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Question 1(a)
Fiqure: 1(a)
Figure 1(a) above shows a graph snippet of the performance of the Nokia stock against the performance of the finland’s stock market. A relationship can be identified between the two graphs as changes in the finland’s stock market translate to changes in the Nokia stock in the same direction. When the performance of finland market goes up, the Nokia stock performance goes up and vice verser.
An increase in the performance in the Nokia stock from the end of July to around mid of September could be attributed to the partnership between Nokia and Microsoft to introduce the first windows 8 phone.
The Nokia world event that was held in Finland also increased the awareness of the Nokia stock at that time and more investors were interested in the stocks, causing the rise in performance around the 8th of September.
Question 1(b)
Figure: 1
The snippet above, (figure: 1) is a graph that shows a comparison between the Nokia stock and the U.S. market in the last two months. Comparison of the performance of the US market and the Nokia foreign stock do not reveal any evident relationship. This is an indication that the Nokia foreign stock performance is not driven by the U.S market. This can be partly attributed to the fact that the stock firm is located in Europe, and the market trends in U.S will not directly translate into the performance of the stock.
Performance of the Nokia stock is being influenced by internal business factors such as the Nokia mapping business that involves signing up of business partners to ensure the firm’s profitability (Nokia’s mapping business). Such factors influence the increase in performance of the firm’s stock.
Question 2
Figure: 2
Performance of the Nokia stock has been found to be influenced by the exchange rate movement of the Euro against the U.S dollar. The graph snippet above (Figure 2) shows the exchange rates trend of the
References: http://finance.yahoo.com/q/h?s=NOK&t=2012-09-02 http://finance.yahoo.com/portfolio/pf_1/view/v1 http://finance.yahoo.com/intlindices?u http://finance.yahoo.com/?u http://allthingsd.com/20120901/nokias-new-lumia-to-be-quite-the-shutterbug/?reflink=ATD_yahoo_ticker http://allthingsd.com/20120815/aiming-to-precede-new-iphone-nokia-and-microsoft-schedule-sep-5-event/ http://allthingsd.com/20120620/will-microsofts-windows-phone-8-move-put-nokias-current-business-on-ice/