When investors become aware of overseas investment opportunities and are willing to diversify their portfolios internationally,\ they trade one market imperfection (e.g., information asymmetry) for another (e.g., exchange rate risk)\ they should not bother to read or to understand annual reports by foreign companies, since they are written in a foreign language.\ they enjoy to a greater extent the only "free-lunch" in finance-the diversification benefits\ they should invest only in U.S. dollars or euros