What are the potential problems

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Q1. You have taken a job with TrustUs, headquartered in Kuala Lumpur. You have been hired to assist the manager of the International Stock Fund. Your boss has decided that a certain percentage of the fund's assets should be invested in the publicly traded shares of East Asian companies. Your job is to recommend specific companies to invest in. At least one source of information you would like to use in making your recommendations is corporate financial statements. What are the potential problems that might arise as you conduct your analysis?

Q2. Related to the question (c) earlier, you remember what you had learnt earlier in your university days that financial analysts must be careful in comparing financial ratios across countries because "rules of thumb that apply in one country may not apply in another country". Explain why that happens to be the case (providing examples where necessary) and also point out what financial analysts are supposed to do while facing such a situation.

Reference no: EM132984979

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