Adding Foreign Stocks That Are Riskier Than the Portfolio Average

question 46

True/False

Adding foreign stocks that are riskier than the portfolio average will always increase the risk of the portfolio.

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Definitions:

Brown v. Board

A landmark Supreme Court case in 1954 that declared state laws establishing separate public schools for black and white students to be unconstitutional.

Supreme Court

The highest judicial body in a country, typically having the final word in legal disputes and the authority to interpret the constitution.

Equal Protection Clause

A provision in the Fourteenth Amendment to the United States Constitution stating that no state shall deny to any person within its jurisdiction "the equal protection of the laws."

Fourteenth Amendment

An amendment to the U.S. Constitution granting citizenship to all persons born or naturalized in the United States, including former slaves, and guaranteeing all citizens equal protection under the law.