International Accounting
5th Edition
ISBN: 9781259747984
Author: Doupnik, Timothy S., Finn, Mark T., Gotti, Giorgio
Publisher: Mcgraw-hill Education,
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Question
Chapter 1, Problem 2C
To determine
Explain the reasons because of which an investor might want to invest in an international growth fund.
To determine
Explain the risks associated with investment in an international growth fund, risks that are common to domestic and international funds and risks associated with international funds.
To determine
Explain the manner in which companies having a different auditing, accounting and financial reporting standards than that of domestic companies, impose a larger risk.
To determine
Analyze the region diversification of fund assets.
To determine
Analyze the country diversification of fund assets.
To determine
Analyze the sector diversification of fund assets.
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a. The performance of the fund over the past 1-year period from the 14th of September 2020 to
the 13th of September 2021 is presented in the figure below. Based on the figure and given
information, which of the following best describes the type of fund TFX: open-end active
fund, index fund, close-end fund, or exchange traded fund (ETF). Please explain your
answers.
Value of Fund's shares
25.00
20.00
15.00
10.00
5.00
0.00
14/09/2020
23/11/2020
Fund TLW Performance
-NAV
-Share Price
5/02/2021
20/04/2021
30/06/2021
Date
Over the past 1-year period, this fund had a portfolio turnover ratio of 10%.
10/09/2021
●
Following results were obtained for the period of six months ending
September 2022.
Birla
Sundaram
Sun
Nifty
Rf
Rp
25.38
36.28
45.56
36.74
9.00
Sigma
4.0
6.86
4.31
3.69
Beta
0.23
0.52
0.63
1.00
Using inputs, rank the funds according to the predictive ability of the
fund's manager.
JPMorgan Diversified Fund (JDVSX) is an investment that seeks to provide a high return from a diversified portfolio of equities and fixed-income investments. Drawing on a variety of analytical tools, the fund's adviser allocates assets from various types of equities and fixed income investments, based on the following allocation model: 30%-75% U.S. equity securities, including small, medium and large-cap securities; 25%-50% U.S. and foreign fixed income securities; and 0%-30% foreign equity securities. According to JPMorgan Funds statistics report data as of 31st December 2015, the fund strategic benchmark distributions were as follows:
Strategic distribution
U.S Equities
45%
International Equities
20%
Fixed Income
35%
- Describe the risks of this type of funds, and explain the differences in risk between this institution and Microsoft.
Instructions:
1) Assume that the value of the fund is $ 100 million.
2) You should calculate the…
Chapter 1 Solutions
International Accounting
Ch. 1 - Prob. 1QCh. 1 - 2. What accounting issues arise for a company as a...Ch. 1 - 3. Why might a company be interested in investing...Ch. 1 - 4. How important is foreign direct investment to...Ch. 1 - 5. What financial reporting issues arise as a...Ch. 1 - 6. What taxation issues arise as a result of...Ch. 1 - Prob. 7QCh. 1 - 8. Why might a company want its stock listed on a...Ch. 1 - 9. Where might one find information that could be...Ch. 1 - Prob. 10Q
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