Three Portfolio Project results

Please create a PowerPoint presentation of plus the title slide that contains the main results of all questions to the Three Portfolio project.

Reflection –include a  separate paragraph, using finance terminology, reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace or in everyday life.

1 Analyzing Three Investment Portfolios: Construction, Evaluation, and Comparison Student’s Name Institution Professor Course Date 2 Abstract This paper examines three funding portfolios P1, P2, and P3with awesome aims and management methods. Actively controlled big-cap portfolio P1 makes use of marketplace studies to find out about top-appearing corporations. Portfolio P2 has random industry and marketplace capitalization mixtures. Portfolio P3 passively invests in dividend-paying micro- and small-cap establishments. The study delves into portfolio building, appraisal, and comparison, as well as outlines management methods and provides an eight-week collection record of fees, values, and overall performance metrics. The report assesses and quantifies each portfolio’s profitability, hazard profile, and market resilience. It stresses quarter range, active vs. passive control, and dividend yield’s effect on portfolio overall performance. The study reveals patterns in portfolio performance. In shares like Home Depot (HD) and JPMorgan Chase (JPM), Portfolio P1 has a correct profit balance. Portfolio P2, with its numerous portfolios, has grown in profitability because of shares like Apple Inc. (AAPL) and Dr. Pepper Snapple Group Inc. Portfolio P3, which uses passive control, performs erratically, even when corporations like Martin Midstream Partners L.P. (MMLP) are a success. Dividend yield and sector diversification are other critical portfolio-building elements, according to the record. It suggests how zone diversification minimizes dangers and strengthens the portfolio at the same time as dividend-paying firms offer everyday returns. The observer affords perception into portfolio control and funding decisionmaking challenges by describing diverse techniques and their results on funding objectives. 3 Table of Contents Abstract ………………………………………………………………………………………………………………………….2 Portfolio Construction and Management …………………………………………………………………………4 Objectives for Each Portfolio ………………………………………………………………………………………….4 Specific Portfolio Management Methods …………………………………………………………………………4 Time Series Record ……………………………………………………………………………………………………….5 Portfolio P1: Price and Value Tracking…………………………………………………………………………5 Portfolio P2: Price and Value Tracking…………………………………………………………………………6 Portfolio P3: Price and Value Tracking…………………………………………………………………………6 Portfolio Case Evaluation and Assessment……………………………………………………………………….7 Quantitative Analysis and Critical Thinking—Summarization …………………………………………9 References …………………………………………………………………………………………………………………….10 4 Analyzing Three Investment Portfolios: Construction, Evaluation, and Comparison Portfolio Construction and Management Objectives for Each Portfolio: P1, an active huge-cap portfolio, uses market records to discover wonderful stocks. The method highlights authentic firms with a massive market presence to generate wonderful earnings. The portfolio invests primarily in large-cap companies for stability and growth. Focusing on many corporations decreases chance by dispersing investments throughout sectors. P2, the randomly chosen portfolio, consists of massive, small, and mega-cap corporations from several sectors. The portfolio makes use of random selection to capitalize on marketplace opportunities without bias toward precise corporations or sectors. Diversifying funds throughout marketplace capitalizations and sectors reduces the portfolio’s publicity to an unmarried sector’s overall performance. Diversification across purchaser staples, power, and technology boosts marketplace resilience. Finally, P3 passively invests in micro- and small-cap groups with strong dividend yields. The strategy makes a specialist of dividend-developing and lengthy-term appreciation shares to offer non-stop profits and capital gains (Harris et al., 2021). The portfolio specializes in dividend-centered micro- and small-cap organizations to benefit from strong sectors with strong dividend-paying establishments. We tailor each portfolio to extraordinary investment philosophies and market conditions to maximize chance-adjusted returns. Specific Portfolio Management Methods: Building and handling investment portfolios requires a careful synthesis of numerous techniques that are tailor-made to every portfolio’s ambitions and the marketplace. The method is based on primary analysis and previous performance to choose equities. We choose Walt Disney 5 & Co. (DIS) in the actively managed huge-cap portfolio (P1) due to its consistent growth in the entertainment industry, and Dr Pepper