International Investing Project: Assessment Answer

International Finance Assignment:

Task:

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 two Australian multinational corporations and two foreign stocks. You will monitor the performance of your portfolio over the school term and ultimately will attempt to explain why your portfolio performed well or poorly relative to the portfolios created by other students in your class. 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 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$10,000 in each stock that you purchase. Your purchase price should be the closing price of the stocks you have chosen as at 17th November 2017.