--%>
Assignment Help - homework help

Closed-end country funds

Write some of the advantages and disadvantages of closed-end country funds (CECFs) with respect to the American Depository Receipts (ADRs) as means of the international diversification.

E

Expert

Verified

CECFs is used to diversify into the exotic markets which are otherwise very difficult in order to access like Turkey and India. Being a portfolio, CECFs also give instant diversification. ADRs do not offer instant diversification; investors must form portfolios themselves. Additionally, there exist relatively few ADRs from the emerging markets. Main disadvantage of the CECFs is that their share prices behave just like the host country’s share prices, decreasing the potential benefits of the diversification.

   Related Questions in Financial Accounting

  • Q : Computing overall balance and its

    Discuss how to compute overall balance and explain some of its significance.

    		•
  • Q : Case study of an Operational-Strategy

    Develop a case study of the Operational-Strategy interface as it applies to organisational change (last 3-5 years) within your organisation, together with a project implementation case study .You are required to detail the operational chan

    		•
  • Q : Difference among personal or real

    What is the difference among personal or real account and nominal account?

    		•
  • Q : Firm cross-listed on foreign stock

    Explain why and how a firm’s capital cost can be reduced when stock of firm is cross-listed on foreign stock exchanges.

    		•
  • Q : Accounting and Financial Management

    Part A During 2012 the Australian Company Woolworths Ltd (WOW) sold its subsidiary business called Dick Smith Electronics. Within 8 months of the FOR SALE sign going up Anchorage bought the Dick Smith Business for $20 million. This is the same amount Woolworths Ltd bought

    		•
  • Q : Eliminating exposure of the currency

    Banks find it essential in order to accommodate their client’s requirements for buying or selling foreign exchange forward, in several instances for the hedging purposes.  How the bank can eliminate the exposure of the currency it has made for itself by acc

    		•
  • Q : Monetary approach to determine exchange

    Derive and explain monetary approach in order to determine the exchange rate.

    		•
  • Q : Multinational corporations Explain

    Explain Multinational corporations (MNCs) and what the economic roles do they play?

    		•
  • Q : Commercial bank problems Select the

    Select the right answer of the question. Assume that, for every 1-percentage point decline of the discount rate, commercial banks collectively borrow an additional $2 billion from Federal Reserve banks. Also suppose that reserve ratio is 20 percent. If the Fed incre

    		•
  • Q : Digital Image Processing Homework Using

    I am just trying your services to get one very small project done for Digital Image Processing Homework Using Matlab.I need the code and the approach of the code.The Homework is :A. Import a color image.B. Convert color image to gray-level image.C. create

    		•