1. Select 10 corporate stocks. Describe each company selected, its position in the industry, its recent performance, and your reason for selecting that company (one good paragraph for each).

2. Identify the 5 companies referred to as the “FAANG” in the stock market. Describe each company, its product category and its position in its respective industry and the market.

3. Provide a description of each major market index (DJIA, S & P 500, NASDAQ).

4. Monitor the stocks of your 10 companies, the FAANG, and the 3 major indices for a period of 10 business days and record the daily stock prices and the daily values of the 3 major indices (DJIA, S&P 500 and NASDAQ on a spreadsheet.

5. Compute and record the average 10-day price for each stock (the 10 companies and the FAANG) and each major index.

6. Compute and record the daily Rate of Return for each stock and each major index.

RET = (Day2 - Day1) / Day1

7. Compute the average daily return (Ave. RET) for each stock (15 in total) and the 3 indices.

8. Compute the average daily return of your 10 stock portfolio.

9. Compute the average daily return of the FAANG (separate from the major indices).

10. Compute the average daily return of the 3 major market indices).

11. Rank the stocks, the FAANG and the 3 major indices based on their Rate of Return.

12. Describe/explain your findings and the performance of your portfolio compared to the FAANG and the 3 major indices.

In your report, be sure to compute each of the following for your performance comparison:

■ Average 10-Day Return of the 10-stock portfolio

■ Average 10-Day Return of the FAANG companies

■ Average 10-Day Return of DJIA

■ Average 10-Day Return of the S&P 500

■ Average 10-Day Return of NASDAQ

Answer rating: 100% (QA)

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