As far as summary statistics is concerned, initial testing of these companies have been taken into consideration covering the analytical period amounting to July 1, 2000 to July 1, 2007. From the summary statistics of the Bloomberg, it is found that the share prices of the company are increasing at a higher level in particular. FedEx Corporation, GMCR and Microsoft’s share price are also increasing heavily in the said time period.
If we have 1 million $ in hand, then how much we will earn is depends upon this particular table.
= $ 1,000,000 * 0.694%
= $ 6,937
Total Equity would become = $ 1,006,937
Portfolio Risk would be like this
- There is no need of any sort of adjustment in the system, because all of the returns of the selected companies are in positive aspect which is a positive sign from the viewpoint of the investor. The data is collected through financial statements in fundamental analysis method whereas, the chart is predominantly considered as a source of data in the case of technical analysis. However, the shareholder usually prefer fundamental analysis in long term investment but when it comes to short term investment, technical analysis is very much popular in executing the same. Similarly, the fundamental analysis is highly considerable that helps the investors to evaluate the impact of economic behavior over the projected value of currency. However, the traders apply technical analysis to set out the trading decisions to fix selling price higher than purchasing price. Therefore, it can be said that fundamental analysis is performed in investment purpose and technical analysis can be taken into consideration while performing trading functions. The Technical analysis is relatively more short-term in property rather fundamental analysis, but the concept of buying and selling of stock differ from one other. Our portfolio is having effectiveness in their operations and has the chance to increase the net worth of the stocks of the company which will be effective in the future. All of the selected stocks would perform exceptionally well, if stop losses could have been applied on the system, which may pamper them to increase their harms in terms of losses.
- It is required to complete section five of the assignment. There are four different companies which have been selected for the same analysis which predominantly are Bank of America (BAC), Fedex Corp, Keurig Green Mountain (GMCR) and Microsoft. All of the selected companies are in a good financial health. Bank of America generated net revenue amounting to US$ 88.94 billion in the year 2013 with net income provision of US$ 11.43 billion in the same year, while FedEx had generated net revenue of US$ 45 billion in the financial year 2013. Apart from these two selected companies, like GMCR has a total revenue and net income amounting to US$ 4358.1 million and US$ 483.2 million in the year 2013 respectively. Microsoft earned net revenue of US$ 77.85 billion in the year 2013, showing that the financial positions of all of the organizations are high and effective as well. The system is extremely profitable in all of the time periods, as discussed and analyzed in the above mentioned tables and graphs. From the statistics, it is found that the mean returns of all of the selected companies are high and in positive term too, which is a perfect and effective sign from the viewpoint of the investor. The mean return of every selected company is high and positive; however the mean return of Bank of America is the highest as compared to other companies. 40% of the proportion of investment has been devoted to Bank of America, and 20% of proportion has been devoted to Microsoft, FedEx and GMCR each.
- After doing the necessary adjustment, our system would certainly improve a lot because the strategy provide a definitive entry and stop points in eliminating the false trading signals of the system
- The data which has been selected for the analysis is of post recession, and all of the stocks were performing exceptionally well at that time period, which is again an effective sign from the viewpoint of the investors. The market in which all of these selected stocks traded is a market of Standard and Poor (S&P) which performed effectively during last three years by yielding a return of over 5.5% on average.
- Making and establishing a portfolio covering different stocks would certainly bring effectiveness for an investor as far as increasing the return and mitigating the risk is concerned. We have made a perfect portfolio by having four different stocks in particular which are performing exceptionally well during last few years. From the making of the portfolio, the return increased and enhanced considerably, while the association of risk would be on a lower scale.
- Yes! We meet our objective because we have found the return is positive and higher as well, which exactly meets with our standards and effectiveness in particular and it will remain in the same jurisdiction for a long span of time. The new system and strategy which we have selected certainly gives an advantage to us because it helps us to make a portfolio for high return and low risk.
- The cost only consist on the initial analysis and time consumption, however the amount of return is higher than the cost and the individuals have to consider the same analysis in order to become economically prosper.
