An American investor wants to invest in a diversified portfolio of Japanese stocks but can invest only a rather small sum. The investor also worries about fiscal and transaction cost considerations. Why would futures contracts on the Nikkei index be an attractive alternative?

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The Answer of An American investor wants to invest in a diversified portfolio of Japanese stocks but can invest only a rather small sum. The investor also worries about fiscal and transaction cost considerations. Why would futures contracts on the Nikkei index be an attractive alternative?

An American Investor Wants to Invest in a Diversified Portfolio