By Combining Foreign Securities with Domestic Securities, Investors Increase Their

question 45

True/False

By combining foreign securities with domestic securities, investors increase their portfolio risk because foreign securities are more volatile than United States securities.

---

Definitions:

Markup

The amount added to the cost price of goods to cover overhead and profit, expressed as a percentage of the cost.

Gross Profit

The financial gain obtained after subtracting the cost of goods sold from the total revenue.

Net Profit

The amount of money remaining after all operating expenses, interest, taxes, and dividends have been deducted from total revenue.

Zone Price

The price based on geographic location or zone of customers.