代做FINC6013 International Business Finance Semester 2, 2024代做Java语言

日期：2024-09-27 06:14

FINC6013

International Business Finance

Semester 2, 2024

Group Assignment

Instructions

This?is?a?group research project?that must be?completed?and?submitted?as?a?group.?Web-based?checks?on plagiarism will be conducted on each group project.

Mark Allocation:

This?project?will?be?marked?out?of?30 and?constitutes?30% of?your?overall?grade.

Length:

The?length?of?the project must NOT EXCEED 12 typed pages?with?double?spacing,?12?points?Times?New Roman, including executive summary and references but excluding appendix, if?used.?Appendices?must?not?exceed?5 pages. There?will?be?a penalty of 1 mark per page for?not?meeting?this?requirement.

What’s included in the 12 page limit?

?????Executive summary

? ???Assignment body

?????Tables

?????Figures

?????Reference list

What’s excluded from the 12 page limit?

?????Title?(Cover) page

?????Table of?contents

?????Appendices

Due date:

The?due?date?and?time?for?the?project?is 2024-10-18 23:59 (Sydney time).

Submission:

The only acceptable form. of submission is electronic via the submission link in the unit’s Canvas site. Hardcopy and email submissions will NOT be accepted. Late submissions will be penalized. See?below?for?penalty?details. All submission will be checked through TURNITIN for similarity with external sources.

The?TURNITIN?assignment?submission?box?will?close?at?5:00pm?on November 1st, 2024 (Closing?date).

Submission format:

Each group can only submit ONE project report. Only ONE submission for each group is permitted. It is imperative that your project report is submitted in ONE?document.?Only?a?PDF?format?document?will?be accepted and it is?your?responsibility to ensure all?pages correctly display?your original?content. Missing or distorted figures and formulas will result?in?lower marks.

Cover page:

Ensure the?Student?Identification Number?(SID)?and the?full name?of EACH?student?are?on the?cover?page of?your assignment.

Document name:

Your project PDF file must be named in the following format:

FINC6013_Groupnumber_ 2024.PDF

Example:

FINC6013_Group14_2024.PDF

There will be a penalty of 1 mark for incorrectly named projects.

Referencing:

List of?references used and in-text citations must follow the Harvard referencing?style.

http://libguides.library.usyd.edu.au/content.php?pid=160012&sid=1510179

Presentation:

Pay?particular ?attention??to?presentation.?A?significant component of?your?mark?will?be?based on?presentation. Avoid?overdoing?formatting,?and?ensure?that?the?assignment?is?very?clear,?logical,?and?professional. Pay?attention to?grammar.?Clear and?logical presentation?is?a major?challenge.?Preparing?a?concise report?is?another major challenge. Every part?of?the?assignment?should?add?to?the?end?result?otherwise it is superfluous?and?distracting.

PENALTIES:

Late penalty:

A late?submission will attract?a deduction of 5% of?the maximum?mark?for?each?calendar?day?after the?due date. After ten calendar days late, a mark of?zero will be awarded.

Incorrect format penalties:

1 mark?per?page?for?exceeding?the?page?limit.

1 mark penalty for inappropriate referencing and formatting.

1 mark penalty for a failure to follow the naming convention?of?the project.

Plagiarism:

While?discussion?and?collaboration?are?expected,?plagiarism?is?a?breach?of the?University?of Sydney?Code of?Conduct and will be dealt with by the Faculty.

http://sydney.edu.au/student_affairs/plagiarism/index.shtml

Be sure to acknowledge all of?your source materials and provide?proper citations for any quotes. Checks?for?similar contents?(web materials, other?students’?projects, etc.)?and plagiarism?will?be?conducted by?TURNITIN?and?the?projects?with?a?similarity?index?significantly?above?an?acceptable?level?will?be?reported to the faculty and this may result in a zero mark being?awarded?for the project.

The uncovered interest parity and currency carry trades (30 Marks)

A?currency?carry?trade?involves?investors?looking?to?exploit?interest?rate?differentials?between?two?currencies?and?it?is?thought?to?be?one?of the?factors?that?contribute?to?the?empirical?violations?of the?uncovered interest parity?(UIP). Choose a pair?of funding?and?investment?currencies?(you?decide pairs?of?currency?on?your?own) and?their?money?market?interest?rates?(e.g., monthly?rates, ?i??and??i*). Provide detailed responses for each of?the parts below.

1.1 Trend analysis (6 marks)

Document the trends of?the exchange rate and two?interest?rates?over the past?10?year?period?(or?more)?using data at a monthly frequency. This should include?a?graphical?analysis?showing?the movements?of?each?of the?three?series.?In?addition,?provide?commentaries?(descriptions)?of the?salient?points?of the?trends, if?any.

