With Regard to the OIP

question 45

Multiple Choice

With regard to the OIP,

• A)the composition of the optimal international portfolio is identical for all investors,regardless of home country.
• B)the OIP has more return and less risk for all investors,regardless of home country.
• C)the composition of the optimal international portfolio is identical for all investors,regardless of home country,if they hedge their risk with currency futures contracts.
• D)none of the options

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Definitions:

Extrusive Rock

Igneous rock that forms on the Earth's surface as lava cools and solidifies.

Igneous Rock

Stone created by magma or lava hardening as it cools.

Viscosity

A measure of a fluid's resistance to flow, where fluids with high viscosity flow more slowly than those with low viscosity.

Crystal Content

The proportion of crystals within a rock, influencing its texture and appearance, particularly relevant in the study of igneous rocks.