Project Management

1. Introduction The purpose of this report is for the prospective client, who needs the detailed epitome about the portfolio and the firm level, and the recommendation for the time to come investment. I apportioned the portfolio, thrifty the portfolio, and evaluated the portfolio performance For the limitation of the clients investment capital, I selected the sixer stocks and risk-free asset for the portfolio ar as followings, orchard apple tree Inc.( AAPL), American Electric Power Company(AEP), Citigroup, Inc popular Stock. (C), Coca-Cola Enterprises, Inc. Com (CCE), 3M Company Common Stock (MMM), Nike, Inc. Common Stock (NKE) and Treasury bill. The reasons these six stocks selected are which they are from the S&P500 powerfulness, and traded before in 1990, over twenty years, this passive strategy allocates funds between T bills and funds of common stocks that mimics a broad market mogul S&P500, with low administrative cost, transaction cost and fairly priced . Also four of them paid the dividends in the close recent financial years, which are suitable for the current income and future capital gains. These six companies, which are from 6 industries, are well-known in the world, relatively stable and the financial reports are trustful, because diversified some unique risks by the combining the six different industry stocks.

All the data used in this report is obtained from Yahoo Finance. 2. Portfolio Selection 2.1. Portfolio Selection In this section, I discussed on how to select the portfolio and how to construct an optimal portfolio with risky portfolio and risk free asset. Firstly, I obtained periodic prices (adjusted closing price) of the six selected stocks and S&P500 index value from finance yahoo.com for the last twenty years from Aug 1990 to Aug2010. Secondly, the periodic returns for those companies and S&P500 Index are calculated use the formula (Pt+1-Pt)/Pt. It presented in the Excel Spreadsheet. Then the average monthly returns, variances, standard... If you want to get a full essay, order it on our website: Ordercustompaper.com

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