Using the same business and country for expansion that you chose in Unit I, address the items below. The webpage The World Factbook can be a helpful resource as you are researching.
- Explain the steps the country in which you plan to expand into has taken to protect their domestic currency.
- Explore ways this country has encouraged (or discouraged) international investment into their country.
- List institutional factors, including size of the economy and domestic investor base that may impact the use of debt and equity instruments for capital in your venture of business expansion.
- Discuss historical or current factors that affect the percentage cost of capital in your country of expansion.
Your final assignment should be at least three pages in length. Use at least two outside, reputable sources as references to support your research. Adhere to APA Style when creating citations and references for this assignment.
Diversified Risk Stock Portfolio
For this case study, you will create a portfolio of five to eight stocks that demonstrate diversified risk. List the stocks along with their current price and previous 1-year and 5-year rates of return. Below the list of stocks, address the issues described below.
- Explain the difference between portfolio risk and stand-alone risk.
- Briefly explain why you selected each stock and how this investment portfolio would have less risk than selecting just one stock.
- How does risk aversion affect a stock’s required rate of return?
- Explain the distinction between a stock’s price and its intrinsic value.
Your case study should be at least two pages in length, not counting the title and reference pages. You are required to cite and reference at least your textbook and stock data source. Use APA format to cite in-text and reference citations.