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1、InternationalInvestingGame.Youaregoingtoselectatleasttwoforeignstocksthatarenotfromthesamecountrytopurchaseinanattempttooutperformyourclassmates.Prizeswillbeawardedattheendofthesemestertotheoverallwinner/s.Tobegin,youmustsignup.Todoso,Clickonthislink:http://vse.marketwatch.com/Setupanaccount.Makesu
2、reyourscreennameisyourREALNAME.Firstnamethenlastname.Nowjoinagame.ThegamenameinFNCE4597S07,passwordisetsubucs.GamestartsFeb.5andendsApril13.Youmustbesignedupandhaveatleast$20,000investedinstocksbyFeb.12.Onepointdeductedforeachdaypastthisdateinwhichthisisnotdone.Rules:Youareonlyallowedtopurchasewhat
3、arecalledAmericandepositoryreceipts(ADRs)whicharecertificatesthatrepresentownershipofforeignstocks.SeeWSJarticlebelow.Theotherrestrictionisthatyoucan'ttradestocksunder$3.Youhave$25,000tostart,youcanbuyonmargin,youcanshort-sell,placelimitorders,etc.Tradescost$9.95each.(DONOTBUYSTOCKSTHATARENOTADRS).
4、Youwillbedisqualifiedandlosepoints.TofindalistofADR’s,gotohttp://www.adr.comClickonADRuniversebuttonontop.HereyoucanclicktheAllbutton,anyletterofthealphabet,orselectbyregion,countryandevensectors.Foratleasttwoofyourstocks,makesureitisinacountrythathadanindexthatistracked.Toseewhichcountriesthathave
5、indexeswecanuse,gotohttp://finance.yahoo.com/intlindicesClickonworldandyoushouldattainalistfortheAmericas,Asia/Pacific,etc.Assignment:Foreachmonth,picktwoofyourstockstoanalyzethathaveacorrespondingcountryindex.Theycanbethesametwoordifferenteachmonth,butyouneedtwo.Youaregoingtoattempttodeterminewhye
6、achofthetwostocksmadeorlostmoneyeachmonthbycomparingtheirreturnstotheS&P500,theirowncountry’sstockmarket,andtoexchangeratefluctuations.Fillinthefollowingtable.1.NameofFirmDatePriceS&P500CountryIndexFXRate12-Feb2-Mar%changeForassignments2and3,thedatesshouldbeMarch2–30,andMarch30toApril13.Youwillhave
7、tocalculatethe%changewhichissimplythedifferencedividedbytheinitialamount.Note:Toattainhistoricalforeigncurrencyexchangeratesforthelastcolumninyourtable,clickhere:(UsedollartoFXsuchasUSDtoEUR)http://www.oand