Including Foreign Investments in a Portfolio

question 59

Multiple Choice

Including foreign investments in a portfolio

• A) increases the overall risk 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:

Null Hypothesis

A statement that assumes no effect or no difference in a statistical hypothesis test.

Intervention Group

The group in an experimental study that receives the treatment or intervention being tested, as opposed to a control group.

Study Group

A collection of individuals brought together to participate in a research study or to collectively study a particular subject.

Null Hypothesis

A statement used in statistics that proposes there is no significant difference or relationship between specified populations, any observed difference being due to sampling or experimental error.