FINC5090 - Finance in the Global Economy Group Assignment Outline Semester 1, 2025 1 Instructions 1. Read these instructions carefully. 2. This assignment is worth 25% of your total marks. 3. The due date is 09 MAY 2025. Submissions will be accepted until 23:59 on the due date. 4. DO NOT email your assignment if you miss the deadline. 5. Plagiarism is a serious offense and will result in zero marks and disciplinary ac- tion for all group members. 6. Include the correct Student IDs of all team members. Student IDs uniquely iden- tify authors, and it is crucial that the marker knows who the authors are. 7. Number all pages. 8. The header (first) page of your assignment MUST CONTAIN the correct Student IDs of all team members. Including your names is optional. 9. Answer the questions directly (from page two onwards). Do not include unnec- essary sections like table of contents, executive summary, etc. An abstract of 100 words is required and should summarize your whole assignment. 10. Use the APA referencing style. If you are unfamiliar with APA, refer to Google Scholar or manuals like the Chicago Manual of Style for guidance. 11. Write in single-spaced, Times New Roman font, size 12. Page margins should be 2.5 cm on all sides. 12. Adhere to the word limit strictly. Use the space wisely. The word limit is 2,500 words and applies only to the write-up of your analysis. This word limit excludes references, descriptions of tables or figures, and appendices (if you have any). 13. Submit your assignment in PDF format only. 14. IMPORTANT: Do not present your work in a newspaper-style story. This is an academic task, and your work should reflect academic rigor. Any statement that is not a fact must have a citation or should be based on your analysis. Do not cite random websites, blogs, or Wikipedia. Cite only peer-reviewed academic economics/finance journal articles or reputed periodicals like the Australian Fi- nancial Review, the Economist, Time, or the Wall Street Journal. 15. IMPORTANT: This is a group assignment. Collaborate effectively with your team members, divide tasks appropriately, and ensure that each member contributes to the analysis and final report. Effective teamwork will enhance the quality of your work and the learning experience. 2 Task Scenario and Objective Your group has been hired by Green2 Capital, a global macro hedge fund that in- tegrates sustainability considerations into its investment strategy. The fund’s CEO, A. Green, is particularly concerned about the growing financial risks and opportunities associated with sustainability factors. Green2 Capital seeks to develop a country-level sustainability metric that consol- idates relevant sustainability indicators aligned with the United Nations Sustainable Development Goals (SDGs). This metric will be a key input in the fund’s sovereign bond investment decisions across OECD countries. Your task is to compute a Sustainability Index (SI) to rank OECD countries based on their sustainability performance. The SI should provide a clear and interpretable measure of each country’s commitment to sustainability and its implications for long- term investment attractiveness. Your team must submit a written report detailing the approach to measuring the Sustainability Index and highlighting its advantages and disadvantages to ensure your client fully understands this metric. The report should provide a clear explanation of how the index is constructed and why it helps evaluate long-term investment attrac- tiveness. The final report must be presented to the Green2 Capital’s management by 11:59 PM on the 9th of May 2025, and it must have an analysis focusing on the following: 1. Abstract (strictly 100 words) 2. Introduction (≈ 600 words) 3. Data Description and Justification of Chosen Metrics (≈ 500 words) 4. Approach to Measurement and Economic Justification (≈ 1000 words) 5. Conclusion and Recommendations (≈ 300 words) 6. References 7. Main Tables 8. Main Figures 9. Appendix Tables 10. Appendix Figures While the word limits are guidelines rather than strict requirements, your report must include all the above sections. Any additional analysis, supporting computa- tions, or robustness checks substantiating your findings should be included in the Ap- pendix rather than the main report. All references, tables, figures are not part of the word count. 