Assignment:
Q1. Investors should avoid Hong Kong, given its problematic outlook now that Britain has surrendered the colony to China. Comment.
Q2. From 1949 to 1990, the Japanese market rose 25,000%.
a. Given these returns, does it make sense for Japanese investors to diversify internationally?
b. What arguments would you use to persuade a Japanese investor to invest overseas?
c. Why might Japanese (and other) investors still prefer to invest in domestic securities despite the potential gains from international diversification?
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.