An international project can reduce a firms overall risk as a result of international diversification benefits.” Evaluate the statement.

What factors are responsible for the recent surge in international portfolioinvestment?

Do you think that a U.S. firm can experience political risk problems in its overseas projects because of the U.S. government?

Provide a detailed discussion on the benefits and risks of international diversification. Use evidenceor examples to support your arguments.

1) What is the company's WACC? 2) Should the company take the projects? Assume that the projects have the same risk as an average project for your firm. 3) If one project is depended on the other in a way that the company can only take both projects, should it take it?

Investment advisors recommend risk reduction through international diversification. International investing allows you to take advantage of the potential for growth in foreign economies, particularly in emerging markets. Janice Wong is considering investment in either Europe or Asia. She has studied these markets and believes that both markets will be influenced by the U.S. economy, which has a 21% chance for being good, a 52% chance for being fair, and a 27% chance for being poor. Probability distributions of the returns for these markets are given in the accompanying table. Return Rates in Europe: Good, 10%; Fair, 4%; Poor, -3% Return Rates in Asia: Good, 24%; Fair, 4%; Poor, -18% a. Find the expected value and the standard deviation of returns in Europe and Asia. (Round intermediate calculations to at least 4 decimal places and final answers to 2 decimal places.)

Political risk that affects all firms in a country is referred to as Select one:

Prepare a two page executive briefing on the question of whether capital generated in the industrialized countries is finding its way to and from emerging markets. Is there some critical distinction between “less developed” and “emerging”?

Does the present economic scenario offers ‘Restructuring Opportunities’? If yes, what the Investment Bankers should remain prepared for: a. List of digital companies b. List of distressed companies c. List of foreign funding firms d. List of cash rich companies   MCQ