EBK INVESTMENTS
EBK INVESTMENTS
11th Edition
ISBN: 9781259357480
Author: Bodie
Publisher: MCGRAW HILL BOOK COMPANY
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Chapter 25, Problem 4CP
Summary Introduction

(a)

To explain:

The three considerations which are relevant for explaining the rationale for including international equities in general's equity portfolio.

Introduction:

Investment in the international market will diversify the risk and return on that investment is more stable. It will expand the portfolio.

Summary Introduction

(b)

To determine:

The reasons for not including international equity investment and explain its importance.

Introduction:

International equity investment means investing in foreign companies which are listed outside countries.

Summary Introduction

(c)

To determine:

The comparison of U.S. dollar and non-U.S. dollar equity and fixed income asset categories performance and the importance of the result of the account performance index relative to the results of the four individual asset class indexes.

Introduction:

International equity investment means investing in foreign companies which are listed outside countries.

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