Subject: Business / Finance
Question 1 Investing globally can add return to a domesticonly portfolio, while at the same time reducing the risk of the portfolio. However, global investing adds foreign currency exchange risk. In terms of foreign currency risk, compare a cross hedge to a proxy hedge. Provide a link to any site accessed. (Do not use Investopedia, Wikipedia, or similar sites.)Question 2 Remember the letters: RRTTLLU. They stand for Return, Risk, Time horizon, Taxes, Liquidity needs, Legal and regulatory concerns, and Unique circumstances. They represent the sections of the IPS for individuals as well as institutional investors. Discuss the development of any two of these sections for an individual investor.