Stock Journal

Posted: August 26th, 2021

Week 3 Stock Journal

Name

Institutional Affiliation

Question 1: Three Companies

Portfolio analysis is a technique that involves the study of an investment collection to determine if it will meet the investor’s objectives, returns, and risk. In an attempt to implement risk diversification, three companies that are publicly traded in the U.S are selected. These companies include Apple Inc., Advanced Micro Devices Inc., and Lam Research Corp. These stocks are among the best-listed companies and have offered a high total return on the shareholders’ investments. The share price of Apple Inc. is $282.80, Advanced Micro Devices Inc. $56.60, and Lam Research Corp $279.02 (NASDAQ, 2020).

Question 2: Allocation of$25,000 in the Three Companies

The three companies will get an investment amount in the ratio of 3:2:1 among Apple Inc., Advanced Micro Devices Inc., and Lam Research Corp. The initial investment amount of Apple will be $12,500, Advanced Micro Devices Inc. will get $8,333, and Lam Research Corp. will be allocated the remaining amount of $4167.

Question 3: Reason for Picking Each Company

Apple Inc. is multinational technology corporation that develops and sells computer software, electronic devices, and online services to consumers.  It is among the big four companies in the U.S and offers the shareholders returns in the form of dividends. Advanced Micro Inc. is multinational semiconductor corporation that develop computer-related technologies and processors for consumer and business markets. It is a stable company that offers periodic dividends to its shareholders. Lam Research Corp. is engaged in the design and manufacture of semiconductor processors used in the fabrication of the integrated circuits. All three companies are established, yield dividends, and are among the best-performing companies in the U.S.A. (Bordeianu and Radu, 2018). Hence, investing in this company offers the best choice.

Question 4: Number of Shares in Each Company

The number of shares in each company will be given by the amount to be invested divided by the share price.For Apple Inc., the number of shares will be 44 shares ($12500/$282.80), Advanced Micro Devices Inc. 147 shares ($8333/$56.60), and Lam Research Corp 15 shares ($4167/$279.02). The total number of shares will be 206 shares.

References

Bordeianu, G. D., & Radu, F. (2018). Dividend Analysis. Economy Transdisciplinary       Cognition, 21(2), 32-37.

NASDAQ. (2020). Retrieved 18 April 2020, from https://www.nasdaq.com/market-         activity/stocks/aapl

NASDAQ. (2020). Retrieved 18 April 2020, from https://www.nasdaq.com/market-         activity/stocks/amd

NASDAQ. (2020). Retrieved 18 April 2020, from https://www.nasdaq.com/market-         activity/stocks/lrcx