Assignment:
Q1. Volatilities for individual stock and market indexes in emerging economies are typically higher than those for U.S. stocks and indexes. Should that mean that the cost of capital for investments in emerging economies is higher, too? Explain your answer.
Q2. Discuss the relative merits of including risk adjustments in cash flow or in discount rates—especially for high-growth companies in emerging markets.
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.