In Some Respects, Internationally Diversified Portfolios Are Different from a Domestic

question 53

Multiple Choice

In some respects, internationally diversified portfolios are different from a domestic portfolio because:

• A) investors may also acquire foreign exchange risk.
• B) international portfolio diversification increases expected return but does not decrease risk.
• C) investors must leave the country to acquire foreign securities.
• D) all of the above

---

Definitions:

Work-life Balance

Refers to the equilibrium between professional work and other aspects of life, emphasizing the importance of prioritizing both career and personal life.

Tax Shelters

Investment strategies or financial arrangements used to minimize or defer tax liabilities legally.

Airbnb

An online marketplace and hospitality service that allows people to lease or rent short-term lodging, including homes, apartments, and rooms, facilitating unique travel experiences.

Bureaucratic Control

The use of formal systems of rules, structures, job descriptions, and merit systems to create routine employee behavior that is less subject to the arbitrary whims of supervisors.