Including Foreign Investments in a Portfolio

question 84

Multiple Choice

Including foreign investments in a portfolio

• A) decreases the overall diversification of the portfolio.
• B) reduces the potential rate of return.
• C) provides potential benefits from changes in currency values.
• D) limits the diversification amongst industries.

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Definitions:

Income Tax Liability

The amount of tax owed to the government for earnings made during a fiscal period.

Operating Income

The profit earned from a firm's core business operations, excluding deductions of interest and tax.

Tax Rate

The percentage at which an individual or corporation is taxed.

Connecting Affiliations

Relationships or linkages between entities or organizations that facilitate communication, cooperation, or coordination.