Including Foreign Investments in a Portfolio

question 59

Multiple Choice

Including foreign investments in a portfolio

• A) increases the overall risk of the portfolio.
• B) reduces the potential rate of return.
• C) provides potential benefits from changes in currency values.
• D) limits the diversification amongst industries.

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Definitions:

Corn Chips

A food product made from cornmeal, served as a snack or accompaniment, and can be relevant in discussions on consumer goods, manufacturing, and agricultural economics.

French Fries

Deep-fried potato strips, known for their crispy texture and often served as a side dish or snack, popularized in American and European cuisines.

Indifference Curve

A graph showing different bundles of goods, each measured as to quantity, between which a consumer is indifferent.

Slope

In mathematics, the measure of the steepness or incline of a line, typically defined as the ratio of the vertical change to the horizontal change.