Investors in Segmented Markets Will Bear a Lower Level of Risk

question 55

True/False

Investors in segmented markets will bear a lower level of risk by holding a disproportionately large share of their investments in their local market as opposed to the level of risk if they invested in a globally diversified portfolio.

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Definitions:

Disinhibition

Disinhibition is a reduction in restraint or inhibition which can lead to impulsive actions that may seem out of character under normal circumstances.

Embarrassing Things

Incidents or actions that cause a person to feel awkward, ashamed, or humiliated.

Age-Regressed

A condition or a therapeutic technique where an individual experiences thoughts, behaviors, or feelings as if they are at a younger stage of their life.

Vivid

Producing clear, detailed, and intense images in the mind or being strikingly bright or intense in appearance or color.