Unit IV Project
Cumulative Investing Project
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.
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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.
- Assess government influence on the exchange rate behavior of each company.
- Do you see any opportunity for international arbitrage with any of the companies’ exchange rates? Why, or why not?
- Discuss interest rate and purchasing power parity as it pertains to each company.
- What forecasting technique would you use to forecast the exchange rate, and how would you assess forecast performance?
- 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?
You can monitor the portfolio using various apps, such as Robinhood or Yahoo! Finance. These types of apps provide charts, recent news, and other information on the stocks.
Submit your spreadsheet and summary. Your summary should be at least two pages in length. Adhere to APA Style when constructing this assignment and include in-text citations and references for all sources that are used. Please note that no abstract is needed. For the summary, use a minimum of two sources, one of which may be the textbook. Your summary should include a title page, introduction, body, conclusion, and references page.
Unit IV Project Cumulative Investing Project This cumulative investing project will help you to understand the factors, decisions, and ethics that influence the performance of multinational corporat
1 Cumulative Investing Project Brandon Green Columbia Southern University International Finance Professor Melinda Swigart Cumulative Investing Project Apple Inc. (AAPL) Apple Inc is an international company based in the United States of America that formerly went by the name Apple Computer, Inc. It helps to manufacture and innovate smartphones, personal computers, software, and peripherals, among others. Its headquarter is in Cupertino, California. It is the company that made it possible for the large-scale integration of graphical user interfaces in many computers. Its share price in the stock market is $145.54 as of 17th May 2022 (ADR, 2022). The corporate culture associated with it comes from the industrious Steve Jobs, who helped create the I-phone. It is among the most famous items that helped to take the company to the international market. Currently, the Chief Executive Officer is Tim Cook.Intel (INTC) Intel is a multinational company based in the United States that has made its name as one of the biggest semiconductor chip manufacturers based on sales and the profits it has been able to generate. Most personal computers used all over the world depend on their technology to operate effectively. Companies such as HP and Dell depend on Intel’s innovation and creativity to further expand their operations. Other products manufactured include flash memory, graphic chips, and embedded processors (Finance, 2022). The Chief Executive Officer is Pat Gelsinger. The company believes in the continuous investment in research that will lead to new technologies. The company is trading at $43.08 on the stock exchange as of 17th May 2022.Microsoft (MSFT) Microsoft might be one of the biggest multinational companies best known around the world due to its association with Bill Gates. The company produces computer software that is necessary for the functionality of a computer. Other products include personal computers and peripherals, among others. The Xbox video game console is among its best-known hardware components that have revolutionized gaming in the world. It currently trades at $261.50 as of 17th May 2022. Satya Nadella is the current Chief Executive Officer, although Bill Gates largely remains the face of the company internationally as the founder. The company remains a top innovator in the technology sector, with huge government contracts being associated with it.Aptiv PLC (APTV) Aptiv is an Irish company that has dedicated itself to two areas of operations. They include the “Signal and Power Solutions” and the “Advanced Safety and User Experience” areas. The wiring and vehicle connection systems developed have made the company an attractive investment area for Americans as a foreign stock. It is trading at $95.12 as of 17th May 2022 (ADR, 2022). Its establishing of an autonomous driving venture with Hyundai has helped to further establish the company as an attractive venture for investors. The positive image associated with the company has allowed it to attract an international image for investors.ICON plc (ICLR) The company is currently trading at $210.52, making it one of the most expensive foreign stocks to invest in. The company is in the pharmaceutical industry focusing on commercialization services, consultation, and other healthcare services (Nolte et al., 2019). Steve Cutler is the Chief Executive Officer who has helped to further increase operations to more than 45 countries across the world. In 2020, the company achieved a revenue of more than $ 2.79 billion. Its profit margins have made it possible for the company to attract international investors. References ADR (2022). Directory. Retrived on 17th May 2022 from, https://www.adr.com/dr/drdirectory/drUniverse D’Angelo, S. P., Nolte, S., Schlichting, M., Henry-Szatkowski, M., Hennessy, M., & Bharmal, M. (2019). Health-related quality of life in patients with metastatic Merkel cell carcinoma receiving second-line or later avelumab treatment: 36-month follow-up data. Annals of Oncology, 30, v538. Finance (2022). Portfolio. Retrived on 17th May 2022 from, https://finance.yahoo.com/portfolio/p_0/view/v2