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:

Constraints

Limitations or restrictions in a process, system, or project that can impact performance, timing, or results.

Locomotive Works

Industrial facilities specialized in the construction and maintenance of locomotives and other railway rolling stock.

Labour Hours

measures the amount of work performed by employees, typically expressed in hours, and is often used to track productivity or allocate labor costs.

Milling Machine

A machine tool used to machine solid materials, typically by cutting, boring, drilling, or threading.