3 Data Sourcs OECD Economic and Environmental Indicators OECD Data Explorer World Bank Data Transparency International Our World in Data IMF International Financial Statistics United Nations - Sustainable Development Goals Please consider starting early and making sure that you explore these data sources. Note that these are potential data sources; you may use one, two,· · · , or all of them. The assignment is about your ability to think critically and analyze information, not your ability to work with large datasets. Prioritize the data sources that provide the most relevant information for your analysis. Please speak to the teaching staff, even if you have the slightest doubt. Methodology Our inspiration is La Porta et al. (1998), where the authors compared countries using two single metrics—shareholder rights and creditor rights. Following this, our aim is to highlight an approach rather than the approach. We will discuss the data sources and potential methodologies collaboratively in tutorials during Weeks 6-9. Make sure you attend those tutorials. If you cannot attend, you can always use consultation hours in any of the weeks for any clarification questions. Porta, R. L., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. (1998). Law and finance. Journal of Political Economy, 106(6), 1113-1155. Rationale, Challenge, and Help This assignment offers a unique opportunity to bridge the gap between theoretical knowledge and real-world application. By engaging in this project, you will gain in- sights into the global nature of finance and understand how various factors interact in evaluating investment opportunities. Working with real-world data from sources such as the OECD, World Bank, and International Monetary Fund ensures that your analysis is grounded in current, relevant information, enhancing its practical value. Additionally, this assignment highlights the growing importance of sustainability in financial decision-making. The increasing industry focus on sustainability-related metrics alongside traditional economic indicators means mastering this analysis will prepare you for future career demands. Beyond technical skills, this project will chal- lenge you to think strategically about how different variables influence investment outcomes, fostering critical thinking and decision-making skills. This assignment is challenging but rewarding. You will need to conduct a compre- hensive analysis of multiple countries based on diverse and sometimes conflicting in- 4 dicators. Gathering, synthesizing, and interpreting data from various sources requires analytical and research skills and the ability to discern the most relevant information. Developing a composite sustainability metric will push you to justify your method- ological choices and ensure the robustness of your ranking system. One of the key challenges is that reality is complex—life rarely provides clear, per- fect answers or data that fit neatly into a framework. You won’t always have 100% certainty in real-world decision-making, and this assignment is designed to help you embrace that uncertainty. It is an opportunity to think outside the box, apply your ana- lytical skills, and integrate your financial knowledge innovatively. This is also a chance to learn how to collaborate effectively, ask thoughtful questions, and seek guidance when needed. While this project is demanding, you are not alone. Help is available during tutori- als and consultation hours, where we will discuss potential methodologies and address any challenges you encounter. Engaging with your peers and teaching staff, exploring different approaches, and adapting your thinking will make you a stronger analyst and decision-maker. By taking on this challenge, you will gain invaluable experience in handling com- plex, multidimensional data and making strategic investment decisions. 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G oo d in -t ex t ci ta ti on , pa ra - ph ra si ng an d re fe re nc e lis t, w it h on ly m in or er ro rs . Sa ti sf ac to ry in -t ex t ci ta ti on , pa ra ph ra si ng an d re fe re nc e lis t, po ss ib ly w it h a fe w er ro rs . R ea so na bl e at te m pt to re f- er en ce co rr ec tl y bu t in -t ex t ci ta ti on an d/ or pa ra ph ra si ng an d/ or re fe re nc e lis t ha ve a nu m be r of er ro rs . N o in -t ex t ci ta ti on an d pa ra - ph ra si ng an d re fe re nc e lis t m is si ng or su bs ta nt ia lly in - co m pl et e. 10 % 6 Sample Assignment Format FINC5090 – Group Assignment Student ID 1 Student ID 2 Student ID 3 Student ID 4 Student ID 5 7 Abstract (100 words) This section should summarize your findings. 8 Introduction (≈ 600 words) We begin with economic analysis· · · . Insert Table 1 Here Table 1 presents· · · . The text ‘Insert Table 1 Here’ signifies that the first table will be placed here when this report is published. In this assignment, you will write ‘Insert Table/Figure # Here’ and append all those tables and figures in the order they are referenced the main body in the appendix. 