international portfolio diversification
Not what you're looking for?
D. Analyze the effects of international portfolio diversification on an investment portfolio
e. Examine alternative investment vehicles.
f. Explain how the use of derivative securities can further enhance a portfolio's performance.
Purchase this Solution
Solution Summary
Analyze the effects of international portfolio diversification on an investment portfolio
Solution Preview
d. Analyze the effects of international portfolio diversification on an investment portfolio
The major benefit of international portfolio diversification or rationale behind international investments in a portfolio is to diversify the risks or spread the risks inherent in the portfolio across several markets. As opportunities are available today to exploit attractive investment opportunities in emerging markets across the world, investors and fund managers invest in international securities to not only hedge their risks by increasing their exposure in several markets, but also try to take advantage of the significant growth opportunities offered by these markets.
International portfolio diversification helps fund managers and investors to mitigate the risks arising due to downfall in a particular economy in which assets are invested.
Even though cross country correlation is increasing due to increasing dependence of financial markets upon each other, the benefits of international ...
Education
- BCom, SGTB Khalsa College, University of Delhi
- MBA, Rochester Institute of Technology
Recent Feedback
- "Thank you. "
- "Thank you"
- "Thank you. I got 20/20 last week for my discussion you help me out with."
- "Thank you. Great Job. "
- "Thank you. Great Job. "
Purchase this Solution
Free BrainMass Quizzes
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Basics of corporate finance
These questions will test you on your knowledge of finance.