The Investment Policy Committee

this is 2 assignments The Investment Policy Committee of your firm is considering adding International Securities to their groups of portfolios. They have requested that you, as a Financial Analyst perform some research to aid them in the decision-making process. Specifically the committee would like to see some comparisons of returns, and other relevant portfolio theory statistical data of domestic stocks with international stocks. They would also like to read a report of your recommendations with regard to your findings. Deliverables: Visit this finance Web site, and select two Large Cap Growth stocks. Select 1 company where the stock primarily trades in the US domestic financial markets, and select another that is an International Company that primarily conducts business outside of the US borders. Obtain the last 10 months of closing stock prices, and then compute one average price for each month. Using the average price data, create an Excel file and use the appropriate Excel functions to determine the average return, standard deviation, variance, and correlation for the two stocks for the last 10 months. Create a Word document using APA Style and discuss each of these financial metrics, and interpret your results. Also consider potential currency risks as part of your discussion. Reference Yahoo! finance. (n.d.). Retrieved from http://finance.yahoo.com/ assignment 2 As the newly-hired pension fund management team for a Multinational Corporation, you are responsible for managing the $100 Million portfolio on behalf of the association. The monies are currently 100% invested in cash and cash equivalents. Write a paper of not more than 10 pages, as follows: Determine an appropriate asset allocation percentage between fixed income, stocks, and cash, in accordance with a moderately conservative risk-tolerance investment policy. Describe, and defend your selections of Capital Markets Securities investment categories that would be suitable given the policy parameters and constraints of your directives. With regard to your securities selections: Consider types of securities, maturities, Credit ratings if appropriate, and other important criteria. You have also been instructed to add an international component to aid in diversification efforts. This multinational corporation has a satellite branch in London, England. The financial statement below reflects this year’s income statement for this branch. Please provide the income statement below converted into US Dollars. Discuss accounting exposure and the impact it may have on profits. Q & R Manufacturing Income Statement 2012 [British Pounds] Sales 100,000 Cost of goods sold (COGS) 75,000 Gross profit 25,000 selling expenses (15,000) administrative expenses (1,000) marketing expenses (2,000) Profit 7,000 As a Multinational Corporation, there are many reasons why currencies trade hands including import and export transactions, foreign direct and portfolio investments, borrowing and lending money, and for raising equity capital. Identify the major characteristics of the foreign exchange market. How do governments control the flow of currencies across national borders? Use APA standards in writing your paper.

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