Diversified Risk Stock Portfolio and Capital Investment


Please refer to the attachment for assignment instructions: 

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

Capital Investment

For the purpose of this assignment, a project is defined as any endeavor that had a capital outlay. Pick a project you have

recently completed or one you would like to complete in the near future. This could be a project in your home, place of work,

or even church or other organization with which you are familiar. Respond to the prompts below.

Introduce your project with a reflection on the importance of selecting the right projects in which to invest capital. Do we

always select those projects that have the highest return on investment (ROI)?

Describe the relationship between risk and return and how you would measure for both in your project. What other

factors play into capital budgeting decisions?

Explain how you would calculate the weighted average cost of capital (WACC) and its components for your project.