Which of the Following Statements Is True of International Diversification

question 42

Multiple Choice

Which of the following statements is true of international diversification?

• A)International diversification is more beneficial to an investor because he/she can trade at any time of the day.
• B)Greater diversification benefits arise from holding a portfolio of shares in companies from countries with stable governments,rather than from emerging countries with greater political risk.
• C)Holding a portfolio of shares traded on foreign exchanges increases the likelihood that the correlation between the shares is lower because of the larger number of assets that an investor can choose from.
• D)Greater diversification benefits arise from holding a portfolio of shares in companies from countries with stable governments,rather than from emerging countries with greater political risk and holding a portfolio of shares traded on foreign exchanges increases the likelihood that the correlation between the shares is lower because of the larger number of assets that an investor can choose from.

Analyze the implications of specific doctrines and legal rules on corporate management and operations.

Understand the process and requirements for corporate formations and dissolution.

Appreciate the nuances of corporate financing and securities law.

Grasp the concept of limited liability and its impact on shareholders and directors.

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Definitions:

Reminder Advertising

A marketing strategy employed to keep a brand or product in the public's mind, reminding previous and potential customers of its existence.

Cause-Related Marketing

Commercial activity in which businesses and charities form a partnership to market an image, a product, or a service for their mutual benefit; a type of promotional campaign.

Reminder Advertising

Advertising aimed at keeping the brand name in front of consumers, without necessarily aiming for immediate sales.

Puffery

The legal exaggeration of praise, stopping just short of deception, lavished on a product.