Which One of the Following Statements About Foreign Investments Is

question 14

Multiple Choice

Which one of the following statements about foreign investments is true?

• A) In general, major foreign markets always tend to underperform the U.S. market.
• B) Investing in foreign markets may involve specific risks not encountered with domestic securities.
• C) Investing in foreign markets will always produce higher returns because of exchange rate fluctuations.
• D) Foreign markets include equity securities only.

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Definitions:

Ethical Principles

Principles that guide behavior and decisions based on ideas of right and wrong.

Formal Statement

An official, written expression of a fact, opinion, or policy, often used in legal, professional, or academic contexts.

Corruption

The abuse of entrusted power for private gain, manifesting in various forms such as bribery, embezzlement, and nepotism, negatively affecting the efficiency and fairness of public and private sectors.

Economic Espionage

The illegal and covert activity of obtaining confidential economic information or trade secrets from competitors for competitive advantage.