Adding Japanese, Australian, and Italian Stocks to a U

question 52

Multiple Choice

Adding Japanese, Australian, and Italian stocks to a U.S. stock portfolio _____ the portfolio risk because the global portfolio reflects only worldwide _____.

• A) reduces; systematic factors
• B) increases; systematic factors
• C) does not change; correlation
• D) reduces; risk
• E) increases; risk

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Definitions:

Ethnographic Research

A qualitative research method focused on studying cultures and communities through direct observation, participation, and immersion.

Field Study Research

A research method involving the collection of data outside of a laboratory setting, in the natural environment where phenomena of interest occur.

Spurious

Lacking authenticity or validity in essence or origin; not genuine, false.

Association

A connection or cooperative link between people, organizations, or concepts.