Solved: FOREIGN STOCK AND CURRENCY EXCHANGE PROJECT FIN 4604

FOREIGN STOCK AND CURRENCY EXCHANGE PROJECT FIN 4604 THIS IS A GROUP PROJECT. INDIVIDUAL PROJECTS NOT ACCEPTED THREE (3) or TWO (2) STUDENTS PER GROUP Major learning goals

To understand some of the factors that influence exchange rates and stock markets of major economies from day-to-day.
To be able to read and understand financial press articles on exchange rates and stock returns.
To convert asset values in one major currency to any other major currency using information provided on Bloomberg terminals.
To develop an understanding of the distribution of global financial assets and the expanded opportunity set of investments available to an internationally literate investor.

The project requires that each group invest $1million in the S&P 500 (the US major market index representing the domestic investment) and invest $1million EACH in TWO foreign major market indexes at the prevailing spot exchange rate on day one for one week (five working days) The major tasks you must perform are as follows:

Record the exchange rates between the US dollar and each of the currencies of the two major foreign markets you have selected. Record daily changes (OPEN to CLOSE) in the S&P 500 and in the TWO major market indexes as well for five consecutive working days between 10/21/19 to 10/25/19. Your report must be turned in on or before midnight on 11/01/19. Late reports will not be accepted.

You may obtain the stock and currency information from Bloomberg in real time and present a spreadsheet tracking your domestic and foreign portfolio values in dollar and local currency terms every day of the holding period. Present a clear spreadsheet of the daily evolution of your portfolio along with written explanation of what happened in each market and why.

Follow your US dollar portfolio for five working days and record daily changes in value along with your explanations of what factors are moving the market. Pay particular attention to the financial press and other relevant news.
Follow the value of your foreign portfolios at the end of each trading day and record their daily local currency and dollar values. Provide explanations of the factors driving the values of your foreign portfolios including exchange rate developments and other global economic factors.
Compare your domestic and foreign portfolios at the end of the five-day trading period, IN DOLLAR terms and explain why your foreign portfolios gained or lost value over your domestic portfolio during the investment period.

Keep your project report to three (3) pages (12 fonts, double spaced) in addition to the supporting data (spreadsheet). Submit a hard copy in one document. If necessary the professor may also request a soft copy. Grading will be based on:

Correct exchange rates and stock returns.
Correct calculations
Quality of written report
Demonstrated understanding of how to obtain the effective dollar return on US investors’ foreign investment.

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