sources: ***Please include the Sources of your information.

Common websites with information include:

· Yahoo Finance

· Wall Street Journal


· MSN Finance



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