or your journal, you will follow the securities of several of the companies that you will be analyzing for your final investments analysis report. You will need to consider the risk and return trade-off for all stocks in the portfolio. You will also calculate the five-year rates of return for each security.
Directions
Find the most recent financial statement (10-K annual reporting) information for each company that you will be investigating for your final project. The companies are listed below. This information can be found on each company’s website in the About Us section or at the bottom of the homepage under Investors. You can also find this information by clicking the EDGAR Company Filings link provided in the Reading and Resources section of Module One.
Research stock holdings for the following companies:
Apple, Inc. (AAPL)
Caterpillar (CAT)
Pepsi (PEP)
Starbucks (SBUX)
Target (TGT)
Next, address the following prompts. Limit your responses to 2–3 paragraphs for each company.
Discuss the calculated five-year rates of return for each security listed. Present your calculation separately either as an Excel attachment or embedded within the writing.
Explain the risk and return relationship for each security based on the stock return and the financial information. Try to link the stock performance to the company’s financial performance. Determine if there is a risk and return correlation. Examples could include trends in revenue and profits, operating cash flow, or changes in the company’s balance sheet, especially when it comes to total assets and debt.
Refer to the module resources, the calculated returns, and the reviewed financial statements. Use the most recent financial statements to support your responses.