Financial advisors recommend holding at least some foreign stocks in a diversified portfolio.

However, purchasing equity directly on a foreign exchange can be a tricky endeavor, because

of issues such as language barriers, currency conversion, and regulations. Fortunately, there

are several easy ways to invest in foreign markets without picking up a new language or

exchanging domestic currency for foreign currencies.

i) Discuss why adding foreign assets to a purely domestic portfolio could lead to a higher

Sharpe ratio.

ii) Discuss three methods of investing that a U.S. investor could use to invest in international

equity without currency conversion.