Identify and briefly discuss three potential problems that Smith may confront in selecting international stocks that he did not face in choosing U.S.

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Discuss the impact of this exchange rate effect on the risk of Japanese stocks for a U.S. investor
July 12, 2020

Identify and briefly discuss three potential problems that Smith may confront in selecting international stocks that he did not face in choosing U.S.

CFA Examination Level 1

Chris Smith of XYZ Pension Plan has historically invested in the stocks of only U.S.-domiciled companies.Recently, he has decided to add international exposure to the plan portfolio.

a. Identify and briefly discuss three potential problems that Smith may confront in selecting international stocks that he did not face in choosing U.S. stocks.

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