Answer case study 1-2 use course material. To answer question 1-6
Required:
1. Explain why an individual investor might want to invest in an international
growth fund.
2. Describe the risks associated with making an investment in an international
growth fund. Identify the risks that would be common to domestic and international
funds, and those risks that would be unique to an international fund.
3. Discuss how the fact that foreign companies are not subject to the same accounting,
auditing, and financial reporting standards and practices as U.S. companies
poses a risk not typically encountered when investing in the stock of U-S.
companies.
4. Consider the allocation of fund assets by region. Speculate as to why the proportions
of fund assets are distributed in this maimer.
5. Consider the country diversification of fund assets. Identify the countries in
which the fund is most heavily invested. Speculate as to why this might be the
case. Are there any countries in which you would have expected the fund to be
more heavily invested than it is? Are there any countries in which you would
have expected the fund to be invested and it is not?
6. Consider the sector diversification of funds assets. Identify the sectors in which
the fund is most heavily invested. Speculate as to why this might be the case.
