For this assignment, you review the calculated rates of return for each security in this portfolio and compare the performance using the S&P 500 as a benchmark.
You will explain the risk/return relationship for each security. You will need to consider 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. This needs to be 1 page - needs to contain 2-3 paragraphs.
Calculations for the following companies are provided in the excel document. Apple, Inc. (AAPL) Caterpillar (CAT) Consolidated Edison (ED) Northern Trust (NTRS) Macy's (M)
| |
2015 |
2015 |
2015 |
2015 |
2015 |
| |
AAPL |
CAT |
ED |
NTRS |
M |
| Net Income |
53,394 |
2,102 |
1,193 |
974 |
1,072 |
| Stockholders Equity |
119,355 |
14,885 |
13,061 |
8,706 |
4,253 |
| Rate of Return |
45% |
14% |
9% |
11% |
25% |