Consider the time value of money and risk/return trade-off for all asset classes in the portfolio.Calculate rates of return for each security and the portfolio and compare the performance using the S&P 500 as a benchmark.

Time Value of Money and Risk and Return

In this course, the journal will be used for reflection. Journal activities in this course are private between you and the instructor.

Overview: For this journal, you will follow the objectives and securities of the several companies that you will be analyzing for your final Investments Analysis Report.

Consider the time value of money and risk/return trade-off for all asset classes in the portfolio.Calculate rates of return for each security and the portfolio and compare the performance using the S&P 500 as a benchmark.

Prompt:

First, locate the financial statement (10-K Annual Reporting) information for each company (listed below) that you will be investigating for your final project.

This information can be found on each company’s website within the “About Us” section or at the bottom of the homepage under “Investors.”

Research stock and corporate bond holdings for the following companies:

Apple, Inc. (AAPL)
Caterpillar (CAT)
Consolidated Edison (ED)
Northern Trust (NTRS)
Macy’s (M)

Next, in a 2- to 3-paragraph journal assignment, address the following:

 Calculate the rates of return for each of the securities listed.
 Once you have calculated the rates of return for these securities, briefly explain the risk/return relationship for each security.

Refer to the module resources and major indices to support your responses. Be sure to consider the key risk factors investors must observe when making their investments and also the time value of money concept and its relevance in the financial industry.

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