EVALUATION:

 

a). Review annual reports and news about each of your Australia-based MNCs to determine where they do most of their business and the foreign currency to which they are most exposed. Determine whether your Australia-based MNC's stock performance is influenced by the exchange rate movements of the foreign currency(against the Australian dollar) to which it is most exposed.  You can convert the foreign currency to which the MNC is most exposed into Australian dollars and determine the exchange rate movements over the period in which you invested in the stock. Provide your assessment of the relationship between the currency's exchange rate movements and the performance of the stock over the investment period. Attempt to explain the relationship that you just found. ?

 

b). Repeat the steps in (4a) for each Australia-based MNC in which you invested.?

 

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This project allows you to learn more about international investing and about companies that compete in the global arena. You need to create a stock portfolio of at least 2 Australian multinational corporations and 2 foreign stocks. You will monitor the performance of your portfolio over the school term and ultimately will attempt to explain your portfolio performance. The explanations will offer insight into what is driving the valuations of the Australia-based MNCs and the foreign stocks over time. Select two stocks of Australia-based MNCs that you want to include in your portfolio. If you want to review a list of possible stocks or do not know the ticker symbol of the stocks you want to invest in, go to the website https://au.finance.yahoo.com/. Make sure that your companies conduct a substantial amount of international business. Next, select two foreign stocks that are traded on the Australian Securities Exchange (ASX) and are not from the same foreign country. Many foreign stocks are traded on the ASX; go to the website http://www.asx.com.au/products/foreign-entity-data.htm to get the Foreign Exempt and Foreign Domicile companies listed on the ASX. You should select the ASX code of the foreign company; for example, AIZ is the ASX code for Air New Zealand. You can use this ASX code to review the company's background information, including a description of its business and its stock price trend over the last year. It is assumed that you will invest A$100,000 in each stock that you purchase. Your purchase price should be the closing price of the stocks you have chosen as at 30 Nov 2021. List your portfolio in the following format: Name of company Ticker symbol Name of company Ticker symbol Australia-based MNC Amount of Investment A$100,000 A$100,000 Foreign stocks (ADRs) Country where company is based Amount of Investment A$100,000 A$100,000 Price per share at purchase (3rd-Dec 2021) Price per ADR at purchase (3rd Dec 2021) You can easily monitoryour portfoliousing various Internettools. If you do not already use a specific website forthis purpose, go to https://au.finance.yahoo.com/.Follow the instructions, and in a few minutes, you can create your own portfolio tracking system. This system not only updates the values of your stocks but also provides charts, recent news, and other information on the stocks in your portfolio. This project allows you to learn more about international investing and about companies that compete in the global arena. You need to create a stock portfolio of at least 2 Australian multinational corporations and 2 foreign stocks. You will monitor the performance of your portfolio over the school term and ultimately will attempt to explain your portfolio performance. The explanations will offer insight into what is driving the valuations of the Australia-based MNCs and the foreign stocks over time. Select two stocks of Australia-based MNCs that you want to include in your portfolio. If you want to review a list of possible stocks or do not know the ticker symbol of the stocks you want to invest in, go to the website https://au.finance.yahoo.com/. Make sure that your companies conduct a substantial amount of international business. Next, select two foreign stocks that are traded on the Australian Securities Exchange (ASX) and are not from the same foreign country. Many foreign stocks are traded on the ASX; go to the website http://www.asx.com.au/products/foreign-entity-data.htm to get the Foreign Exempt and Foreign Domicile companies listed on the ASX. You should select the ASX code of the foreign company; for example, AIZ is the ASX code for Air New Zealand. You can use this ASX code to review the company's background information, including a description of its business and its stock price trend over the last year. It is assumed that you will invest A$100,000 in each stock that you purchase. Your purchase price should be the closing price of the stocks you have chosen as at 30 Nov 2021. List your portfolio in the following format: Name of company Ticker symbol Name of company Ticker symbol Australia-based MNC Amount of Investment A$100,000 A$100,000 Foreign stocks (ADRs) Country where company is based Amount of Investment A$100,000 A$100,000 Price per share at purchase (3rd-Dec 2021) Price per ADR at purchase (3rd Dec 2021) You can easily monitoryour portfoliousing various Internettools. If you do not already use a specific website forthis purpose, go to https://au.finance.yahoo.com/.Follow the instructions, and in a few minutes, you can create your own portfolio tracking system. This system not only updates the values of your stocks but also provides charts, recent news, and other information on the stocks in your portfolio.

Answer rating: 100% (QA)

a The first step in this evaluation is to review annual reports and news about each of the Australiabased MNCs to determine where they do most of thei... View the full answer