Which of the Following Statements Is NOT True

question 4

Multiple Choice

Which of the following statements is NOT true?

• A) International diversification benefits induce investors to demand foreign securities.
• B) An international security adds value to a portfolio if it reduces risk without reducing return.
• C) Investors will demand a security that adds value.
• D) All of the above are true.

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Definitions:

Price Fixing

An illegal agreement between competitors to fix prices at a certain level, rather than letting them fluctuate naturally with market forces.

Market Arrangements

Market arrangements refer to the structured organization and systems within which market transactions occur, including financial systems, trading systems, and legal frameworks.

Prisoner's Dilemma

A paradox in decision analysis in which two individuals acting in their own self-interest pursue a course of action that does not result in the ideal outcome.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players' strategies remain unchanged.