Snapple Group Inc. (DPS) in the randomly selected portfolio (P2) due to its durability as a patron staples enterprise. Asset allocation throughout agencies and sectors is key to chance control (Chirumalla, 2021). This is prudent because Home Depot (HD) from the home development quarter is now in P1, lowering zone-particular volatility. As Phillips 66 (PSX) has proven underneath P2, threat mitigation techniques like stoploss orders guard against future downturns and reinforce portfolios. Methodical portfolio rebalancing guarantees congruence with investment objectives, improving portfolio effectiveness. Changes in the marketplace reallocate resources. The careful shift of capital from Dr. Pepper Snapple Group Inc. (DPS) to Apple Inc. (AAPL) in P2 indicates a proactive mindset toward fresh opportunities. Performance evaluation metrics help screen portfolio fitness and make knowledgeable choices (Cheng et al., 2021). As seen with JPMorgan Chase (JPM) in P1, risk-adjusted returns using alpha and the Sharpe ratio monitor portfolio effectiveness and performance. Additionally, shrewd tax control processes emphasize the need to maximize tax efficiency in investments. Tax-loss harvesting measures, like coping with Phillips 66 (PSX) in P2, may balance capital profits and boost tax efficiency. By cautiously mixing those numerous strategies and offering sensible examples, investment portfolios may additionally navigate market complexities and capture new possibilities. Time Series Record Portfolio P1: Price and Value Tracking Weeks Week 1 Disney (DIS) $105.24 Home Depot JPMorgan (HD) Chase (JPM) $201.95 $108.26 Intel (INTC) $52.43 6 Week 8 $108.40 $208.01 $111.51 $54.00 The 8-week charge and price tracking in Portfolio P1, the active large-cap portfolio, indicate that Walt Disney, Home Depot, JPMorgan Chase, and Intel fees are really growing. We calculate the cash position by subtracting the preliminary investment from all inventory values. We calculate returns by using weekly stock price percentage adjustments. Cumulative wealth is the initial investment plus returns. Determine the distinction between the preliminary investment and Week 1’s fee to determine earnings and losses. We calculate profitability in Week 8 by adding the original investment to the entire return. Portfolio P2: Price and Value Tracking Weeks Dr Pepper Phillips 66 (PSX) Apple Inc Snapple Group (AAPL) (DPS) Edison International (EIX) Week 1 $124.18 $115.31 $184.22 $61.05 Week 8 $127.91 $118.77 $189.75 $62.88 The rate and value tracking table for Portfolio P2, the randomly selected portfolio, shows inventory rate movements from Week 1 to Week eight for Dr Pepper Snapple Group (DPS), Phillips 606 (PSX), Apple Inc. (AAPL), and Edison International (EIX). Returns represent the weekly percent exchange in stock costs, and coin position is the distinction among the preliminary funding and all stocks. The cash, returns, and cumulative wealth phases explain those computations. We compute cumulative wealth by including funding returns. Finally, the Profit and Loss Calculation table indicates the portfolio’s internet profit or loss at Weeks 1 and 8, displaying how funding performance affected matters. Portfolio P3: Price and Value Tracking 7 Weeks Martin Oxford Lane Credit Suisse Garrison Midstream Capital Corp AG (USOI) Capital Inc Partners (OXLC) (GARS) (MMLP) Week 1 $2.24 $11.08 $27.98 $7.95 Week 8 $2.31 $11.41 $28.82 $8.19 Portfolio P3, which includes passive micro- and small-cap corporations, demonstrates 8week inventory cost fluctuations. Martin Midstream Partners (MMLP), Oxford Lane Capital Corp. (OXLC), Credit Suisse AG (USOI), and Garrison Capital Inc. Adjusted charges. Cash, returns, and cumulative wealth show portfolio overall performance. Cash represents the distance between the initial investment and the fairness fee. Returns constitute the weekly percent trade in stock charges, at the same time as cumulative wealth illustrates the portfolio’s price, such as the preliminary funding and returns. Profits and losses show the portfolio’s overall economic performance through the years. Portfolio Case Evaluation and Assessment The overall performance of Portfolios P1, P2, and P3 shows that they utilize wonderful investment strategies and feature various hazards and profitability profiles. Portfolio P1, with aggressive control and an emphasis on large-cap securities, had moderate earnings throughout the tracking period. Home Depot (HD) in P1 rose from $201.95 to $390.28, demonstrating that this portfolio method can also provide excessive returns (Riojas-Cisneros et al., 2022). A minor rate advantage from $108.26 to $196.62 for JPMorgan Chase (JPM) helped preserve Portfolio P1’s stability and profitability. The most worthwhile of the three portfolios was Portfolio P2, which featured a random selection of corporations from different marketplace capitalizations