The investment objectives for this portfolio investment are to invest in those stocks which will provide safety, income and growth in future. For the purpose of this assignment, we have selected four companies namely UPS, Google, Microsoft. We have collected data from yahoo finance so as to make sure the authenticity of the data. (Heinz and Elmar 2002)
Name of Stock
No. of Shares
Price per Share
Type of Companies & Source of Income
In a growing era of personal needs and desires, income is the one of the most satisfying factor of an individual's life. Income from multiple sources is one of the most required trends of present requirements and lifestyle. In the process of globalization, one can easily identify a growing trend towards shifting or outsourcing the pivot job sources to developing countries like India where the labor cost is relatively cheaper as compared with developing nations. People with ordinary or average income generally face a greater impact on their lives when their single source of income is challenged. It takes them a larger span of time to come down to the basics once they start suffering due to their single income source. As a result of this their physical and mental health also gets affected. (Sidney 2007)
Identifying and practicing multiple sources of income has always been a key to make wealth. It's a proven fact that the persons who are really wealthy their income has been generated from multiple sources even though in the beginning it might started from a single source. The field may be varied such as bonds and stocks, networking, marketing, entrepreneurial venture or may be something else individuals are always on a lookout for new chances and opportunities. (Reilly 2010)
Name of Stock
Reasons for Increase or Decrease in Portfolio Price
Diversity will decrease volatility, but will generally not increase returns over the long term. Diversity best serves individuals who are older and may not have the time to weather downturns. We as young investors are best served by leaning toward higher risk, higher gain investments because they can DCA (dollar-cost-average) and purchase more shares at lower prices during downturns, thereby reaping greater gains during upturns.
Portfolio theory provides a broad context for understanding the interactions of systematic risk and reward. It has profoundly shaped how institutional portfolios are managed, and motivated the use of passive investment management techniques. The mathematics of portfolio theory is used extensively in financial risk management. In this way we can see that diversification in the form of holding a portfolio of shares will lead to maximising your return at the level of risk you are willing to take. This risk you get from individual shares will be higher as you will not always be able to maximise your return for the level of risk you take. (James & Samuelson 2009)
Diversification reduces your risk, and improves the consistency of your ...