1. Suppose you are a U.S.-based investor, and you would like to diversify your stock portfolio internationally. What advantages do ADRs offer you? Would it be wise to restrict your international portfolio only to ADRs?
2. Web Question: Go to www.adrbnymellon.com/ files/MS32022.pdf, navigate to Investor Relations, and find the 2010 Annual Report. Sarkissian and Schill (2004) claim that cross-listing firms tend to prefer cross-listing in markets "close to home." Can you see evidence in favor of this hypothesis in the listing data for 2010?