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QUESTION

0 Equity Risk Premiums Aswath Damodaran Stern School of Business I would like to thank the World Bank, the University of Maryland...

Please see attachment and answer the following questions:

  1. 1.  What is the implication of this data, i.e. which country has the highest default rate, and which country has the highest country risk premium?  Why?
  2. 2.  If you are an investor interested in Global Equity Portfolio, which two, or three countries will you choose?  Why? What's the weight (by percentage) you are going to allocate to each country's stock?
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