Imagine that you are a potential investor researching a U.S. investment of your choice. Your choice can be any investment that is highly marketable, which means that you must be able to sell it at a market price very easily and develop a strategic diversification plan for great return. Publicly traded stock, corporate bonds, government bonds, real estate, mutual funds, and derivatives are all examples of highly marketable investments.
You will be required to collect financial statements and/or relevant financial information that detail(s) the past three (3) years (fiscal or calendar) of the chosen investment. (These statements can usually be located within the organization’s website under “investor information” or something similar. Many times, these statements can also be found on Yahoo! Finance, Google Finance, or MSN Money. You may also visit the Strayer University Library at https://research.strayer.edu.)
You will also be required to research your chosen investment’s price for the past five (5) years, as well as a related market index for this investment for the past five (5) years. An example of an applicable market index is the Standard & Poor’s Stock Market Index, commonly called the S&P 500.
- Select the highly marketable investment (stock of a corporation) that you wish to research and discuss diversification strategies for your portfolio.
- Provide a brief (one paragraph) explanation of the systematic risk and potential return associated with that particular investment.
- List five (5) resources to demonstrate that there is enough information available regarding your selected investment.