Using an appropriate 'factor model', assess (a) the performance of the management in creating value for shareholders and (b) the extent of the foreign exchange exposure of a FTSE100 company of your choice.

The following - while not intended to be entirely prescriptive - is intended to give you some idea of what your assignment should include.

• An introduction that states the goals of your project - what are you setting out to explain? - and mentions any relevant literature (please do not include a long literature review, keep it focused and concise!). 
• An explanation of the specification of your model.

o  Why did you choose these particular independent variables?
o  Why these particular functional forms?
o  What a priori hypotheses do you have?
o  What are the expected signs according to the underlying theory, etc?

• Data.

o  A short description identifying data sources and any problems with these data.

• Your results. (If you test a number of specifications, be sure to identify which you see as the best of these.)

o  An analysis of the results that includes a discussion of econometric problems encountered and tests that you have undertaken. The main results should be tabulated as done in academic research papers.

o  What is the significance of the results and how do they relate to the original questions posed in the introduction?
o  Are they consistent with the theory?
o  Is the model statistically adequate in representing the data?

• A short summary & conclusions that includes your major findings and suggestions for further research.
• A (short!) bibliography
• An appendix which includes all regression runs and all relevant output. (In the case of very extensive listings, you may choose to supply these electronically.)