The Addition of Foreign Securities to the Domestic Portfolio Opportunity

question 41

Multiple Choice

The addition of foreign securities to the domestic portfolio opportunity set shifts the efficient frontier:

• A)down and to the left.
• B)up and to the right.
• C)up and to the left.
• D)down and to the right.

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Definitions:

Domestic Goods

Are products and services that are produced within a country's borders, as opposed to imported goods from other countries.

Federal Revenues

The income received by the federal government from taxes, fees, and other sources used to fund government operations and programs.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.

Import Quota

A government-imposed limit on the quantity or monetary value of a certain good that can be imported into the country.