What is the degree of each company transaction

Reference no: EM132827460

This cumulative investing project will help you to understand the factors, decisions, and ethics that influence the performance of multinational corporations (MNCs) and foreign stocks in the international financial environment.

In this unit, you will continue to work with the stock portfolio you created in Unit II, consisting of at least three U.S.-based MNCs and two foreign stocks. You will monitor the performance of the portfolio during the course. In Unit VIII, you will attempt to explain why each stock increased or decreased in price and why your portfolio performed well or poorly. Your explanations should offer insight into what is driving the valuations of the companies.

For this unit, continue to use the spreadsheet you created in Unit II to track your investment. As a reminder, the Unit II spreadsheet consists of the following data points:

firm name;
ticker symbol;
amount of investment in each stock ($10,000 per stock for a total of $50,000);
price per share at which you purchased the stock;
exchange rate;
percentage change in stock price, which will be updated again in Units VI and VIII; and
change analysis, which will identify the primary reason for the change in stock price. (This column will be updated again in Units VI and VIII.)

Update the spreadsheet columns with the percentage change in the stock price since your last assignment submission (you may use an interval of your choosing, such as a single update or daily, weekly, or other) and the primary reason for the change in the stock price up to the current date.

In a separate Word document, respond to the prompts below.

Question 1: Assess government influence on the exchange rate behavior of each company.

Question 2: Do you see any opportunity for international arbitrage with any of the companies' exchange rates? Why, or why not?

Question 3: Discuss interest rate and purchasing power parity as it pertains to each company.

Question 4: What forecasting technique would you use to forecast the exchange rate, and how would you assess forecast performance?

Question 5: What is the degree of each company's transaction, economic, and translation exposure? What factors affect exposure in each currency? What desirable characteristics might limit exposure?

Reference no: EM132827460

Questions Cloud

Present considerations for workforce management : Present considerations for Workforce Management. Determine the metrics you would use to measure success of the warehouse and the total supply chain.

Question-case study-lynas corporation : Lynas Corporation Ltd of Australia is building a rare earth processing plant called Lynas Advanced Materials Plant (LAMP) which is currently under construction

What type of evaluation would help the project : Read the SHRM case study Integrating a Human Resource Information System and answer the questions below based on the case study and information provided.

Prepare journal entries that required at transaction date : Prepare the journal entries that are required at transaction date and reporting date (rounded to the nearest whole A$)

What is the degree of each company transaction : What is the degree of each company's transaction, economic, and translation exposure? What factors affect exposure in each currency?

Determine the total amount of discounts offered : Determine the total amount of discounts offered for the month of March to each student and in total and The students that have existing discounts will receive

Discuss about the different types of training : The 2 two main types of training used in my organization are instructor led and distant learning, also called e learning. Instructor-led training.

Three different investment plans : An investor could invest his money in one of three different investment plans over an 18 month period.

Outline a seven-point strategy for negotiating the business : Imagine that you are taking a trip to visit a prospective customer located in your chosen country for three days. For the first day, the company president.

User Account

All Pages