A Large Part of the Historical Returns That a U

question 4

Multiple Choice

A large part of the historical returns that a U.S. investor could have earned by investing in foreign stocks during the 1970 - 2005 period was due to

• A)the higher betas of the foreign stocks.
• B)the diversification that the foreign stocks provided to the U.S. investor's portfolio.
• C)the lower tax rates on foreign dividends.
• D)the depreciation of the U.S. dollar relative to other currencies.

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Definitions:

Goodwill

The benefit or value that an entity has built up over time, often reflecting in customer loyalty, brand reputation, or business relationships.

Concise

Expressing much in few words; clear and succinct.

Barest Essentials

The most basic and fundamental components or requirements needed for something.

Goodwill

The intangible asset that arises as a result of the acquisition of one company by another for a premium value, representing factors like reputation, brand, and customer relations.