If the Addition of a Foreign Security to the Portfolio

question 73

True/False

If the addition of a foreign security to the portfolio of the investor aids in the reduction of risk for a given level of return, then the security adds value to the portfolio.

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Definitions:

Surplus

A situation where the quantity of a product or service supplied exceeds the quantity demanded at the current price.

Binding Price Floor

An enforced price limit by authorities that prevents prices from falling below a certain level, causing excess supply.

Surplus

A situation where the quantity supplied of a good exceeds the quantity demanded, often leading to a decrease in prices.

Market

A market is a venue where buyers and sellers meet to exchange goods, services, or financial instruments. It can be physical or virtual.