International Investing Project Term Paper Example | Topics and Well Written Essays - 500 words

International Investing Project - Term Paper Example The stability of the market as a whole but that also means extremely low growth potential if ever there is any worth considering at all. The performance of Siemens AG also takes a positive trend as their USA stocks but had higher returns than other stocks under consideration due other factors than the market. This means that the stocks’ performance. The stock prices for both are also in the on the side. CHL is at least in the decent deviation of -0.252%. The stock prices alone are already telling the investor which one is a better pick. It does not mean however, that CHL is a good investment or bad because the change is negligible. This means that the stock was not influence by market changes. The main reason may because of majority of the business is also ultimately dependent on the oil industry. Which is being an affected changes being in Middle East. The implications of portfolio return and risk in connection with market points out the degree of volatility in the changes of the portfolio return. In this case, a positive portfolio return with a positive return of the market both generates positive returns. The major defect of this analysis in the first place is the computation of returns within two day only. The extreme swings of the market are simply too unpredictable to make a safe investment (Graham 2004). To start with, it is not a profitable investment already. The picture we have painted above will change drastically should we look at this situation using 5 or 10 yrs as range when computing for stock returns. Obviously, the short term investing style is not as easy or profitable as when you are investing for the long term and evaluating major trends on the stock, not just the daily fluctuations on the stock market. In terms of predictability, we will find it extremely hard to judge the profitability of the stock alone just by using beta since it is also a relative value computed within a chosen time