Essay about Stock Investment Analysis

1833 Words Oct 27th, 2013 8 Pages
Fidelity Large Cap Stock Fund and S&P 500 are similar funds. These two funds heavily invest in large market capitalization company common stock, topping 80% of its entire portfolio.
Fidelity Large Cap Stock Fund consists of normally 11 different sectors for equities listed in highest portfolio weight with first five sectors making 80% of the portfolio:
• Financials
• Information Technology
• Health Care
• Energy
• Industrials
• Consumer Discretionary
• Consumer Staples
• Telecommunication Services
• Materials
• Utilities
• Other
Current year-to-date performance of the Fidelity Large Cap Stock Fund (FLCSX) was overall positive at 16.24% year-to-date return.
The financial sector contributed and played a big part in making
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This is used to measure the result of the day-to-day fluctuations in the overall market. This measurement ranges between 0 and 1, and 1 indicating the perfect correlation to the benchmark index. Lower the index, more the fund’s performance is affected by factors other than the market. 0.5 indicates that the Annualized Alpha and Beta are not reliable performance statistics; Sharpe Ratio is used to measure the return of an asset compensates the investor for the risk taken. Higher the ratio means the better return of the fund’s per unit of risk; Standard Deviation is used to measure the variation of the return value over an extended period of time. The larger the deviation means more variable the returns.
The rationalization of these four statistical measures provide you with the basic understanding on using them to apply the idea of the most favorable portfolio presumption, which uses volatility to ascertain risk and states a rule for deciding how much of a fund's volatility has a better chance of giving you the most return.
“Risk management is best defined as the management of risk over a specified time period in situations where volatility exists and managers have the

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