Which of the Following Is Not a Potential Explanation for the Home

question 18

Multiple Choice

Which of the following is not a potential explanation for the home bias in portfolio holdings?

• A) Domestic portfolios allow for hedging inflation risk.
• B) Legal and institutional restrictions.
• C) Taxes and transaction/information costs.
• D) Higher rate of return on domestic stocks.

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Definitions:

Newspaper Advertising

Newspaper advertising entails placing advertisements in newspapers to promote products, services, job vacancies, or other messages to a broad audience.

Qualified Job Applicants

Individuals who meet the specific criteria and qualifications necessary for a job opening.

Salary Bumping

A process where an employee’s pay is increased, often due to a promotion, union agreement, or internal pay policy.

Salary Inequities

Differences in pay between employees that cannot be attributed to differences in job performance, experience, or responsibilities, often linked to bias or discrimination.