The Easiest Way to Invest in Foreign Stock Is to Purchase

question 12

Multiple Choice

The easiest way to invest in foreign stock is to purchase

• A)the stock directly from an over sea's broker.
• B)the stock directly from your regular broker.
• C)the stock directly over the Internet.
• D)international mutual funds.
• E)American Depository Receipts.

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Definitions:

Market Risk Premium

The additional return an investor demands for taking on the risk of investing in the stock market over a risk-free rate.

Beta

A measure of the volatility, or systematic risk, of a security or portfolio compared to the entire market.

Portfolio P

This term typically represents a specific set of investments held by an individual or organization, potentially including stocks, bonds, and other assets.

Required Return

The minimum return an investor expects to achieve by investing in a particular asset, taking into account its risk level.