--%>

Advent of euro affecting international diversification

Explain how the advent of euro would affect the strategies of international diversification.

E

Expert

Verified

Since the euro-zone can have same monetary and exchange-rate policies, correlations among the euro-zone markets are likely to go up. This will decrease the benefits of the diversification. Although, to extent that adoption of the euro strengthens the economy of European, investors may benefit from the enhanced returns.

   Related Questions in Financial Accounting

  • Q : Currency trading at discount or at

    What is currency trading at discount or at premium in forward market?

  • Q : Contingent exposure and its benefits

    Describe the contingent exposure and also discuss some of the benefits of using currency options in order to maintain this type of currency exposure.

  • Q : State Return on Investment or ROI

    Return on Investment (ROI): It is a performance measure employed to calculate the efficiency of an investment or to compare the effectiveness of a number of various investments. To compute ROI, the advantage (return) of an investment is divided by the

  • Q : Corruption of Creativity Explain the

    Explain the Corruption of Creativity in Creative Industry ? Explain in brief.

  • Q : Calculate the Present Value PV Given

    Given that the appropriate discount rate is 10% and that the first of these dividend payments will occur 1 year from now, find the present value of the dividend stream; that is, calculate the PV of D1, D2, and D

  • Q : Payment method-Buy pound or investing

    When you have visited the London, you have purchased a Jaguar for £35,000, which is payable within the three months. Enough cash is there at your bank in the New York City that pays 0.35% of interest per month, compounding monthly, to pay for car. Presently, spo

  • Q : Define sale Define the meaning of sale

    Define the meaning of sale in Accountancy?

  • Q : Explain Control of Cash Explain Control

    Explain Control of Cash. Illustrate briefly.

  • Q : International financial management

    Explain the importance in studying the international financial management?

  • Q : Ihi Which of the following adjustments

    Which of the following adjustments is an example of an accrual adjustment? an asset/expense adjustment involving depreciation an asset/expense adjustment involving insurance a liability/expense adjustment involving utility expenses a liability/revenue adjustment involving unearned revenues