Global Investment Portfolio Project -02Assuming you are still holding the same stock portfolio you...

Question

Global Investment Portfolio Project -02Assuming you are still holding the same stock portfolio you originally selected inModule 2. How has your portfolio performed since?EvaluationOn November 09, 2012 you should evaluate the performance and behavior of your stocks. Due date for the report is November 10, 2012. Late reports are subject to 10% per day deduction. Your evaluation process must follow the following steps (Please make sure you answer to each of the following questions separately):	Determine the percentage increase or decrease in each of your stocks over the period of your investment and provide that percentage in a table like the one below. In addition, offer the primary reason for this change in the stock price based on news about that stock or your own intuition. To review the recent news about each of your stocks, click on http://finance.yahoo.com/?u and insert the ticker symbol for each firm. Recent news is provided at the bottom of the screen.						Firm’s Name						Ticker Symbol						% Change in Price Since 06/01/2012						Primary Reason for Change in Price																																										Average Return on Your Portfolio							Determine whether or not your U.S - based MNE's performance is driven by the U.S. markets. Go to the site http://finance.yahoo.com/?u and insert the symbol for your stock next to "Get Quote". Once the quote is provided, click on "Chart". At the bottom of the chart, click on the box marked S&P (which represents the S&P 500 Index). Then, click on "Compare" and assess the relationship between the U.S. market index movements and the stock's price movements. Explain whether the stock's price movements appear to be driven by U.S. market conditions. Repeat this task for each U.S.-based MNE in which you invested	Determine whether or not your foreign stocks performance is driven by the corresponding markets where the firms are based. First go to the site http://finance.yahoo.com/m2?u and look up the symbol for the country index of concern. For example, Brazil's index is ^BVSP. Next, go to the site http://finance.yahoo.com/?u and insert the symbol for your stock. Click on "Chart"; at the bottom of the chart, insert the corresponding market index symbol (make sure you include the ^ if it is part of the index symbol) in the box. Then, click on "Compare" and assess the relationship between the market index movements and the stock's price movements. Explain whether the stock's price movements appear to be driven by the local market conditions. Repeat this exercise for each foreign stock in which you invested.	Determine whether your foreign stock prices are highly correlated with each other. Repeat the process described above, except insert the symbol representing one of the foreign stocks you own in the box below the chart.	Determine whether or not your foreign stock's performance is driven by the US market (using the S&P 500 as a market proxy). Erase the symbol you typed into the box below the chart, and click on "S&P" just to the right.	Review annual reports of news about your U.S.-based MNEs to determine where it does most of its business and the foreign currency in which it would be most exposed. Determine whether your U.S.-based MNE's stock performance is influenced by the exchange rate movements of the foreign currency (against the U.S. dollar) in which it is most exposed. Go to http://www.oanda.com and click on FXHistory. You can convert the foreign currency to which the MNE is highly exposed to U.S. 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.	Repeat the steps in Question 6 for each foreign-based stocks in which you invested.	Notes:	• Each must prepare four pages (excluding graphs and tables,		which I strongly recommend you to use) report (double space, 12 cpi, Times		New Roman font) for each report. Please see also the attachment file.

Robert · Accepted Answer

Analysis of the portfolio                                                                                                           1
Analysis of the portfolio
Analysis of the portfolio                                                                                                           2
Introduction: 
Investment is one of the most important aspect that is needed which helps in fulfilling different 
future needs of the investor. There are different assets in which an investor can invest so as to 
have a future benefits from the required investment. Every investment entails an amount of some 
risk which is associated. Investment helps in promising the return of the original amount along 
with an adequate return. So, investment is very important as it helps in fulfilling different future 
needs of the investor.  
The investor should focus on making a diversified investment portfolio which will help the 
investor in mitigating the risk and having high return on its investment. In this report we will 
focus on investing in two different companies which will help in providing adequate return on 
the investment done. 
Trend of the stocks: 
Firm’s  Name
Ticker Symbol
% Change in  Price 
Since  14/09/2012
Primary Reason for 
Change in Price
Concho Resources CXO (20.51%) Due to major 
fluctuation of prices. 
Apple AAPL (22.21%) Due to major change 
in product line and 
underperformance of 
newly launched 
iPhone 5. 
Coca Cola KO (4.62%) No introduction of 
new products. 
CVS Caremark CVS (1.15%) Change is minor, but 
recovery can be an 
issue. 
Unilever UL 0.55% Change is minor. 
Sony SNE (16.48%) Due to 
underperformance of 
large product line. 
Tata Motors TTM 1.26% Change is minor, 
holds good future as 
per experts. 
Analysis of the portfolio                                                                                                           3
Gold Fields GFI 0.54% Change is minor, 
good for risk averse 
people. 
Average Return on Your Portfolio
(7.83%)
Considering the trend we can say that the stock prices of the companies has declined during the 
period, Presidential Elections in United States is one of the reason for decline in the prices of US 
companies. 
Relationship between the US market and stocks: 
The Period taken for analysis under this part is 05/11/2007 to 05/11/2012, for each of the US 
stocks.
Concho Resources having a market capitalization of 8.29B Dollars, has a beta of 1.53, this 
means stock is considered more risky by the investors and are ready to take risk of investment in 
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this scrip and as we can see from the above analysis of last 5 years, stock has over performed in 
comparison to S&P index.  Hence it is recommended to have short position in this stock for 
immediate profits. 
Apple Inc. having a market capitalization of 505.86B Dollars, hence showing the trust of global 
investors and is having a beta of 0.91, this means stock is not much risky and as we compare it 
with S&P stock indices, till 2011 it remained perfectly co-related with the index, and has after 
that shown over-performance. It is recommended to have long position in the company, because 
the company has some superb product line and due to increased global operation. 
The Coca-Cola Company is having a market capitalization of 163.08B dollars and beta of 0.42, 
is considered to be low risk company and as we can see from the above analysis, stock is 
perfectly co-related with the S&P index. Hence, this type of scrip is perfectly suited for risk 
averse investors. 
CVS Caremark Corporation is having market capitalization of 57.85B dollars and beta of 0.87,

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Global Investment Portfolio Project -02 Assuming you are still holding the same stock portfolio you originally selected in Module 2. How has your portfolio performed since? Evaluation On November 09,...

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Firm’s Name	Ticker Symbol	% Change in Price Since 06/01/2012	Primary Reason for Change in Price
Average Return on Your Portfolio