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Diversified Risk Stock Portfolio (2 pages) For this case study, you will create a portfolio of five to eight stocks that demonstrate diversified risk. Lis t the stocks along with their current price and previous 1-year and 5-year rates of return. Below the list of stocks, address the issues described below. Explain the difference between portfolio risk and stand-alone risk. Briefly explain why you selected each stock and how this investment portfolio would have less risk than selecting just one stock. How does risk aversion affect a stock’s required rate of return? Explain the distinction between a stock’s price and its intrinsic value. Your case study should be at least two pages in length, not counting the title and reference pages. You are required to cite and reference at least your textbook and stock data source. Use APA format to cite in-text and reference citations.
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Date Stock prices CAT GM AAPL IBM WMT TGT XOM Sep 01, 2021 196.82 52.23 146.92 137.49 143.17 241.44 57. Sep 01, 2020 146.01 29.59 115.07 115.71 137.77 155.18 32. Sep 01, 2019 119.83 36.27 55.09 131.75 114.85 103.11 61. Sep 01, 2018 140.89 31.25 54.68 130.61 88.99 82.26 71. Sep 01, 2017 112.74 36.08 36.77 120.22 72.34 53.14 65. Sep 01, 2016 77.69 27.17 26.51 126.83 64.90 59.45 67. Date Returns CAT GM AAPL IBM WMT TGT XOM 2020-2021 34.80% 76.51% 27.68% 18.82% 3.92% 55.59% 79.97% 2019-2020 21.85% -18.42% 108.88% -12.17% 19.96% 50.50% -48.12% 2018-2019 -14.95% 16.06% 0.75% 0.87% 29.06% 25.35% -13.14% 2017-2018 24.97% -13.39% 48.71% 8.64% 23.02% 54.80% 7.90% 2016-2017 45.12% 32.79% 38.70% -5.21% 11.46% -10.61% -2.53% Geometric 5-year returns CAT GM AAPL IBM WMT TGT XOM 20.43% 13.96% 40.84% 1.63% 17.14% 32.35% -3.13%