Question: please answer fully. Thank you = ) Specifically, the following critical elements must be addressed: Stock Analysis: In this section, you will select five stocks
please answer fully. Thank you
Specifically, the followingcritical elementsmust be addressed:
Stock Analysis: In this section, you will select five stocks from the provided list and determine their values by applying an appropriate valuation model from the following options: price to multiple model earning or salesor dividend valuation model.
Determine the valueof each stock by using an appropriate model based on the characteristics provided for each stock.Provide a rationale for thestock valuation methodyou chose for each stock. Cite specific information to support your decisions.Using the calculated valuation, the current market price, and historical performance, determine theexpected returnfor each stock.
Portfolio Development: In this section, you will develop a portfolio for a chosen client Destiny or the Garcia familybased on the clients risk tolerance, return objectives, and liquidity objectives. You will select appropriate assets from the provided list.
For the chosen client,develop a portfoliofrom the provided list of assets that is informed by your analysis of the clients objectives and if applicablethe stock valuation you determined.Calculate theexpected portfolio returnusing the CAPM betamodel Clearly note what riskfree rate you used. Accurately discuss the other clients risk tolerance and return objective. Would you design an investment portfolio that has a higher or lower expected portfolio return? Why?Calculate theexpectedportfoliostandard deviation. Clearly note what riskfree rate you used. Accurately discuss the other clients risk tolerance and return objective. Would you design an investment portfolio that has a higher or lower expected standard deviation? Why?
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