Assignment: Diversified Risk Stock Portfolio
For this case study, you will create a portfolio of five to eight stocks that demonstrate diversified risk. List the stocks along with their current price and previous 1-year and 5-year rates of return. Below the list of stocks, address the issues described below.
I. Explain the difference between portfolio risk and stand-alone risk.
II. Briefly explain why you selected each stock and how this investment portfolio would have less risk than selecting just one stock.
III. How does risk aversion affect a stock's required rate of return?
IV. Explain the distinction between a stock's price and its intrinsic value.
Format your assignment according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the assignment, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.