Complete a calculation of the annual amount required/ Finance Basics
The five selected stocks are Apple, Amazon, Microsoft, HP, and Target. The income for calculations will be $30,000.
“In an Excel spreadsheet, detail the returns on five selected stocks that you will use as the basis for creating wealth required to support your personal financial initiatives. Select five key stocks and determine their expected return from finance.yahoo.com Presume you would invest 20% equally in these stocks and average the return. Calculate how much you would have to deposit each year until retirement to fund all of your initiatives assuming the rate of return on these equities is constant. Describe your rationale for selecting the stocks in your portfolio, including your own risk tolerance and any considerations for diversification.
Complete a calculation of the annual amount required to support any gap between your present wealth and your future need, using the return derived from your portfolio as the realized return. This amount will be represented by an annual annuity funded by your savings drawn from your present income; assume that salary increases will be exactly offset by inflation and thus, your present salary will be static. Determine whether you are able to deposit enough to fund all of your financial goals according to your calculations. Document this amount in a composition describing your
