In Some Respects, Internationally Diversified Portfolios Are Different from a Domestic

question 53

Multiple Choice

In some respects, internationally diversified portfolios are different from a domestic portfolio because:

• A) investors may also acquire foreign exchange risk.
• B) international portfolio diversification increases expected return but does not decrease risk.
• C) investors must leave the country to acquire foreign securities.
• D) all of the above

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Definitions:

Poisson Distribution

A probability theory used to predict the likelihood of various events happening over a specified period, assuming the events are rare and independent.

Customers Arrive

Describes the action or process of clients or consumers coming to a place of business or service, initiating the demand for transactions or services.