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

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Part Two: Final Project 2: Portfolio 

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.


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 
    trading, including the price per trade. Compare and contrast the online trading 
    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























  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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DIP and Drip final project 2.doc
DIP and Drip fi...