Stock Investments Begin with the Investment data sheet and copy it to your workb

Question

Stock Investments Begin with the Investment data sheet and copy it to your workbook Investor Profiles - The problem requires you to create an optimal stock portfolio for two different investors. Investor 1 is young and has a long time until retirement, she is willing to take risks in order to maximize her return. The investor wants you to invest $500,000 on her behalf and have provided you with the following requirements a. The portfolio beta cannot exceed 1.25 b. The portfolio P/E Ratio must be between 15 and 25 c. The portfolio Safety score must be less than or equal to 3.5 d. The portfolio 2014,2013 EPS growth rate must be at least 15% e. The portfolio dividend yield must be at least 1.5% f. The portfolio earnings predictability and price growth persistence scores must both be greater than 50 The maximum invested in any one stock cannot exceed $100,000 g.

Explanation / Answer

Conditions fulfilment All conditions satisfied Record a b c d e f 1 ok ok ok No ok ok 2 ok ok ok No ok ok 3 ok ok ok ok ok No 4 ok No ok No ok ok 5 ok No ok No ok ok 6 ok No ok ok ok ok 7 ok No ok No ok ok 8 ok ok ok No ok ok 9 ok No ok ok No ok 10 No ok ok No ok No 11 No ok ok ok No No 12 ok ok ok ok ok ok ok 13 ok ok ok No ok ok 14 ok ok ok ok No ok 15 ok No ok No No ok 16 ok ok ok No ok ok 17 ok ok ok No ok No 18 ok ok ok No ok ok 19 ok No ok No ok No 20 ok No ok No ok ok Total Investment proposed is $500,000 Conditions to satisfy: From the above summary and analysis only one company has fulfilled the investment conditions and hence maximum $100,000 can be invested in Kaman Corp.

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