Question 4: Diversification across industry sectors with a single market and across multiple economies should result in higher levels of diversification benefits. a) The table (on the next page) provides the top ten holding and industry weighting for the indexes from three markets - US, UK and Japan. Using the information from this table, explain if investing in a capitalisation-weighted market index fund results in a well-diversified portfolio for that market? b) For a portfolio that allocates a third across each market by investing in the market index fund, explain if this portfolio is now be better diversified, than each single market portfolios? Question 4: Diversification across industry sectors with a single market and across multiple economies should result in higher levels of diversification benefits. a) The table (on the next page) provides the top ten holding and industry weighting for the indexes from three markets - US, UK and Japan. Using the information from this table, explain if investing in a capitalisation-weighted market index fund results in a well-diversified portfolio for that market? b) For a portfolio that allocates a third across each market by investing in the market index fund, explain if this portfolio is now be better diversified, than each single market portfolios