QUESTION 1. [(2 + 2 +1+1) + (2 + 2) = 10 Marks] A. Sarah, an Australian investor whose portfolio only includes Australian assets (Cash, Australian fixed interest, Australian listed shares and Australian property) is considering adding international equities in her portfolio State: I. two advantages of investing in international or foreign equities; II. two risks associated with investing in international or foreign equities; III. one foreign country in which you would recommend a share investment now, and why: and IV. one foreign country in which you would not recommend a share investment now, and why. ANSWER. B. In August, 2021, in Australia, Qantas Ltd and Flight Centre Ltd (an airline and a holiday booking company) both announced substantial financial losses for the financial year, 2020-21. Yet on the day of these announcements, the share prices of each company rose by between 3% and 5%. Give two possible reasons for these share price rises