FIN30014 Financial Risk Management Sem 1, 2020
FIN30014 Financial Risk Management Group Assignment - Semester 1, 2020
Assessment Mark: 20%
(Assignment will be marked out of 100% and converted to a mark out of 20%) DUE: on or before, 11:59 pm Friday 15th May 2020
Background
Apple Inc. (listed in NASDAQ under the code AAPL) is an American multinational technology company that designs, develops, and sells consumer electronics, computer software, and online services globally. Assume Apple has the below Sales, Investment and liability structure.
Sales by geographic segment
Amount (in millions) Portfolio Beta Representative Index
Europe €68,000 -
Japan ¥2,345,000 -
Investments
Commercial Paper US$12,500 - Euro dollars
Bank Accepted Bills A$600 - BABs
Equity investments (US) US$1,000 1.2 S&P 500
Equity investments (£) £500 1.15 FTSE 100
Liabilities
3-year variable rate loan
(next re-set date 30th June 2020) US$15,000 -
Required:
Assume that you are a recently appointed hedge strategist with Apple Inc. and that you have been requested to prepare a report for presentation to the board of directors at its next board meeting. You have been specifically requested to address the following issues:
Section I (25%)
(a) To identify the specific financial risk exposures faced by Apple (please limit the financial risks to what is taught in this unit). In this section, you MUST discuss the outlook (forecast) for each underlying variable and identify whether it will present a risk to the firm. You need to provide adequate evidence to support the justification for your responses. (15%).
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FIN30014 Financial Risk Management Sem 1, 2020
Marking Rubric – FIN30014 Group Assignment (100%)
EXCEEDS STANDARD MEETS STANDARD YET TO ACHIEVE MINIMUM STANDARD
High Distinction (HD)/80-
100
Excellent/exemplary/exceed ing high standard Distinction (D)/ 70-79
Very good/ exceeds expectations Credit (C)/60-69 Good/Well done Pass (P)/ 50-59
Acceptable/Satisfactory/ Proficient Fail (N) /0-49
Poor/unacceptable/Not attempted/requires further development/needs improvement
Outstanding, insightful work. Goes beyond requirements of the task to develop a response, which is thoughtful, reflective, and considers alternative views and makes connections among ideas and information from different sources or from different aspects of the course. Very good work.
Purposefully and logically developed. Thoroughly addresses all aspects of the task. Synthesis of details and concepts from various sources or topics shows evidence of sound understanding and thoughtful examination. Good work. Generally clear, accurate and relevant. Adequately addresses all requirements of the task. Demonstrates understanding of course concepts, with evidence of some thoughtful examination and reflection. Development is generally logical, facts generally correct. Tends to focus on one interpretation. Satisfactory work. Shows basic understanding of concepts with minimal evidence of reflection or thoughtful analysis. Complies with the basic requirements, relies on limited sources of
information, little integration of concepts. Unsatisfactory work. Fails to address the topic in a meaningful way. May be extremely brief, inaccurate, illogical or undeveloped.
Context of and purpose for writing (5%) - Introduction
Demonstrates a thorough understanding of context, audience, and purpose of the assignment. Submission is responsive to the assigned task(s) and comprehensively and competently covers all elements Demonstrates an understanding of context, audience, and purpose of the assignment. Submission is responsive to the assigned task(s) and covering all expected elements Demonstrates awareness of context, audience, and purpose of the assignment. Submission covers all required elements. Demonstrates consideration of context, audience, and purpose. Submission covers the majority of the required elements Demonstrates minimal or no attention to context, audience, purpose, and/or to the assigned tasks(s) (e.g., expectation of instructor).
