Securities Assessment

Securities Assessment

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This is the fifth component of your course project.

This week, you will conduct a securities assessment for your securities and complete your weekly portfolio analysis.

For your securities assessment, select several of the stocks in your portfolio with dividend and growth information, and complete the following:

  • Calculate their value using the dividend valuation model (DVM), including zero growth, constant growth, and variable growth.
  • Comment on the differences between the DVM value and the current market value.
  • Download a 6-month high-low-close chart for each of your securities from an appropriate Web site. Select one of your common stocks and download daily high-low-close prices for the past 8 weeks. Construct a point-and-figure chart, and comment on what you find.
  • Analyze how your portfolio returns would have been affected had you placed moving stop-loss orders at prices 10 percent below the market prices of your securities. Show when you would have been stopped out, and show the recalculation of the returns.

Note: This project scenario is based on the stock market games found on the Internet.

Include the following elements in your ongoing weekly portfolio analysis.

  • A weekly performance record of your portfolio, in comparison with a selected benchmark.
  • The background information on macroeconomic, industrial, financial market, political, or other news events that might affect the risk and return of the portfolio. You are encouraged to keep a weekly journal of these events. Note: You will be required to provide a summary of these events in an appendix of your final project paper.
  • A reassessment of asset investments, accompanied by detailed analysis and rationale.
  • A review of the changes in the risk of the portfolio and recalculation of the portfolio’s beta, based on your buying and selling of securities.
  • Your comments on trading activity (or turnover), including any contemporary factors (fiscal, economic, industry- or sector-specific, and political issues).

Title your 2–3-page analysis (including any graphics) “Securities Assessment,” and submit it to the assignment area. See the Securities Assessment Scoring Guide for the grading criteria for this assignment. Review the course project information for more details on your project.

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