Raoul Is an Illiterate Who Does Not Have Proper Skills

question 70

Multiple Choice

Raoul is an illiterate who does not have proper skills for any job. As a result, he is unable to find permanent employment. As a last resort, Raoul starts a diner in his home to earn a regular income for his family. In the given scenario, Raoul most likely started the diner because it offered _____.

• A) greater flexibility
• B) a challenge
• C) a chance of survival
• D) independence

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Definitions:

Portfolio Risk

The potential for loss due to the variability of returns from the various securities in a portfolio.

Expected Return

The anticipated return on an investment, based on historical data or probability analysis, over a specific period.

Effective International Diversification

A strategy of investing across various countries and asset classes to reduce risk and potentially enhance returns.

Foreign Stocks

Shares of companies based outside the investor's home country, offering diversification benefits in a portfolio.