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a) In an increasingly globalized investment environment, comparability problems become even greater. Discuss three comparability problems that may be encountered by an investor who wishes
a) In an increasingly globalized investment environment, comparability problems become even greater. Discuss three comparability problems that may be encountered by an investor who wishes to have an internationally diversified portfolio. (6 marks) b) Several economic fundamentals, including inflation, interest rates, industrial production, oil prices, and foreign exchange rates are believed by researchers to have the ability to explain stock prices. Briefly explain how each of the five factors might affect stock prices. (10 marks) c) Many financial analysts often advice older people to invest more conservatively than younger people. What does this strategy entail? Describe one merit of this strategy (4 marks)
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