Why Is Investing in Foreign Companies an Effective Way to Diversity

question 11

Multiple Choice

Why is investing in foreign companies an effective way to diversity an individual's investment portfolio?

• A)Foreign economies are stronger than the U.S.economy.
• B)Foreign stocks are less risky than the stocks of U.S.corporations.
• C)Stock returns of companies in foreign companies are highly correlated with stock returns of U.S.companies.
• D)Returns on foreign company stocks do not always change in the same direction as returns on U.S.stocks.

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Definitions:

Hypnosis

A therapeutic technique or state of concentration and focused attention designed to heighten suggestibility and receptiveness to direction, often used for behavior modification.

Role Playing

A method or technique used in training and therapy that involves acting out roles or situations to improve skills or understand perspectives.

Problem-focused

A coping strategy that involves directly addressing the cause of stress in a practical way.

Memory Consolidation

The process by which short-term memories are transformed into long-term memories, making them more stable and durable over time.