Assignment on International Finance Sample
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Added on 2020-06-04
Assignment on International Finance Sample
Added on 2020-06-04
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INTERNATIONAL FINANCE
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1(1).....................................................................................................................................................1(a) Performance of portfolio........................................................................................................1(b) Comparison of portfolio with same of other students............................................................1(2) Australia companies stocks and index performance..................................................................1(3).....................................................................................................................................................2(a).................................................................................................................................................2(b) Relationship between foreign stocks......................................................................................3© Relationship between foreign stocks and Australia stock exchange.......................................4(4).....................................................................................................................................................4(a) Coorelation between exchange rate and stock performance..................................................4(5).....................................................................................................................................................4(a) Correlation between exchange rate and stock performance in case of foreign companies....4CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................6APPENDIX......................................................................................................................................7Figure 1ASX and firms BlueScope and Aristocrat Lesiure performance.......................................1Figure 2Air New Zealand performance and index..........................................................................2Figure 3Air Xpander performance and index..................................................................................2Figure 4Foreign companies stocks..................................................................................................3Figure 5Relationship between Air New Zealand and Air Xpander as well as ASX.......................4
INTRODUCTIONPortfolio creation is the one of the most technique that is used for earning good amount ofprofit on investment. In the current report, 4 companies are analyzed 2 of which are Australiabased and other one are USA and New Zealand based. Correlation method is used to identifyrelationship between stocks and currencies and impace of latter one on former one is identified.Apart from this, through charts stocks are analyzed. Apart from this, reasons that are responsiblefor stock price movement are also identified. In this way, entire research work is carried out. (1)(a) Performance of portfolioAll calculations and details are given in appendix.(b) Comparison of portfolio with same of other studentsPortfolio performance is expected to be lower in comparison to other students becauseoverall return generated by portfolio is 0.78% which is quite low as expected in comparison toportfolio of other students. Poor market performance is the one of the basic reason behind such alow return that is generated by portfolio. Return generated by Australia, USA and New Zealandmarket are 2%, -3% and 11% which are low and due to this reaosn stocks failed to generate goodreuturn for investor. (2) Australia companies stocks and index performance123456789101112131415161718192021222324252627282930313233343536373839-8%-6%-4%-2%0%2%4%6%Chart TitleBlue Scope Steel limitedAristocrat Leisure Limited ASXFigure 1ASX and firms BlueScope and Aristocrat Lesiure performance1 | P a g e
InterpretationChart is reflecting that Blue scope and ASX are performing most of time in samedirection and there is difference between both of them in terms of return. However, chart isindicating that Aristocrat and ASX performance are less in same direction. It can be seen that onmany occassions when ASX increase share price of Aristocrat Leisure decline. Thus, there is lesscoorelation between Aristocrat Lesiure stock and index and vice verse for Blue Scope SteelLimited.(3)(a)13579111315171921232527293133353739-5%-4%-3%-2%-1%0%1%2%3%4%Chart TitleAirNewzealandNZXFigure 2Air New Zealand performance and index13579111315171921232527293133353739-8%-6%-4%-2%0%2%4%6%8%Chart TitleAirXpandersNYSEFigure 3Air Xpander performance and index2 | P a g e
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