Analysis and Evaluation of International Investments
International investment is a prudent part of any investment portfolio. International investment helps to diversify the investment portfolio. Although, international investments are beneficial, they are not risk free. In addition, international investors should be ready with some long-term plans spread over a period of 5 to 10 years in order to decrease the risk of loss due to a slump in markets.
To complete Module 5 SLP, please read the information in the background material, look for more information, and then respond to the following tasks:
Problem 1) For this module, choose one of the AMEX International Indexes [https://www.amex.com/?href=/etf/EtMain.jsp] to invest some of your imaginary money in. Look under exchange traded funds (ETFS) for information about their international indices. Report what index (or indexes) you chose, and why. Also report how much you chose to invest, and why. You are required to invest at least $120,000 in these indexes. You obtain the money by selling some of the securities that are currently held in your portfolio. Assume that you sell the securities at their present market prices.
Problem 2) Provide a table showing the present composition of your portfolio after the purchase of the international fund, and the present market value of this portfolio.
Problem 3) Comment on the performance of your investments during this course session. Remember to consider the market value of the portfolio as of the date on which you prepare the report.
As this is the final part of the session long project, you are now required to review your investment performance during this session.