# Portfolio Analysis (Graded A+) - use as a guide only - 28153

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## arsalanahmed

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Part Two: Final Project 2: Portfolio
Analysis

Part A: Research Online Trading Sites and DRIPs

For this part of the assignment, you will evaluate the choices in purchasing
stock via online brokerage accounts (where you can buy and sell stock via the
Internet) and the use of dividend reinvestment plans (known as DIPs and DRIPs)
or mutual funds or index funds.

For online brokers, you will be looking for the requirements to open the
accounts: costs, minimum balances, and other features. Because most DIPs or
DRIPs are available from publicly traded companies, you can search their Web
sites or a search engine on these plans and their requirements.

Perhaps the most famous and useful Web site for these programs is http://www.directinvesting.com/. You are to compare
and contrast online brokerage to DIPs and DRIPs.

Required:

Research online trading sites and DRIPS as outlined below, and summarize your
findings. Make sure to include a summary table of the relevant information.

1. Search three online trading sites, and determine the requirements for
companies. (2–3 pages)
2. Search the Web for three companies (look for investor information) that
offer DIPs or DRIPs. (2–3 pages)
3. Compare and contrast the requirements, including minimum investments, nature
of the return, costs, and other features. (1–2 pages)

Part B: Research Market Data on Bonds

Research the current (within the last two months) market data on bonds from
AT&T, Dell, and IBM. Assume each bond has a par value of \$1000, unless
otherwise indicated.  Cite your sources. APA

 AT&T Dell IBM Coupon Maturity Frequency Rating

Required:

1. Complete the table above.
2. Calculate the value of the bond if your required return is 5% on AT&T,
6.5% on Dell, and 8% on IBM.
3. Determine the yield to maturity (YTM) on the bonds given the current price.
Based on each bond’s ratings and your determination of its yield to maturity,
explain how you rank each bond for risk and return.
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