In Some Respects, Internationally Diversified Portfolios Are the Same in Principle

question 50

Multiple Choice

In some respects, internationally diversified portfolios are the same in principle as a domestic portfolio because:

• A) the investor is attempting to combine assets that are perfectly correlated.
• B) investors are trying to reduce systematic risk.
• C) investors are trying to reduce the total risk of the portfolio.
• D) all of the above

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Definitions:

Information Search

The process that consumers undertake to gather and evaluate information about products and services that will satisfy a need or want.

Product Knowledge

Understanding and information regarding a product’s features, benefits, usage, and application.

Evoked Set

The group of brands or products an individual considers as options in a purchase decision.

Inept Set

A group of products or brands a consumer is aware of but deliberately chooses to avoid.