Investment Analysis and Performance Evaluation Research Paper

Determining Stock Performance and Market Conditions

1.
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. Was it because of the markets where your firms  do their business or because of firm-specific conditions? 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.
2.
Determine whether the performance of each of your U.S.-based MNCs is driven by the  U.S. market. Go to the site http://finance.yahoo.com/?u and insert the symbol for your stock. Once the quote is provided, click on 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 MNC in which you invested.
3.
a. Determine whether the performance of each of your foreign stocks is driven by the corresponding market where the firm is based. First, go to the site and look up the symbol for the country index of concern. For example,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.
b. Determine whether your foreign stock prices are highly correlated. Repeat the  process described above, except insert the symbol representing one of the foreign  stocks you own in the box below the chart.
c. Determine whether your foreign stock’s performance is driven by the U.S. 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.
4.
a. Review annual reports and news about each of your U.S.-based MNCs to determine where it does most of its business and the foreign currency to which it is most exposed. Determine whether your U.S.-based MNC’s stock performance is influenced by the exchange rate movements of the foreign currency (against the U.S.dollar) to which it is most exposed. Go to www.oanda.com and click on FXHistory. You can convert the foreign currency to which the MNC 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.
b. Repeat the steps in 4a for each U.S.-based MNC in which you invested.
5.
a. Determine whether the stock performance of each of your foreign firms is influenced by the exchange rate movements of the firm’s local currency against the U.S. dollar. You can obtain this information from www.oanda.com. You can convert the foreign currency of concern 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.
b. Repeat the steps in 5a for each of the foreign stocks in which you invested. Write the research paper in APA format. This format includes: title page, identifying the subject, the authors, the course, professor, term and date. Following are the  introduction, statement of objectives, narrative body, conclusion and finally the bibliography. If you need help with APA style there are excellent resources in the Florida National University Library. In addition, the following is a very good online resource: . Many students lose grade points because they do not take the trouble to structure, footnote or provide the paper and bibliography  correctly in APA format; don’t let this be you! Excluding the title page and bibliography,  your paper should be four to six pages in length double-spaced. Times New Roman, font size 12.