Which of the Following Is NOT an Advantage of Domestic

question 59

Multiple Choice

Which of the following is NOT an advantage of domestic geographic diversification?

• A)Consumer convenience.
• B)Risk diversification.
• C)Efficiency of operations.
• D)Exploitation of economies of scale.
• E)Exploitation of monopoly power.

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Definitions:

Asset Allocation

The process of spreading investments among various categories of assets (e.g., stocks, bonds, real estate) to optimize risk and return.

Risk Tolerance

The degree of variability in investment returns that an investor is willing to withstand.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, including the balance sheet, income statement, and cash flow statement.

Expected Return

The mean of the probability distribution of possible returns for an investment, taking into account all known risks and opportunities.