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.
Explain the difference between portfolio risk and stand-alone risk.
Briefly explain why you selected each stock and how this investment portfolio would have less risk than selecting just one stock.
How does risk aversion affect a stock’s required rate of return?
Explain the distinction between a stock’s price and its intrinsic value.
showed the power women had in addressing public concerns was when she had called the attention of the health department to the unsanitary conditions present in Chicago. The department claimed it was under control, but with the backing of some businessmen she put in a bid to collect garbage. In some time she was appointed garbage inspector of the ward. Jane Addams, a woman, was given a role in the community after addressing pressing concerns. She took action where it was needed, and started to try and fix the community in which she lived. Another time a problem existed with public baths, Jane Addams decided she would somehow come up with a solution. Jane Addams wanted to show that people would use public bathing facilities if they were offered to them. However, the board had claimed people would not use the facilities and it would be a major waste of public funds. So after Jane Addams got proof that people used them by having 3 baths put into the Hull House Basement, the Board of Health decided to open the first public bathing facility in all of Chicago. In Miss Addam’s words ,“Our contention was justified by the immediate and overflowing use of the public baths”. After Hilda was introduced to Hull House she wanted to make a way for herself. Hull house had taught her what she needed, and after being an apprentice to the inspiring and determined Jane Addams, she soon became a woman who was determined to make her own way in the world. Hilda had taken many jobs over the course of her life, and although that sounds impressive it also meant she left many of them. One incident where Hilda had a problem with the treatment of employees, was during her time as a bill clerk. Her responsibility was to operate the billing machine, but she was not permitted to talk to the girl next to her. They were given notecards, in which the color of each card would mean different things. After some time working for the company, Hilda’s voice started showing the toll being mute at work had. In response Hilda, “..made a feeble protest. I saw no reason why I could not speak to the girl next to me once in a while. The next day I was told that I was “too smart” for the job, and I was fired” Although the girls were experiencing jail like treatment, the inhuman aspect that the job offered failed to inspire other workers to speak out. Hull House had showed Hilda the power of using her voice, and the power of reasoning. As a result she was fired, but she successfully engaged civically and stood up for herself. Over time Hilda had became well aware that women were treated like second-class citizens, they paid taxes but lacked a voice in determining where those taxes were to be spent. They had no voice in making a difference and had insufficient numbers that were needed to create change. Hilda faced the on going constraints women had, especially in the workplace. Even though she had learned to speak out against this, other women would not necessarily follow in her footsteps. Unfortunately it was an ongoing problem, and for change to happen women needed time and numbers. The role women had in civil participation was lacking, however, figures like Hilda Polacheck and Jane Addams were the very reason one day a change would come. They both showed that participating in pressing concerns of the community and country at large was of grave importance. They knew that what they were doing was considered to be odd during the time period, but they did not care because they were playing their role in the community and trying to better the place around them, despite their gender.