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Select a portfolio of 8 stocks that you believe will outperform the S&P500 index.

To improve diversification, pick each stock from a different sector. The following article provides guidance in this area: http://www.investopedia.com/university/simulator/diversified-portfolio.asp

On a single spreadsheet, for each stock, identify the following data points: (all are available from: finance.yahoo.com)

Stock Name
Ticker Symbol
Price
Market Capitalization
P/E Ratio (Trailing 12 months "ttm")
Beta
Book Value
52 Week % Price Change

1. Based on this information, are any of the stocks you selected "riskier" than you originally thought?

2. What do you notice about P/E ratios indifferent sectors?

3. Why is combining stocks from different sectors a better approach than building a portfolio entirely of stocks from one sector?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9791999

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