Discussion

1) "Globalization and International Investing" Please respond to the following:

• Provide your opinion on whether average investors should or should not include investments from other countries in their portfolio. Support your opinion with an example.

• Determine whether or not globalization has any effect on the selection of investments. Support your position.

2) "Hedge Funds" Please respond to the following:

• Predict two ways that the hedge fund incentive fee may affect a manager's proclivity to take on high-risk assets in the portfolio. Support your prediction.

• Provide two reasons why it is more difficult to assess the performance of a hedge fund portfolio manager than it is to assess the performance a typical mutual fund manager.