9 Data Description and Justification of Chosen Metrics (≈ 500 words) Quisque ullamcorper placerat ipsum. Cras nibh. Morbi vel justo vitae lacus tinci- dunt ultrices. Lorem ipsum dolor sit amet, consectetuer adipiscing elit. In hac habi- tasse platea dictumst. Integer tempus convallis augue. Etiam facilisis. Nunc elemen- tum fermentum wisi. Aenean placerat. Ut imperdiet, enim sed gravida sollicitudin, felis odio placerat quam, ac pulvinar elit purus eget enim. Nunc vitae tortor. Proin tempus nibh sit amet nisl. Vivamus quis tortor vitae risus porta vehicula. Insert Figure 1 Here Fusce mauris. Vestibulum luctus nibh at lectus. Sed bibendum, nulla a faucibus sem- per, leo velit ultricies tellus, ac venenatis arcu wisi vel nisl. Vestibulum diam. Aliquam pellentesque, augue quis sagittis posuere, turpis lacus congue quam, in hendrerit ri- sus eros eget felis. Maecenas eget erat in sapien mattis porttitor. Vestibulum porttitor. Nulla facilisi. Sed a turpis eu lacus commodo facilisis. Morbi fringilla, wisi in dignis- sim interdum, justo lectus sagittis dui, et vehicula libero dui cursus dui. Mauris tempor ligula sed lacus. Duis cursus enim ut augue. Cras ac magna. Cras nulla. Nulla egestas. Curabitur a leo. Quisque egestas wisi eget nunc. Nam feugiat lacus vel est. Curabitur consectetuer. Insert Table 2 Here Suspendisse vel felis. Ut lorem lorem, interdum eu, tincidunt sit amet, laoreet vitae, arcu. Aenean faucibus pede eu ante. Praesent enim elit, rutrum at, molestie non, no- nummy vel, nisl. Ut lectus eros, malesuada sit amet, fermentum eu, sodales cursus, magna. Donec eu purus. Quisque vehicula, urna sed ultricies auctor, pede lorem ege- stas dui, et convallis elit erat sed nulla. Donec luctus. Curabitur et nunc. Aliquam dolor odio, commodo pretium, ultricies non, pharetra in, velit. Integer arcu est, no- nummy in, fermentum faucibus, egestas vel, odio. 10 Approach to Measurement and Economic Justification (≈ 1000 words) Quisque ullamcorper placerat ipsum. Cras nibh. Morbi vel justo vitae lacus tinci- dunt ultrices. Lorem ipsum dolor sit amet, consectetuer adipiscing elit. In hac habi- tasse platea dictumst. Integer tempus convallis augue. Etiam facilisis. Nunc elemen- tum fermentum wisi. Aenean placerat. Ut imperdiet, enim sed gravida sollicitudin, felis odio placerat quam, ac pulvinar elit purus eget enim. Nunc vitae tortor. Proin tempus nibh sit amet nisl. Vivamus quis tortor vitae risus porta vehicula. Insert Figure 2 Here Fusce mauris. Vestibulum luctus nibh at lectus. Sed bibendum, nulla a faucibus sem- per, leo velit ultricies tellus, ac venenatis arcu wisi vel nisl. Vestibulum diam. Aliquam pellentesque, augue quis sagittis posuere, turpis lacus congue quam, in hendrerit ri- sus eros eget felis. Maecenas eget erat in sapien mattis porttitor. Vestibulum porttitor. Nulla facilisi. Sed a turpis eu lacus commodo facilisis. Morbi fringilla, wisi in dignis- sim interdum, justo lectus sagittis dui, et vehicula libero dui cursus dui. Mauris tempor ligula sed lacus. Duis cursus enim ut augue. Cras ac magna. Cras nulla. Nulla egestas. Curabitur a leo. Quisque egestas wisi eget nunc. Nam feugiat lacus vel est. Curabitur consectetuer. Insert Figure 3 Here Suspendisse vel felis. Ut lorem lorem, interdum eu, tincidunt sit amet, laoreet vitae, arcu. Aenean faucibus pede eu ante. Praesent enim elit, rutrum at, molestie non, no- nummy vel, nisl. Ut lectus eros, malesuada sit amet, fermentum eu, sodales cursus, magna. Donec eu purus. Quisque vehicula, urna sed ultricies auctor, pede lorem ege- stas dui, et convallis elit erat sed nulla. Donec luctus. Curabitur et nunc. Aliquam dolor odio, commodo pretium, ultricies non, pharetra in, velit. Integer arcu est, no- nummy in, fermentum faucibus, egestas vel, odio. 11 Conclusion and Recommendations (≈ 300 words) Quisque ullamcorper placerat ipsum. Cras nibh. Morbi vel justo vitae lacus tinci- dunt ultrices. Lorem ipsum dolor sit amet, consectetuer adipiscing elit. In hac habi- tasse platea dictumst. Integer tempus convallis augue. Etiam facilisis. Nunc elemen- tum fermentum wisi. Aenean placerat. Ut imperdiet, enim sed gravida sollicitudin, felis odio placerat quam, ac pulvinar elit purus eget enim. Nunc vitae tortor. Proin tempus nibh sit amet nisl. Vivamus quis tortor vitae risus porta vehicula. Insert Table 3 Here Fusce mauris. Vestibulum luctus nibh at lectus. Sed bibendum, nulla a faucibus sem- per, leo velit ultricies tellus, ac venenatis arcu wisi vel nisl. Vestibulum diam. Aliquam pellentesque, augue quis sagittis posuere, turpis lacus congue quam, in hendrerit ri- sus eros eget felis. Maecenas eget erat in sapien mattis porttitor. Vestibulum porttitor. Nulla facilisi. Sed a turpis eu lacus commodo facilisis. Morbi fringilla, wisi in dignis- sim interdum, justo lectus sagittis dui, et vehicula libero dui cursus dui. Mauris tempor ligula sed lacus. Duis cursus enim ut augue. Cras ac magna. Cras nulla. Nulla egestas. Curabitur a leo. Quisque egestas wisi eget nunc. Nam feugiat lacus vel est. Curabitur consectetuer. 