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? There are a variety of risks that foreign investments will be exposed to. Some of these risks will include exchange rate risk. This is where a currency of one country will decrease due to macroeconomic events happening in the country and the rate can either increase or decrease in nature. This is a major concern of investors and something that must be accounted for at all times. A country may be increasing while another may be decreasing and these events are completely out of the hands of the investor.
An investor may protect his portfolio by keeping their investments in domestic countries that will not be...
Excerpt from file: Whatareuniquerisksassociatedwithforeigninvestments?Howmightaninvestorprotect hisorherportfolioagainstsuchrisks?Isitpossibletoprotectaportfoliofromallrisk? Thereareavarietyofrisksthatforeigninvestmentswillbeexposedto.Someoftheserisks
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