Assignment 2: Investment Analysis
Due Week 8 and worth 280 points
To complete this
assignment, refer to the scenario from Assignment 1: Investment Selection.
Note: Please include
any financial statements or relevant financial information in an appendix.
Write a four to six
(4-6) page paper in which you:
1. Provide a
detailed overview of the selected U.S. investment indicating the rationale for
your selection.
2. Select five (5)
financial ratios, then analyze the past three (3) years of financial data for
the investment (please obtain data from the financial statements or the
equivalent).
3. Analyze the
price of the investment to its market index for the past five (5) years.
4. Create a trend
line that depicts the price movement for the investment against the market index
movement using elements of Microsoft Office, such as Excel, Visio, MS
Project, or one of their equivalents such as Open Project, Dia, and OpenOffice,
as appropriate. Note: The graphically depicted
solution is not included in the required page length.
5. Determine the
type of person who would be the best candidate for the chosen investment (e.g.,
the risk adverse investor, an aggressive investor, etc.). Provide a rationale
for why this investment is a solid one, and support the assertion that someone
should invest in this stock.
6. Use at least
five (5) quality academic resources in this assignment. Note: Wikipedia and other Websites to not qualify
as academic resources.
Your assignment must
follow these formatting requirements:
·
Be typed, double spaced, using Times New Roman font (size 12),
with one-inch margins on all sides; citations and references must follow APA or
school-specific format. Check with your professor for any additional
instructions.
·
Include a cover page containing the title of the assignment, the
student’s name, the professor’s name, the course title, and the date. The cover
page and the reference page are not included in the required assignment page
length.
The specific course
learning outcomes associated with this assignment are:
·
Examine common debt and equity securities, and analyze the
relative risks and returns associated with each.
·
Analyze how the securities business works through stockbrokers
and investment bankers using the physical exchanges, network exchanges, and OTC
markets.
·
Perform and interpret basic security analyses using indexes,
averages, and various technical methods, as well as compounding, discounting,
and forecasting.
·
Propose ways to apply various strategies in the management of
financial investment portfolios in order to optimize profits (and minimize
taxes) within acceptable risks.
·
Find and utilize sources of pertinent investing information on a
company, its industry, the economy as a whole, and the international
environment to analyze investment potential.
·
Examine the differences between various investments such as
options, convertibles, warrants, rights, and commodities.
·
Illustrate how to use hybrid and derivative instruments such as
convertibles, warrants, rights, options, and futures contracts in investment
strategies.
·
Use technology and information resources to research issues in
investments.
·
Write clearly and concisely about investments using proper
writing mechanics.
