--%>

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 : Legal Reasoning and Writing This

      This exercise does not require you to do any research, and does not require you to cite to any references or external materials.  Do not include any constitutional arguments. Like many legal and policy questions

  • Q : Explain Agricultural business Explain

    Explain the term Agricultural business in term of Accounting?

  • Q : Pre-requisites for accomplishment of

    Write down the pre-requisites for triumphant accomplishment of uniform costing?

  • Q : Causes of current account deficits

    United States has experienced constant current account deficits since early 1980s. List some of the major causes of the deficits? What could be the consequences of these constant U.S. current account deficits?

  • 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 : Type of bond instrument You are an

    You are an investment banker who is advising a Euro bank about the new international bond offer it is considering.  Proceeds are to be used to fund Eurodollar loans to the bank clients.  Specify the type of bond instrument you would recommend that bank shoul

  • Q : Uniform costing benefits The uniform

    The uniform costing executed? It is beneficial for an organization?

  • Q : Uncertainty of exchange rate

    Uncertainty of the exchange rate does not essentially means that the firms face exchange risk exposure. Explain this scenario.

  • 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 : Desribe cash budget Give a short

    Give a short introduction of the term ‘cash budget’? And also write down the dissimilar techniques to make it?