Purchase Solution

Cost of capital for overseas investments

Not what you're looking for?

Ask Custom Question

Suppose that your shareholders own only U.S. stocks. Would you expect an overseas investment to have above- or below-average risk for them? Would your answer change if they held an internationally diversified portfolio? What implications does your answer have for the cost of capital for overseas investments?

Purchase this Solution

Solution Summary

The cost of capital and risk of overseas investments.

Solution Preview

Risk is related to an investor's diversification. Diversification reduces risk by allocating investments among different financial instruments. Therefore an overseas investment carries below average risk for shareholders that ...

Purchase this Solution


Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.