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You are managing a portfolio consisting of stocks of corporations with home offices in US. Yon are considering adding stocks of some companies from japan,

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You are managing a portfolio consisting of stocks of corporations with home offices in US. Yon are considering adding stocks of some companies from japan, China, India, Europe, Latin America, and Far East. Explain the rationale for this decision. Use the following information boo to calculate the annual rate of return in US currency: A US investor sold US $5.000 and bought Australian S when exchange rate was US 81.15 per Australian 81.00 and invested the proceeds in Sidney (Australia) stock market. Exchange rate is US 81.09 per Australian 81.00 Australian stocks paid a total dividend of Australian $250. The invertors told all his stocks in Sidney market for Australian $4.010 and brought the proceeds including dividend to US. Investors export short-term rain to decrease in the near future However they demand positive liquidity premium. Is the resulting yield carve going to be upward or downward stepping? Explain why. Do not draw the yield curve

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