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Importance of country risk analysis for investment portfolio

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Which major reasons justify the importance of country risk analysis for the investment portfolios?

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Country Specific risk:
Even though in principle the security analysis is similar in all countries but practically achieving, the same quality of about the assets in a foreign country is by nature more difficult and hence more expensive. The risk of getting false and misleading information is much greater when we are dealing with investment in a foreign country.

For example, consider two ...

Solution Summary

Explain the importance of country risk analysis in descriptive format. (251 words)