Finance Test Answers

Ronnie Buell
Proessfor Jawarski
FIN 331
12/5/14
Stock Track
1.) With the $250,000 that I was allotted, I set out to diversify my money as much as possible. I needed to invest in not a large number of stocks, but in a wide variety of companies. Before investing, I graded many different companies then compared the data I was able to record. The factors I researched included: it’s volatility, the price per share, the competitors in the company’s market, the plans for the future, and the earnings per share. By doing this, I believe I was able to choose the stocks that allowed me to profit the most for the amount I was able to invest.
3.)
Company Name
Industry
Amount Invested
Percentage Return
(at time of sale or end of project)
Reason for Inclusion / Deletion in your Portfolio
Intel Corporation (INTC)
Technology
$51,315.00
10.11%
Inclusion: Very High Returns
PowerShares QQQ Trust Ser 1 (QQQ)

$61,149.45
5.98%
Inclusion: High Returns

Chipotle Mexican Grill (CMG)
Food
$61,035.84
3.90%
Inclusion: Consistent positive returns
Yahoo! Inc. (YHOO)

$55,100.40
1.33%
Inclusion: Consistent positive returns
Johnson & Johnson (JNJ)

$59,141.50
0.91%
Inclusion: Steady rise in price

Nike Inc. (NKE)

$54,263
0.68%
Deletion: Volatile
Cherry Hill Mortgage Investment (CHMI)

$20,559
-0.32%
Deletion: Volatile
Netflix Inc. (NFLX)

$44,557.11
-7.85%
Inclusion: Loss too high, possible rise in the future.

4.) $260,165.48 - $250,000 = 10,165.48 10,165.48/250,000 = 0.04066 0.04066 x 100 = 4.07%