Define the Following Terms

question 36

Short Answer

Define the following terms
-discrete variables

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Definitions:

Expected Return

The anticipated return on an investment, based on historical data or probability analysis, over a specific period.

Effective International Diversification

A strategy of investing across various countries and asset classes to reduce risk and potentially enhance returns.

Foreign Stocks

Shares of companies based outside the investor's home country, offering diversification benefits in a portfolio.

Currency Exposure

Refers to the risk of loss from fluctuations in exchange rates that can affect an investor's or company's investments, assets, and liabilities.