An Internationally Diversified Portfolio

question 40

Multiple Choice

An internationally diversified portfolio:

• A) should result in a portfolio with a lower beta than a purely domestic portfolio.
• B) has the same overall risk shape as a purely domestic portfolio.
• C) is only about 12% as risky as the typical individual stock.
• D) all of the above

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Definitions:

Olfaction

The sense of smell, a chemical sense that detects odors or scents through sensory organs in the nose.

Alveolar Process

Part of the jawbone that contains the sockets (alveoli) for teeth.

Crista Galli

A vertical projection of the ethmoid bone in the skull, serving as the point of attachment for membranes dividing the nasal cavity.

Supraorbital Foramen

An opening or notch in the frontal bone of the skull, above the eye orbit, through which the supraorbital nerve and vessels pass.