Which of the Following Is Not True of Global and International

question 85

Multiple Choice

Which of the following is not true of global and international bond funds?

• A) They may be subject to interest rate risk.
• B) They may be subject to exchange rate risk.
• C) Their expenses may be higher than those of domestic bond funds.
• D) They are especially attractive to investors in high tax bracket.

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Definitions:

Planning Fallacy

The optimistic cognitive bias that leads individuals or teams to underestimate the time, costs, and risks of future actions, while overestimating the benefits.

Overconfidence Effect

A cognitive bias where people overestimate their own abilities, knowledge, or predictions.

Behavioral Economics

A branch of economics concerned with understanding how the economic behaviors of individuals and institutions are impacted by factors like psychology, cognition, emotions, culture, and society.

Hindsight Bias

A psychological phenomenon where people believe they could have predicted an event after it has already occurred.