Question: Examine international markets and the risk/reward benefits of holding foreign securities in an investment portfolio. Identify the modern portfolio theory (MPT) concepts that lend support to investing in foreign markets.
address the following critical elements:
- From a practical standpoint, how do international markets differ from domestic markets?
- What role do international securitiesplay in a corporate portfolio?
- In what ways do investors quantify the risk levelsbetween domestic and foreign securities?
- What asset allocation strategiesand weightings would you consider when investing in international securities? Explain your reasoning.