Identify several considerations when selecting an investment company for possible inclusion in your portfilio
Following considerations mut be taken into account while selecting an investment company for possible inclusion in portfolio:
1. Company should be financially sound and a good track record of past performance
2. There should not be erratic operational or management activity performed in past.
3. A stable or consistent growth rate so that financial position of firm in future may be in line of expectation
4. The beta of company's stock so the overall beta of portfolio should be at the desired level.
5. The expected return and risk of the selected stock so the overall return on portfolio should be yield on the acceptable risk level.
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