Why is diversification important?

Introduction: What the purpose of the project is and what you anticipate learning from it. All research and academic papers should have a purpose statement.

The stocks: Explain the stocks you picked for your portfolio and why. Discuss some of the fundamental financials such as sales, revenue, cash-flow, and income, what attracted you to the company? Think about the various financial statements we discussed (or will discuss) in class: a) income statement; b) balance sheet; c) statement of cash flows; and d) reconciliation of net worth.

A short discussion of diversification: Please begin with a formal definition of diversification and include a citation/reference. Why is diversification important? How did you diversify your portfolio? If you didn’t diversify your portfolio, that’s ok, just tell us why.

Risk and return: Please begin with a formal definition of beta and include a citation/reference Did you choose high or low volatility companies to invest in? I suggest you do some research on Beta (volatility) and how this might or might not have had an influence of your choice of companies in your portfolio.

Financial results: How did your portfolio perform? Did you earn a profit, (we say earn a profit because you took the risk of investing in a particular company) or lose money. Would you pick the same stocks again? Would you purchase these stocks in reality? What did you learn?

The paper should follow APA 6th edition. and should have a cover and reference page