Ensure?to?use?risk-free?rates.?A?proxy?for?risk-free?rate?can?be?either??short-term?Treasury?bill,?or?Interbank rate.?Since the investment horizon is?one-month,?it’s?better?to?use?short-term?(1-month?or?3-?month) maturity bond rate than?long-term?maturity?bond?rate?(5-year?or?10-year).?These?risk-free?rate?proxies can?be obtained from a central?bank?website of?each country. The FRED??database of?the Federal?Reserve Bank of St. Louis (see its link below) provide these data for?some?countries.

1.2 Deviations from the uncovered interest parity (6 marks)

If the?UIP?condition?holds,?the?exchange?rate?that?was?predicted?from?the?interest?rate?differential?30?days prior to today would equal to the currently?observed?exchange?rate.?If?the?UIP condition?does?not?hold,?there?would?be?deviations?(i.e.,?differences)?between?the?predicted?exchange?rate?and?actual?realized?exchange?rate. Present?(1) time-series?of?the?predicted?and?actual?realized?exchange?rates?in?one figure, and?(2) time-series?of?the?deviations?between?them?in?another?figure. Identify?the?periods, if?any,?where the UIP appears to have been significantly violated.

Since?the?UIP?condition?can?be?represented?in?different?ways,?deviations?from?the?uncovered?interest?rate parity can be represented in different?ways?as?well.?One?form.?of?deviation?is?a?difference between?the?forecasted?and?actual?exchange?rate,?as?discussed?above.?Another?form.?is?a?difference?between?percentage change in the exchange rate and interest rate differential. Present?a?scatter plot where they-?axis?is?an?interest?rate?differential?and?the x-axis?is?percentage?change?in?the?exchange?rate.?Discuss?whether your data points lie on the 45-degree line through the origin.

1.3 Empirical testing of the UIP (6 marks)

Empirically test the validity of?the UIP for the two?currencies you have chosen.?A?regression analysis is?required and you can use Excel’s data analysis add-in or any of?the statistical packages you have access?to. Be?sure?to?(1) clearly?identify?the?regression?model,?(2)?the?null?hypothesis?you?are?testing,?and?(3)?provide appropriate discussions on the results of?the regression analysis.

1.4 Profitability of carry trade strategy (6 marks)

Assume that you?are?a trader who?adopts?a?certain?carry?trade?strategy?and?invest?a?certain?amount?of?money?at the beginning?of?the?sample period.?Identify the periods?of significant profitable?carry?trade?opportunities?that?exist?during?your?sample?period.?Calculate?the?carry?trade?profits?that?would?have?resulted over your sample period. Carry trade profits?can be represented?as?a?dollar?(or?other?currency)?term.

Document?the?market?conditions?during?these?profitable?periods?(e.g.,?measures?of system?stability?–?exchange?rate?volatility,?stock?market?volatility,?etc.).?Check?newspaper?reports?(using?Factiva?via?library’sweb access) to see whether actual carry trades during the identified periods have?been reported.

In addition, identify the periods when your carry trade strategy delivers significant negative returns. To?what extent market conditions differ?from?the periods?when?your?carry?trade?strategy?delivers?positive?returns?

Finally, now assume that you adopt the?same?carry trade?strategy?as?above?and?invest?a?certain?amount?of?money only at the beginning of2020, calculate?the?profit?or?loss?of?your?carry?trade?strategy?during?the?2020-2021 global?COVID-19 crisis?(two-year?period). Discuss?why?you?make?a?profit?or?a?loss?with your?carry?trade?strategy?during?the?2020-2021 global?COVID-19?crisis?period.

The remaining 6 marks are allocated for presentation of report

? ???Ensure????to????use academic reference????(not????solely????web????sources) ???to????support????your discussions/arguments.

? ???Pay??particular??attention??to??presentation. ?Avoid??overdoing??formatting, ?and??ensure??that??the?assignment is very clear, logical, and professional.

? ???Clear ?and?logical?presentation?is?a?major?challenge?in?assignment?preparation.?Preparing?a?concise assignment is another major challenge.

Information sources:

? ???FRED? ?database?of?the?Federal?Reserve?Bank?of?St. Louis:

https://fred.stlouisfed.org/

? ? ? ?? ???Central bank websites of?relevant currencies (most provide relevant data for sufficient periods)

? ???Web?sites?of?international?organizations – OECD,?IMF,?BIS,?etc.

? ???International Financial?Statistics (On-line database available?from?Fisher?Library’s web?site)

? ???Newswire ?and ?financial ?newspaper??reports??(accessible??via??Factiva??database??from??Fisher?Library’s?web?site)

? ???Other Web sources – market commentaries of?FX?and money market movements