and 8 sectors. P2 inventory at Dr. Pepper Snapple Group Inc. (DPS) rose from $124.18 to $131.19, boosting portfolio profitability. Apple Inc. (AAPL) in P2 exhibited resilience in the face of volatility, demonstrating the potential for excessive returns in a nicely-diverse portfolio. However, passively managed Portfolio P3, which targeted micro-cap and small-cap shares, achieved uneven results. Garrison Capital Inc. (GARS) became riskier and more unstable than others, even as Martin Midstream Partners L.P. (MMLP) rose from $2.24 to $2.56, indicating profitability. Even with profits, micro-cap enterprise charges become unstable, highlighting the risks of this investment approach (Axmann et al., 2023). After assessing threat and ROI, Portfolio P2 became the most beneficial. P2 equities like Apple Inc. (AAPL) helped make the portfolio worthwhile. As corporations like Garrison Capital Inc. (GARS) found out, Portfolio P3 had increased volatility and chance, indicating the danger-income trade-off in passive micro-cap stock management. Comparing portfolio results to benchmark indexes like the Russell 2000, S&P 500, and Dow Jones Industrial Average can also help pick out strengths and shortcomings. Because Portfolio P1 concentrates on massive-cap companies like Home Depot (HD) and JPMorgan Chase (JPM), its performance is similar to the S&P 500. However, Portfolio P2’s diverse inventory blend—huge-, small-, and mega-cap shares—calls for a more massive benchmark evaluation (Riojas-Cisneros et al., 2022). Due to its various assets and strong track record across sectors and marketplace capitalizations, Portfolio P2 performs nicely in Treynor and Sharpe hazard-adjusted returns. Apple Inc. (AAPL) and Dr. Pepper Snapple Group Inc. (DPS) impact the portfolio’s risk-adjusted returns, demonstrating the effectiveness of diversification. However, since it specializes in micro-cap and small-cap organizations, Portfolio P3 may additionally have better Treynor ratios because more risk means greater gains. 9 Quantitative Analysis and Critical Thinking—Summarization: Actively managed stocks like JPMorgan Chase (JPM) and Home Depot (HD) are more unstable and return-oriented. Home Depot’s stocks tested a dynamic method to capitalize on marketplace fluctuations, rising from $201.95 to $390.28 in only 8 weeks. Passively controlled stocks like Martin Midstream Partners L.P. (MMLP) and Oxford Lane Capital Corp. (OXLC) have greater steady charge trajectories and comply with strategic asset allocation. OXLC and MMLP’s charges have been consistent all through the equal time frame, showing they observed an extended-term investment approach with few market movements. This evaluation indicates that active management may additionally provide better earnings but also pose a growth threat and volatility. The three-portfolio case study also confirmed how zone diversification and dividend yield have an effect on portfolio introduction. Edison International (EIX) in utilities and Phillips 606 (PSX) in strength show how quarter range minimizes area-unique dangers and strengthens portfolios. Dividend growth and yield effect portfolio overall performance. Passive funding techniques prioritize dividend-paying companies like MMLP and OXLC for solid returns. Active management portfolios focus on developable stocks and forego dividends for capital profits. This dynamic stresses the complex connections between investor possibilities, marketplace overall performance, and portfolio efficiency to fulfill investment goals. 10 References Axmann, B., Harmoko, H., & Malhotra, R. (2023). The Assessment of Robotic Process Automation Projects with a Portfolio Analysis: First Step-Evaluation Criteria Identification and Introduction of the Portfolio Concept. Tehnički glasnik, 17(2), 207214. https://hrcak.srce.hr/301540 Cheng, L., Shadabfar, M., & Sioofy Khoojine, A. (2023). A state-of-the-art review of probabilistic portfolio management for future stock markets. Mathematics, 11(5), 1148. https://www.mdpi.com/2227-7390/11/5/1148 Chirumalla, K. (2021). Building digitally-enabled process innovation in the process industries: A dynamic capabilities approach. Technovation, 105, 102256. https://www.sciencedirect.com/science/article/pii/S0166497221000377 Harris, F., McCaffer, R., Baldwin, A., & Edum-Fotwe, F. (2021). Modern construction management. John Wiley & Sons. https://books.google.com/books?hl=en&lr=&id=oTUGEAAAQBAJ&oi=fnd&pg=PR11 &dq=Construction+and+Management++Objectives&ots=5qtojJJHh&sig=6krBlxgVTXcVLRzrG7hVAc3-ONE Riojas-Cisneros, J. M., lizeth Uceda-Pintado, I., Contreras-Paredes, J. E., & HernándezFernández, B. (2022). The portfolio evaluation and feedback instrument: A Systematic Review. Journal of Positive School Psychology, 6(2), 1640-1653. http://mail.journalppw.com/index.php/jpsp/article/view/1707

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