Portfolio Report

Student’s Name

Institutional Affiliation

The allocation of the funds across the portfolio assets depends on the value of the return from business operations. The assets which have the highest return has a high affinity for investment while those that have little returns have a little amount of investment.

Factors to Consider In Allocations of the Assets in the Portfolio Investment

Allocations of the funds depend on the following factors which are scrutinized to determine if the investment opportunities are viable within a particular portfolio. The analysis of the factors below provides an in-depth insight on issues which need to be ironed out in business operations to enhance better output.

Investment Horizon

In this case, investment must match the need for money. The duration of investment can vary depending on the payback period. There are long term and short-term investment which business operations need to adhere to achieve their goals (Kashyap, 2016). Long term investment requires a huge amount of capital and time hence needs resilience while short-term assets need more stable and liquid investments.

The portfolio should be risk averse so that investor cannot incur a lot of loss in the investment. Real risk happens in a circumstance where the organization loses the principal amount invested in the business. The risk management plan should be put in place and valuation of the business viability predetermined in advance (Kashyap, 2016). The best approach in investment is to invest aggressively when risk is low. 

Diversification

It is a factor which the business needs to consider since in case one side fails other investment opportunities can perform well. The diversification of the portfolio should consider dividend growth, global income, and aggressive growth and international growth (Maeso, & Martellini, 2017). The funds are allocated depending on the rate of return that can be obtained in business operations

Investment Vehicles

The type of investment vehicle which business chooses depends on the return from the business venture. An excellent vehicle will ensure that the company is in a position to get a lot of Exchange Traded Funds (ETFs). 

Portfolio Investment Goals 

Goals are the objectives which the organization aims to achieve within a particular time of venture. The primary goal for business investment is mostly related to the maximization of shareholders wealth. The revenue from the business should be huge enough to cater for the cost which is incurred in business operations. The goals need to be aligned with the mission and vision statement of the business. It will enable the organization to achieve its business objectives through the establishment of strategies. 

The goals set need to be realistic for business achieve and keep on the right track. Setting a high investment target can be discouraging in case the market fails to meet them. The organization needs to more aggressive in evaluating strategies that can help a company achieve its mission. Proper management of the portfolio will ensure prudent utilization of the resources hence makes business to achieve its goals and objectives effectively. 

Reasons for the Stocks Selected For the Investment

The analysis of the chosen stocks indicates some unique features which are ideal for business performance. The stock should have positive returns. It demonstrates that at the end of business operations the business will be in gain profits from business operations. Amazon.com Inc. has a positive net return hence its ideal for investment in such an industry. The market value of the shares in the crypto portfolio shows critical issues which makes business to evaluate its operations with a specified period.

Securities are selected based on its track record of the performance with certain time. Stocks which shows steady increment in value shows that they are ideal for investment in them. Securities which fluctuates to negative level should not be considered in the process of the process of the selections since they are likely to cause negative deviations to the return hence poor performance. Walmart Stores has positive return stocks. 

The forex analysis of the changes in the stock level in the organization shows that business needs to actively on the look on the when stocks are high then sells at the best price to earn a profit within a period of the investment.

Alphabet Inc. indicates that it is business which has the prospect for growth since it has a positive deviation on the return. The stock analyst is quite keen on how the value of the stocks moves on the stock exchange market. Those portfolios which have a high potential for return are selected for investment.

The analysis of the annual Sharpe ratio for the three investment vehicles denotes some probability for high performance. William Sharpe was a person who derived the annual Sharpe ratio which measures risk-return from the business venture. It is evident that the Sharpe ratio from the three stocks presented have shown resilient over time and indicated that business could generate income from the business operations. 

References

Kashyap, R. (2016). The Circle of Investment: Connecting the Dots of the Portfolio Management Cycle... arXiv preprint arXiv:1603.06047.

. M., & Martellini, L. (2017). Factor investing and risk allocation: from traditional to alternative risk premia harvesting. The Journal of Alternative Investments, 20(1), 27.