投资学-Chap25的.pptVIP

Chapter 25 International Diversification Background Global market US Market is 40% - 49% of all markets Improved access technology New instruments Emphasis for our investigation Risk assessment Diversification Issues What are the risks involved in investment in foreign securities? How do you measure benchmark returns on foreign investments? Are there benefits to diversification in foreign securities? Foreign Exchange Risk Foreign Exchange Risk Variation in return related to changes in the relative value of the domestic and foreign currency. Total return = investment return return on foreign