The International Diversification of a Portfolio

question 11

Multiple Choice

The international diversification of a portfolio

• A)results in lower diversifiable risk of the portfolio.
• B)decreases the currency risk component of the portfolio.
• C)reduces the systematic risk component of the portfolio.
• D)none of the above.

Explain the concepts of divergent and convergent thinking and their relevance to intelligence.

Understand the concept of adolescent identity development according to James Marcia.

Recognize the role of expectations and self-concept in influencing adolescent behavior and self-esteem.

Comprehend the difference between self-concept and self-esteem and their contributing factors in adolescence.

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Definitions:

Wage-Base Limitation

A wage-base limitation refers to the maximum amount of earnings that is taxed for certain social services, such as Social Security, beyond which earnings are no longer subject to the tax.

Regressive

A term typically used to describe a tax system where the tax rate decreases as the taxable amount increases, placing a heavier burden on lower-income individuals.

Wages and Salary

Compensation received by employees for their labor, typically paid as hourly wages or annual salaries.

Taxed

Taxed refers to the imposition of financial charges or other levies upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.