With Regard to the OIP

question 13

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 of a particular country, whether or not they hedge their risk with currency futures contracts.
• D)none of the above

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Definitions:

Risk of Loss

The potential that an asset or investment will decrease in value or become worthless, also refers to the responsibility for damage or loss of goods in commerce.

Conformed

The action of making one thing compatible with another, often referring to the modification of documents to match certain standards or requirements.

Common Law

A body of law based on judicial decisions and precedents, rather than statutes, applicable in jurisdictions that follow the English legal tradition.

Technical Title

The formal ownership of property, often documented and recognized by law, regardless of the actual use or possession.