1. Investment Banking Project By Mr. Canak

2. Part I Synopsis
⦁A year’s worth of financial data is gathered from Google Finance for five stocks. ⦁ This information is used to calculate the daily ROI, annualized ROI, and correlation coefficient for each stock’s data set. ⦁ A graph is constructed to model the fluctuations of the values of the stocks over the one year period.

3. My Five Stocks

4. Correlation Coefficients
Correlation Coefficients
TIF RL
COH
KORS
JWN
-0.743
Annualized Return
TIF RL
COH
KORS
JWN

5. Part II Synopsis
⦁ Three portfolios are created from different selections of the five stocks. ⦁ The expected ROI after a one year period is calculated. ⦁ All the portfolios are graphed as functions of dates, and the results are analyzed to determine whether they are efficient or not (whether they provided a high return at a low risk).

6. Portfolio I - $1,000 into the stock of my choice (Coach)
Corr. Co
Expected return: %
Value of investment after one year: $1,000*( )+$1,000 = $931.22

7. Portfolio II - $200 into each Stock
Expected return: %
Value of investment after one year: $1,000*( )+$1,000 = $
Corr. Co.

8. Portfolio III - $230 into TIF and JWN, $430 into RL, $110 into KOR, $0 into COH
Expected return: %
Value of investment after one year: $1,000*(-.2515)+$1,000 = $748.50
Corr. Co.

9. Part II Conclusion
Investing 100% of your money in Coach gave the highest return (although money was still lost in this case). Return = $931.22

10. Part II Conclusion (continued)
The portfolio with the least amount of fluctuation and the least risk is Portfolio II. The correlation coefficient for portfolio II ( ) represents the strongest correlation considering all three portfolios.