Chapter 9, Problem 2CP

Summary Introduction

(a)

To think critically about:

To sell the remaining international equity securities once their market price rise equal to their original cost because of its past poor performance.

Introduction:

Portfolio: A portfolio is a group of financial asset as like stocks, currencies, commodities and equivalents to cash, mutual funds, etc.

Behavioral finance: It is established theory of finance whose purpose is to understand and identify the reasons that why different financials choices are made by people.

Summary Introduction

(b)

To think critically about:

Is it more beneficial to increase international equity exposure and entire exposure consists of securities from country XYZ.

Introduction:

Portfolio: A portfolio is a group of financial asset as like stocks, currencies, commodities and equivalents to cash, mutual fund.

Behavioral finance: It is established theory of finance whose purpose is to understand and identify the reasons that why different financials choices are made by people.

Summary Introduction

(c)

To think critically about:

Is it more beneficial to invest in international equity securities through his speculative account rather than his retirement account

Introduction:

Portfolio: A portfolio is a group of financial asset as like stocks, currencies, commodities and equivalents to cash, mutual fund.

Behavioral finance: It is established theory of finance whose purpose is to understand and identify the reasons that why different financials choices are made by people.