Portfolio Analysis Project: FINC 410

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Authors

Mabry, Katherine
Edwards, Ethan

Issue Date

2022-04-22

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Presentation

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en_US

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Scholarship Sewanee 2022 , University of the South , Portfolio management , finance , Capital Asset Pricing Model , Fama-French Three-Factor Model , Portfolio Theory Model

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As our comprehensive project in Advanced Security Analysis, we construct and analyze a portfolio consisting of five publicly traded companies. Our investment strategy revolves around blue-chip stocks that have shown consistent, long-term growth with relatively low risk. With this in mind, we assemble a portfolio composed of J.P. Morgan & Co., Microsoft Corporation, Amazon.com Inc., BlackRock, Inc., and Lululemon Athletica Inc. We examine and utilize risk vs. reward analysis, the Portfolio Theory Model, the Capital Asset Pricing Model (CAPM), and the Fama-French Three-Factor Model as modes of analysis. From these methods, we gain insight into the optimal composition of our portfolio and an in-depth analysis of our portfolio’s performance. This paper presents macroeconomic conditions, the theories and algorithms that we used for our analysis and reallocation, and the performance of our portfolio.

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University of the South

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