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Introduction
The goal of an invester is to get maximum return at minimized risk. But by investing
in only one companys share does not enable us to get maximum amount of return
at a specific risk. In order to get maximum return at a minimal risk, we compiled five
different companys share in order to diversify the risk. So, even if there are any
downfall at any particular share or in the market, the other share will uphold the
total rate of return. The companies that we have included in our portfolio are:
Google, Netflix, Facebook, Microsoft, Standard Chartered PLC.
All of these companies are from NASDAQ.

DESCRIPTION ABOUT THE COMPANIES OF THE PORTFOLIO

Google (NASDAQ: GOOG) is an American multinational corporation which
provides Internet-related products and services, including Internet search, cloud
computing, software and advertising technologies.[5] Advertising revenues from
AdWords generate almost all of the company's profits.[6][7]

Facebook (NASDAQ: FB) is a social networking service and website launched in

February 2004, owned and operated by Facebook, Inc.[3] As of May 2012, Facebook
has over 900 million active users, more than half of them using Facebook on a
mobile device.[4] Users must register before using the site, after which they may
create a personal profile, add other users as friends, and exchange messages,
including automatic notifications when they update their profile. Additionally, users
may join common-interest user groups, organized by workplace, school or college,
or other characteristics, and categorize their friends into lists such as "People From
Work" or "Close Friends". The name of the service stems from the colloquial name
for the book given to students at the start of the academic year by some university
administrations in the United States to help students get to know each other.
Facebook allows any users who declare themselves to be at least 13 years old to
become registered users of the site.

Netflix, Inc. (NASDAQ: NFLX) is an American provider of on-demand Internet

streaming media in the United States, Canada,[6] Latin America, the Caribbean,
United Kingdom and Ireland and flat rate DVD-by-mail in the United States. The
company was established in 1997 and is headquartered inLos Gatos, California. It
started its subscription-based digital distribution service in 1999[7] and by 2009 it
was offering a collection of 100,000 titles on DVD and had surpassed 10 million
subscribers. On February 25, 2007, Netflix announced the billionth DVD delivery.[8]
In April 2011, Netflix announced 23.6 million subscribers in the United States and

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over 26 million worldwide.[9] By 2011, the total digital revenue for Netflix reached
$1.5 billion.

Microsoft Corporation (NASDAQ: MSFT) is an American multinational

corporation headquartered in Redmond, Washington, United States that develops,
manufactures, licenses and supports a wide range of products and services related
to computing. The company was founded by Bill Gatesand Paul Allen on April 4,
1975. It is the world's largest software maker measured by revenues.

Standard Chartered PLC (NASDAQ: STAN.L) is a British multinational banking

and financial services company headquartered in London, United Kingdom. It
operates a network of over 1,700 branches and outlets (including subsidiaries,
associates and joint ventures) across more than 70 countries and employs around
87,000 people. It is a universal bank with operations in consumer, corporate and
institutional banking, and treasury services. Despite its UK base around 90% of its
profits come from Africa, Asia and the Middle East

Reasons for choosing the companies

Based on Earnings per share (EPS)
Google: The EPS of GOOG is 33.73. That means for every single
outstanding share the return or earning is $33.73.
Facebook: The EPS of FB is 0.40. That means for every single outstanding
share the return or earning is $0.40.
Netflix: The EPS of NFLX is 1.76. That means for every single outstanding
share the return or earning is $1.76.
Microsoft: The EPS of MSFT is 2.00. That means for every single
outstanding share the return or earning is $2.00.
Standard Chartered PLC: The EPS of STAN.L is 1.98. That means for
every single outstanding share the return or earning is $1.98.

Based on P/E ratio:

Google: The P/E ratio of GOOG is 18.02. That means for every single dollar
the investor are willing to invest $18.02.

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Facebook : The P/E ratio of FB is 73.17. That means for every single
dollar the investor are willing to invest $73.17.
Netflix: The P/E ratio of NFLX is 34.29. That means for every single dollar
the investor are willing to invest $34.29.
Microsoft: The P/E ratio of MSFT is 14.41. That means for every single
dollar the investor are willing to invest $14.41.
Standard Chartered PLC: The P/E ratio of STAN.L is 726.54. That means
for every single dollar the investor are willing to invest $726.54.

Based on beta:
Google: The beta of GOOG is 1.13.That means the stocks tendency to
chane along with the market is 1.13. The share was selected based on both the EPS
and P/E ratio and totally unaware of the future downfall of the market.

Facebook : The beta of FB is N/A.That means the share has no relation

with the market.
Netflix: The beta of NTFLX is 0.81.That means the stocks tendency to
chane along with the market is 0.81. This is very much closer to zero. This share has

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nearly zero correlation with the market. So, at the time of the downfall the share
price was not that much affected.

Microsoft: The beta of MSFT is 1.06. That means the stocks tendency to
chane along with the market is 1.06. The share was selected based on both the EPS
and P/E ratio and totally unaware of the future downfall of the market.

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Standard Chartered PLC: The beta of STAN.L is N/A.That means the

share has no relation with the market.

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Open price of the shares and the number of shares bought

and total investment:
Before opening a portfolio, we examine the market and selected some of the
promising company shares that might help to diversify the risk. In order to do that,
we had to look for the shares previous performance, EPS, BETA, P/E ratio as well as
the investors recommendation. Before creating a portfolio on Yahoo! Finance, we
had $50000 to invest. We selected five companies on which we were going to invest
initially. The weight as well as the number of the shares of individual shares bought,
are given below.

Company
Name

Invest (In
Dollar)

Google
Facebook
Netflix
Microsoft
Standard
Chartered PLC
Total

17728
6328
2544
6084
17058
49742

Open price

590.93
31.64
84.80
30.42
1421.5

Number of
shares
bought
30
200
30
200
12
472

The performance of the portfolio on 25th July, 2012

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The invested companies and number of

shares bought

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The performance of the portfolio on 26th July, 2012

After buying, the performance of the portfolio was not good as we expected. The
market value of the entire portfolio was approximately $49,742 and the decrease of
nearly $17,944.

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Incentive for the investors if they invest in the portfolio:

Diversified risk.
Close and documented observation will give the investors more
confidence to invest more on the portfolio, buy new companys
shares and diversify the risk.
Even the though the market return is low investors can still expect
the market value to rise than the initial investment as all the
companies are renowned.

Conclusion:
Even for a very small period of time the portfolio was created, it gave not quite a
good return as expected. By observing EPS, BETA, P/E ratio of the shares could have
diversified the risk as well as give more return. Overall the performance of our
portfolio during the short period of time should be taken into consideration even
though the portfolio ended up with loss.

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