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Portfolio

 

            
             As well educated employees of a respected brokerage firm, our job is to advise high net-worth clients in their investment decision-making. We pride ourselves in educating our client in choosing smart and profitable investments. We first would like to thank you for installing your trust in our brokerage firm, and we guarantee our best effort in order to ensure successful financial representative of your portfolio. In order to choose which stock to invest in, we researched the five different common stocks that you requested over the last five years. The stocks consisted of Caterpillar, Pepsi, Wal-Mart, Matria, and General Motors. In addition, we have researched information regarding the S&P 500 market index, as well as a common Treasury bill. This historical information allows us to analyze and compare the past performance of the market with the five stocks you have selected. We started our investigation by researching and statistically analyzing each of the selected stocks. After reviewing the data, Wal-Mart would be the stock to invest in if our client wished to invest aggressively in only one stock. However there is an important relationship between risk and return. Stocks with higher levels of return usually have greater risk associated with them. While Wal-Mart has the highest average monthly return, investing in the stock exclusively may be overly risky. Concluding that there are more appropriate ways to invest money than to invest completely in one single stock, we feel a more suitable investment choice would be to diversify your portfolio. Diversification involves investing in a combination of stocks and Treasury bills ultimately maximizing return while minimizing risk. Furthermore, we will show the benefits of diversification when investing in both stocks and bonds.
             Introduction.
             To educate and consult our client through an investment decision-making process, we gathered and analyzed data from numerous companies.


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