12 References Citations must be in an APA format. Example: Rajan, R. G., & Zingales, L. (2001). The influence of the financial revolution on the nature of firms. American Economic Review, 91(2), 206-211. 13 Main Tables Example of table (numbers are hypothetical): Country Language Major Religion National Holiday France French Christianity Bastille Day (July 14) Brazil Portuguese Christianity Independence Day (September 7) Nigeria English Islam/Christianity Independence Day (October 1) Table 1: This table highlights some cultural variables for selected countries, including their official language, major religion, and a significant national holiday. This informa- tion provides insight into the cultural diversity and heritage of these nations. 14 Main Figures RandomFigure.jpg 15 Appendix Tables Please include figures and tables in your report in the appendix section. Ensure that each figure and table is self-explanatory, meaning that anyone should be able to un- derstand the content and the analysis behind them just by reading their descriptions. This section will not form part of the word count. One table/figure per page. Example of table (numbers are hypothetical): Country GDP (in Trillions USD) Population (in Millions) GDP per Capita (USD) USA 21.43 331 64,786 Germany 4.00 83 48,193 Japan 5.08 126 40,317 India 2.87 1,380 2,080 Table 2: This table provides a snapshot of the economic data for four countries, high- lighting their GDP, population, and GDP per capita. The data helps in understanding the relative economic sizes and wealth distribution across these nations. 16 Appendix Tables Figure1.pdf Figure 1: Insert brief description of this figure here. 17 Frequently Asked Questions (FAQs) 1. What is the word limit for the assignment? The word limit for the write-up of your analysis is 2,500 words. This limit ex- cludes references, descriptions of tables or figures, and appendices. 2. How should we format the document? The document should be written in single-spaced, Times New Roman font, size 12, with 2.5 cm margins on all sides. 3. How do we number the pages? Ensure that all pages are numbered consecutively. 4. What should the header page include? The header (first) page must contain the correct Student IDs of all team members. Including your names is optional. 5. Can we include table of contents, executive summary, et cetera? No, there is no need to include unnecessary sections not explicitly asked in the assignment outline. 6. What referencing style should we use? Use the APA referencing style. Refer to Google Scholar or manuals like the Chicago Manual of Style for guidance if you are unfamiliar with APA. 7. What should we do if we miss the submission deadline? Do not email your assignment if you miss the deadline. Without prior approvals from the University, late submissions will not be accepted. 8. Can we submit the assignment in a format other than PDF? No, the assignment must be submitted in PDF format only. 9. Can we use data from sources other than those listed? Yes, you can include additional data sources if they are relevant. Ensure that you justify why you have included these additional sources and how they contribute to your analysis. 10. How should we handle missing data for some indicators for a particular coun- try? Mention the absence of data in your report and justify excluding it. If appropri- ate, consider using proxy indicators or average values from similar countries. 11. How should we handle discrepancies between different data sources? The OECD, World Bank, IMF, and UN are all credible data sources. If there is data disagreement among these sources, then pick one. For instance, GDP per capita differs between the OECD and the World Bank. In this case, say you pick the World Bank, then wherever in your analysis you use GDP per capita, make sure this variable corresponds to the World Bank. For other sources not suggested in this outline, evaluate the credibility and relevance of each source. Choose the most reliable and relevant source and explain your choice in the report. 