Question: do in excel Buying a Stock Portfolio Required: 1. Create a portfolio containing two shares of each of the stocks in the Dow Jones Industrial

do in excel do in excel Buying a Stock Portfolio Required: 1. Create a portfolio

Buying a Stock Portfolio Required: 1. Create a portfolio containing two shares of each of the stocks in the Dow Jones Industrial Average. Assume you pay $0 in commissions to your broker for each trade (many brokers now provide zero commission trades). Create a table using Excel showing: company name, company symbol, price per share, date for the price, and the total amount spent to create this portfolio. 2. Because of the way the DIIA is constructed, you are somewhat duplicating the index. I say somewhat because there isn't any adjustment for prior splits or dividends in what you put together. a. What type of weighting is used to construct the DJIA - price or market value? b. Identify the highest price per share stock in the DJIA c. Identify the lowest price per share stock in the DJIA d. Which of these two stocks will have a greater impact on changes to the value of DJIA when the price of that stock changes? Buying a Ready Made Portfolio In this part of the assignment, you should see the advantages of buying a ready-made portfolio rather than purchasing individual stocks Required: 1. Using information from the first part of this assignment - what is the total spent on purchasing the portfolio made up of two shares each of DJIA component companies? 2. DIA is an ETF (Exchange Traded Fund) that replicates the Dow Jones Industrial Average. Assume you pay no commission to make a DIA purchase with no limit on the number of shares in the single purchase. Assume you trade through a broker that allows the purchase of fractional shares. Create a table showing: a. Symbol, price per share, NAV per share, and date when your data was gathered for DIA. b. Assume you invest the same amount of money in the ETF as you would spend constructing the portfolio from question 1 . How many shares of the ETF can you purchase? 3. Comment on the differences between buying individual securities versus a ready-made portfolio of the same stocks, and include answers to the following questions. What if you don't have enough money to buy the individual shares of stock in order to construct a portfolio made up of the DJIA stocks

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