Finc 340 part one portfolio

Select a portfolio of 8 stocks that you believe will outperform the S&P500 index.

To improve diversification, pick each stock from a different sector.  The following article provides guidance in this area: http://www.investopedia.com/university/simulator/diversified-portfolio.asp

On a single spreadsheet, for each stock, identify the following data points: (all are available from:  finance.yahoo.com)

 

· Stock Name

· Ticker Symbol

· Price

· Market Capitalization

· P/E Ratio (Trailing 12 months "ttm")

· Beta

· Book Value

· 52 Week % Price Change

 

 

1. Based on this information, are any of the stocks you selected "riskier" than you originally thought?  

2. What do you notice about P/E ratios indifferent sectors?

3. Why is combining stocks from different sectors a better approach than building a portfolio entirely of stocks from one sector?