《投资分析与组合管理 Frank K. Reilly》ch03.pptVIP

Lecture Presentation Software to accompanyInvestment Analysis and Portfolio ManagementSeventh Editionby Frank K. Reilly Keith C. Brown Chapter 3 - Selecting Investments in a Global Market Questions to be answered: Why should investors have a global perspective regarding their investments? Chapter 3 - Selecting Investments in a Global Market Questions to be answered: What has happened to the relative size of U.S. and foreign stock and bond markets? Chapter 3 - Selecting Investments in a Global Market Questions to be answered: What are the differences in the rates of return on U.S. and foreign securities markets? Chapter 3 - Selecting Investments in a Global Market Questions to be answered: How can changes in currency exchange rates affect the returns that U.S. investors experience on foreign securities? Chapter 3 - Selecting Investments in a Global Market Questions to be answered: Is there an additional advantage of diversifying in international markets beyond the benefits of domestic diversification? Chapter 3 - Selecting Investments in a Global Market Questions to be answered: What alternative securities are available? What are their cash flow and risk properties? Chapter 3 - Selecting Investments in a Global Market Questions to be answered: What is the historical return and risk characteristics of the major investment instruments? Chapter 3 - Selecting Investments in a Global Market Questions to be answered: What is the relationship among returns for foreign and domestic investment instruments? What is the implication of these relationships for portfolio diversification? Reasons for the expansion of investment opportunities The Case for Constructing Global Investment Portfolios Relative Size of U.S. Financial Markets Relative Size ofU.S. Financial Markets Overall value of the total investable capital market has increased from $2.3 Trillion in 1969 to $63.8 Trillion in 2000 and the U.S. portion has declined to less than half. This trend is likely to conti