a. In the International CAPM, as in the domestic CAPM, all investors determine their demand for each asset by a mean-variance optimization using their domestic currency as base currency. Elucidate b. The currency hedging decision is part of the overall diversification strategy and it cannot be separated from the asset allocation across markets. Discuss C. Critique the investment lifecycle model a. In the International CAPM, as in the domestic CAPM, all investors determine their demand for each asset by a mean-variance optimization using their domestic currency as base currency. Elucidate b. The currency hedging decision is part of the overall diversification strategy and it cannot be separated from the asset allocation across markets. Discuss C. Critique the investment lifecycle model