International Investing Project, business and finance homework help

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I have chose the companies and done step 1

you need to update the information and complete the 5 steps in attached file

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International Investing Project Stock Selection The design of portfolio, two American based MNC named- Walmart and JP Morgan Chase, and two non-USA based MNC named- Samsung from South Korea, and TATA Motors from India have been selected. The underlying rationale of selection of these companies are that these companies have high reputation and strong market position in their respective industries. U.S.A based MNC Selection Company Origin Listing Industry Products Walmart USA NYSE Consumer Retailer JPMorgan Chase USA NYSE Financials Food, health & beauty, and other consumer daily necessity products banking and financial services Current Share Price 65.60 86.93 Non-U.S.A based MNC Selection Company Samsung Origin Listing South Korea NASDAQ India NYSE TATA Motors Portfolio Design Industry Products Technology Consumer Hardware & electronic, mobile Equipment communication & device solutions, and computer peripherals Automobile Commercial and passenger vehicle Current Share Price 208.25 40.10 The portfolio will be designed with total of $40000. Total fund will be allocated to $10000 in each stock. That means that each stock in the portfolio will be assigned weight of 25%. Selection of four companies will provide high diversification benefit. Portfolio Design Stock Walmart JPMorgan Chase Samsung TATA Motors Portfolio Money Invested Weight Consumer Retailer 10000 25.00% Financials Technology Hardware & Equipment Automobile 10000 25.00% Industry 10000 25.00% 10000 25.00% 40000 100.00% Current Number Share of Share Price Purchase 65.60 152 86.93 115 208.25 40.10 48 249 References JP Morgan. (2017). Retrieved January 27, 2017, from ADR: https://www.adr.com/ Top Foreign ADRS. (2017). Retrieved January 26, 2017, from The Full List of Japanese ADRs: http://topforeignstocks.com/foreign-adrs-list/the-full-list-of-japanese-adrs/ Top Foreign Stocks. (2017). Retrieved January 27, 2017, from The Full List of Indian ADRs: http://topforeignstocks.com/foreign-adrs-list/the-full-list-of-indian-adrs/ Yahoo Finance. (2017). Retrieved January 27, 2017, from Wal-Mart Stores, Inc. (WMT): Summary: http://finance.yahoo.com/quote/WMT?ltr=1 Yahoo Finance. (2017). Retrieved January 27, 2017, from JPMorgan Chase & Co. (JPM): Summary: http://finance.yahoo.com/quote/jpm?ltr=1 International Investing Project This project allows you to learn more about international investing and about firms that compete in the global arena. You will be asked to create a stock portfolio of at least two U.S.-based multinational corporations (MNCs) and two foreign stocks. You will monitor the performance of your portfolio over the semester 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 insights on what is driving the valuations of the U.S. –based MNCs and the foreign stocks over time. Step 1: Form your portfolio 1. Select two stocks of US.-based MNCs: 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 http://biz.yahoo.com/i/, which lists stocks alphabetically, or to http://biz.yahoo.com/p/, which lists stocks by sectors or industries. You can select an industry; Click on “More Info” on the right most and then click on “Company Index”. You will see a list of companies in this industry. Requirements on US-based MNCs: a). The firms are from different industries b). The firms must conduct a substantial amount of international business. 2. Select two foreign stocks: Select two foreign stocks that are traded on US stock exchanges. Many foreign stocks are traded on US stock exchanges as American depository receipts (ADRs), which are certificates that represent ownership of foreign stock. ADRs are denominated in dollars, but reflect the value of a foreign stock, so an increase in the value of the foreign currency can have a favorable effect on the ADR’s value. To review a list of ADRs in which you may invest, go to http://www.adr.com/, and click on DR Search. Then you can select ADRs. Alternatively, you can select foreign stocks from the list of ADRs (Excel file) posted on class website on Canvas. Requirements on ADRS: The ADRs that you select must meet the following requirements as we need to compare the stock performance with the local stock index in Step 3. a). Listed on NYSE or NASDAQ b). Not from the same foreign