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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 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 risk
- What is the Capital Asset Pricing Model (CAPM)?What are some of its key assumptions? Has itbeen empirically verified? What is the role of theSecurity Market Line in the CAPM?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.1. What are the quantitative characteristics of the assets and how to measure them? 2. How does one asset in the same portfolio influence the other one in the same portfolio? 3.And what could be the influence of this relationship to the investor’s portfolio? 4. What is relationship between the returns on an asset and returns in the whole market (market portfolio)
- Foreign exchange risk theory?What additional factors must be considered when you apply this microanalysis approach to the valuation of stock markets around the world?What are the quantitative characteristics of the asset and how to measure. How does one asset in the same portfolio influence the other one in the same portfolio. What could be the influence of this relationship to the investor's portfolio? What is relationship between the return on an asset and returns in the whole market (market portfolio)?
