Which of the Following Does NOT Constitute a Benefit to the Investor

question 50

Multiple Choice

Which of the following does NOT constitute a benefit to the investor of diversifying internationally?

• A) the relatively low degree of correlation between the world's stock markets
• B) the increase in the expected return from an internationally diversified investment
• C) a lower total level of nondiversifiable risk
• D) All of the above are benefits of international diversification.

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Definitions:

Ackerman Arms

Components of the steering mechanism that help achieve different turning radii for the inner and outer wheels, improving cornering.

Pitman Arm

A steering linkage arm that connects a steering gear to a drag link. A Pitman arm is usually splined to the steering gear sector shaft. In a typical steering gear, the Pitman arm converts the rotary motion of the sector shaft into linear motion at the drag link plus adds leverage.

Steering Control Arm

The steering control arm is a vital component of the steering system, connecting the steering knuckle to the vehicle's frame or body, thus allowing for effective steering wheel control over the vehicle's direction.

Drag Link

A connecting linkage between the steering gear Pitman arm and the steering control arm. It is sometimes adjustable.