country c). The firms are based in any of the countries shown on the website https://finance.yahoo.com/world-indices The match of country and index code is shown below: 1. Argentina 2. Brazil 3. Canada ^MERV ^BVSP ^GSPTSE 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. Mexico: Australia Japan China India Indonesia Malaysia New Zealand Singapore Taiwan HongKong South Korea Austria Belgium France: Germany Nitherlands Norway Italy Spain Sweden Swiss England Egypt Isreal United States ^MXX ^AORD ^N225 ^SSEC ^BSESN ^JKSE ^KLSE ^NZ50 ^STI ^TWII ^HSI ^KS11 ^ATX ^BFX ^FCHI ^GDAXI ^AEX ^OSEAX ^MIBTEL ^SMSI ^OMXSPI ^SSMI ^FTSE ^CCSI ^TA100 ^GSPC Click on any company listed to review background information, including a description of its business and its stock price trend over the last year. It is assumed that you will invest $10,000 in each stock that you purchase. Step 2: Monitor your portfolio By Jan. 23, each group should submit a table in the following format: US-Based MNCs Name of Firm Ticker Symbol Amount of Investment Price per Share Trade Date $10,000 $10,000 Foreign Stocks (ADRs) Name of Firm Ticker Symbol Country Amount of Investment Price per Share $10,000 $10,000 Trade Date You can easily monitor your portfolio using various Internet tools. If you do not already use a specific website for this purpose, go to http://finance.yahoo.com/?u and register for free. 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 and recent news and other information on the stocks in your portfolio. Step 3: Evaluate your portfolio Every two weeks, you should evaluate the performance and behavior of your stocks. 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 institution. To review the recent news about your stock, click on http://finance.yahoo.com/?u and insert the ticker symbol for each firm. Portfolio Performance Monitoring Name of Firm Percentage Change in Stock Price Primary reason Portfolio (Average) 2. Determine whether the performance of each of your US-based MNCs is driven by the US market. Go to http://finance.yahoo.com/?u and insert the symbol for your stock. Once the quote is provided, click on chart. Click on Compare and then click on the box marked S&P (which represents the S&P 500 Index). Now you can assess the relationship between the US market index movements and the stock’s price movements. Explain whether the stock’s price movements appear to be driven by US market conditions. Repeat this task for the other US-based MNC in your portfolio. 3. 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 http://finance.yahoo.com/world-indices 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; Then click on Compare, 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 Draw 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 for the other international stock. 4. 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 US dollar. You can obtain this information from http://www.oanda.com. Click on CURRENCY CONVERTER. You can convert the foreign currency to US 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 this for the other international stock. Step 4: Present the evaluation of your portfolio to the class. Background information about the business of the firms in your portfolio is required. (April 10, 12, 17, depending on how many groups we have) Step 5: Submit a 4-5 page long report regarding the evaluation of your portfolio. (Due on May 1.) All papers should be typed (single spaced paragraphs and double-spaced between paragraphs, 12 pt Times Roman font, 1 inch margins).
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Explanation & Answer

Here is the answer of part three. Thanks

Evaluation of the Portfolio Performance
Stock Return
Portfolio Performance Monitoring
Percentage Change in
Name of Firm
Stock Price

Primary reason
Increase of price as well as return was attributed by the news of –



Walmart
JP Morgan Chase

(75.10-65.60)/65.60 =
14.48%
(87.00-86.93)/ 86.93 =
0.08%

No significant news were found out for the JP Morgan Chase Bank
Limited.
The high return from the Samsung was as follows –




Samsung

TATA Motors

Portfolio (Average)

(1850.00-1360.00)/
1360.00 = 36.03%

(35.67-40.10)/ 40.10 = 11.05%
(14.48% + 0.08% +
36.03% -11.05%)/4 =
9.89%

Expansion of business in India
Raising of dividend in this year by $0.04 (From $2.00 to
$2.04).

News of introduction and marketing of Samsung Model S- 8
for the users.
N...


Anonymous
Really helpful material, saved me a great deal of time.

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