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- From a practical standpoint, how do international markets differ from domestic markets? What role do international securities play in a corporate portfolio? In what ways do investors quantify the risk levels between domestic and foreign securities? What asset allocation strategies and weightings would you consider when investing in international securities? Explain your reasoning.A foreign-based company must use US GAAP if it wants to have its stock traded on a US stock exchange. Group of answer choices True FalseA U.S. company has the following choices of financial markets in which to raise capital. Which one will it most often prefer? a.foreign bond b.domestic banks c.foreign bank d.a new issue of common stock
- Examine whether equity should be domestically listed in a single exchange, or cross-listed in multiple exchanges around the world. What are some advantages and disadvantages of each?a)Evaluate whether changes in exchange rates affect i)settlement of contracts ii)cash flows iii)firm valuation *Based on knowledge of hedging and efficient market approach b)And advice Mr Liam an investors about the possible implications for a business that specializes in investing in emerging stock markets globally.In what ways do investors quantify the risk levels between domestic and foreign securities? What asset allocation strategies and weightings would you consider when investing in international securities? Explain your reasoning.
- A key issue facing financial executives of multinational firms is exposure to exchange rate changes.a. Define exposure, differentiating between accounting and economic exposure. What role does inflation play?b. Describe at least three circumstances under which economic exposure is likely to exist? c. Of what relevance are the international Fisher effect and purchasing power parity to your answers to parts a and b? d. What is exchange risk, as distinct from exposureDoes the Philippine Stock Exchange trade only equity instruments?An investor in the common stock of companies in a foreign country may wish to hedge against the _____ of the investor’s home currency and can do so by _____ the foreign currency in the forward market.a. depreciation; selling.b. appreciation; purchasing.c. appreciation; selling.d. depreciation; purchasing.
- B) Common stock hasn’t term to maturity. How then can a stock that does not pay dividends have any value? Give an example of such firms listed in the domestic market of your country.The risk of investing in foreign stock markets depends on exchange rate uncertainty more than the risk of investing in foreign bonds. Select one: True Falsewhat is the most frequent type of transaction in financial markets? a. IPO's b. secondary market trades c. primary market trades d. venture capitalist trades