Diversifying Among Stocks Based in Countries Outside the United States

question 55

Multiple Choice

Diversifying among stocks based in countries outside the United States

• A) makes your portfolio less vulnerable to conditions in the United States.
• B) is too expensive to use as a means of diversification.
• C) makes your portfolio's returns less volatile because foreign stocks are less volatile than U.S. stocks.
• D) is too risky for individual investors to consider.

---

Definitions:

Outsourced

Refers to having contracted a third-party organization to handle certain business functions or services outside the company.

Predictable

Having a nature or behavior that can be anticipated or expected based on certain indications or patterns.

Fully Or Partly Automated

Systems or processes that are operated either entirely or partially by machines or software to reduce human intervention.

Complexity And Need For Confidentiality

Refers to the intricate nature of certain information or processes and the essential requirement to keep such information protected and undisclosed.