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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