--%>
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 : Deposit-loan rate spread in Eurodollar

    Explain, how does deposit-loan rate spread within the Eurodollar market as compared to the deposit-loan rate spread in domestic U.S. banking system and why?

    		•
  • Q : What is Edge Act banks State what is

    State what is meant by Edge Act banks.

    		•
  • 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 : Measures to avoid financial crisis In

    In integrated world financial market, financial crisis in country is rapidly transmitted to the other countries, resulting in the global crisis. State some of the measures would you propose in order to avoid the recurrence of the Asia-type crisis.

    		•
  • Q : Functions of Bank Write some of the

    Write some of the functions of Bank?

    		•
  • Q : Hedging transaction exposure and money

    Compare and discuss the hedging transaction exposure by using the forward contract vs. money market instruments. When the optional hedging approaches do creates the same result?

    		•
  • Q : What is Capital Capital : In easy word,

    Capital: In easy word, capital signifies the amount or asset that is invested in business by businessman or owner of business. Whenever the business is closed, after paying exterior creditors, balance amount will be his capital that he can attain.

    		•
  • Q : Explain production budget Give a short

    Give a short introduction of the term ‘production budget’?

    		•
  • Q : Modigliani-Miller equation In

    In Modigliani-Miller equation, why is market value of the levered firm is more than the market value of an equivalent unlevered firm?

    		•
  • 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

    		•