Some expected elements may have been omitted
Content (75%) – Relates to sections I- III including recommendations. Uses appropriate, relevant, and compelling content to illustrate mastery of the assignment topic, conveying the writer's understanding, and shaping the whole assignment Uses appropriate, relevant, and compelling discipline related content to explore ideas and shape the content of the assignment Uses appropriate and relevant content to develop and explore ideas through the assignment Uses appropriate and relevant content to develop simple ideas throughout the assignment Uses inappropriate and/or irrelevant content to develop ideas in the assignment
Sources and evidence (10%) Demonstrates skilful use of high-quality, credible, relevant sources to develop Demonstrates consistent use of credible, relevant sources to support ideas that are Demonstrates effective use of appropriate and relevant sources to support ideas that Demonstrates an attempt to use credible and/or relevant sources to support ideas that Demonstrates little attempt to use sources to support ideas in the writing
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FIN30014 Financial Risk Management Sem 1, 2020
ideas that are appropriate for the discipline and genre of the writing situated within the discipline and genre of the writing. are situated within the discipline and genre of the writing. are appropriate for the discipline and genre of the writing.
Structure, presentation and attention to detail (5%) – Should include the following structure: Executive Summary, Introduction
(brief), body (where you will answer parts to the assignment), conclusion (brief), References,
Appendices (optional)
Demonstrates detailed attention to and successful execution of a wide range of conventions particular to the assigned task including organization, content, presentation, formatting, and stylistic choices Demonstrates consistent use of important conventions particular to the assigned task, including organization, content, presentation, and stylistic choices Follows expectations appropriate to the assigned task as such as organization, content, and presentation Attempts to use a consistent system for basic organization and presentation Minimal, inappropriate or no attempt to use a consistent system to organise and present assignment
Grammar and expression (5%) Uses sophisticated, expressive and appropriate business language that skillfully communicates meaning to readers eloquently and is grammatically error free Uses expressive and appropriate business language that competently communicates meaning to readers with clarity and fluency and is grammatically correct Uses language that generally conveys meaning to readers with clarity. Attention to detail is evident. Uses straightforward language that generally conveys meaning to readers. The language is understandable but there may be room for grammatical improvement. Uses language that sometimes impedes meaning because of errors in usage.
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FIN30014 Financial Risk Management Sem 2, 2019
Notes
1. You are expected to use actual data for your recommended hedging strategies for requirement (d). Futures and option prices can be found at http://www.cmegroup.com and www.asx.com.au
2. The price data you use in your assignment will depend on the prices on the date that you access the data. That is, assignments submitted by different students will most likely have different prices.
3. It is your task to research the necessary futures and options contracts and the contract specifications to implement your proposed hedge strategies. Assistance will only be provided if it is clear that you have made a substantive research effort.
4. See marking rubric on pages 4-5.
5. Answers to each part should be strictly separated. Answers to different parts should NOT be combined under any circumstance.
6. There are no definitive answers to this assignment. Your submission will be evaluated based on the clarity of your report and the quality of your arguments as responses to the requirements.
7. The assignment is to be done in a group of 3. You cannot submit an individual assignment, nor in pairs, without the consent of your tutor. If you do so, you will be penalised.
8. To avoid the penalties associated with a late submission you should commence thinking about the issues and researching for this assignment as soon as possible. Refer to late submission penalties in the Unit Outline.
Submission Requirements
1. Please ensure that you are allocated to the correct group on Canvas before submitting the assignment.
2. You MUST submit the assignment via the Canvas assessment submission system. Check the draft in the “draft submission” link before doing the final submission.
3. No hardcopy is required.
4. An assignment cover sheet must be attached to your submission (see Canvas for assignment cover sheet).
5. Your submission is to take the form of a business report. It should be concise, spell-checked for obvious errors, professional and be clearly expressed. The assignment should include the following sections:
6. Executive Summary, Introduction (brief), body (where you will answer parts to the assignment), conclusion (brief), References, Appendices (optional)
7. The assignment should be a total of 3500 words, including the executive summary, table of contents, references and appendices.
8. E-mailed assignments will not be accepted, the assignment must be submitted via Canvas.
9. Make sure that you allow yourself adequate time to complete this report because these guidelines will be strictly enforced and without exception.
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FIN30014 Financial Risk Management Sem 2, 2019
10. Conduct research as widely as possible (up to 8 -12 sources). You MUST use sources that are considered academically reputable.
If you have any issues with your group members, please inform your tutor, 3 weeks before the assignment is due.
Plagiarism - Please read the notes on plagiarism in the Unit Outline.
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