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ProjectPart2.docx

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Project Part 2 directives are attached below. Part 2 is about examining your portfolio closely. Are your stocks over or undervalued? What is the appropriate value of your stocks? How are the pertinent financial ratios performing? What factors are influencing the ratio performances (pandemic, elections, change in government leadership, products, competition economy)? What is making your stocks move in price?

(Examining performance and changes you have made in your portfolio).

Deliverable:

1. Using the stocks in your initial portfolio, prepare a valuation of each stock and the initial portfolio using zero, constant or variable growth models with a market return of 8% and at 12%. (Note that the growth rate must be less than the required rate of return.) Make sure you list the date of the valuation and the closing price of your firm's stock. Each firm's required rate of return will depend on its beta.

2. Is the stock of each of these companies over or under valued?

3. What is the expected return using the CAPM model?

4. Prepare a time series ratio analysis (liquidity, activity, debt, profitability). Identify any events during the period that may have caused the stocks' price to increase or decrease, explaining how these events affect the stocks' prices.

Rubric

Weight	Criterion	Above Standards	Meets Standards	Approaching Standards	Below Standards
50%	Quantitative Literacy	Effectively works with numerical data and solves quantitative problems from a wide array of authentic contexts in everyday life.	Works with numerical data and solves quantitative problems from a wide array of authentic contexts with moderate effectiveness.	Works with numerical data and solves quantitative problems with minimal effectiveness.	Is not able to work with numerical data and solve quantitative problems.
25%	Inquiry and Analysis	Demonstrates extensive exploration of issues/objects/works through the collection and analysis of evidence to make well-informed conclusions/judgments. Organizes and synthesizes evidence to reveal insightful patterns, differences, or similarities related to focus.	Demonstrates adequate exploration of issues/objects/works through the collection and analysis of evidence to make informed conclusions/judgments. Organizes evidence to reveal important patterns, differences, or similarities related to focus.	Demonstrates minimal exploration of issues/objects/works through the collection and analysis of evidence to make informed conclusions/judgments. Organizes evidence, but the organization is not effective in revealing important patterns, differences, or similarities.	Does not demonstrate even minimal exploration of issues/objects/works through the collection and analysis of evidence and unable to make informed conclusions/judgments. Lists evidence, but it is not organized and/or is unrelated to focus.
25%	Critical Thinking	Demonstrates comprehensive exploration of issues and ideas before accepting or forming an opinion or conclusion.	Demonstrates moderate exploration of issues and ideas before accepting or forming an opinion or conclusion.	Demonstrates minimal exploration of issues and ideas before accepting or forming an opinion or conclusion.	Does not demonstrate exploration of issues and ideas before accepting or forming an opinion or conclusion.