First, locate the financial statement (10 - K Annual Reporting) information for each company (listed...

Question

First, locate the financial statement (10 - K Annual Reporting) information for each company (listed below) that you will be investigating for your final project.
Research stock and corporate bond holdings for the following companies:
Apple, Inc. (AAPL) 2018
Caterpillar (CAT) 2018
Consolidated Edison (ED) 2018
Northern Trust (NTRS) 2018
Macy's (M) 2018
Next, address the following:

Calculate the rates of return for each of the securities listed in a table form with equations/calculations listed. Include industry benchmarks

Include calculations for securities and bonds

Once you have calculated the rates of return for these securities, briefly explain the risk/return relationship for each security.

Refer to the module resources and major indices to support your responses. Be sure to consider the key risk factors investors must observe when making their investments and also the time value of money concept and its relevance in the financial industry.

fin-640-module-one-journal-guidelines-and-rubric-jjmek24m.pdf

Preeta · Accepted Answer

Rate of Return:
Rate of return is actually the income derived from an investment made in the past. It is actually the profit or loss made on an investment over a specific period of time. Generally it is calculated at the time of sale of the investment to check if the investment made was worth and the income received from holding that investment. The general formula for the rate of return = [(Original Value – Current Value)/ Original value]*100. 
Rate of return can be applied on any asset but here the purpose is to calculate rate of return of the stocks of the specific companies. In the absence of any details about the time of investment and the original value of the investment made or the number of shares invested in, the forward rate of return of the company has been taken into account (gurufocus). 
Apple, Inc (AAPL) – 13.60 
Caterpillar (CAT) – 17.36
Consolidated Edison (ED) – 2.89
Northern Trust (NTRS) – 0.00
Macy’s (M) – 13.06
Risk/ Return Relationship:
Before making any investment it is important to understand the risk return relationship of an investment. The aim of any investment should be able to get maximum return from the investment where there is minimum possible risk. But generally higher the risk higher is the return and vice versa. To avoid high risk generally diversification is maintained in the portfolio of investment.

First, locate the financial statement (10 - K Annual Reporting) information for each company (listed below) that you will be investigating for your final project. Research stock and corporate bond...

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