Discussion Questions
"Globalization and International Investing" Please respond to the following:
• Provide your opinion on whether average investors should or should not include investments from other countries in their portfolio. Support your opinion with an example.
• Determine whether or not globalization has any effect on the selection of investments. Support your position.
"Hedge Funds" Please respond to the following:
• Predict two ways that the hedge fund incentive fee may affect a manager's proclivity to take on high-risk assets in the portfolio. Support your prediction.
• Provide two reasons why it is more difficult to assess the performance of a hedge fund portfolio manager than it is to assess the performance a typical mutual fund manager.
1. From the e-Activity, examine a part of the quiz with which you struggled the most. Speculate as to why you had difficulty with that particular part of the quiz. Summarize your quiz results and explain what you have learned.
2. Propose three ways in which knowledge of tax law can help one with investing.
3. Determine two ways in which knowing one's investment horizon can help with one's investment strategy. Provide two examples to support your response.
4. Determine the importance of knowing one's liquidity needs when planning to invest. Support your position.