With Regard to the OIP

question 52

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 above

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Definitions:

Reliability

The degree to which the result of a measurement, calculation, or specification can be depended on to be accurate.

Causal Relationships

Connections between variables where a change in one variable directly causes a change in another.

Cross-lagged

A statistical technique used in time series analysis to determine the relationship between variables at different points in time.