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:

Wages

Payments made to workers for their labor, usually based on hours worked or output produced, and a fundamental component of employment contracts.

Equilibrium Wage

The wage rate at which the quantity of labor demanded by employers equals the quantity of labor supplied by workers, resulting in labor market equilibrium.

Labor

Human mental and physical contributions employed in the manufacturing of goods and services.

Marginal Product

The extra production obtained when one additional unit of a specific input is used, while all other inputs stay unchanged.