IMPORTANT NOTE: The questions must be address in its full context. These questions are an opportunity to go outside the box to demonstrate your analytical, integrative, problem- solving and critical thinking skills using the knowledge acquired in your readings. As a result, it is very important to pay close attention to the questions and be able to conduct your discussions in the context of your question. – Please keep this in mind when you complete this assignment.
You must expand your ideas further. Analysis must be deep and very instructive.
ANSWER THE FOLLOWING QUESTIONS. Each question should be answered in at least 300 words. Quality of content and use of course and outside-of-course resources to support your position or analysis. The answers should not be in the form of essay, just straight to the point- Work must be original and cite your sources.
Please be sure to answer the question completely but specifically in well-written complete sentences.
Conduct your own research
1. What are the realistic benefits from international diversification?
2. Would the principle of diversification assure us that diversifying a U.S. portfolio internationally would reduce the standard deviation? Explain.
3. Discuss the various considerations related to country selection as presented in our textbook.
4. Discuss and define exchange rate risk as presented in our textbook.
5. Would a market-neutral hedge fund be a good candidate for an investor’s entire retirement portfolio? If not, would there be a role for the hedge fund in the overall portfolio of such an investor?
6. Why is it harder to assess the performance of a hedge fund portfolio manager than that of a typical mutual fund manager?