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Hi, need to submit a 2000 words essay on the topic Investment and Portfolio Analysis.There was automotive gross cash at June 30, 2007 of $37.4 billion.Ford Motor Company sales and revenue over the las

Hi, need to submit a 2000 words essay on the topic Investment and Portfolio Analysis.

There was automotive gross cash at June 30, 2007 of $37.4 billion.

Ford Motor Company sales and revenue over the last three years has fluctuated tremendously, 2005 was 176.8 billion, 160.1 billion and for the year of 2006 and 172.5 billion for 2007. The current return on investment is -10.4 as of 2007. ( White, 2007).

Investment is the commitment of money or capital to purchase financial instruments or other assets in order to gain profitable returns in the form of interest, income, or appreciation of the value of the instrument. (Reilly & Brown). It relates to saving or deferring consumption. Investment is involved in many areas of the economy, such as business management and finance no matter for households, firms, or governments. An investment involves the choice by an individual or an organization such as a pension fund. After some analysis or thought, to place or lend money in a vehicle, instrument or asset, such as property, commodity, stock, bond, financial derivatives (e.g. futures or options), or the foreign asset denominated in foreign currency, that has certain level of risk and provides the possibility of generating returns over a period of time.

Investment comes with the risk of the loss of the principal sum. (Myles, 2003) The investment that has not been thoroughly analyzed can be highly risky with respect to the investment owner because the possibility of losing money is not within the owners control. The difference between speculation and investment can be subtle. It depends on the investment owners mind whether the purpose is for lending the resource to someone else for economic purpose or not.

Through Investment analysis, an investor is in a good position to understand the trend of performance and the likelihood of getting suitable returns at the end of the investment period. Investment analysis is important to any sound portfolio-management strategy. At most, times, investors find it difficult to carry out

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