Business administration class develops model to predict foreign investment currency values

May 30, 2013

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PLATTEVILLE, Wis. — Foreign investment and international economic issues are important topics in the modern world, and the University of Wisconsin-Platteville’s International Finance class received opportunities to understand the framework of global financial markets and apply theoretical practices to developing foreign investment models. Students Rail Minazetdinov and Logan Endl worked together to build an optimal currency portfolio and provide a practical trading strategy for currency traders or investors. Results were presented at the Undergraduate Creative Research Symposium last month.

“As investors, we know not to put all of our eggs in one basket,” said Dr. Jinghua (Carolyn) Wang, assistant professor of business and accounting. “The currency portfolio can help investors reduce risks while increasing the excess returns.”

The model itself uses qualitative and quantitative methodologies to deliver the practical meaning for investors on how to manage the portfolio, according to Wang. The course not only trains students in financial theory, but also offers students the chances to learn hands-on experiences in the real business world.

“We welcome students with solid quantitative background from any major to join our class,” said Wang. “I would like my students to get hands-on experiences in learning international finance. The experiences they obtain will contribute to their future study or professional career.”

In addition, the model combines the modern portfolio theory and practical trading skills to deliver the investment strategy for investors. Investors would then use the model to guide their short-term trading practices.

“The financial markets are integrated globally, which is why it is important for students to learn international finance in the current world,” said Wang. “The degree of globalization has been increased since the last century. When we talk about one country’s currency, we need to understand what takes place in other currency markets. It does not matter what specific major a student holds, but students need to learn how to help their companies strengthen their competitiveness and enhance the profitability in global economic circumstances.”

Contact: Dr. Jinghua (Carolyn) Wang, business and accounting, (608) 342-1810, wangjingh@uwplatt.edu  
Written by: Angela O’Brien, UW-Platteville Office of University Information and Communications, (608) 342-1194, obrienan@uwplatt.edu

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