For selecting stocks, you are allowed to select companies from the following segments only:- Apparel, Health Care,

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Question:

For selecting stocks, you are allowed to select companies from the following segments only:-

Apparel, Health Care, Technology, Media

Step 1:- Select two stocks of U.S.-based MNCs of your choice from same industry. If you want to review a list of possible stocks, you may go to the Web site such as yahoo finance/goggle finance/Bloomberg. Make sure that your firms conduct a substantial amount of international business. You can find out this information from the annual reports.

Step 2:- Next, select two foreign stocks from the same industry that are traded on U.S. stock exchange and are not from the same foreign country. Many foreign stocks are traded on U.S. stock exchange as American depository receipts (ADRs), which are certificates that represent ownership of foreign stock. The 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 ADR's value.

To review a list of ADRs, you may simply google it, or go towww.adr.comand click on "DR Search", then select any industry in the menu 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 Web site such as yahoo finance/goggle finance/Bloomberg. Click on any company listed to review background information, including a description of its business and its stock price trend over the last year. DO NOT MAKE ANY PAYMENT ONLINE TO PURCHASE ANY DATA. USE THE DATA THAT IS FREE OF COST.

Evaluation

For the year of 2018 (2019 - 20 is not a good year to study due to COVID19 Pandemic), during first week of July, and first week of August, (there should be a gap of at least four weeks, you may start earlier date as well, as long as the gap is at least four weeks),you will evaluate the performance and behavior of your stocks.

Stocks: ADRs Occidental Petroleum Corporation,

Chevron Corporation Petroleo Brasileiro S.A. (Brazil)

Ecopetrol S.A. (Colombia)

Timeline: July 1 - July 7, August 4 - August 10 2018

2.Determine whether the performance of each of your U.S.-based MNCs is driven by the U.S. market. For this comparison, compare the performance with S&P 500 index. You should be able to understand the basics of S and P 500 before the presentation. Repeat this task for each U.S.-based MNC that you selected. Explain the reason(s) for your stocks being driven/not driven by S&P500?

3.Determine whether your foreign stock prices are highly correlated. Determine whether your foreign stock's performance is driven by the U.S. market (using the S&P 500 as a market proxy). Explain the reason(s) for your stocks being driven/not driven by S&P500?

(Answer questions 2 and 3 only, which has been underlined. Provide narrations.)

No written report for this project. Your presentation is based on this project. For presentation, provide complete answers for all the questions and support your answers with graphs/tables etc.