For NVIDIA and BOEING do Overview Investment Strategy – Explain your security selection process. Briefly introduce the c

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For NVIDIA and BOEING do
Overview Investment Strategy – Explain your security
selection process. Briefly introduce the companies in your sample
(industry, key people, popular products, etc.). Describe the type
of investor that this portfolio would be best suited for based on
its inherent level of risk (for example, are you investing in a
conservative portfolio, large/small cap stocks, high-tech firms,
etc.) II. Portfolio Holdings (show all calculations) - for each
stock in your portfolio: a. List the full name, ticker symbol and
exchange where the stock is listed. b. List which indexes (DJIA,
S&P, etc.), if any, the stocks are members of. c. Risk and
Return i. Using Excel, for each stock, report the average
(geometric and arithmetic) monthly 3, 5 and 10 year returns. ii.
For each stock, report the variance and standard deviation for 3, 5
and 10 years. iii. Using your full dataset, for each stock,
calculate the 3, 5 and 10 year average monthly risk premium based
on the 3- month T-Bill rates that can be downloaded from the Board
of Governors of the Federal Reserve database:
http://research.stlouisfed.org/fred2/se ... MS/downloa
ddata?cid=116. d. Buying and Selling Securities i. Prepare a chart
where you show how $100 invested in each of the stocks and the
S&P 500 Index would grow throughout the 10 year sample period.
On the horizontal axis you should have the time and on the vertical
axis you should have the dollar value of your investment starting
from $100. You should have four lines on the chart, two for your
stocks, one for the S&P 500 Index and one for the risk-free
asset. ii. Report the holding period return and annualized return
on funds invested during the 10 years of your data. e. Common Stock
Valuation i. Report the current value [V(0)] using the dividend
discount model, free cash flow model, and price-ratio analysis.
Note: depending upon the firm, you may be unable to use one or more
of these valuation methods. ii. Estimate each firm’s historical
growth rate (g), sustainable growth rate (SGR) and return on equity
(ROE). f. Earnings and Cash Flow Analysis i. Report standard
profitability ratios (gross margin, operating margin, ROA, ROE) 3
ii. Report standard per-share values (book value, earnings, cash
flow). iii. Report standard price ratios (price-book,
price-earnings, price-cash flow). g. Stock Price Behavior,
technical analysis and Market Efficiency i. Provide a relative
strength chart that includes all firms. ii. Provide a moving
average chart that includes all firms. h. Return, Risk and the
Security Market Line i. Report the beta for each of your two stocks
(using 3 year monthly returns) ii. Report the reward-to-risk ratio
(Sharpe) for each stock (using beta) iii. For each stock, report
the expected return based on the capital asset pricing model
(CAPM). III. Portfolio Performance (show all calculations) a.
Diversification and Asset Allocation i. Report the performance
(return and standard deviation) of your portfolio over the 10 year
period as compared to the S&P 500. ii. Report the correlation
coefficient between the two stocks in your portfolio. iii. Provide
an investment opportunity set plot for the two stocks in your
portfolio. iv. On the investment opportunity set plot, indicate the
minimum variance portfolio (MVP) and list its expected return,
standard deviation and portfolio weights.