Considering the Risk of a Foreign Investment, a Higher Risk

question 21

True/False

considering the risk of a foreign investment, a higher risk might arise from exchange rate risk and political risk while lower risk might result from international diversification.

---

Definitions:

Purchase Price

The amount of money paid or agreed to be paid by the buyer to acquire a good or service from the seller.

Treasury Stock

Stock that has been repurchased by the issuing company, reducing the amount of outstanding stock on the open market.

Sales Price

The amount of money charged for a product or service, or the sum received upon the sale of a product or service.

Paid-In Capital

Funds received from investors in exchange for shares of the company's stock, representing equity financing as opposed to debt.