Assignment:
Q1. What characteristics of foreign securities lead to diversifi- cation benefits for American investors?
Q2. Will increasing integration of national capital markets reduce the benefits of international diversifications?
Q3. Studies show that the correlations between domestic stocks are greater than the correlations between domestic and foreign stocks. Explain why this is likely to be the case. What implications does this fact have for international investing?
Q4. Who is likely to gain more from investing overseas, a resident of the United States or of Mexico? Explain.
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.