Since Security Returns Tend to Have Low Correlations Among Countries

question 81

Multiple Choice

Since security returns tend to have low correlations among countries,

• A)investors can reduce risk more effectively if they diversify their portfolio holdings internationally rather than purely domestically.
• B)investors who have a domestically diversified portfolio,with exposures across industry types will not gain much from diversifying abroad.
• C)investors who diversify internationally will likely underperform investors who keep all their investments in one country.
• D)none of the options

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Definitions:

Mesopotamia

An ancient region located in the eastern Mediterranean, broadly corresponding to present-day Iraq, northeastern Syria, southeastern Turkey, and parts of western Iran, known as the cradle of civilization.

Recordkeeping

The practice of maintaining and preserving records or documents detailing an organization's or individual's activities and transactions.

Bronze Metallurgy

The practice and knowledge involved in producing bronze, an alloy of copper and tin, used in tools, weapons, and sculptures in ancient times.

Warfare

The engagement in or activities associated with armed conflict between countries or groups.