Unique risks associated with foreign investments

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1) What are unique risks associated with foreign investments? How might an investor protect his/her portfolio against these risks? Is it possible to protect a portfolio from all types of risk? Explain your answer.

2) Does international diversification enhance risk reduction? Why or why not? What measures can be taken to reduce the risks of international portfolio investing?

3) Why would a portfolio manager pursue active versus passive management techniques? Why would a portfolio manager pursue active versus passive management techniques? Is it ever preferable to use a passive portfolio management technique? Why or why not?

4) What is an efficient portfolio? How are the return and standard deviation of a portfolio determined? How must assets be evaluated to achieve a minimum variance portfolio? Explain your answer.

Reference no: EM1345330

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