Essays on Ethical Investment Portfolios Issues Case Study

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The paper "Ethical Investment Portfolios Issues" is a wonderful example of a Business Case Study. Notably, I would divide my equity assets into four different sub-categories in order to develop the element of diversification. Diversification of the stocks means that the investment portfolio will be based upon different industries, market capitalization, and foreign investments. These sub-categories are; I) Technology-based companies stocks, (10 % of £ 10,000,000), equals £ 1,000,000 for each stock a). TRW Automotive Holdings; operates under the automotive industry, the company has provided a lot of its shares to the shareholders. The total shareholder’ s return stands at 563.3 %.

Furthermore, the market capitalization stands at £ 7,054.98. There is a 0.18 % increase in the share price of the company on a daily basis. The current market share price stands at £ 59.25. This means that the total amount of shares to be purchased stands at (£ 1,000,000/£ 59.25), 16878. The company’ s stock performance is compared to the NASDAQ benchmark. b). Unisys Inc. operates under the information technology industry. The current total shareholder’ s return stands at 353.6 %. The company’ s stocks are benchmarked against the S& P 500 for the company stands at 38 against the benchmark of 102.

The current share price stands at £ 24.15 and there is a probable percentage increase in the price by about 5.18 %. Thus, the total number of shares to be purchased equals £ 1,000,000/£ 24.15, 41,408. II) Emerging Markets stocks; 10 %, £ 1,000,000 for each stock Aberdeen Global Income fund Inc. operates as an investment agency. In January 2013, the asset value per share of the common stock stood at £ 13.77. There is a prospective increase in the price of shares by about 10 % in the coming three months. Thus, the investment of the stock stands at 1,000,000/13.77 = 72621 shares Micron Technology: operates under the information technology industry.

it is considered to be one of the upcoming companies given that it has embarked on producing on-demand semi-conductors and memory-devices for both consumers and corporate across the globe. Notably, the yearly total shareholder’ s return stands at about 300 %. The monthly returns for the company surpass its benchmark value; Micron Tech stands at 17.70 % against an S& P 500 monthly total return of 17.70 %.

The current share market price is placed at £ 9.51 with a projected increase of about 2.04 %. The company operates under £ 9.51billion market capitalization. The efficient Asset utilization stands steady at 0.57 while the Total Returns on Assets (ROA) stands at 54.89 %. III) growth-based stocks; 10 %, £ 1,000,000 for each stock Tenneco: this is an auto-parts manufacturing Company. There is a probable increase in the future-sales of the company’ s products. Total returns of the company stand at 48.47 % while the Earnings per Share stands at 4.50.

The Quartile profit margin stands at 1. 88 % while the price of the company’ s share equals £ 37.40. The YTD returns for this company stands at 6.55 % against a benchmark of S& P 500 Total Return 9.34 %. Thus, the portfolio stocks consists of £ 1,000,000/ £ 37.40 = 26737 common shares Tenet Health Care Company; operates under the health care industry. The company’ s stock performance falls under growth-based stocks because it has recently managed to surpass challenges associated with the closing-down of operations. In 2012, the company’ s shareholder’ s return attained 368.7 %.

The company’ s return on assets (ROA) stands at 12.6 % against an industry average of 22.4 %. Throughout the month there has been a steady 1.17 % increase in the company’ s share price which stands at £ 44.16

Works Cited

Investopedia. Portfolio management-portfolio management theories. (2010).Accessed from

http://www.investopedia.com/exam-guide/cfa-level-1/portfolio-management/portfolio-

Management-theories.asp#axzz2NXNyBGEq

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