Which of the Following Statements Concerning Asset Allocation Is false

question 69

Multiple Choice

Which of the following statements concerning asset allocation is false?

• A) Diversification across international boundaries can improve risk-adjusted portfolio returns.
• B) Economies expected to grow at an above-average rate with above-average profit growth should be considered as candidates to overweight in a global portfolio.
• C) Severe currency blockages should not impact global diversification selections.
• D) Portfolio allocation among asset classes may provide higher portfolio returns while lowering portfolio risk levels.
• E) None of the above (that is, all statements are true).

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Definitions:

Elastic Demand

A state in which the quantity demanded of a product is highly responsive to changes in its price.

Accountant Wages

The compensation, including salary and benefits, paid to accountants for their professional services.

Demand Shift

A change in the quantity demanded at every price point, caused by factors other than the price of the good or service.