Finance - Stocks, Yields and Portfolios Essay Example | Topics and Well Written Essays - 2500 words

Finance - Stocks, Yields and Portfolios - Essay Example It majors in computer software development. Mattson Technology Inc. is in the field of designing, developing, and manufacturing equipment for the manufacture of semiconductors and other products. It is also a significant player in the NASDAQ daily operations, and has a big presence across America. Advanced Management Strategies Group majors in logistics, program management, business consulting, engineering support, product lifecycle management (PLM), PLM IT tools, and IT services management. That therefore implies that the stock analysis carried out comprises one software, one hardware, and one consultancy firm. Discretely compounded return rate measures the rate of changes in the value of asset over a period assuming countable compounding periods while continuously compounded rate of return measures the rate of change in the asset value associated with a holding period under the assumption of continuous compounding. (Analyst Notes par 1). They are calculated as follows: The arithmetic mean return is a computation of the average returns for a specified period of time. It involves summing up all the returns for the specific period, then dividing the total by the individual number of sub-periods. The geometric mean return calculates the average rate per period on an investment that is compounded over multiple periods (Finance Formulas par1). c) Positively correlated stocks point to a high likelihood of similar trend in movement over the determined length of time. The stocks may be having a common factor that makes them tend to behave this way, for example for companies producing closely related goods, or those producing complementary goods such as cars and petroleum companies. It is advisable that potential clients shun positively correlated stocks, because if they suffer a slump, it will result in a double loss to the investor. Among the stocks featured in this report, MSFT and MTSN have the highest positive correlation, at 0.41730442. They