The purpose of this assignment is to apply the portfolio concepts discussed in class and contained in the text. Your objective is to select three stocks you think are complementary with respect to risk—that is, stocks that either are negatively related or have a low positive relationship. You should select companies you believe can be combined to form a portfolio with “below-average” risk.

Once you have selected the three stocks you want to include in a portfolio, complete the following requirements:

1. Identify each stock you select, and give both its ticker symbol and the stock market on which it is listed. Briefly discuss the industry in which each company should be classified as well as its principal line of business.

2. Discuss why you believe the companies can be combined to produce a portfolio with a below-average level of risk. In other words, explain how you think the stocks relate to each other.

3. Briefly discuss why you believe holding the stocks you have chosen will help to weather significant swings that could possibly occur in the stock markets during the next few years.

The stocks you select must be listed on the New York Stock Exchange or NASDAQ—do not chose stocks from the OTC market, regional stock exchanges, or foreign stock exchanges.

Your assignment should be typed (use 12pt font), double spaced, and have one inch margins. The length of the project must not exceed three (3) pages.

You discussions/explanations should consist of properly constructed sentences. You should use your own words in your discussions. Do not cut and paste discussions from the book, from the Internet, or from other sources. If you use ideas or information that are not your own, you must provide citations. You can use any acceptable citation method to recognize the work/ideas of others.