Assignment Sheet
Emerging Markets Finance
Class #14, Thursday, December 8, 2005
Topic: Portfolio Strategy: Country vs. Industry
Case:
Investing in Emerging Markets: Market Integration and Portfolio
Strategy, UVA-F-1454.
Acadia Asset Management Powerpoint Handout
(Charles Wang).
Assignment Questions:
1. How would you characterize the degree of financial integration between emerging markets and developed markets? How valuable are the benefits of diversification offered by the emerging financial markets?
2. Why are country factors more important than industry factors in determining security returns in emerging markets?
3. Given the findings, how should an emerging markets fund manager select her investment portfolio? Contrast the portfolio selection styles between Mark Mobius and Charles Wang.
4. Given the findings, what factors do you think are the most important in determining the cost of capital for an emerging market investment project?