14 Sep Research and analyze one stock using the portfolio strategy
Order Instructions
Client Profile
Kent Webber is a recently widowed 48-year-old. He works as a production engineer in the pharmaceutical industry and
earns $75,000 per year. He has two sons, both married and living on their own, and four grandchildren. As a result of his
wife’s demise, Mr. Webber recently received a lump-sum life insurance payout of approximately $50,000, which he would
like to invest to earn “as much as possible,” with an investment goal of “ideally two million dollars” at hand when he retires
at the planned age of 72. Other than the $50,000, Mr. Webber has no savings, as his wife’s illness and sons’ educational
expenses drained his financial resources. As he no longer needed a large, 2,000-square-foot home following his wife’s
passing, he sold his home and purchased a condominium in a gated community. After taxes and other living expenses, Mr.
Webber approximates that he has $20,000 per year to invest until retirement. His focus is on preservation of capital, and he
characterizes his risk tolerance as “medium.” He would prefer to invest in socially responsible companies while still
achieving his investment goals.
Prompt
Please use Apple, Inc stock
Portfolio Analysis. Research and analyze one stock using the portfolio strategy you identified in Milestone One and a risk-tolerance level appropriate to
the needs and return requirements of the client. Provide a financial analysis of this stock covering the associated risk, return, and tax implications. In
addition, you should provide a clear assessment of the strengths, weaknesses, opportunities, and threats of the company whose stock is included in the
portfolio. Also complete a ratio analysis of the stock and calculate the alpha for the stock. Use the capital asset pricing model (CAPM) to develop the
return for the equity security. Be sure to provide a well-supported rationale for why the security is included and how it aligns with client objectives,
including an assessment of any preferential factors the client might be concerned about such as market share, innovation, and sustainability practices.
