I. Title Page.
II. Table of Contents
III. Table listing stock in each group you chose, stock symbol, purchase price per share, number of shares
purchased, total investment in each stock (minimum $5,000; maximum $50,000).
Example:

Group Stock Stock Purchase Price Number of Shares Total Initial
Number Name Symbol per Share Purchased Investment
1 Microsoft MSFT $30.78 1,000 $30,780

IV. Portfolio – Copies of your portfolio for each business day of the month (daily closing prices for each
stock) historical prices>
V. Table showing 52-Week hi/low information (as of the purchase date) for the stocks you chose. Chart-
VI. Table showing Fortune 500 and Global 500 rankings (if applicable) for the stocks you chose.
VII. Press releases and current (no more than 6 months old) news articles about each of your eight companies;
highlight pertinent information.
VIII. In your own words, write an overview of each company you selected. Suggested information to include:
company website address; physical location/address of home office; name of CEO; number of employees;
product(s) company manufactures or services it provides; financial information, such as up-to-date revenue
and expense information and/or earnings estimates; competitors; background / company history; any other
information you find interesting. *Basically, include all of the information about your company that you
learn over the course of the project.
IX. Write a concise, one page yet thorough explanation and analysis for each of the stock purchase choices
you made. Write your evaluations in your own words. Be specific about why you chose each company and cite the
source for the information which you used to support your choices. For instance, is the industry growing, is
the stock about ready to split, is the stock price near its 52-week low, etc… Do not write “I liked the
symbol or the product.” Put some thought into this; if you read that analysts are listing the stock as a
“strong buy,” include that information.
X. Calculate in dollars how much you gained or lost on your portfolio. Explain why your portfolio went up or
down; why do you think it went up or down. In this section, include any additional information you feel is
relevant to the companies you selected. Be sure to include what you learned from this project, and what your  future investment goals may be at this time.

investment project
Paper details:
FIN 3032/5032 – International Financial Management Spring 2016
INTERNATIONAL INVESTING PROJECT

Introduction
This project allows you to learn more about international investing and about firms that compete in the global arena. Your assigned group will evaluate the stock performance of a U.S. multinational (MNC) / foreign corporation ADR (ADR) competitor pair. You will monitor the performance of your pair of firms over a specified period and will compare and contrast the movements of the stocks relative to each other, the markets, and currencies. The explanations will offer insight on what is driving the valuations of the U.S.-based MNCs and the foreign stocks over time.
Dates
Wednesday, January 13: Student groups will be formed by the professor and firm pairs assigned.
Friday, March 25: Project reports due at start of class.
Mar 25, 28, & 30: Group in-class presentations
Monday, April 4: Project Assessments due at start of class.
Grading
10 points Project reports turned in on time
60 points Project report
20 points Presentation
10 points Project Assessment
100 points Total (15% of course grade)
Details
Each group will be assigned two firms, direct competitors headquartered in two different countries. Using the closing stock price information from August 31, 2015, through February 29, 2016, you will evaluate the performance and behavior of your stocks. Beginning and ending currency values will be provided by the professor. Use the following structure:

1. Determine the percentage change in each of your stocks over the period of your investment. In addition, offer the primary reason for this change in the stock price based on news about that stock or your own intuition. Recent news about your stock can be found using several different websites, including http://finance.yahoo.com.

2. Determine whether the performance of your MNC’s stock is driven by the U.S. market (use the S&P500 as a market proxy). Go to http://finance.yahoo.com and insert the symbol for your stock. Once the quote is provided, click on the link “Interactive” along the left side of the page. Click on “Comparison” and then click on “S&P 500” in the box that appears. 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.

3. Determine whether the performance of your ADR’s stock is driven by the corresponding market where the firm is based. First, go to the site http://finance.yahoo.com/stock-center and look up the symbol for the country index of concern (use the drop down box). For example, Brazil’s index is ^BVSP. Next, enter the symbol for your stock and click on the link “Interactive” along the left side of the page. Click on “Comparison” and then insert the corresponding market index symbol (make sure you include the ^ if it is part of the index symbol) in the box. 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.

4. Determine whether the stock prices of your firms are highly correlated.

5. Determine whether your ADR’s performance is driven by the U.S. market (using the S&P 500 as a market proxy). Use step 2 above as a guide.

6. Review annual reports and news about your MNC to determine where it does most of its business and the foreign currency to which it is most exposed. Determine whether the performance of your MNC’s stock is influenced by the exchange rate movements of the foreign currency (relative to the U.S. dollar) to which it is most exposed (only consider ONE foreign currency). Go to www.oanda.com, click on “Currency Converter”, and then click on “Historical Exchange Rates”. You can convert the foreign currency, to which the firm is highly exposed, to U.S. dollars and determine the exchange rate movements over the period being reviewed. Provide your assessment of the relationship between the currency’s exchange rate movements and the performance of the stock over the investment period. Explain the relationship that you just found.

7. Determine whether the stock performance of your ADR’s stock is influenced by the exchange rate movements of the firm’s local currency relative to the U.S. dollar. Use step 6 above as a guide.

Project Report requirements
1. The presentation report should be a well-organized, concise, and simple document. Your report should have the following headings:
a. Brief introduction of the two stocks
b. Stock performance
c. MNC stock performance vs. U.S. market
d. ADR performance vs. Home market
e. Correlation of stocks
f. ADR performance vs. U.S. market
g. MNC stock vs. Foreign currency exchange rate
h. ADR vs. Exchange rate
i. Final assessment

2. The headings b-h coincide directly with steps 1-7 in the Evaluation section. For EACH of these headings, you may include one table (max), one chart or graph (max), and no more than two paragraphs. For the final assessment (i), summarize in one or two paragraphs what you have learned through this process about your firms.

3. Use Microsoft Word to develop your document, following these guidelines:
a. Font size = 12
b. Single-spaced
c. Margins set at 1” on all sides
d. Include bottom page numbers

4. Email the final document to the professor before the identified deadline. No hard copies.

Presentation requirements
1. The presentation should include a PowerPoint deck that includes one slide each for the following:
a. Identification of group members
b. List of portfolio stocks, including a brief description of the area(s) in which the firms compete.
c. One slide each for items a-h in “Report requirements” above.

2. Slides for 1a and 1b above should include a bullet list. Slides for 1c should include tables or graphs only. Accompanying labels are acceptable to provide context to the visuals. All discussion should be done by the presenters and not the slides.

3. No special dress code is required, but it is recommended that the group practice the presentation beforehand. The order of presentation will be random, so all teams should be prepared to present on the first day.

Helpful hints
The website http://finance.yahoo.com is one of many sites that provides a wealth of information (e.g., company information, stock price history) on individual stocks of MNCs and ADRs. You may find other sites with valuation information as well.
FIN 3032/5032 – International Financial Management Spring 2016
INTERNATIONAL INVESTING PROJECT

PROJECT ASSESSMENT
*** This document should be completed in Word (or similar) by EACH group member and turned in as a HARD COPY during the deadline period noted. Emailed versions will NOT be accepted.
This assessment is due Monday, April 4, at the beginning of class.

Answer the following questions INDIVIDUALLY and not as a group.
Review your notes from the presentations of the portfolios from the other groups.
1. How does the performance of your two stocks compare to the stocks of some other students? Why do you think your performance was relatively high or low compared to other students’ performances? Was it because of where your firms do their business, firm-specific conditions, or other factors?
2. Rank the level of your individual work input toward the group’s final product relative to your fellow group members. Be honest.
3. If you could do one thing differently related to completing this project, what would it be? Why?