Which of the Following Are Benefits of Diversification into Foreign

question 38

Multiple Choice

Which of the following are benefits of diversification into foreign securities?

• A)Diversification offers opportunities for higher returns than a single-country portfolio
• B)Diversification reduces portfolio volatility
• C)Returns between countries are not highly correlated
• D)All of the above

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Definitions:

Self-Understanding

The awareness or knowledge an individual has about themselves, including their strengths, weaknesses, thoughts, beliefs, motivation, and emotions.

Integrity

The quality of being honest and having strong moral principles.

Synthesizing Mind

The ability to integrate ideas from different sources into coherent understandings, often associated with creativity and critical thinking.

Gardner

A reference to Howard Gardner, an American developmental psychologist known for his theory of multiple intelligences.