18 12. Can we include charts, tables, and graphs in our report? Yes, use charts, tables, and graphs to visualize data where appropriate. Ensure they are clearly labeled and referenced in the text. 13. What is the best way to divide the work among group members? Work collaboratively. Divide the work based on each member’s strengths and interests. For example, one member could focus on economic indicators, another on cultural variables, and another on sustainability metrics. Communicate regu- larly to ensure the report’s coherence. 14. How do we ensure our report is cohesive and well-integrated? Regularly review each other’s work within the group. Designate one or two members to compile and edit the final report, ensuring a cohesive narrative and logical flow. 15. Can we get feedback on our preliminary analysis before submission? Yes, seek feedback during consultation hours or by scheduling a meeting with the teaching staff. Bring your preliminary analysis and specific questions to get constructive feedback. 16. What should we do if we miss a tutorial? Tutorials are not recorded. Therefore, it is important that you attend tutorials. If you miss one, try attending consultation hours to ask questions and clarify any doubts. 17. How important is it to follow the APA referencing style? Following the APA referencing style is crucial to demonstrating academic rigor and avoiding plagiarism. Ensure that all data sources and references are properly cited. 18. What should we do if we have doubts about the assignment? Speak to the teaching staff, even if you have the slightest doubt. Use consultation hours or schedule meetings for clarifications. 19. How should we prioritize the data sources? Browse through all data sources and see if there are particular variables you would like to include in your analysis. If all those variables are included in one database, use that. If some variables you want to use are in another dataset, then use that too. If all data are in all databases, use one you like the most. 20. How should we present our findings and recommendations? Present your findings in a clear and structured manner. Use visual aids where appropriate. Ensure your recommendations are well-justified and based on the analysis provided. Keep the report concise and within the word limit. If it helps, remember your audience is the management of a global macro hedge fund (likely time-constrained). 19 21. How do we develop a composite ranking system? Discuss potential methodologies during tutorials and consult La Porta et al. (1998) for guidance. Justify your methodological choices and ensure the ranking system is robust and defensible. We will discuss these issues in tutorials for weeks 6-9. 22. Why are you not explicitly providing the data and variables to study for the group assignment? There are some key reasons why I haven’t provided specific data for the group assignment, and I think you’ll find them both exciting and empowering. Firstly, each group consists of 5 members, and by now, you’ve all gained some valuable experience working with data from the individual assignment. The col- lective wisdom and diverse perspectives within your group mean that there is less need for direct data support from me. This assignment is intentionally de- signed to encourage a variety of perspectives across groups. Different teams might prioritize different variables when assessing the sustainability performance of a country, leading to a rich dispersion of views. I believe it’s important that I don’t impose my perspective on what variables are most important, allowing you to explore and decide what matters most for your analysis. Additionally, as mature students who already have at least one university degree (or equivalent work experience), you’re in a great position to take on this chal- lenge. I encourage you to dive into the various data sources listed in the assign- ment and use your academic and practical experiences to guide your decisions. Remember, this is an opportunity to think critically and creatively! Lastly, you’re not alone in this process. We will be discussing potential solutions in the tutorials, and you’ll have plenty of opportunities to share your approach and receive feedback. My consultation hours, as well as any ad-hoc meetings you and your group might want to set up, are there to support you as you navigate this assignment. I’m confident that this approach will not only help you develop a deeper un- derstanding of the material but also prepare you for the kind of open-ended, real-world challenges you’ll face in your careers. 20
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