Analyze an article on a financial topic or current financial event

Locate and analyze an article on a financial topic or current financial event that interests you. Summarize the article and support your observations with evidence from research and the readings.

Analyze an article on a financial topic or current financial event

Locate and analyze an article on a financial topic or current financial event that interests you.
Summarize the article and support your observations with evidence from research and the readings.
You can also use any financial websites along with any sources such as journals, textbooks, and newspapers such as the Wall Street Journal, etc.
Also, feel free to discuss any topic in the world of finance even though we may not have covered it or it is not covered in the text. Finance is a very broad topic so you can write on many topics such as a particular.

Your assignment should be a minimum of 500 words. A title page and executive summary are not required. Be sure to use APA format when citing your reference. (Note: Please do not use Wikipedia articles).
Submit your Article Review in this public thread so that your course-mates can read and comment.

 Week 4: Lecture – Lesson Videos

Risk and reward is a relationship that makes intuitive sense, even if you haven’t put it into words.  The following video reviews the concepts of risk and reward and very clearly explains why investment opportunities with higher variance (or volatility) are considered riskier and must offer a higher reward to pursue.

https://youtu.be/xAWxKk9tUME

A portfolio is a group of investments and most investors invest in a portfolio of stocks so they “don’t put all their eggs in one basket”.  In other words, they spread their risk across multiple investments.  The ideal portfolio includes investments with different patterns of volatility so that risk is minimize .

The graphs in the following video provide a visual image of this concept.  Take a look.  The British accent will be a change of pace! A portfolio is a group of investments and most investors invest in a portfolio of stocks so they “don’t put all their eggs in one basket”. In other words, they spread their risk across multiple investments.

However, care should be given to the pattern of volatility follow ed by each type of investment.  If all investments follow similar patterns, an investor hasn’t diversified her portfolio. The ideal portfolio includes investments with different patterns of volatility so that risk is minimize.  The graphs in the following video provide a visual image of this concept.  Take a look.  The British accent will be a change of pace!

https://youtu.be/QJnnpX5o-ko

Calculating the Standard Deviation of a Two Stock Portfolio is a way to prove that investing in more than one stock i.e. diversifying your portfolio will reduce financial risk.

 Week 4: Lecture – Lesson Videos

For example, assume you have a list of all the stock prices of Company A for over a year.  Using all the prices, you can calculate their average well as the standard deviation.  The standard deviation (SD) is a reflection of how far the actual prices deviated from the average, or in other words, the amount of volatility in the stock price.  A high standard deviation means there was greater volatility, i.e. variability in the stock prices, than the volatility of stock prices with a low standard deviation.  Therefore investing in a stock with a higher SD is riskier than investing in a stock with a lower SD.

But didn’t we say that we want to invest in more than one stock to further minimize risk? Yes, we did! Below find a video that calculates the risk associated with a two stock portfolio (for simplicity) by computing the standard deviation of the portfolio. You won’t be responsible for the calculation itself. However, notice that the SD of only Stock A and the SD of Stock B are both higher than the SD of the portfolio.  If an SD is a measurement of risk, then the calculation shows the risk of the portfolio is lower than the risk of investing in the individual stocks.  So diversification lowers the risk of investing the same dollars in only one of those stocks.
https://youtu.be/sHEA73iz_Io

HelpHub
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose HelpHub

HelpHub

Quality Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

HelpHub

Qualified Writers

We have hired a team of professional writers experienced in academic and business writing. Most of them are native speakers and PhD holders able to take care of any assignment you need help with.

StudyAcer

Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account.

StudyAcer

On Time Delivery

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. We will always strive to deliver on time.

StudyAcer

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text.

StudyAcer

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Help Hub

Place your order

Fill in the order form and provide all details of your assignment.

Help Hub

Proceed with the payment

Choose the payment system that suits you most.

Help Hub

Receive the final file

Once your paper is ready, we will email it to you.

HelpHub Writing Services

No need to work on essay at night. Sleep tight, we will cover your back. We offer all kinds of essay writing services.

HelpHub HelpHub

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

HelpHub HelpHub

Admissions

Admission Essays

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

HelpHub HelpHub

Editing

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

HelpHub HelpHub

Revision

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied.