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What are some benefits of a portfolio that is internationally diversified? Discus.
Step by step
Solved in 4 steps
- In what way(s) might you consider implementing the bottom-up strategy for a diversified portfolio?What is diversification? How does the risk of a diversified portfolio compare with the risks of the individual assets it contains?What are the benefits and advantages of diversification for a portfolio?
- How can you justify applying the top-down approach in a diversified portfolio?What does it mean that portfolio diversification can reduce risk, and how does the efficient frontier logically fit into this discussion? include correlation, asset allocation, and asset classes or benchmarks in your answer.Which is a benefit of including international stocks in an investment portfolio? A. Greater ability to diversify B. Political risk exposure C. Exchange rate risk D. Financial risk
- • In what way(s) might one consider implementing the bottom-up strategy for a diversifyed portfolio?• How can you justify applying the top-down approach in a diversifyed portfolio?Combining two or more assets in an investment portfolio will typically lead to diversification benefits.(i) What is the benefit of diversification?(ii) What is the general condition under which diversification will have benefits? Briefly explain why.
- Why is it important for an investor to create a well-diversified investment portfolio? How should an investor allocate investment funds across sectors and industries?What is a philosophy on hedging investment for multicurrency portfolios.why should investors consider constructing global portfolios?how do currency fluctuation concern s affect that decision?
