International Investing Project
Order ID: 89JHGSJE83839 Style: APA/MLA/Harvard/Chicago Pages: 5-10 Instructions:
FIN4634 Course Project?
International Investing Project?
This project helps you to understand the factors that influence the performance of? MNCs and foreign stocks. The focus in grading this project will be on the explanations? provided by you, not on the movements in the stock prices or exchange rates.?
This is a project to be completed by the end of the semester (see due dates in Class? Schedule). To ensure you are working on this project during the term you will be asked? to provide weekly updates. These updates are part of your grade.?
This project allows you to learn more about international investing and about firms that? compete in the global arena. You will be asked to create a stock portfolio of at least two? U.S.-based multinational corporations (MNCs) and two foreign stocks. You will monitor??
the performance of your portfolio over the school term. The explanations will offer? insight into what is driving the valuations of the U.S.-based MNCs and the foreign stocks? over time.?
Select two stocks of U.S.-based MNCs that you want to include in your portfolio. If you want to review a list of possible stocks or do not know the ticker symbol of the stocks you want to invest in, go to the website http://biz.yahoo.com/i/, which lists? stocks alphabetically, or to http://biz.yahoo.com/p/, which lists stocks by sectors or? industries. Make sure that your firms conduct a substantial amount of international? business.?
Next, select two foreign stocks that are traded on U.S. stock exchanges and are not from? the same foreign country. Many foreign stocks are traded on U.S. stock exchanges as? American depository receipts (ADRs), which are certificates that represent ownership of? foreign stock. ADRs are denominated in dollars, but reflect the value of a foreign stock,? so an increase in the value of the foreign currency can have a favorable effect on the? ADRs value. To review a list of ADRs in which you may invest, go to www.adr.com. Click on any industry listed to see a list of foreign companies within that industry that offer ADRs and the country where each foreign company is based. You should? select ADRs of firms that are based in any of the countries shown on the website? http://finance.yahoo.com/intlindices. Click on any company listed to review background? information, including a description of its business and its stock price trend over the last? year. It is assumed that you will invest $10,000 in each stock that you purchase.
List your portfolio in the following format:?
You can easily monitor your portfolio using various Internet tools. If you do not already use a specific website for this purpose, go to http://finance.yahoo.com/?u and? register for free. Follow the instructions, and in a few minutes you can create your own? portfolio tracking system. This system not only updates the values of your stocks, but? also provides charts and recent news and other information on the stocks in your? portfolio.?
Evaluation?
For the Course Research paper you should evaluate the performance and behavior of? your stocks.?
1.?
Determine the percentage increase or decrease in each of your stocks over the period of your investment and provide that percentage in a table like the one below. In addition, offer the primary reason for this change in the stock price based on news? about that stock or your own intuition. Was it because of the markets where your firms? do their business or because of firm-specific conditions? To review the recent news? about each of your stocks, click on http://finance.yahoo.com/?u and insert the ticker? symbol for each firm. Recent news is provided at the bottom of the screen.
2.??
Determine whether the performance of each of your U.S.-based MNCs is driven by the? U.S. market. Go to the site http://finance.yahoo.com/?u and insert the symbol for your? stock. Once the quote is provided, click on Chart. Click on the box marked S&P (which? represents the S&P 500 Index). Then, click on Compare and assess the relationship? between the U.S. market index movements and the stocks price movements. Explain? whether the stocks price movements appear to be driven by U.S. market conditions.? Repeat this task for each U.S.-based MNC in which you invested.?
3.?
a. Determine whether the performance of each of your foreign stocks is driven by the corresponding market where the firm is based. First, go to the site? http://finance.yahoo.com/intlindices?u and look up the symbol for the country index of? concern. For example, Brazils index is ^BVSP. Next, go to the site??
http://finance.yahoo.com/?u and insert the symbol for your stock. Click on Chart; at the? bottom of the chart, insert the corresponding market index symbol (make sure you? include the ^ if it is part of the index symbol) in the box. Then, click on Compare and? assess the relationship between the market index movements and the stocks price? movements. Explain whether the stocks price movements appear to be driven by the? local market conditions. Repeat this exercise for each foreign stock in which you? invested.?
b. Determine whether your foreign stock prices are highly correlated. Repeat the? process described above, except insert the symbol representing one of the foreign? stocks you own in the box below the chart.?
c. Determine whether your foreign stocks performance is driven by the U.S. market (using the S&P 500 as a market proxy). Erase the symbol you typed into the box below the chart, and click on S&P just to the right.
4.?
a. Review annual reports and news about each of your U.S.-based MNCs to determine where it does most of its business and the foreign currency to which it is most exposed. Determine whether your U.S.-based MNCs stock performance is influenced by the exchange rate movements of the foreign currency (against the U.S. dollar) to which it is most exposed. Go to www.oanda.com and click on FXHistory. You? can convert the foreign currency to which the MNC is highly exposed to U.S. dollars and? determine the exchange rate movements over the period in which you invested in the? stock. Provide your assessment of the relationship between the currencys exchange? rate movements and the performance of the stock over the investment period. Attempt? to explain the relationship that you just found.?
b. Repeat the steps in 4a for each U.S.-based MNC in which you invested.?
5.??
a. Determine whether the stock performance of each of your foreign firms is influenced by the exchange rate movements of the firms local currency against the U.S.? dollar. You can obtain this information from www.oanda.com. You can convert the? foreign currency of concern to U.S. dollars and determine the exchange rate movements? over the period in which you invested in the stock. Provide your assessment of the? relationship between the currencys exchange rate movements and the performance of? the stock over the investment period. Attempt to explain the relationship that you just? found.?
b. Repeat the steps in 5a for each of the foreign stocks in which you invested.?
Write the research paper in APA format. This format includes: title page, identifying the? subject, the authors, the course, professor, term and date. Following are the? introduction, statement of objectives, narrative body, conclusion and finally the? bibliography. If you need help with APA style there are excellent resources in the Florida National University Library. In addition, the following is a very good online? resource: http://owl.english.purdue.edu/owl/resource/664/1 . For help with citations? visit http://www.citationmachine.net/. Many students lose grade points because they? do not take the trouble to structure, footnote or provide the paper and bibliography? correctly in APA format; dont let this be you! Excluding the title page and bibliography,? your paper should be four to six pages in length double-spaced. Times New Roman, font? size 12.
RUBRIC
Excellent Quality
95-100%
Introduction 45-41 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Literature Support
91-84 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Methodology
58-53 points
Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.
Average Score
50-85%
40-38 points
More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.
83-76 points
Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.
52-49 points
Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.
Poor Quality
0-45%
37-1 points
The background and/or significance are missing. No search history information is provided.
75-1 points
Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.
48-1 points
There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
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