What Is The Stock Symbol For Wai Hou Aobu701?

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The assignment involves analyzing a stock portfolio consisting of various stocks, their original purchase details, current market values, and dividend yields. The goal is to evaluate the overall performance of the portfolio, including returns and diversification, based on the provided data. This requires calculating the percentage change for each stock, assessing the total market value changes, and understanding the importance of diversification and risk management within a stock portfolio.

Paper For Above instruction

Introduction

Investing in the stock market is a strategic activity aimed at wealth creation and diversification. A stock portfolio comprises various stocks, each with its unique risk and return profile. Analyzing a portfolio's performance, especially considering original purchase prices versus current market values, provides insights into the effectiveness of investment strategies and market movements. This paper examines a specific portfolio, analyzing its composition, individual stock performance, and overall return. It underscores the importance of diversification, risk management, and the impact of dividend yields on total returns.

Portfolio Composition and Data Overview

The portfolio presented comprises 13 stocks, with details including stock symbols, number of shares, original purchase prices, current prices, purchase market values, current market values, and dividend yields. Stocks like Apple Inc. (AAPL), Amazon, and Facebook are known for their growth potential, whereas companies like Wal-Mart and Costco contribute stability. The portfolio also includes less common stocks such as Summit Therapeutics, indicating diversification across sectors and risk profiles.

Evaluation of Individual Stock Performance

Calculating the percentage change for each stock between the purchase price and current market value reveals varied results. For example, Apple Inc. experienced a modest increase of 0.16%, reflecting a stable investment. In contrast, Carnival Corp. saw a significant increase of 9.80%, highlighting strong performance in certain sectors. Conversely, Pandora Media Inc. and JD.com Inc. experienced declines, indicating market risks associated with specific sectors like media and e-commerce.

The formula used for individual performance is:

\[ \text{Percent Change} = \frac{\text{Current Price} - \text{Purchase Price}}{\text{Purchase Price}} \times 100 \]

Applying this to each stock assesses their contribution to the overall portfolio performance.

Portfolio Performance and Total Returns

The total original purchase value of the portfolio was approximately $981,547.40, while the current total market value stands at about $942,190.01. This represents a slight decrease, indicating a marginal loss given market fluctuations within the period. The total percentage change across the portfolio reflects the combined effect of individual stock performances and market trends.

Additionally, dividend yields contribute to the overall returns. Stocks like Carnival Corp. and Wal-Mart offer dividend income, which enhances total return aside from capital appreciation. The portfolio's dividend yield percentages vary, affecting the income component of the investment.

Role of Diversification and Risk Management

Diversification is a fundamental risk management strategy, which involves spreading investments across various sectors and asset classes. The portfolio's inclusion of technology giants (Apple, Amazon, Facebook), retail (Wal-Mart, Costco), and biotech (Celgene, Summit Therapeutics) mitigates sector-specific risks. The varying performance of stocks underscores the significance of diversification in cushioning against market volatilities.

Moreover, maintaining a cash reserve of approximately $18,452 illustrates liquidity management, ensuring the portfolio can capitalize on future investment opportunities or meet liquidity needs without forced asset sales during downturns.

Implications for Investors

Investors should regularly monitor their portfolios, assessing both capital gains and dividend income. This analysis demonstrates how stock selection and diversification affect overall performance. Risk mitigation through diversification reduces exposure to sector-specific downturns, while dividends contribute to steady income streams. Long-term investors benefit from balanced portfolios that combine growth stocks with dividend-paying shares.

Conclusion

Overall, the analyzed portfolio demonstrates modest gains and losses, emphasizing the importance of diversification and active management. By evaluating individual stocks' performance and the portfolio's total return, investors can make informed decisions to optimize future performance. Consistent review, strategic diversification, and prudent risk management are essential for achieving financial objectives and building resilient investment portfolios.

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