Adding Foreign Stocks and Bonds to a U

question 35

Multiple Choice

Adding foreign stocks and bonds to a U.S. portfolio will almost certainly _____the risk of the portfolio and can possibly _____ its average return.

• A) reduce; increase
• B) increase; reduce
• C) increase; increase
• D) decrease; decrease
• E) not change; decrease

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Definitions:

Bioecological Theory

A framework for understanding human development that considers the complex interactions between individuals and their varying environments, proposed by Urie Bronfenbrenner.

Russian Dolls

A set of wooden dolls of decreasing size placed one inside another, often used metaphorically to represent complex layers of personality or nested structures.

Nested

Objects or concepts placed inside one another, often referring to data structures in programming or hierarchical ordering in systems.

Abraham Maslow

An American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority.