1.) What are characteristics of an efficient portfolio? How are a portfolio's return and standard deviation determined? How must assets be evaluated to achieve a minimum variance portfolio? Explain your answer.

2.) What are examples of active and passive portfolio management techniques? Why would a portfolio manager pursue active instead of passive techniques? Is it ever preferable to use a passive technique? Why or why not?

3.) Does international diversification enhance risk reduction? Why or why not? What measures may be taken to reduce risks of international portfolio investing?

4.) What are unique risks associated with foreign investments? How might an investor protect his or her portfolio against such risks? Is it possible to protect a portfolio from all risk? Explain your answer.