Reference no: EM131918403
Assignment 1:
Discuss the advantages and disadvantages of closed-end country funds (C.E.C.F.s) relative to American depository receipts (A.D.R.s) as a means of international diversification.
Why do you think closed-end country funds often trade at a premium or discount? Respond to at least two of your classmates' postings.
Assignment 2:
You are now aware of the importance of building a diversified portfolio to include foreign securities.
One aspect of your international portfolio should be cash. Let's assume you want to invest in a foreign country for 1 year.
Go to bloomberg and select the "Markets" section. Then select "Rates and Bonds" and click on a country to review its interest rates.
Select a country to invest in for one year. Describe in 200 - 300 words why you chose that country and your expected yield for the next year. Be sure to respond to at least two of your classmates' postings.
Assignment 3:
Select a foreign country and analyze its monetary system.
Research the country's monetary system using at least five scholarly sources, including a minimum of three from the Ashford Online Library.
Your analysis should be an eight to ten page paper formatted according to APA style guidelines.
Address the following aspects in your paper:
Analyze the evolution of the country's monetary system, including the impact of any fiscal monetary and trade policies.
Describe the major components of the monetary system, including organizations and financial institutions.
Describe the currency exchange rates and any significant economic impacts on the exchange rates.
Plot the currency exchange rate against the US Dollar
Select US Dollar as the base currency
Select your countries currency as the target currency
Time horizon should equal one year
Select make chart. Include this chart in your analysis
Analyze the issues around economic exposure, transaction exposure, and translation exposure.
Recommend to investors whether they should buy or sell futures or options in that currency.
Writing the Final Paper
The Final Paper:
Must be eight to ten double-spaced pages in length, and formatted according to APA style as outlined in the Ashford Writing Center.
Must include a title page with the following:
Title of paper
Student's name
Course name and number
Instructor's name
Date submitted
Must begin with an introductory paragraph that has a succinct thesis statement.
Must address the topic of the paper with critical thought.
Must end with a conclusion that reaffirms your thesis.
Must use at least five scholarly sources.
Must document all sources in APA style, as outlined in the Ashford Writing Center.
Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.