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why should investors consider constructing global portfolios?how do currency fluctuation concern s affect that decision?
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- why should investors consider constructing global portfolios? As part of your response, be sure to address currency fluctuation concerns.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 riskWhat are the benefits of international portfolio diversification? Outline the arguments in favour of diversifying internationally than domestically. Discuss the possible reasons why securities are much less correlated across countries than within a country.
- What factors are responsible for the recent surge in international portfolioinvestment?Which are the current risks to consider investing on a global basis?Discuss and illustrate how the following barriers affect diversification of portfolios into international markets: Segmented markets Exchange rate controls Less developed capital markets Exchange rate risk
- How can we measure whether short-term international capital markets are fully integrated or not? Does the available evidence indicate that they are integrated? Critically evaluate your answer.Discuss the risk confronting an interest rate and currency swap dealer in international Markets?Explain why would a firm consider investing in a portfolio of foreign currencies instead of just a single foreign currency?
- What risk is due to changes in the level of interest rate in the economy and may affect industries at the same time? a.systematic risk b. inflation rate risk c.foreign exchange rate risk d.interest rate riskWhat are the criteria for selecting between hedging or diversification to manage risk in the foreign exchange market?Which of the following statements about currency risk is TRUE: Group of answer choices The currency risk of an international stock portfolio is the volatility of portfolio returns It is impossible to measure currency risk for international bond portfolios The currency risk of a domestic stock portfolio is zero None of these answers is correct