International Investing Project - Term Paper Example

International Investing Project of Portfolio in the following format:Number of stocksName Of FirmTicker SymbolCountry Amount Of Your InvestmentPrice Per Share At Which You Purchased The Stock27Apple IncAAPLUSA$10,114.2$ 374.60116McDonalds CorpMCDUSA$9,978.32$86.02117Siemens AGSIADR$10,174.3286.96204China Mobile LimitedCHLADR$9,726.7247.68Cash unutilised 6.44Total 40,000Percentage increase or decrease in each of your stocksName of firmPrice at 31st October 2011.Price at 1st October 2011.Percentage change in stock pricePrimary reason1.Apple Inc.404.78374.608.

057%Market forces 2.Mcdonald 92.9586.028.056%Market forcesForeign Stocks (ADRs)3.SI104.9786.9620.711%Improvement of economy in the home country4.CHL47.5647.68-0.252%Exchange rates and other factorsPortfolio (average)9.143%Portfolio Return = 0.25(Stock 1)+ 0.25(Stock 2)+ 0.25(Stock 3)+ 0.25(Stock 4)Comparing the movement of USA stocks and S & P 500 indicate that their change has something to do with the rest of the market. Their returns are similar to what S&P 500 is exhibiting. This means that, the volatility of the indexes is accurately related to the returns given stocks.

We can hardly say that stocks returns are s better than S&P 500 because they are still both within the positive range. Since the analysis covers only 30 days, it creates a very bad picture considering there are many opportunities for these stocks to grow and reach to levels of several thousand dollars. The stability of the market as a whole but that also means extremely low growth potential if ever there is any worth considering at all. The performance of Siemens AG also takes a positive trend as their USA stocks but had higher returns than other stocks under consideration due other factors than the market.

This means that the stocks’ performance. The stock prices for both are also in the on the side. CHL is at least in the decent deviation of -0.252%. The stock prices alone are already telling the investor which one is a better pick. It does not mean however, that CHL is a good investment or bad because the change is negligible. This means that the stock was not influence by market changes. The main reason may because of majority of the business is also ultimately dependent on the oil industry.

Which is being an affected changes being in Middle East.The implications of portfolio return and risk in connection with market points out the degree of volatility in the changes of the portfolio return. In this case, a positive portfolio return with a positive return of the market both generates positive returns. The major defect of this analysis in the first place is the computation of returns within two day only. The extreme swings of the market are simply too unpredictable to make a safe investment (Graham 2004).

To start with, it is not a profitable investment already. The picture we have painted above will change drastically should we look at this situation using 5 or 10 yrs as range when computing for stock returns. Obviously, the short term investing style is not as easy or profitable as when you are investing for the long term and evaluating major trends on the stock, not just the daily fluctuations on the stock market. In terms of predictability, we will find it extremely hard to judge the profitability of the stock alone just by using beta since it is also a relative value computed within a chosen time range.