1) While spreading internationally, choose growth stocks as highly growing stocks will prove to be more profitable"
Assume you chosen an international fund which considerably beat its peers and benchmark over past few years. Might it be a good candidate to choose? Why? Why not?
2)Take a position on following statement: "Stand-alone risk of the individual corporate project may be quite high. Though the project’s true risk may be much lower when viewed in context of its effect on stockholders’ risk.” Provide two suitable exs which support your response. Describe how change in investor's risk aversion will affect expected return. Give appropriate exs to support your response.