Assignment - FINM8007 Topics in International Finance (2024S1)
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I. Tasks, Deliverables, and Timelines (35% of course grade)
The assignment comprises two parts with multiple tasks, designed to foster a comprehensive
understanding of our class material through practical analysis and attentive observation of market
trends.
Task I – Exchange Rate Forecasting [14.5%]
1. Form a group of five or six before Week 2 Friday, March 1, 23:59pm.
2. Choose a pair of major currencies from the list* given in “Additional Details”. (i) Forecast
the direction (up or down) for the pair’s price in two months, providing a point estimate
to 2 decimal places. (ii) In no more than 250 words, explain the factors considered in
forming your forecast and why these are considered to be both relevant and pivotal.
Submit this task in one PDF file before Week 3 Wednesday, March 6, 23:59pm. [4.5%]
3. Check the pair’s price quote at 17:00 on April 26 and take a screen shot of the price.
4. Calculate the difference between the forecast in (2) vs. the price quote in (3). If it is less
than 5%, a 2-mark bonus will be added to the group’s total assignment mark.
5. Identify market movements and factors contributing to the disparity between the actual
price and your forecast. Clearly link these factors to course material, highlighting any
overlooked elements that could contribute to making a more accurate forecast. [10%]
6. Submit (2), (3), (4), (5) together in one document in PDF format, before May 10, 23:59pm.
Task II – FX Risks [20.5%]
7. Select a multinational company from the list of 30 companies that make up the Dow Jones
Industrial Average. Submit this choice together with (2), in the same document, before
March 6, 23:59pm. [0.5%]
8. Identify and summarise the company’s exposure to foreign exchange risk. [10%]
9. Identify the company’s existing FX risk management policies. Evaluate their effectiveness
and propose feasible alternatives for policies that are less effective. [10%]
10. Submit (7), (8), (9) together in one document in PDF format, before May 10, 23:59pm.
Additional Details
Week 2 Team Formation Enrol in a team of FIVE or SIX on Wattle (Assignment Teams - Enrol in a Team by Mar
1). If a student isn’t enrolled in a team by the deadline, the student will be randomly allocated to
a team.
• At work, we often need to collaborate with colleagues we haven’t met. If you prefer to
experience diverse collaboration with unfamiliar classmates, enrol in any team
numbered 1 to 80. Otherwise, coordinate with classmates you wish to work with and
enrol yourselves in a team numbered 81 and beyond.
• For teams with fewer than 5 or 6 members after the enrolment deadline, please expect
random additions or removals to make groups of 5 or 6. Adjustment to be completed by
5pm of Week 2 Saturday Mar 2 – please double-check your final team assignment.
*List of Possible Currency pairs (derived from Bloomberg Currencies summary page): USD/JPY,
Assignment - FINM8007 Topics in International Finance (2024S1)
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Designate one member for all Wattle submissions. You may submit as many times as you like
before the deadline; the most recent Wattle submission before the deadline automatically
overwrites older submissions.
Week 3 Submission by Week 3, Wednesday, 23:59pm. Submit (2) and (7) in the same PDF file
via Turnitin on Wattle. Late submission will result in the team receiving an automatic 0/5 for this
part of the assignment.
Week 10 Final submission by Week 10, Friday, 23:59pm. Submit (6) and (10) in two separate PDF
files via Turnitin on Wattle. Use the separate Turnitin submission tabs for each task. Do NOT zip
the two files together. Late submission of either file NOT accepted and the team will receive an
automatic 0/30 for this phase of the assignment.
For quality control purposes, groups may be chosen for an oral interview related to any
submitted content.
II. Resources & Further Instructions
Research, Resources & Referencing
The internet is an excellent source of information. Reliable sources include:
• Company webpage, SEC filings, other government and regulatory filing, etc
• Factiva from the library for company and market news
• For tips or support for report writing, please reach out for help with ANU Academic Skills:
https://www.anu.edu.au/students/academic-skills/writing-assessment
• All material should be properly cited in the Harvard referencing style. Samples of
“sufficient and correct” reference include:
https://www.anu.edu.au/students/academic-skills/academic-integrity/referencing
https://libguides.scu.edu.au/harvard
Report Format & Instructions – submit the report & video files separately, no ZIP files
All parts of written submissions MUST be typed. The main body must be no longer than 5 pages.
• Single-sided, single spaced, size 12 Calibri font, no less than 2.2cm margins on all sides
• The 5-page limit does NOT include cover sheet, title page, table of contents,
introduction/executive summary, appendices. Reference/graphs/tables/calculations can
be placed in the appendices, but MUST be properly cross-referenced in the main report
• It is assumed that all team member contribute equally and will receive equal marks
• File names for each submission file should be named as “Team#-
Forecast+CompanyChoice.pdf”, “Team#-Task1.pdf” and “Team#-Task2.pdf”. E.g.,
“Team50-Task1.pdf”
Please refer to the marking rubric for complete details on marking (base score & penalty).
Please check the course forum regularly for any updates/clarifications on the instructions.
Assignment - FINM8007 Topics in International Finance (2024S1)
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IV. Working as a Team & Making Contributions
“… [T]he ability to work effectively and harmoniously in a group is a strength that employers want
their employees to have. In fact, they will likely ask you how you function in a team during the
interview process, so come prepared with an anecdote that highlights your ability to compromise
and collaborate.” (Indeed.com)
Job applications and interviews look for previous work experience and ability to work in a team.
In this assignment, you will work within a team to accomplish a task - just as in a professional job.
Achievements in this assignment and good team work can enhance your résumé!
To work effectively as a team and to ensure your individual contribution to this team work is
recognised, please:
1. Meet online, discuss your expectations and assign responsibility early on; meet online
regularly (for any offline meetings, please adhere to the required social distancing
requirements)
2. For each part in the report, specify the team member(s) in charge for the part and specify
each member’s percentage contribution. The allocation should be agreed by all members
who sign the submitted assignment coversheet
Every team member should contribute equally to the assignment.
An important aspect of effective team work is to identify teamwork issues EARLY and manage
the situation professionally (see tips below). If you encounter an insurmountable issue despite
your best efforts, please document the evidence of those efforts and contact the lecturer or tutor
as soon as possible. In such instances, it is most likely that the team will be reorganized, and the
new teams will each need to start afresh by selecting a new company (but keeping the same
currency pair). This is necessary as disputes over attributing efforts to the previous company can
cost significant time and efforts, hindering your overall progress on your assignment.
Tips for effective team work could be found in the ANU Study Skills website
(https://www.anu.edu.au/students/academic-skills/study-skills/group-work).
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