Profit Potential of International Stock Markets with Risks Consideration

This diploma thesis is engaging in investing on international stock markets and the main objective was to analyze the profit potential with consideration of possible risks. At first I have characterized international stock market and the theory of effective markets. In the second chapter I was focusing on methods that are used for stock valuations. The third chapter is comparing particular investment strategies that proved to be profitable in a long term. The secondary objective of my diploma thesis was recognition of investment risks, thus the fourth chapter is engaging in market and exchange rate risks. The fifth chapter is focusing on the hedging of exchange rate risk. I was applying obtained theoretical knowledge on a case study about BP company. All the results of the analysis were included in the final investment recommendation. The thoughts of the investment recommendation were then generalized into common investment principles