Financial Adviser Interview

Interview (Q&A)

Seminar in Personal Financial Planning

Portfolio Construction

Using the 3-5 stocks recommended by your financial advisor/planner when conducting your interview (Assignment 2) as a foundation, your assignment will be to come up with a portfolio of 15-20 stocks that you would invest in using $100,000. For each stock, you are to complete the following information (See chapter 12 for guidance):

• Provide your reason for why you selected each stock
• Using the company’s financials (which can be found on financial websites such as cnbc.com or finance.yahoo.com), provide the following measures for each company (you can put these in excel if you prefer):
  • Book Value
  • Net Profit Margin
  • Return on Equity
  • Earnings per Share
  • Price/Earnings Ratio
  • Dividend Yield (if any)
  • What industry is the stock in
  • How much are you investing in each stock
• Finally, put a portfolio together using a virtual portfolio tracker (i.e. http://www.investopedia.com/simulator/) and attach the portfolio to the back of your assignment.

5 pages