Adding International Investments to an All U

question 27

Multiple Choice

Adding international investments to an all U.S.portfolio will most likely:

• A) Increase the overall risk of the portfolio
• B) Decrease the overall risk of the portfolio
• C) Increase the expected return of the portfolio
• D) Decrease the expected return of the portfolio
• E) None of the above

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Definitions:

Meganational Strategy

A business approach that involves operating on a global scale, effectively managing and integrating operations across multiple national borders.

Local Human Capital

The skills, knowledge, and experience possessed by an individual or population, considered in terms of their value or cost to a local area or organization.

Subsidiary Human Capital

Refers to the skills, knowledge, and abilities of the employees working in a subsidiary of a larger company.

Differentiated Needs

Distinct and specific requirements of customers or markets that businesses aim to fulfill with customized products or services.