Fnce623 macroeconomics assignment

Assignment Help Financial Management

Reference no: EM132632119

FNCE623 Macroeconomics - University of Pennsylvania

Term Paper: Analysis of the Risk Exposure of a Company

The term paper consists of the analysis of the impact of the financial environment on the risk exposures of a firm of your choice. One of the major risk exposures is the firm's risk management programs. There are also other international risks (such as political risks) that can have an impact on a firm's performance. You need to determine the risk exposure, how and whether the firm's stock price will be affected and how effective this risk management program is. Write the paper in groups of up to three students. The paper must be in quantitative analysis and use data to convince the decision maker. The analysis must be concrete and persuasive.

Specific steps:

1) Select a firm (Canadian or from another country) that is publicly traded.

2) Obtain information about the firm such as which products it sells, where it does business etc.

3) Identify the major risks faced by the firm and whether it hedges its risk exposures or not. This information is typically reported in the firm's annual report or the statements filed with the regulatory body in the firm's home country.

4) Collect data on the major risk factors that you have identified (from your own research) in (3) and the stock return of the firm. Test for a statistical relationship between changes in the risk factors and the stock return (regression analysis in your prep courses). Use the last 5-years' worth of daily, or monthly data for your analysis.

5) Determine whether these changes are in line with what you would expect, given what you know about the firm's operations.

6) Give your comments on the company's financial performance from the financial statements' analysis (ratio analysis or other methods), financial strategy evaluation and industry data.

7) Forecast the stock price trend of the company and recommend an investment strategy.

8) Write a report up to eight to ten pages long (12-point font, 1.5 spaced). Attach of your statistical analysis and financial statement analysis on separate pages as an appendix. References and appendix are additional to the eight/ten page report.
The report should include:
(1) A description of the firm, its businesses and geographical operations etc., and how and why you expect the firm to be impacted by certain risk factors.
(2) The statistical analysis, including an interpretation of the results.
(3) Comments on the relationship between (1) and (2).

9) Prepare a presentation in 10-15 minutes (no specified pages of slides). The presentation must be persuasive. Presentation skills will be marked.

10) Email me your report and presentation PowerPoint

Reference no: EM132632119

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