The Performance of an Internationally-Diversified Portfolio May Be Affected by

question 44

Multiple Choice

The performance of an internationally-diversified portfolio may be affected by

• A)country selection.
• B)currency selection.
• C)stock selection.
• D)All of the options are correct.

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Definitions:

Allocative Inefficiency

A situation where resources are not distributed optimally, resulting in lost potential for producing welfare or value.

Marginal Cost

The cost incurred by producing one more unit of a good or service.

Marginal Benefit

The added utility or joy gained by consuming an extra unit of a product or service.

Isometric

Pertaining to exercises or muscle actions where the muscle length does not change during contraction, often used for strength training.